BILL NUMBER: AB 2546 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 15, 2014
AMENDED IN ASSEMBLY APRIL 29, 2014
AMENDED IN ASSEMBLY MARCH 28, 2014
INTRODUCED BY Assembly Member Salas
FEBRUARY 21, 2014
An act to add Chapter 5.5 (commencing with Section 101852) to Part
4 of Division 101 of the Health and Safety Code, relating to public
health.
LEGISLATIVE COUNSEL'S DIGEST
AB 2546, as amended, Salas. Kern County Hospital Authority.
Existing law authorizes the board of supervisors of certain
counties to establish a hospital authority for the management,
administration, and control of certain medical facilities.
This bill would authorize the board of supervisors of the County
of Kern to establish, by ordinance, the Kern County Hospital
Authority to manage, administer, and control the Kern Medical Center
and other health care facilities, as defined. The bill would prohibit
establishing the hospital authority until the medical center
affiliates or consolidates with at least one other health care
facility, as specified. The bill would grant to the authority the
duties, privileges, immunities, rights, liabilities, and limitations
of a local unit of government within the state. The bill would
specify that the transfer to the authority of the management,
administration, and control of the medical center and another health
facility does not affect the eligibility of the county or the
governing board of another health care facility for, but authorizes
the authority to participate in and receive, various sources of
funding, as specified, including various Medi-Cal programs.
This bill would provide various protections for the benefits of
the permanent employees of the medical center, subject to certain
conditions, and would authorize the authority to contract with the
Public Employees' Retirement System, as specified.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Chapter 5.5 (commencing with Section 101852) is added
to Part 4 of Division 101 of the Health and Safety Code, to read:
CHAPTER 5.5. KERN COUNTY HOSPITAL AUTHORITY
Article 1. General Provisions
101852. (a) This chapter shall be known and may be cited as the
Kern County Hospital Authority Act.
(b) The Legislature finds and declares all of the following:
(1) Kern Medical Center, currently a constituent department of the
County of Kern, is a designated public hospital, as defined in
subdivision (d) of Section 14166.1 of the Welfare and Institutions
Code, and a critical component of the state's health care safety net.
(2) Because there is no general law under which this public
hospital authority could be formed for these purposes, the adoption
of a special act and formation of a special authority by the
Legislature are required.
101852.1. For purposes of this chapter, the following definitions
shall apply:
(a) "Authority" means the Kern County Hospital Authority
established pursuant to this chapter.
(b) "Board of supervisors" means the Board of Supervisors of the
County of Kern.
(c) "Board of trustees" means the governing body of the authority.
(d) "County" means the County of Kern.
(e) "Governing board" means the governing body of any other health
care facility, as defined in subdivision (g).
(f) "Medical center" means the Kern Medical Center and related
public health care programs, facilities, care organizations, and
delivery systems that exist or are established by the board of
trustees.
(g) "Other health care facility" or "other health care facilities"
means one or more health care facilities, districts, or systems in
the County of Kern, including, but not limited to, general acute care
hospitals, public hospital districts, and related health care
programs, facilities, care organizations, and delivery systems, but
does not include the medical center.
Article 2. Establishment of the Kern County Hospital Authority
101852.2. (a) Pursuant to this chapter, the board of supervisors
may establish, subject to the limitations of paragraph (1) of
subdivision (c), the Kern County Hospital Authority, which is, for
all purposes, a public entity separate and apart from the county and
any other public entity. The authority established pursuant to this
chapter shall file the statement required by Section 53051 of the
Government Code, and is a public entity for purposes of Division 3.6
(commencing with Section 810) of Title 1 of the Government Code.
(b) (1) The purpose of the authority shall be to do all of the
following:
(A) Provide management, administration, and other controls,
consistent with this chapter, for the medical center to continue to
serve as a designated public hospital and ensure the viability of the
health care safety net in the county in a manner consistent with the
county's requirements under Section 17000 of the Welfare and
Institutions Code.
(B) Provide management, administration, and other controls for the
continued operation of one or more other health care facilities that
may be affiliated or consolidated with the medical center pursuant
to this chapter.
(2) Subject to the requirements of this chapter, the authority
shall be charged with the management, administration, and control of
the medical center, other health care facilities, and related
services and facilities.
