BILL ANALYSIS Ó
AB 1350
Page 1
ASSEMBLY THIRD READING
AB
1350 (Salas)
As Amended April 28, 2015
Majority vote
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|Committee |Votes |Ayes | |
| | | | |
| | | | |
|----------------+------+----------------------+--------------------|
|Local |9-0 |Maienschein, | |
|Government | |Gonzalez, Alejo, | |
| | |Chiu, Cooley, Gordon, | |
| | |Holden, Linder, | |
| | |Waldron | |
| | | | |
| | | | |
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SUMMARY: Makes changes to existing law which authorizes the Kern
County Board of Supervisors (Board of Supervisors) to establish
the Kern County Hospital Authority (Authority). Specifically,
this bill:
1)Makes a number of changes to existing law which authorizes the
Board of Supervisors to establish by ordinance the Authority and
to allow for the transfer of the county-run Kern Medical Center
(KMC) to the Authority.
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2)Defines "transfer of control of the medical center" to mean "the
transfer by Kern County (County) to the Authority of the
maintenance, operation, management, and personnel of the medical
center, whether by lease, transfer of ownership, or other means,
as provided by, and subject to, any conditions and limitations
specified by the Board of Supervisors in the enabling
ordinance."
3)Adds to the list of terms and conditions the Board of
Supervisors may include in the enabling ordinance to transfer
control to the Authority from the County, whether funds of the
Authority shall be deposited in the custody of, and paid out
solely through, the County's treasurer's office.
4)Changes the effective date from the date the County adopts the
enabling ordinance to transfer control to the Authority instead
to the actual date of the transfer of control to the Authority
in a number of provisions in existing law which require the
Authority to be bound by the terms of memoranda of understanding
between the County and its employee representatives and in
several other provisions that provide protections for employee
benefits.
5)Requires the Authority to be treated as a public employer that
offered a plan of replacement benefits prior to January 1, 2013.
Provides that the County's plan of replacement benefits that
was in effect prior to January 1, 2013, is deemed to be the
Authority's replacement plan for the sole purpose of allowing
the Authority to continue to offer the plan of replacement
benefits, immediately after the transfer for Kern County
Employees' Retirement Association members who meet specified
requirements.
6)Authorizes the Authority, if not otherwise required pursuant to
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the enabling ordinance to deposit its funds in the county
treasury, to establish its own treasury.
7)Provides that the powers granted to the Authority, pursuant to
existing law, may be subject to any terms, conditions, and
limitations imposed by the County's enabling ordinance.
8)Adds physicians and other provider types and coverage mechanisms
to the list of services, coverage, and programs that the
Authority has the same rights as the county with respect to
owning, operating, and providing.
9)Expands the County's authority to issue debt instruments, beyond
revenue anticipation notes, to provide by loan or otherwise
amounts necessary to the Authority to meets its operating and
capital needs.
10)Provides that existing law, which governs the Authority, shall
not be construed to limit the borrowing authority of the County.
11)Authorizes the Board of Supervisors, as applicable, to hold
meetings relating to the Authority's trade secrets, as
specified.
12)Authorizes the Board of Supervisors to contract for services or
purchase items on behalf
of the Authority.
13)Provides that the Authority's governing body as authority over
procurement and contracts, unless otherwise provided for and
subject to the limitations and conditions established in the
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enabling ordinance. Requires the Authority to adopt written
rules, regulations and procedures with regard to procurement and
contract functions.
14)Requires the Authority's ability to contract for personnel or
other services and items, as specified, to only be limited by
the provisions in this chapter and the Meyers-Milias-Brown Act.
15)Makes other technical and conforming changes.
16)Makes minor changes to the findings and declarations.
EXISTING LAW authorizes the Board of Supervisors to establish the
Authority, and specifies the Authority's governance, powers, and
procedures.
FISCAL EFFECT: None
COMMENTS:
1)Prior Legislation. Facing escalating costs, some county
hospitals have sought to restructure their governance or
affiliate with other hospitals in their areas. In these
instances, the Legislature has granted several counties the
ability to create health authorities, including Alameda [AB 2374
(Bates), Chapter 816, Statues of 1996], Monterey [AB 276
(Alejo), Chapter 686, Statutes of 2012], San Luis Obispo [SB 538
(O'Connell), Chapter 899, Statues of 1999], Santa Barbara, and
Sonoma (for dental).
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Most recently, the Legislature passed AB 2546 (Salas), Chapter
613, Statues of 2014, which authorized the Board of Supervisors
to establish a separate Authority to govern the KMC. AB 2546
contains several provisions to ensure that healthcare services
remain accessible to patients regardless of their ability to pay
and that the Authority, as a separate entity from the County,
will still continue to serve as a hospital. AB 2546 also
established requirements for the Authority upon the transfer of
KMC employees.
2)Bill Summary. This bill builds upon the authority granted to
the Kern County Board of Supervisors by AB 2546 to establish the
Authority and to transfer the medical center to the separate
Authority. This bill makes a number of changes to the laws
governing the transfer of KMC.
This bill is author-sponsored.
3)Author's Statement. According to the author, "KMC serves a
community of over 650,000 residents, including indigent
individuals with no other means of obtaining medical care. KMC
provides the only trauma care between Los Angeles and Fresno,
and is vital to training physicians through academic residency
and education programs.
"A hospital authority allows Kern County to benefit from the
cost savings that can be generated by operating under a separate
governance structure and provide opportunities for increased
flexibility, responsiveness, and innovation. The law
established extensive provisions intended to ensure the medical
center will continue to provide affordable, high-quality health
care services and that medical center employees will have a
seamless transition of wages, benefits, and contracts without
loss of rights or status. This bill contains technical and
clarifying changes to ensure the successful transfer of KMC to
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an Authority."
4)Arguments in Support. Supporters argue that this bill makes a
number of changes to provide for a smooth and equitable
transition of KMC to a hospital authority.
5)Arguments in Opposition. None on file.
Analysis Prepared by:
Misa Lennox / L. GOV. / (916) 319-3958 FN:
0000347