BILL NUMBER: AB 549	CHAPTERED  10/10/99

	CHAPTER   825
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 8, 1999
	PASSED THE SENATE   SEPTEMBER 9, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 9, 1999
	AMENDED IN SENATE   SEPTEMBER 7, 1999
	AMENDED IN SENATE   SEPTEMBER 3, 1999
	AMENDED IN SENATE   AUGUST 16, 1999
	AMENDED IN SENATE   JULY 1, 1999

INTRODUCED BY   Assembly Member Gallegos

                        FEBRUARY 18, 1999

   An act to add Article 1.5 (commencing with Section 129048) to
Chapter 1 of Part 6 of Division 107 of the Health and Safety Code,
relating to health.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 549, Gallegos.  Hospital mortgage insurance.
   Existing law establishes various programs to assist hospitals with
the cost of construction projects.
   This bill would, in conformance with legislative findings, permit
the Office of Statewide Health Planning and Development, at the
request of a hospital, to commission an independent study of market
need and feasibility, as required for participation in federal
mortgage insurance programs.  The costs of a study would be paid for
by the requesting hospital.


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


  SECTION 1.  Article 1.5 (commencing with Section 129048) is added
to Chapter 1 of Part 6 of Division 107 of the Health and Safety Code,
to read:

      Article 1.5.  Hospital Construction Assistance

   129048.  The Legislature finds and declares all of the following:

   (a) The State of California has a compelling interest in ensuring
that adequate health facilities that are able to withstand seismic
events are available to care for patients, especially in the event of
a disaster.
   (b) Hospitals are required, under the Alfred E. Alquist Hospital
Facilities Seismic Safety Act of 1983 (Chapter 1 (commencing with
Section 129675) of Part 7), to improve, or remove from acute care
service, buildings that pose a significant safety risk of collapse
and danger to the public by January 1, 2008.
   (c) Hospitals are also required by that act to repair, rebuild, or
remove from service, buildings that may not be repairable or
functional following strong ground motion, by January 1, 2030.
   (d) California hospitals should be enabled to participate in
programs that provide financial assistance for hospital construction
and retrofitting.
   (e) The United States Department of Housing and Urban Development
operates a HUD 242 loan insurance program, through which hospitals
can access facility mortgage insurance and lower interest rates.
   (f) As a condition for participating in the HUD 242 program, a
hospital must have a state-commissioned or conducted feasibility
study of a hospital construction project.
   129049.  (a) The office may, at the request of a hospital,
commission an independent study of market need and feasibility, as
required by the United States Department of Housing and Urban
Development, as part of an application for mortgage insurance for
hospitals pursuant to Section 1715z-7 of Title 12 of the United
States Code, or any other federal mortgage insurance program for
health-related facilities.
   (b) The cost of the feasibility study permitted pursuant to
subdivision (a) shall be paid for by the office from reimbursements
received from the applicant.
   (c) Notwithstanding any other provision of law, the office may
directly retain independent feasibility consultants and require a
deposit from the applicant for the entire cost of the services at the
time they are requested.
   (d) The office shall charge applicants a fee for the reasonable
costs of administering this article.
   (e) The program provided for in this article shall be administered
in conformance with the requirements of the United States Department
of Housing and Urban Development for feasibility studies authorized
by this section and the applicable requirements of state law
pertaining to contracts.