SB 1240 - An Act to Amend Section 32126 Of, and to Add Section 32121.6 To, the Health and Safety Code, Relating to Local Health Care Districts.

Local health care districts: operation of facility by another entity. 2009-2010 Legislature. View bill details
Author(s):
Summary:
Existing law, the Local Health Care District Law, provides for the formation of local health care districts and, until January 1, 2011, authorizes each local district to transfer, at fair market value, any part of its assets to one or more corporations to operate and maintain the assets. Commencing January 1, 2011, existing law, instead, restricts these transfers only to nonprofit… More
Existing law, the Local Health Care District Law, provides for the formation of local health care districts and, until January 1, 2011, authorizes each local district to transfer, at fair market value, any part of its assets to one or more corporations to operate and maintain the assets. Commencing January 1, 2011, existing law, instead, restricts these transfers only to nonprofit corporations.

This bill would, notwithstanding any provision of law, require, with certain exceptions, when a district is under contract with a public or private entity to operate a district facility, the district and the public or private entity that operates the district facility to (1) require that assets of any facility within the geographic boundaries of the district and owned by the district be used exclusively for the benefit of a facility owned by the district, except as specified, (2) require the hospital and the operating entity to annually undergo an independent financial audit and that the resulting report be made public, and (3) preclude, in the case of a subsequent sale of the facility or any assets of the district to the operating entity, any losses incurred by the entity in the operation of the facility from being used as a credit against the purchase price of the facility or other district assets.

Existing law permits a health care district board of directors to provide for the operation and maintenance through tenants of the whole or any part of a hospital acquired or constructed by it, and for that purpose may enter into a lease agreement that it believes will best serve the interest of the district.

This bill would, instead, permit those lease agreements only to the extent that the agreement does not provide benefits to the tenants beyond those reasonably necessary to ensure the operation of the hospital for the benefit of the district and allow the tenant to recoup its capital investments made during the lease agreement.

By requiring that districts comply with these requirements, 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 no reimbursement is required by this act for a specified reason.

This bill would incorporate additional changes in Section 32126 of the Health and Safety Code, proposed by S.B. 894, to be operative only if S.B. 894 and this bill are both chaptered and become effective on or before January 1, 2011, and this bill is chaptered last. Hide
 
Status:
This bill was passed by both houses and vetoed by the Governor. It did not become law
Senate Vote: On Passage

PASSED on August 31, 2010.

voted YES: 22 voted NO: 13
4 voted present/not voting

An Act to Amend Section 32126 Of, and to Add Section 32121.6 To, the Health and Safety Code, Relating to Local Health Care Districts.

SB 1240 — 2009-2010 Legislature

Summary
Existing law, the Local Health Care District Law, provides for the formation of local health care districts and, until January 1, 2011, authorizes each local district to transfer, at fair market value, any part of its assets to one or more corporations to operate and maintain the assets. Commencing January 1, 2011, existing law, instead, restricts these transfers only to nonprofit corporations.

This bill would, notwithstanding any provision of law, require, with certain exceptions, when a district is under contract with a public or private entity to operate a district facility, the district and the public or private entity that operates the district facility to (1) require that assets of any facility within the geographic boundaries of the district and owned by the district be used exclusively for the benefit of a facility owned by the district, except as specified, (2) require the hospital and the operating entity to annually undergo an independent financial audit and that the resulting report be made public, and (3) preclude, in the case of a subsequent sale of the facility or any assets of the district to the operating entity, any losses incurred by the entity in… More
Existing law, the Local Health Care District Law, provides for the formation of local health care districts and, until January 1, 2011, authorizes each local district to transfer, at fair market value, any part of its assets to one or more corporations to operate and maintain the assets. Commencing January 1, 2011, existing law, instead, restricts these transfers only to nonprofit corporations.

This bill would, notwithstanding any provision of law, require, with certain exceptions, when a district is under contract with a public or private entity to operate a district facility, the district and the public or private entity that operates the district facility to (1) require that assets of any facility within the geographic boundaries of the district and owned by the district be used exclusively for the benefit of a facility owned by the district, except as specified, (2) require the hospital and the operating entity to annually undergo an independent financial audit and that the resulting report be made public, and (3) preclude, in the case of a subsequent sale of the facility or any assets of the district to the operating entity, any losses incurred by the entity in the operation of the facility from being used as a credit against the purchase price of the facility or other district assets.