(c) (1) Except as specifically set forth in this chapter, the
authority shall not be established, transact business, exercise
powers, or undertake duties and responsibilities pursuant to this
chapter until an agreement is reached to affiliate or consolidate the
medical center with at least one other health care facility as set
forth in this subdivision. In order for the authority to be
established, transact any business, exercise its powers, or undertake
its duties and responsibilities, the board of supervisors and at
least one governing board shall reach agreement, on terms and
conditions satisfactory to the parties, regarding the affiliation or
consolidation. This agreement may include, but is not limited to, a
transfer of the following:
(A) Real and personal property and assets and liabilities from the
county and the other health care facility to the authority.
(B) Employees from the county and the other health care facility
to the authority.
(C) Maintenance, operation, and management or ownership of the
medical center, in accordance with Section 14000.2 of the Welfare and
Institutions Code.
(D) Maintenance, operation, and management or ownership of the
other health care facility.
(E) Other matters that the board of supervisors and the governing
board deem necessary or appropriate.
(2) If the board of supervisors and the governing board reach an
agreement on the matters set forth in this subdivision, the terms and
conditions of the agreement shall be binding upon the authority.
After the agreement is reached, the board of supervisors shall adopt
an ordinance to establish the authority and authorize the authority
to exercise the powers and duties pursuant to this chapter, and the
board of supervisors and the governing board shall appoint a board of
trustees as set forth in Section 101852.4. The agreement set forth
in this section may be amended from time to time upon the mutual
consent of the authority and the governing board or the board of
supervisors, or both, as appropriate.
(3) (A) The agreement shall provide that upon the effective date
of the ordinance described in paragraph (2), the authority shall
take any actions necessary so that the county has no
continuing financial obligation or responsibility with respect to the
authority or its operations. do all of the following:
(i) Take title to all assets associated with the medical center,
including, but not limited to, all real and personal property, funded
pension assets, and accounts receivable.
(ii) Assume, or immediately extinguish, defense, or satisfy, all
obligations and liabilities directly or indirectly associated with
the medical center, including, but not limited to, related or
associated debt, accounts payable, accrued liabilities, unfunded
pension liabilities, or financial or contractual obligations of any
kind.
(iii) Take any other actions necessary so that the continuing
financial obligation or responsibility with respect to the authority
or its operations is not disrupted.
(B) The authority's funds shall not remain or be kept on deposit
with the county, or otherwise be in the custody or control of the
county, and the authority shall not be permitted to
deposit funds with the county, including within the county'
s treasury investment pool.
(d) An agreement concerning the transfer of personnel shall
include a transition plan that requires all the following:
(1) Ongoing communication to employees and recognized employee
organizations regarding the impact of the transition on existing
medical center and other health care facility employees and employee
classifications.
(2) Meeting and conferring by the county and the other health care
facility with affected employee bargaining units on both of the
following issues:
(A) A timeframe for which the transfer of personnel shall occur.
(B) A specified period of time during which employees of the
county affected by the establishment of the authority may elect to be
considered for appointment to vacant positions, and exercise
reinstatement rights, for which they are qualified and eligible. An
employee who first elects to remain with the county, but who
subsequently seeks employment with the authority within 30 days of
this election, shall be subject to the requirements of this article.
(3) Acknowledgment that the authority, to the extent permitted by
federal law, shall be bound by the terms of any memoranda of
understanding executed between the county and its exclusive employee
representatives that is or will be in effect as of the date the
county adopts the ordinance pursuant to this article. Subsequent
memoranda of understanding are subject to approval only by the
authority.
(e) (1) Notwithstanding any other provision of this chapter, and
whether or not accompanied by a change in licensing, an agreement for
the maintenance, operation, and management or ownership of the
medical center does not relieve the county of the ultimate
responsibility for indigent care pursuant to Section 14000.2 of the
Welfare and Institutions Code.
(2) An agreement for the maintenance, operation, and management or
ownership of the medical center shall conform to the following
requirements:
(A) Shall comply with Section 14000.2 of the Welfare and
Institutions Code.
(B) May be made upon the terms and conditions that the board of
supervisors and governing board may mutually agree, including those
terms and conditions found necessary by the board of supervisors to
ensure that the transfer of the medical center shall constitute an
ongoing benefit to the county and its residents.
(C) Shall provide that the county shall ensure that any applicable
requirements of Section 1442.5 are met.
