Amended in Assembly March 17, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2737

Introduced by Assembly Member Bonta

February 19, 2016

An act to begin delete amend Section 32001 of the Health and Safety Code, relating to health care districts. end delete begin insert add Chapter 8 (commencing with Section 32495) to Division 23 of the Health and Safety Code, relating to health care districts. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2737, as amended, Bonta. begin delete Local health care districts: formation. end delete begin insert Nonprovider health care districts. end insert

begin insert

The Local Health Care District Law provides for local health care districts that govern certain health care facilities. Each health care district has specific duties and powers respecting the creation, administration, and maintenance of the districts, including the authority to purchase, receive, take, hold, lease, use, and enjoy property of every kind and description within and without the limits of the district.

end insert begin insert

This bill would require a nonprovider health care district, as defined, to spend at least 80% of its annual budget on community grants awarded to organizations that provide direct health services and not more than 20% of its annual budget on administrative expenses. By requiring a higher level of service from nonprovider health care districts, this bill would impose a state-mandated local program.

end insert begin insert

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert begin insert

This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.

end insert begin delete

Existing law, the Local Health Care District Law, regulates local health care districts and authorizes the health care districts to exercise specified powers, including purchasing and using property for the benefit of the district and exercising the power of eminent domain to acquire real or personal property necessary to the exercise of the district’s powers. Existing law authorizes a district to include incorporated or unincorporated territory, or both, or territory in one or more counties, subject to specified limitations.

end delete begin delete

This bill would make technical, nonsubstantive changes to those provisions.

end delete

Vote: majority. Appropriation: no. Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Chapter 8 (commencing with Section 32495) is
added to Division 23 of the end insert begin insert Health and Safety Code end insert begin insert , to read: end insert

begin insert

 

Chapter   begin insert 8. end insert Nonprovider Health Care Districts

 

begin insert 32495. end insert   

For the purposes of this chapter, the following
definitions shall apply:

(a) “Direct health service” means ownership or direct operation
of a hospital, medical clinic, ambulance service, transportation
program for seniors or persons with disabilities, a wellness center,
health education, or other similar service.

(b) “Nonprovider health care district” means a health care
district that meets all of the following criteria:

(1) The district does not provide direct health care services to
consumers.

(2) The district has not received an allocation of real property
taxes in the past three years.

(3) The district has assets of twenty million dollars
($20,000,000) or more.

(4) The district is not located in a rural area that is typically
underserved for health care services.

(5) In two or more consecutive years, the amount the district
has dedicated to community grants has amounted to less than twice
the total administrative costs and overhead not directly associated
with revenue-generating enterprises.

begin insert 32496. end insert   

(a) A nonprovider health care district shall not spend
more than 20 percent of its annual budget on administrative
expenses.

(b) A nonprovider health care district shall spend at least 80
percent of its annual budget on community grants awarded to
organizations that provide direct health services.

end insert

begin insert

begin insert SEC. 2. end insert   

end insert begin insert

If the Commission on State Mandates determines that
this act contains costs mandated by the state, reimbursement to
local agencies and school districts for those costs shall be made
pursuant to Part 7 (commencing with Section 17500) of Division
4 of Title 2 of the Government Code.

end insert

begin delete

SECTION 1.  

Section 32001 of the Health and Safety Code is
amended to read:

32001.  

A local hospital district may be organized, incorporated,
and managed, as provided in this division, and may exercise the
powers herein granted or necessarily implied. The district may
include incorporated or unincorporated territory, or both, or
territory in one or more counties. The territory comprising the
district need not be contiguous, but the territory of a municipal
corporation shall not be divided; provided, that land either in a
municipal corporation or in unincorporated territory that the
supervising authority finds will not be benefited shall not be
included.

end delete