BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 1368
                                                                  Page  1

          Date of Hearing:   August 4, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

             SB 1368 (Committee on Health) - As Amended:   August 2, 2010

          Policy Committee:                             Health Vote:19-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This noncontroversial committee bill makes several minor  
          changes. Specifically, this bill:

          1)Authorizes the Office of Statewide Health Planning and  
            Development (OSHPD) to charge a portion of loan insurance  
            premium in advance, not to exceed $6 per year for each $1,000  
            of loan principal. Authorizes OSHPD to insure the refinancing  
            of a loan if the amount to be insured is not more than 90% of  
            the original construction costs. 

          2)Deletes obsolete references within the Access for Infants and  
            Mothers (AIM) and California Major Risk Medical Insurance  
            Program (MRMIP) to nonprofit hospital service plans. 

           FISCAL EFFECT  

          No direct fiscal impact.
           
           COMMENTS  

           1)Rationale  . This committee bill makes several minor changes in  
            the Health and Safety and Insurance Codes. 

           2)Cal-Mortgage  . The Health Facility Loan Insurance Program, also  
            known as Cal-Mortgage, was established in 1969 to provide loan  
            insurance for health facility construction, improvement, and  
            expansion. The program stimulates the flow of private capital  
            into health facility construction to improve access to health  
            care. Currently, the program insures 139 loans to non-profit  
            facilities worth about $1.2 billion. This bill makes two minor  
            changes to the Cal-Mortgage statutes to improve the  








                                                                  SB 1368
                                                                  Page  2

            functioning of the program. 

           Analysis Prepared by  :    Mary Ader / APPR. / (916) 319-2081