BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | SB 1463|
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CONSENT
Bill No: SB 1463
Author: Senate Governance and Finance Committee
Amended: As introduced
Vote: 21
SENATE GOVERNANCE & FINANCE COMMITTEE : 7-0, 4/24/14
AYES: Wolk, Knight, Beall, DeSaulnier, Hernandez, Liu, Walters
SENATE APPROPRIATIONS COMMITTEE : Senate Rule 28.8
SUBJECT : California Health Facilities Financing Authority
SOURCE : Author
DIGEST : This bill makes technical, clarifying changes to the
California Health Facilities Authority (CHFFA's) authorizing act
and bond statutes.
ANALYSIS : Housed in the State Treasurer's Office, the 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.
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
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CHFFA's Act require minor grammatical modifications according to
a recent review of CHFFA's statute performed by the Office of
the Attorney General.
This bill 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.
Background
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,
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Two members appointed by the Governor subject to confirmation
by the Senate, to represent the general public.
Comments
This bill makes technical, noncontroversial changes to CHHFA's
authorizing act, and statutes allowing for conduit bond
issuance. This bill is a consensus project: should anyone
object to any provision of the bill, it's removed.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
SUPPORT : (Verified 4/25/14)
State Treasurer Bill Lockyer
AB:d 5/6/14 Senate Floor Analyses
SUPPORT/OPPOSITION: SEE ABOVE
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