Existing law permits a health care district board of directors to provide for the operation and maintenance through tenants of the whole or any part of a hospital acquired or constructed by it, and for that purpose may enter into a lease agreement that it believes will best serve the interest of the district.

This bill would, instead, permit those lease agreements only to the extent that the agreement does not provide benefits to the tenants beyond those reasonably necessary to ensure the operation of the hospital for the benefit of the district and allow the tenant to recoup its capital investments made during the lease agreement.

By requiring that districts comply with these requirements, 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 no reimbursement is required by this act for a specified reason.

This bill would incorporate additional changes in Section 32126 of the Health and Safety Code, proposed by S.B. 894, to be operative only if S.B. 894 and this bill are both chaptered and become effective on or before January 1, 2011, and this bill is chaptered last. Hide
Learn More
At LegInfo.ca.gov
Title
An Act to Amend Section 32126 Of, and to Add Section 32121.6 To, the Health and Safety Code, Relating to Local Health Care Districts.
Author(s)
Ellen Corbett
Co-Authors
    Subjects
    • Local health care districts: operation of facility by another entity
    Major Actions
    Introduced2/19/2010
    Referred to Committee
    Passed Senate Committee on Local Government4/07/2010
    Passed Senate Committee on Health4/21/2010
    Passed Senate6/01/2010
    Passed Assembly Committee on Health6/22/2010
    Passed Assembly Committee on Appropriations8/04/2010
    Passed Assembly8/31/2010
    Passed Senate8/31/2010
    Presented to the governor (enrolled)9/08/2010
    Vetoed by Governor9/30/2010
    Vetoed by Governor9/30/2010
    Bill History
    Chamber/CommitteeMotionDateResult
    select this voteSenate Committee on Local GovernmentDo pass as amended, and re-refer to the Committee on Health.4/07/2010This motion PASSED the Senate Committee on Local Government
    3 voted YES 2 voted NO 0 voted present/not voting
    select this voteSenate Committee on HealthDo pass as amended, and re-refer to the Committee on Appropriations.4/21/2010This motion PASSED the Senate Committee on Health
    5 voted YES 0 voted NO 4 voted present/not voting
    select this voteSenateSenate 3rd Reading SB1240 Corbett6/01/2010This bill PASSED the Senate
    22 voted YES 12 voted NO 4 voted present/not voting
    select this voteAssembly Committee on HealthDo pass and be re-referred to the Committee on Appropriations.6/22/2010This motion PASSED the Assembly Committee on Health
    13 voted YES 6 voted NO 0 voted present/not voting
    select this voteAssembly Committee on AppropriationsDo pass as amended.8/04/2010This motion PASSED the Assembly Committee on Appropriations
    12 voted YES 5 voted NO 0 voted present/not voting
    select this voteAssemblySB 1240 Corbett Senate Third Reading By HUFFMAN8/31/2010This bill PASSED the Assembly
    48 voted YES 28 voted NO 2 voted present/not voting
    currently selectedSenateW/O REF. TO FILE SB1240 Corbett Concurrence8/31/2010This bill PASSED the Senate
    22 voted YES 13 voted NO 4 voted present/not voting
    ActionDateDescription
    Introduced2/19/2010
    2/19/2010Introduced. Read first time. To Com. on RLS. for assignment. To print.
    2/21/2010From print. May be acted upon on or after March 23.
    3/04/2010To Coms. on L. GOV. and HEALTH.
    3/09/2010Set for hearing April 7.
    select this voteVote4/07/2010Do pass as amended, and re-refer to the Committee on Health.
    4/12/2010From committee: Do pass as amended, but first amend, and re-refer to Com. on HEALTH. (Ayes 3. Noes 2. Page 3103.)
    4/13/2010Read second time. Amended. Re-referred to Com. on HEALTH.
    select this voteVote4/21/2010Do pass as amended, and re-refer to the Committee on Appropriations.
    4/27/2010From committee: Do pass as amended, but first amend, and re-refer to Com. on APPR. (Ayes 5. Noes 0. Page 3303.)
    4/28/2010Read second time. Amended. Re-referred to Com. on APPR.
    5/14/2010Set for hearing May 24.
    5/24/2010From committee: Be placed on second reading file pursuant to Senate Rule 28.8.
    5/25/2010Read second time. To third reading.
    6/01/2010Read third time. Passed. (Ayes 22. Noes 12. Page 3704.) To Assembly.
    6/01/2010In Assembly. Read first time. Held at Desk.
    select this voteSenate Vote on Passage6/01/2010Senate 3rd Reading SB1240 Corbett
    6/10/2010To Com. on HEALTH.
    select this voteVote6/22/2010Do pass and be re-referred to the Committee on Appropriations.
    6/23/2010From committee: Do pass, but first be re-referred to Com. on APPR. (Ayes 13. Noes 6.) Re-referred to Com. on APPR. (Heard in committee on June 22.)
    select this voteVote8/04/2010Do pass as amended.
    8/05/2010From committee: Do pass as amended. (Ayes 12. Noes 5.) (Heard in committee on August 4.)
    8/09/2010Read second time. Amended. To second reading.
    8/10/2010Read second time. To third reading.
    8/20/2010Read third time. Amended. (Page 6427.) To third reading.
    8/23/2010Assembly Rule 69(d) suspended. (Ayes 49. Noes 27. Page 6491.)
    8/24/2010Read third time. Amended. (Page 6608.) To third reading.
    8/25/2010Assembly Rule 69(d) suspended. (Ayes 49. Noes 27. Page 6644.)
    8/31/2010Read third time. Passed. (Ayes 48. Noes 28. Page 6934.) To Senate.
    8/31/2010In Senate. Senate concurs in Assembly amendments. (Ayes 22. Noes 13. Page 5101.) To enrollment.
    select this voteAssembly Vote on Passage8/31/2010SB 1240 Corbett Senate Third Reading By HUFFMAN
    currently selectedSenate Vote on Passage8/31/2010W/O REF. TO FILE SB1240 Corbett Concurrence
    9/08/2010Enrolled. To Governor at 3:30 p.m.
    Vetoed9/30/2010Vetoed by Governor.
    9/30/2010In Senate. To unfinished business. (Veto)
    11/30/2010Died on file.

