AB1131:v98#DOCUMENTBill Start
Amended
IN
Assembly
March 23, 2023
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CALIFORNIA LEGISLATURE—
2023–2024 REGULAR SESSION
Assembly Bill
No. 1131
Introduced by Assembly Member Garcia
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February 15, 2023 |
An act to add Article 11 (commencing with Section 129360) to Chapter 1 of Part 6 of Division 107 of the Health and Safety Code, relating to health care.
LEGISLATIVE COUNSEL'S DIGEST
AB 1131, as amended, Garcia.
Health care. care: Hospitals First Revolving Fund.
Existing law establishes the Department of Health Care Access and Information, which administers, among other programs, the Rural Hospital Grant Program, which provides grants to alternative rural hospitals and rural hospitals that are sole community providers to encourage the development and transition to an alternative rural hospital model, and to provide essential access to services not available at the alternative rural hospital level, and the Small and Rural Hospital Relief Program for the purpose of funding seismic safety compliance with respect to small hospitals, rural hospitals, and critical access hospitals in the state.
This bill would establish
the Hospitals First Revolving Fund, administered by the department, to offer grants and low-cost loans to hospitals in rural and medically underserved communities to prevent the closure of a hospital or facilitate the reopening of a closed hospital.
Existing federal law, the federal Patient Protection and Affordable Care Act (PPACA), requires each state to establish an American Health Benefit Exchange to facilitate the purchase of qualified health benefit plans by qualified individuals and qualified small employers. Existing state law creates the California Health Benefit Exchange, also known as Covered California, to facilitate the enrollment of qualified
individuals and qualified small employers in qualified health plans as required under PPACA.
This bill would state the intent of the Legislature to enact legislation relating to health care.
Digest Key
Vote:
MAJORITY
Appropriation:
NO
Fiscal Committee:
NOYES
Local Program:
NO
Bill Text
The people of the State of California do enact as follows:
SECTION 1.
Article 11 (commencing with Section 129360) is added to Chapter 1 of Part 6 of Division 107 of the Health and Safety Code, to read:
Article
11. Hospitals First Revolving Fund
129360.
Unless the context otherwise requires, the following definitions govern the construction of this chapter:(a) “Department” means the Department of Health Care Access and Information.
(b) “Eligible activity” means an activity that prevents the closure of a hospital or facilitates the reopening of a closed hospital in a rural and medically underserved community.
(c) “Fund” means the Hospitals First Revolving Fund created by Section 129361.
(d) “Medically underserved community” has the same meaning as paragraph (6) of Section 295p of Title 42 of the United States Code.
(e) “Publicly owned hospital” is a hospital owned by a city, county, or city and county, or a special district as defined in subdivision (d) of Section 16271 of the Government Code.
(f) “Rural area” has the same meaning as in Section 50101.
129361.
The Hospitals First Revolving Fund is hereby established in the Treasury.129362.
Upon appropriation of the Legislature, moneys shall be transferred to the fund to achieve the purposes in Section 129363.129363.
Moneys in the fund may be used to support eligible activities by a publicly owned hospital in a rural and medically underserved community in the following ways:(a) To provide loans to publicly owned hospitals that meet all of the following requirements:
(1) Are made at or below market interest rates.
(2) Require annual payments of principal and any interest, with repayment commencing not later than one year after completion of the activity for which the loan is made and full amortization not later than 30 years after the completion of the activity unless otherwise authorized by a federal grant deposited in the fund to the extent
authorized.
(3) Require the loan recipient to establish an acceptable dedicated source of revenue for repayment of a loan.
(b) To provide grants to publicly owned hospitals.
(c) To earn interest.
(d) To pay the reasonable costs of administering the fund.
129364.
The department may adopt regulations to carry out this chapter.129365.
The department may, by contract or otherwise, undertake plans, surveys, research, development, and studies necessary or desirable to carry out this chapter, and may prepare recommendations with regard thereto, including the preparation of comprehensive statewide or areawide studies and reports on the lack of adequate health care available to communities.129366.
A publicly owned hospital seeking assistance shall demonstrate, to the satisfaction of the department, that an adequate opportunity for public participation regarding the activity has been provided.129367.
Principal and interest payments received pursuant to loan contracts entered into pursuant to this chapter shall be deposited in the Hospitals First Revolving Fund for the purposes of providing additional grants or entering into additional loans under this chapter, and shall not be transferred to the General Fund.SECTION 1.It is the intent of the Legislature to enact legislation relating to health care.