(3) An agreement for the maintenance, operation, and management or
ownership of the other health care facility may be made upon the
terms and conditions that the board of supervisors and the governing
board may mutually agree, including those terms and conditions found
necessary by the governing board to ensure that the transfer shall
constitute an ongoing benefit to the other health care facility and
its constituents.
(f) The authority is not subject to the jurisdiction of a local
agency formation commission pursuant to the Cortese-Knox-Hertzberg
Local Government Reorganization Act of 2000 (Division 3 (commencing
with Section 56000) of Title 5 of the Government Code), or any
successor statute.
101852.3. Upon an agreement between the authority and each
affected employee bargaining unit:
(a) Permanent employees of the medical center on the effective
date of affiliation shall be deemed qualified for employment or
retention and no other qualifications shall be required. Probationary
employees on the effective date of affiliation shall retain their
probationary status and rights and shall not be deemed to have
transferred so as to require serving a new probationary period.
(b) Employment seniority of an employee of the medical center on
the effective date of affiliation shall be counted toward seniority
in the authority. The authority shall provide for the maintenance of
benefits that accompany seniority, including, but not limited to,
preference in vacations and scheduling, when applicable. All time
served in the same, equivalent, or higher classification shall be
counted toward classification seniority.
(c) The implementation of this chapter shall not be a cause for
the modification of the level of medical center employment benefits.
Upon consolidation or affiliation of the medical center with at least
one other health care facility, employees who serve or work for the
medical center immediately prior to the implementation of this
chapter shall retain their existing or equivalent classifications and
job descriptions upon transfer to the authority, comparable pension
benefits, and at least their existing salaries and other benefits
that include, but are not limited to, accrued and unused vacation,
sick leave, personal leave, health care, retiree health benefits, and
deferred compensation plans.
(d) To the extent permitted by federal law, the authority may
contract with the Public Employees' Retirement System, consistent
with the requirements of Section 20508 and other applicable
provisions of Part 3 (commencing with Section 20000) of Division 5 of
Title 2 of the Government Code, for the purpose of providing
membership in the Public Employees' Retirement System for authority
employees. If the authority contracts with the Public Employees'
Retirement System, the authority, to the extent permitted by federal
law, shall provide for the continued membership of medical center
employees in the Public Employees' Retirement System. If permitted
under federal law, the authority and the employees' exclusive
representatives may mutually agree to terminate any contract that the
authority enters into with the Public Employees' Retirement System,
and mutually agree to an alternative pension plan.
(e) Transfer of functions from county employee classifications to
authority employees established pursuant to this article shall result
in the recognition by the hospital authority of the exclusive
representative of the classifications performing those functions at
the time of transfer.
(f) In order to stabilize labor and employment relations and
provide continuity of care and services to the people of the county,
and notwithstanding any other law, the authority shall do both of the
following for 24 months after the term end date of a medical center
memorandum of understanding in existence when the county establishes
the authority:
(1) Continue to recognize each exclusive representative of each
bargaining unit.
(2) Roll over and continue to be bound by any existing medical
center memorandum of understanding or agreement covering the terms
and conditions of employment.
(e)
(g) Except as provided in the transfer agreement
described in subdivision (d) of Section 101852.2, subdivision (m) of
Section 101852.5, and this section, this chapter does not prohibit
the authority from determining the number of employees, the number of
full-time equivalent positions, job descriptions, the nature and
extent of classified employment positions, and salaries of employees.
Article 3. Board of Trustees
101852.4. (a) The authority shall be governed by a board of
trustees. The trustees shall reflect both the expertise necessary to
maximize the quality and scope of care at the medical center and the
other health care facility in a fiscally responsible manner and the
communities of interest that the medical center and the other health
care facility serve. The board of trustees shall have the
responsibility to operate the medical center and the other health
care facility in a manner that ensures the provision of appropriate,
quality, and cost-effective medical care through the development of
innovative delivery systems, care arrangements, and contractual
agreements that provide access to affordable, high-quality health
care services.
(b) (1) The board of trustees shall consist of the following nine
members:
(A) Three trustees appointed for two-year terms, of which the
governing board shall appoint two and the board of supervisors shall
appoint one.
(B) Three trustees appointed for three-year terms, of which the
governing board shall appoint one and the board of supervisors shall
appoint two.
(C) Three trustees appointed for four-year terms, of which the
governing board shall appoint one and the board of supervisors shall
appoint two.