    Total contributions given to Senators from interest groups that…

    $112,100
    $942,015
    $364,631
    $1,418,746
    $0

    opposed this bill

    Hospitals (split) [About]
    4 Organizations Supported and 1 Opposed; See Which Ones

    Organizations that took a position on
    An Act to Amend Section 32126 Of, and to Add Section 32121.6 To, the Health and Safety Code, Relating to Local Health Care Districts.: W/O REF. TO FILE SB1240 Corbett Concurrence

    4 organizations supported this bill

    American Federation of State, County and Municipal Employees
    Senate Rules Committee (2010, May 25). Bill Analysis. Retrieved August 30, 2010, from Leg Info.
    California Labor Federation
    Senate Rules Committee (2010, May 25). Bill Analysis. Retrieved August 30, 2010, from Leg Info.
    California Nurses Association
    Senate Rules Committee (2010, May 25). Bill Analysis. Retrieved August 30, 2010, from Leg Info.
    St. Rose Hospital
    Senate Rules Committee (2010, May 25). Bill Analysis. Retrieved August 30, 2010, from Leg Info.

    1 organization opposed this bill

    California Hospital Association
    Senate Rules Committee (2010, May 25). Bill Analysis. Retrieved August 30, 2010, from Leg Info.

    Need proof?

    View citations of support and opposition

    Includes reported contributions to campaigns of Senators in office on day of vote, from interest groups invested in the vote according to MapLight, January 1, 2007 – December 31, 2010.
    Contributions data source: FollowTheMoney.org

