BILL NUMBER: AB 2276	CHAPTERED  09/28/00

	CHAPTER   801
	FILED WITH SECRETARY OF STATE   SEPTEMBER 28, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 28, 2000
	PASSED THE ASSEMBLY   AUGUST 30, 2000
	PASSED THE SENATE   AUGUST 29, 2000
	AMENDED IN SENATE   AUGUST 25, 2000
	AMENDED IN SENATE   AUGUST 18, 2000
	AMENDED IN SENATE   AUGUST 10, 2000
	AMENDED IN SENATE   JUNE 22, 2000
	AMENDED IN ASSEMBLY   MAY 26, 2000
	AMENDED IN ASSEMBLY   APRIL 13, 2000

INTRODUCED BY   Assembly Member Cedillo

                        FEBRUARY 24, 2000

   An act to add Section 5930 to the Corporations Code, relating to
health facilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2276, Cedillo.  Health facilities.
   Existing law provides for the regulation of nonprofit public
benefit corporations.
   This bill would require the Attorney General to prepare a plan for
an evaluation of whether additional standards for charitable care
and community benefits should be established for private,
not-for-profit corporations that operate or control a general acute
care hospital, as defined.  The Attorney General would be required to
submit the plan to the appropriate committees of the Legislature by
March 1, 2001.
   Existing law, the Cedillo-Alarcon Community Care Investment Act of
2000, which will take effect on January 1, 2001, authorizes the
California Health Facilities Financing Authority to award grants to
any eligible participating primary care clinic for purposes of
financing capital outlay projects and requires the authority to
develop selection criteria and a process for awarding these grants.
   This bill would authorize the authority to adopt emergency
regulations to implement that act.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 5930 is added to the Corporations Code, to
read:
   5930.  (a) The Attorney General shall prepare a plan for an
evaluation of whether additional standards for charitable care and
community benefits should be established for private, not-for-profit
corporations that operate or control a general acute care hospital as
defined in Section 1250 of the Health and Safety Code.
   (b) In preparing the plan, the Attorney General shall consult with
representatives of interested parties, including, but not limited
to, all of the following:
   (1) Health facility associations.
   (2) Physician organizations.
   (3) Consumer groups.
   (4) Health care employee organizations.
   (5) Community groups.
   (6) The Office of Statewide Health Planning and Development.
   (c) The plan shall provide for the evaluation of all of the
following:
   (1) The degree to which private, not-for-profit hospitals provide
charitable care and community benefits, including the nature of the
benefits, the definition of the community, and a comparison of the
cost of providing the benefit with the value of the benefits given to
the community.
   (2) The implications of the relationships among private
not-for-profit hospitals and affiliated entities, as defined in
Section 5031 of the Corporations Code, for purposes of determining
community benefits.
   (3) The role of the board of directors of private, not-for-profit
hospitals in ensuring benefit to the community.
   (d) The plan shall be submitted to the appropriate policy and
fiscal committees of the Legislature by March 1, 2001.
  SEC. 2.  The California Health Facilities Financing Authority may
adopt emergency regulations to implement the Cedillo-Alarcon
Community Clinic Investment Act of 2000, Section 15438.6 of the
Government Code, as emergency regulations in accordance with the
rulemaking provisions of the Administrative Procedure Act (Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code).  The adoption of any emergency regulation
pursuant to this section filed with the Office of Administrative Law
on or before July 1, 2001, shall be deemed to be an emergency and
necessary for the immediate preservation of the public peace, health
and safety, or general welfare.  Notwithstanding subdivision (e) of
Section 11346.1 of the Government Code, any emergency regulation
adopted pursuant to this section shall remain in effect for no more
than 360 days.