(2) After the board of trustees is appointed, the governing board
and board of supervisors shall continue to make appointments to those
trustee positions for which they each made initial appointments. The
board of supervisors and the governing board may each remove their
respective appointees, upon a majority vote, only for good cause. If
the governing board ceases to exist at any time, the appointing
authority set forth in this subdivision shall be exercised solely by
the board of supervisors. If a vacancy exists for any reason on the
board of trustees, the appointing authority for that trustee shall
make an appointment to fill out the remainder of the term of the
vacant trustee position.
(3) Notwithstanding paragraphs (1) and (2), either during or after
the formation of the authority, the board of supervisors and each
governing board that has appointing authority may modify the number,
length of terms, and appointing authority of the board of trustees by
means of the agreement entered into pursuant to subdivision (c) of
Section 101852.2 or amendment to the agreement, or both, by the
county and the governing board that participated in the formation of
the authority, if in existence after this formation, and the
governing board of any other health care facility that becomes
affiliated or merged with the authority, if the following conditions
are met:
(A) The board of trustees consists of at least five members.
(B) The board of trustees includes appointees of the board of
supervisors and each existing governing board. If no governing board
exists, the board of trustees and the board of supervisors, acting as
the appointing authority pursuant to paragraph (2), may agree to
modify the number or length of terms of the board of trustees.
(c) The board of trustees shall adopt bylaws for the authority
that, among other things, shall specify the officers of the board of
trustees, the time, place, and conduct of meetings, and other matters
that the board of trustees deems necessary or appropriate to conduct
the authority's activities. The bylaws shall be operative upon
approval by a majority vote of the board of trustees, but may be
amended, from time to time, by a majority vote of the board of
trustees.
(d) The board of trustees created and appointed pursuant to this
chapter is a duly constituted governing body of a general acute care
hospital.
Article 4. Powers and Duties of the Authority
101852.5. (a) The authority, in addition to any other powers
granted to the authority pursuant to this chapter, shall have the
following powers:
(1) To have the duties, privileges, immunities, rights,
liabilities, and limitations of a local unit of government within the
state.
(2) To have perpetual existence.
(3) To adopt, have, and use a seal, and to alter it at its
pleasure.
(4) To sue and be sued in the name of the authority in all actions
and proceedings in all courts and tribunals of competent
jurisdiction.
(5) To purchase, lease, trade, exchange, or otherwise acquire,
maintain, hold, improve, mortgage, lease, sell, and dispose of real
and personal property of any kind necessary or convenient to perform
its functions and fully exercise its powers.
(6) To appoint and employ a chief executive officer and other
officers and employees that may be necessary or appropriate,
including legal counsel, to establish their compensation, provide for
their health, retirement, and other employment benefits, and to
define the power and duties of officers and employees.
(7) To pursue its own credit rating.
(8) To enter into a contract or agreement consistent with this
chapter or the laws of this state, and to authorize the chief
executive officer to enter into contracts, execute all instruments,
and do all things necessary or convenient in the exercise of the
powers granted in this chapter.
(9) To purchase supplies, equipment, materials, property, and
services.
(10) To establish policies relating to its purposes.
(11) To acquire or contract to acquire, rights-of-way, easements,
privileges, and property, and to construct, equip, maintain, and
operate any and all works or improvements wherever located that are
necessary, convenient, or proper to carry out any of the provisions,
objects, or purposes of this chapter, and to complete, extend, add
to, repair, or otherwise improve any works or improvements acquired
by it.
(12) To contract for and to accept gifts, grants, and loans of
funds, property, or other aid in any form from the federal
government, the state, a state agency, or other source, or
combination thereof, and to comply, subject to this chapter, with the
terms and conditions thereof.
(13) To invest surplus money in its own treasury, manage
investments, and engage third-party investment managers, in
accordance with state law.
(14) To arrange for guarantees or insurance of its bonds, notes,
or other obligations by the federal or state government or by a
private insurer, and to pay the premiums thereof.
(15) To engage in managed care contracting, joint ventures,
affiliations with other health care facilities, other health care
providers and payers, management agreements, or to participate in
alliances, purchasing consortia, health insurance pools, accountable
care organizations, alternative delivery systems, or other
cooperative arrangements, with any public or private entity.
