BILL NUMBER: AB 2471	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Quirk
   (Coauthor: Assembly Member Bonta)

                        FEBRUARY 19, 2016

   An act to amend Section 57103 of the Government Code, and to add
Chapter 8 (commencing with Section 32495) to Division 23 of the
Health and Safety Code, relating to health care districts.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2471, as introduced, Quirk. Health care districts: dissolution.

   Existing law, the Cortese-Knox-Hertzberg Local Government
Reorganization Act of 2000, provides the authority and procedures for
the initiation, conduct, and completion of changes of organization
and reorganization of cities and districts by local agency formation
commissions. Existing law establishes the procedures for the
dissolution of the existence of a district and sets forth provisions
for winding up the affairs of a dissolved district, as specified.
Existing law generally authorizes the dissolution of a district
without voter approval, except as specified. Notwithstanding those
provisions, existing law subjects the dissolution of a health care
district to voter approval.
   This bill would require a local agency formation commission to
order the dissolution of a health care district without an election
if the health care district meets certain criteria, as specified. The
bill would subject a dissolution under these provisions to the
provisions of the act for winding up the affairs of a dissolved
district.
   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.  Section 57103 of the Government Code is amended to
read:
   57103.  Any order in any resolution adopted by the commission on
or after January 1, 1986, ordering the dissolution of a local
hospital district, organized pursuant to Division 23 (commencing with
Section 32000) of the Health and Safety Code, is subject to
confirmation by the  voters.   voters, except as
set forth in Chapter 8 (commencing with Section 32495) of Division
23 of the Health and Safety Code. 
  SEC. 2.  Chapter 8 (commencing with Section 32495) is added to
Division 23 of the Health and Safety Code, to read:
      CHAPTER 8.  DISSOLUTION


   32495.  (a) A local agency formation commission shall order the
dissolution of a health care district without an election if the
health care district meets all of the following criteria:
   (1) The health care district does not currently receive a property
tax allocation.
   (2) The health care district has substantial net assets.
   (3) The health care district does not provide a direct health care
service.
   (b) If a local agency formation commission orders the dissolution
of a health care district pursuant to subdivision (a), the
dissolution shall be subject to the provisions for winding up the
affairs of a dissolved district, as set forth in Chapter 6
(commencing with Section 57450) of Part 5 of Division 3 of Title 5 of
the Government Code.
   (c) For purposes of this section:
   (1) "Direct health care service" means the ownership or operation
of a hospital, medical clinic, wellness center, or ambulance service.

   (2) "Local agency formation commission" means the commission in
whose sphere of influence, as defined in Section 56076 of the
Government Code, the health care district exists.