- Bill Information >>
- Bill Search >>
Text
Bill Text
Bill Information
Bill Start
| Assembly Bill No. 2737 |
| CHAPTER 421 |
An act to add Chapter 8 (commencing with Section 32495) to Division 23 of the Health and Safety Code, relating to health care districts.
[
Approved by
Governor
September 21, 2016.
Filed with
Secretary of State
September 21, 2016.
]
LEGISLATIVE COUNSEL'S DIGEST
AB 2737, 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.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: YESBill Text
The people of the State of California do enact as follows:
SECTION 1.
Chapter 8 (commencing with Section 32495) is added to Division 23 of the Health and Safety Code, to read:CHAPTER 8. Nonprovider Health Care Districts
32495.
For the purposes of this chapter, the following definitions shall apply:(a) “Administrative expenses” means expenses relating to the general management of a health care district, such as accounting, budgeting, personnel, procurement, legal fees, legislative advocacy services, public relations, salaries, benefits, rent, office supplies, or other miscellaneous overhead costs.
(b) “Direct health service” means ownership or direct operation of a hospital, medical clinic, ambulance service, transportation program for seniors or persons
with disabilities, a wellness center, health education, or other similar service.
(c) “Nonprovider health care district” means a health care district that meets all of the following criteria:
(1) The district does not provide direct health care services to consumers.
(2) The district has not received an allocation of real property taxes in the past three years.
(3) The district has assets of twenty million dollars ($20,000,000) or more.
(4) The district is not located in a rural area that is typically underserved for health care services.
(5) In two or more consecutive years, the amount the district has dedicated to community grants has amounted to less than twice the total administrative costs and overhead not directly associated with revenue-generating enterprises.
32496.
(a) A nonprovider health care district shall not spend more than 20 percent of its annual budget on administrative expenses.(b) A nonprovider health care district shall spend at least 80 percent of its annual budget on community grants awarded to organizations that provide direct health services.