(16) To enter into joint powers agreements pursuant to Chapter 5
(commencing with Section 6500) of Division 7 of Title 1 of the
Government Code.
(17) To establish nonprofit, for profit, or other entities
necessary to carry out the duties of the authority.
(18) To elect to transfer funds to the state and incur certified
public expenditures in support of the Medi-Cal program and other
programs for which federal financial participation is available.
(19) To use a computerized management information system,
including an electronic health records system, in connection with the
administration of its facilities.
(20) To contract with the county for the provision of indigent
care services on behalf of the county. The contract shall specify
that county policies consistent with the county's obligations under
Section 17000 of the Welfare and Institutions Code shall be
applicable. Notwithstanding any other provision of this chapter, the
authority shall not undertake any of the county's obligations under
Section 17000 of the Welfare and Institutions Code, nor shall the
authority have an entitlement to receive any revenue for the
discharge of the county's obligations, without a written agreement
with the county.
(21) To engage in other activities that may be in the best
interests of the authority and the persons served by the authority,
as determined by the board of trustees, in order to respond to
changes in the health care industry.
(b) The authority shall conform to the following requirements:
(1) Be a government entity separate and apart for all purposes
from the county and any other public entity, and shall not be
considered to be an agency, division, or department of the county or
any other public entity. The authority shall not be governed by, or
subject to, the policies or operational rules of the county or any
other public entity.
(2) Be subject to state and federal taxation laws that are
applicable to public entities generally, except that the authority
may, to the extent permitted by federal law, apply for an exemption
from social security taxation if there is a mutual agreement with the
exclusive representatives of the affected employees.
(3) Comply with the Meyers-Milias-Brown Act (Chapter 10
(commencing with Section 3500) of Division 4 of Title 1 of the
Government Code), the Public Records Act (Chapter 3.5 (commencing
with Section 6250) of Division 7 of Title 1 of the Government Code),
and the Ralph M. Brown Act (Chapter 10 (commencing with Section 3500)
of Division 4 of Title 1 of the Government Code).
(4) Carry professional and general liability insurance or programs
to the extent sufficient to cover its activities.
(5) Comply with the requirements of Sections 53260 and 53261 of
the Government Code.
(6) Meet all local, state, and federal data reporting
requirements.
(c) Open sessions of the authority shall constitute official
proceedings authorized by law within the meaning of Section 47 of the
Civil Code. The privileges set forth in that section with respect to
official proceedings shall apply to open sessions of the authority.
(d) The authority shall be a public agency for purposes of
eligibility with respect to grants and other funding and loan
guarantee programs. Contributions to the authority shall be tax
deductible to the extent permitted by state and federal law.
Nonproprietary income of the authority shall be exempt from state
income taxation.
(e) The authority shall not be a "person" subject to suit under
the Cartwright Act (Chapter 2 (commencing with Section 16700) of Part
2 of Division 7 of the Business and Professions Code).
(f) The statutory authority of a board of supervisors to prescribe
rules that authorize a county hospital to integrate its services
with those of other providers into a system of community service that
offers free choice of hospitals to those requiring hospital care, as
set forth in Section 14000.2 of the Welfare and Institutions Code,
shall apply to the authority and the board of trustees.
(g) Unless otherwise agreed to by the authority and the board of
supervisors, or the authority and a governing board, an obligation of
the authority, statutory, contractual, or otherwise, shall be the
obligation solely of the authority and shall not be the obligation of
the county or any other entity, and any contract executed by and
between the county and the authority, or any other entity and the
authority, shall contain a provision that liabilities or obligations
of the authority with respect to its activities pursuant to the
contract shall be the liabilities or obligations of the authority and
shall not be or become the liabilities or obligations of the county
or the other entity, respectively.
(h) An obligation of the authority, statutory, contractual, or
otherwise, shall be the obligation solely of the authority and shall
not be the obligation of the state.
(i) In the event of a change of license ownership, the board of
trustees shall comply with the obligations of governing bodies of
general acute care hospitals generally as set forth in Section 70701
of Title 22 of the California Code of Regulations, as currently
written or subsequently amended, as well as the terms and conditions
of the license. The authority shall be the responsible party with
respect to compliance with these obligations, terms, and conditions.
