BILL ANALYSIS Ó
AB 2414
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Date of Hearing: May 4, 2016
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez, Chair
AB
2414 (Eduardo Garcia) - As Amended April 18, 2016
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Urgency: No State Mandated Local Program: YesReimbursable:
Yes
SUMMARY:
This bill authorizes the expansion of, and establishes an
annexation process for, the Desert Healthcare District
(District) outside of the usual process under LAFCO for district
annexations. Specifically, this bill:
1)Requires the Riverside County Board of Supervisors, by January
5, 2017, to submit to Riverside LAFCO a resolution of
application, and, upon direction of the commission, to place
approval of district expansion on the ballot at the next
countywide election following the completion of commission
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proceeding, including a public hearing.
2)Requires the expanded district to include all communities
currently served by the District and the communities of Indian
Wells, La Quinta, Indio, Coachella, and the unincorporated
area of Bermuda Dunes, Mecca, Thermal Oasis, North Shore, and
Vista Santa Rosa.
3)Specifies the Riverside LAFCO would not have the usual power
to disapprove the application nor would the resolution of
application be subject to any protest provision proceedings.
4)Requires Riverside LAFCO to complete its proceedings and
direct the required election no later than 150 days following
receipt of the completed resolution of application.
5)Requires the District to be expanded only if supported by a
majority of voters within the boundaries of the expanded
district and the number of voters required by existing law for
any necessary funding.
6)Requires, 30 days after the expansion of the district, the
five-member Board to appoint two new Board members who are
residents and registered voters in the area annexed to the
District.
FISCAL EFFECT:
1)Potentially reimbursable one-time mandate costs, likely in the
range of $15,000 to $50,000, for the County to file the
required application with LAFCO and conduct an election.
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2)Potentially reimbursable mandate costs to the District to
expand their Board by two members, should the annexation
process be successful. These costs are minor and it is
unlikely the District would file a reimbursement claim with
the Commission on State Mandates.
3)No fiscal impact to the Riverside LAFCO. The County would pay
the normal application fees that would cover the cost of
processing the proposal.
COMMENTS:
1)Purpose. According to the author, "Currently, there are
significant barriers preventing Eastern Coachella Valley
residents' access to health care providers and services. This
has been well-documented by numerous stakeholders in the
region. Some of the barriers include shortages in the number
of primary care providers, shortages in various medical and
surgical specialties, a lack of urgent care services, and a
lack of transportation. Solving the persistent barriers has
proven to be challenging. Even with expanded Medicaid or
commercial insurance coverage for eligible residents through
the Affordable Care Act, industry analysts remain concerned
that the number and capacity of providers will prove
inadequate to meet demand. Eastern Coachella Valley
stakeholders and I believe that expanding the current
healthcare district is best to address these persistent
needs."
2)Desert Healthcare District. The District was created in 1948
to provide healthcare services to residents in the Coachella
Valley within a 457 square mile area that includes Palm
Springs, Desert Hot Springs, Cathedral City, Thousand Palms,
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Rancho Mirage, Mountain Center, San Gorgonio, and the area of
Palm Desert west of Cook Street. The District built and began
operating Desert Hospital, which is now known as Desert
Regional Medical Center. Since 1986, the District's Board had
leased hospital operations to medical facility providers. In
1997, the Board voted to lease the hospital to Tenet Health
Systems for a 30-year period. The District continues to own
the lease while Tenant runs the operations of the 387-bed
acute care hospital.
According to the District, with an operating budget of roughly
$9 million, the District allocates more than $3 million each
year on grants and other programs. The District has adopted a
grant program to invest in non-profits and public agencies
whose activities and programs improve the health and wellbeing
of District residents. The District is funded by property tax
paid by the residents of the District, revenue for working
capital for the hospital in the event the lease with Tenet is
terminated, and rental income from the Las Palmas Medical
Plaza. The District is governed by a five-member Board
elected at-large.
3)Arguments in Support. The Borrego Community Health Foundation
argues, "The District has a long history of acknowledged
success in serving their residents. The District's leaders
are acutely aware of and are sympathetic to health disparities
in the East Coachella Valley and have collaborated with other
agencies to provide services within the limitation of their
fiduciary obligations to the District's residents. Expanding
the current District will take away their limitation to help
end the healthcare disparities that currently exist."
4)Arguments in Opposition. Riverside LAFCO argues, "Annexation
of the eastern Coachella Valley communities has been a topic
of discussion at times over the past two decades, but has not
been pursued, likely since no existing revenues would be
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available to fund services to the expanded area. Annexation
under the normal process could have been initiated at any time
and still can be. In addition to the elimination of virtually
all LAFCO discretionary authority, the timeframes set out in
the bill are unrealistic and carry unfunded mandates for local
agencies."
Analysis Prepared by:Jennifer Swenson / APPR. / (916)
319-2081