BILL ANALYSIS Ó
SENATE GOVERNANCE & FINANCE COMMITTEE
Senator Lois Wolk, Chair
BILL NO: SB 1463 HEARING: 4/24/14
AUTHOR: Committee on G&F FISCAL: Yes
VERSION: 3/13/14 TAX LEVY: No
CONSULTANT: Grinnell
CALIFORNIA HEALTH FACILITY FINANCING AUTHORITY
Makes technical, clarifying changes to CHFFA's authorizing
act and bond statutes.
Background and Existing Law
Housed in the State Treasurer's Office, the California
Health Facilities Financing Authority (CHHFA) grants
financial assistance in the form of loans, conduit bond
issuance, and other financial assistance such as equipment
financing to public and non-profit hospitals. Bonds pay
for construction/renovation projects, land acquisition for
future projects, acquisition of existing health facilities,
refinancing of existing debt, and provide working capital
for start-up facilities.
CHFFA served as the issuer for $30.7 billion in conduit
revenue bonds, $1.5 billion in 2013. Sutter Health, Kaiser
Permanente, and Catholic Healthcare West are the largest
users of the program. CHFFA's Board includes:
State Treasurer, who serves as chair,
The State Controller,
The Director of Finance,
Two members appointed by the Senate Rules
Committee, one member of which must be a licensed
physician and surgeon, and the other must serve or
have served in an executive capacity to a health
facility,
Two members appointed by the Speaker of the
Assembly, one member must be a person qualified by
training and experience in the field of investment or
finance, and the other representative of the general
public,
Two members appointed by the Governor subject to
confirmation by the Senate, to represent the general
public.
SB 1463 (Committee on G&F) - 3/13/14 -- Page 2
Currently, CHFFA has the authority to receive loans from
and to issue loans to participating health institutions to
finance projects or refinance debt. However, several
sections in CHFFA's Act require minor grammatical
modifications according to a recent review of CHFFA's
statute performed by the Office of the Attorney General.
Proposed Law
Senate Bill 1463 makes several technical, clarifying
changes to CHFFA's authorizing act, and provisions
authorizing conduit bond issuance, such as:
Replaces "any" with "a,"
Clarifies references to apply to both "bonds" and
"revenue bonds,"
Distinguishes between negotiable and revenue bonds,
Allows CHFFA to include in the bond with the same
effect any provision currently in a trust agreement,
indenture, or resolution, and
Other grammatical and conforming changes.
State Revenue Impact
No estimate.
Comments
1. Purpose of the bill . SB 1463 makes technical,
noncontroversial changes to CHHFA's authorizing act, and
statutes allowing for conduit bond issuance. The bill is a
consensus project: should anyone object to any provision of
the bill, it's removed.
Support and Opposition (4/21/14)
Support : State Treasurer Bill Lockyer.
Opposition : None received.
SB 1463 (Committee on G&F) - 3/13/14 -- Page 3