(j) (1) Provisions of the Evidence Code, the Government Code,
including the Public Records Act (Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1 of the Government Code), the
Civil Code, the Business and Professions Code, and other applicable
law pertaining to the confidentiality of peer review activities of
peer review bodies shall apply to the peer review activities of the
authority. Peer review proceedings shall constitute an official
proceeding authorized by law within the meaning of Section 47 of the
Civil Code and those privileges set forth in that section with
respect to official proceedings shall apply to peer review
proceedings of the authority. If the authority is required by law or
contractual
obligation to submit to the state or federal government peer review
information or information relevant to the credentialing of a
participating provider, that submission shall not constitute a waiver
of confidentiality. The laws pertaining to the confidentiality of
peer review activities shall be together construed as extending, to
the extent permitted by law, the maximum degree of protection of
confidentiality.
(2) Notwithstanding any other law, Section 1461 shall apply to
hearings on reports of hospital medical audit or quality assurance
committees.
(k) (1) Transfer by the county to the authority, or by the
governing board to the authority, of the maintenance, operation, and
management or ownership of the medical center or the other health
care facility, respectively, whether or not the transfer includes the
surrendering by the county or the governing board of an existing
general acute care hospital license and corresponding application for
a change of ownership of the license, shall not affect the
eligibility of the county or the governing board to undertake, and
shall authorize the authority, subject to applicable requirements, to
do, any of the following:
(A) With the written consent of the county, participate in and
receive allocations pursuant to the California Health Care for
Indigents Program pursuant to Chapter 5 (commencing with Section
16940) of Part 4.7 of Division 9 of the Welfare and Institutions
Code, or similar programs, as may be identified or earmarked by the
county for indigent health care services of the type provided by the
medical center.
(B) With the written consent of the county, participate in and
receive allocations of local revenue fund amounts provided pursuant
to Chapter 6 (commencing with Section 17600) of Part 5 of Division 9
of the Welfare and Institutions Code as may be identified or
earmarked by the county for indigent health care services of the type
provided by the medical center.
(C) Participate in the financing of, and receive, Medicaid
disproportionate share hospital payments available to a county
hospital or designated public hospital, or any other successor or
modified payment or funding that is intended to assist hospitals that
serve a disproportionate share of low-income patients with special
needs. The allocation of Medicaid disproportionate share hospital
payments shall be made in consultation with the State Department of
Health Care Services and other designated safety net hospitals.
(D) Participate in the financing of, and receive, Medi-Cal
supplemental reimbursements, including, but not limited to, payments
made pursuant to Sections 14105.96, 14105.965, 14166.4, and 14182.15
of the Welfare and Institutions Code, payments described in paragraph
(4) of subdivision (b) of Section 14301.4 of the Welfare and
Institutions Code, and payments made available to a county provider
or designated public hospital, or governmental entity with which it
is affiliated, under any other successor or modified Medicaid payment
system.
(E) Participate in the financing of, and receive, safety net care
pool funding, stabilization funding, delivery system reform incentive
pool payments, and any other funding available to a county provider
or designated public hospital, or governmental entities with which it
is affiliated under the Medicaid demonstration project authorized
pursuant to Article 5.2 (commencing with Section 14166) and Article
5.4 (commencing with Section 14180) of Chapter 7 of Part 3 of
Division 9 of the Welfare and Institutions Code, or under any other
successor or modified Medicaid demonstration project or Medicaid
payment system. The allocation of safety net care pool funds shall be
made in consultation with the State Department of Health Care
Services and other designated safety net hospitals.
(F) Participate in the financing, administration, and provision of
services under the Low Income Health Program authorized pursuant to
Part 3.6 (commencing with Section 15909) of Division 9 of the Welfare
and Institutions Code, or under any other successor or modified
Medicaid demonstration project or Medicaid payment system if the
authority enters into an agreement with the county concerning the
provision of services by, and payment for these services to, the
county.
(G) Participate in and receive direct grant and payment
allocations pursuant to Article 5.228 (commencing with Section
14169.1) of Chapter 7 of Part 3 of Division 9 of the Welfare and
Institutions Code, or under any other successor or modified direct
grant and payment systems funded by hospital or other provider fee
assessments.
(H) Receive Medi-Cal capital supplements pursuant to Section
14085.5 of the Welfare and Institutions Code. Notwithstanding any
other law, supplemental payments shall be made to the medical center
under Section 14085.5 of the Welfare and Institutions Code for the
debt service costs incurred by the county, and, if applicable, by the
authority to the extent that debt service responsibility is
refinanced, transferred to, or otherwise assumed by, directly or
indirectly, the authority.