    Contributions by Legislator

    Namesort iconPartyDistrict$ From Interest Groups
    That Supported
    $ From Interest Groups
    That Opposed
    Vote
    Sam AanestadRCA-4$0$0No
    Elaine AlquistDCA-13$54,050$0Yes
    Roy AshburnRCA-18$0$0No
    Sam BlakesleeRCA-15$15,300$0No
    Ron CalderonDCA-30$19,300$0Yes
    Gilbert CedilloDCA-22$47,800$0Yes
    Dave CogdillRCA-14$4,850$0No
    Ellen CorbettDCA-10$64,950$0Yes
    Lou CorreaDCA-34$34,900$0Yes
    Mark DeSaulnierDCA-7$117,040$0Yes
    Jeff DenhamRCA-12$2,000$0No
    Denise DuchenyDCA-40$0$0Yes
    Bob DuttonRCA-31$5,600$0No
    Bill EmmersonRCA-37$10,400$0No
    Dean FlorezDCA-16$2,000$0Yes
    Loni HancockDCA-9$95,000$0Yes
    Tom HarmanRCA-35$8,900$0No
    Dennis HollingsworthRCA-36$0$0No
    Bob HuffRCA-29$3,600$0No
    Christine KehoeDCA-39$69,400$0Yes
    Mark LenoDCA-3$108,350$0Yes
    Carol LiuDCA-21$36,200$0Yes
    Alan LowenthalDCA-27$52,650$0Yes
    Gloria Negrete McLeodDCA-32$40,000$0Yes
    Jenny OropezaDCA-28$24,500$0Not Voting
    Alex PadillaDCA-20$55,750$0Yes
    Fran PavleyDCA-23$55,800$0Yes
    Curren PriceDCA-26$70,000$0Yes
    Gloria RomeroDCA-24$13,600$0Yes
    George RunnerRCA-17$5,900$0No
    Joe SimitianDCA-11$60,300$0Not Voting
    Darrell SteinbergDCA-6$96,881$0Yes
    Tony StricklandRCA-19$4,500$0Not Voting
    Mimi WaltersRCA-33$3,600$0No
    Pat WigginsDCA-2$26,750$0Not Voting
    Lois WolkDCA-5$101,575$0Yes
    Rod WrightDCA-25$36,800$0Yes
    Mark WylandRCA-38$0$0No
    Leland YeeDCA-8$70,500$0Yes

    Add Data Filters:

    Legislator Filters
    Legislator Filters
    Show All
    NamePartyDistrict$ From Interest Groups
    That Supported
    $ From Interest Groups
    That Opposed
    Vote
    Sam AanestadRCA-4$0$0No
    Elaine AlquistDCA-13$54,050$0Yes
    Roy AshburnRCA-18$0$0No
    Sam BlakesleeRCA-15$15,300$0No
    Ron CalderonDCA-30$19,300$0Yes
    Gilbert CedilloDCA-22$47,800$0Yes
    Dave CogdillRCA-14$4,850$0No
    Ellen CorbettDCA-10$64,950$0Yes
    Lou CorreaDCA-34$34,900$0Yes
    Mark DeSaulnierDCA-7$117,040$0Yes
    Jeff DenhamRCA-12$2,000$0No
    Denise DuchenyDCA-40$0$0Yes
    Bob DuttonRCA-31$5,600$0No
    Bill EmmersonRCA-37$10,400$0No
    Dean FlorezDCA-16$2,000$0Yes
    Loni HancockDCA-9$95,000$0Yes
    Tom HarmanRCA-35$8,900$0No
    Dennis HollingsworthRCA-36$0$0No
    Bob HuffRCA-29$3,600$0No
    Christine KehoeDCA-39$69,400$0Yes
    Mark LenoDCA-3$108,350$0Yes
    Carol LiuDCA-21$36,200$0Yes
    Alan LowenthalDCA-27$52,650$0Yes
    Gloria Negrete McLeodDCA-32$40,000$0Yes
    Jenny OropezaDCA-28$24,500$0Not Voting
    Alex PadillaDCA-20$55,750$0Yes
    Fran PavleyDCA-23$55,800$0Yes
    Curren PriceDCA-26$70,000$0Yes
    Gloria RomeroDCA-24$13,600$0Yes
    George RunnerRCA-17$5,900$0No
    Joe SimitianDCA-11$60,300$0Not Voting
    Darrell SteinbergDCA-6$96,881$0Yes
    Tony StricklandRCA-19$4,500$0Not Voting
    Mimi WaltersRCA-33$3,600$0No
    Pat WigginsDCA-2$26,750$0Not Voting
    Lois WolkDCA-5$101,575$0Yes
    Rod WrightDCA-25$36,800$0Yes
    Mark WylandRCA-38$0$0No
    Leland YeeDCA-8$70,500$0Yes

    Interest Groups that supported this bill

    $ Donated
    State & local government employee unions$942,015
    Health worker unions$364,631
    Hospitals$282,350
    Labor unions$112,100

    Interest Groups that opposed this bill

    $ Donated
    Hospitals$282,350
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