AB 2737, as amended, Bonta. Nonprovider health care districts.
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.
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, as defined. The bill would require a nonprovider health care district to pay any amount required to be paid in the district’s annual budget year by a final judgment, court order, or arbitration award before payment of those grants or administrative expenses, as specified. By requiring a higher level of service from nonprovider health care districts, this bill would impose a state-mandated local program.
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.
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.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: yes.
The people of the State of California do enact as follows:
Chapter 8 (commencing with Section 32495) is
2added to Division 23 of the Health and Safety Code, to read:
3
For the purposes of this chapter, the following
7definitions shall apply:
8(a) “Administrative expenses” means expenses relating to the
9general management of a health care district, such as accounting,
10budgeting, personnel, procurement,begin insert legal fees,end insert legislative advocacy
11services, public relations, salaries, benefits, rent, office supplies,
12or other miscellaneous overhead costs.
13(b) “Direct health service” means ownership or direct operation
14of a hospital, medical clinic, ambulance service, transportation
15program for seniors or persons
with disabilities, a wellness center,
16health education, or other similar service.
17(c) “Nonprovider health care district” means a health care district
18that meets all of the following criteria:
19(1) The district does not provide direct health care services to
20consumers.
21(2) The district has not received an allocation of real property
22taxes in the past three years.
23(3) The district has assets of twenty million dollars
24($20,000,000) or more.
P3 1(4) The district is not located in a rural area that is typically
2underserved for health care services.
3(5) In two or more consecutive years, the amount the district
4has dedicated to community grants has amounted to less than twice
5the total administrative costs and overhead not directly associated
6with revenue-generating enterprises.
(a) A nonprovider health care district shall not spend
8more than 20 percent of its annual budget on administrative
9expenses.
10(b) A nonprovider health care district shall spend at least 80
11percent of its annual budget on community grants awarded to
12organizations that provide direct health services.
Notwithstanding Section 32496, and prior to payment
14of any annual budget item described in Section 32496, a
15nonprovider health care district shall pay any amount required to
16be paid in the district’s annual budget year by a final judgment,
17court order, or arbitration award for which appeals have been
18exhausted or for which the period for appeal has expired,
19enforcement of which is not barred by the order of any court or
20by any statutory provision, and which has not been nullified or
21rendered void by any court order or statutory provision.
If the Commission on State Mandates determines that
23this act contains costs mandated by the state, reimbursement to
24local agencies and school districts for those costs shall be made
25pursuant to Part 7 (commencing with Section 17500) of Division
264 of Title 2 of the Government Code.
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