(I) Receive any other funds that would otherwise be available to a
county provider or designated public hospital, or governmental
entity with which it is affiliated.
(2) A transfer described in paragraph (1) shall not otherwise
disqualify the county or the governing board, or in the case of a
change in license ownership, the authority, from participating in any
of the following:
(A) Local, state, and federal funding sources either specific to
county or district hospitals, county or district ambulatory care
clinics, designated public hospitals, or government entities with
which they are affiliated, for which there are special provisions
specific to those hospitals, ambulatory care clinics, or government
entities.
(B) Funding programs in which the county or the governing board,
by themselves or on behalf of the medical center or the other health
care facility, respectively, had participated prior to the creation
of the authority, or would otherwise be qualified to participate in
had the authority not been created, and the maintenance, operation,
and management or ownership of the medical center and the other
health care facility not been transferred by the county and the
governing board to the authority pursuant to this chapter.
(l) The authority, the county, and the governing board, or any
combination thereof, may engage in marketing, advertising, and
promotion of the medical and health care services made available to
the community by the authority.
(m) The board of trustees shall have authority over procurement
and contracts for the authority. The board of trustees shall adopt
written rules, regulations, and procedures with regard to these
functions. Contracts by and between the authority and a public
agency, and contracts by and between the authority and providers of
health care, goods, or services, may be let on a nonbid basis and
shall be exempt from Chapter 2 (commencing with Section 10290) of
Part 2 of Division 2 of the Public Contract Code. Notwithstanding any
other provision of this section, the authority shall not subcontract
work performed by classifications represented by employee
organizations without mutual agreement between the authority and the
exclusive representatives, except that a subcontract entered into
prior to the formation of the authority may remain in effect until
its termination or completion and may be modified or renewed to a
later termination or completion date upon agreement between the
authority and the exclusive representatives of the affected
classifications.
(n) The authority shall be responsible for human resource
functions, including, but not limited to, position classification,
compensation, recruitment, selection, hiring, discipline,
termination, grievance, equal opportunity, performance management,
probationary periods, training, promotion, and maintenance of
records. The board of trustees shall adopt written rules,
regulations, and procedures with regard to these functions. Until the
time that the board of trustees adopts its own rules, regulations,
or procedures with regard to these functions, the existing rules,
regulations, and procedures set forth in any memorandum of
understanding described in paragraph (3) of subdivision (d) of
Section 101852.2 shall apply. If the memoranda do not provide for the
exercise of these functions, the rules, regulations, and procedures
of the county shall apply.
(o) The authority may contract with the county or the governing
board for services and personnel upon mutually agreeable terms.
(p) Notwithstanding Article 4.7 (commencing with Section 1125) of
Chapter 1 of Division 4 of Title 1 of the Government Code, related to
incompatible activities, a member of the authority's administrative
staff shall not be considered to be engaged in activities
inconsistent and incompatible with his or her duties as a result of
prior employment or affiliation with the county or the governing
board.
(q) The board of trustees and the officers and employees of the
authority are public employees for purposes of Division 3.6
(commencing with Section 810) of Title 1 of the Government Code,
relating to claims and actions against public entities and public
employees, and shall be protected by the immunities applicable to
public entities and public employees governed by Part 2 (commencing
with Section 814) of Division 3.6 of Title 1 of the Government Code,
except as provided by other statutes or regulations that apply
expressly to the authority.
(r) Except for Part 3 (commencing with Section 20000) of Division
5 of Title 2 of the Government Code, this chapter shall prevail over
any inconsistent statutes governing employees of the authority,
including, but not limited to, the Meyers-Milias-Brown Act (Chapter
10 (commencing with Section 3500) of Division 1 of Title 1 of the
Government Code).
101852.6. The board of trustees may find and declare that the
authority shall cease to exist. In that event, the board of trustees
shall provide for the disposition of the authority's assets,
obligations, and liabilities. Absent written agreement, the county
shall not be obligated under any law to assume the authority's
obligations or liabilities, or take title to, or custody or control
of, the authority's assets. Upon notification by the authority of the
disposition of the authority's assets and liabilities, the board of
supervisors shall rescind the ordinance that established the
authority, and the authority shall cease to exist on the date set
forth in the rescinding ordinance.