BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 315 (Monning) - Health care access demonstration project  
          grants.
          
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          |Version: May 5, 2015            |Policy Vote: HEALTH 8 - 1       |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: May 18, 2015      |Consultant: Brendan McCarthy    |
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          This bill meets the criteria for referral to the Suspense File.


          Bill  
          Summary:  SB 315 would authorize the California Health  
          Facilities Financing Authority to transfer up to $6.5 million to  
          a new account for the purpose of funding grants to improve  
          health care delivery systems or improve access to care by  
          vulnerable populations.


          Fiscal  
          Impact:  One-time transfer of $6.5 million to fund new grants  
          (California Health Facilities Financing Authority Fund).


          Background:  Under current law, the California Health Facilities Financing  
          Authority, housed within the State Treasurer's Office, is  
          authorized to provide loans to health care providers. The  
          Authority is able to issue tax-exempt bonds to fund those loans,  
          allowing it to make loans at below market interest rates. The  
          Authority makes loans for facility construction and equipment  







          SB 315 (Monning)                                       Page 1 of  
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          purchases. In 2014, the Authority issued $894,100,000 in bonds  
          to fund loans. 
          Previously, the Authority managed a grant program that was  
          funded using  administrative fees paid by borrowers (referred to  
          as the California Health Access Model Program). Pursuant to that  
          program, the Authority made a $1.4 million grant the San  
          Francisco Health Plan for a community-based care management  
          pilot project.




          Proposed Law:  
            SB 315 would authorize the California Health Facilities  
          Financing Authority to transfer up to $6.5 million to a new  
          account for the purpose of funding grants to improve health care  
          delivery systems or improve access to care by vulnerable  
          populations.
          Specific provisions of the bill would:
           Create a new account within the California Health Facilities  
            Financing Authority Fund to fund a new grant program;
           Specify that the monies in the new fund are to be used to fund  
            one or more projects to provide cost-effective methods of  
            delivering health care services or improve access to health  
            care for vulnerable populations or communities;
           Authorize the Authority to transfer up to $6.5 million from  
            the California Health Facilities Financing Authority Hospital  
            Equipment Loan Program Fund for the purposes of the bill;
           Revert any unspent portion of the transferred funds on January  
            1, 2023.


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