SB 522: West Contra Costa Healthcare District.
- Session Year: 2017-2018
- House: Senate
- Latest Version Date: 2018-07-18
Existing law provides for the formation of local health care districts and specifies district powers. Under existing law, the elective officers of a local health care district consist of a board of directors consisting of 5 members, each of whom is required to be a registered voter residing in the district and whose term shall be 4 years, except as specified.
This bill would dissolve the existing elected board of directors of the West Contra Costa Healthcare District, effective January 1, 2019, and would require the Board of Supervisors of the County of Contra Costa, at its election, to either serve as the district board or appoint a district board, as specified. By increasing duties of county officials, this bill would impose a state-mandated local program.
This bill would make legislative findings and declarations as to the necessity of a special statute for the West Contra Costa Healthcare District.
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 the statutory provisions noted above.
Existing law provides for the formation of local health care districts and specifies district powers. Under existing law, the elective officers of a local health care district consist of a board of directors consisting of 5 members, each of whom is required to be a registered voter residing in the district and whose term shall be 4 years, except as specified.
This bill would dissolve the existing elected board of directors of the West Contra Costa Healthcare District, effective January 1, 2019, and would require the Board of Supervisors of the County of Contra Costa, at its election, to either serve as the district board or appoint a district board, as specified. By increasing duties of county officials, this bill would impose a state-mandated local program.
This bill would make legislative findings and declarations as to the necessity of a special statute for the West Contra Costa Healthcare District.
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 the statutory provisions noted above.
Existing law provides for the formation of local health care districts and specifies district powers. Under existing law, the elective officers of a local hospital health care district consist of a board of hospital directors consisting of 5 members, each of whom is required to be a registered voter residing in the district and whose term shall be 4 years, except as specified.
This bill would dissolve the existing elected board of directors of the West Contra Costa Healthcare District, effective January 1, 2019, and would require the Board of Supervisors of the County of Contra Costa, at its election, to either serve as the district board or appoint a district board, as specified. By increasing duties of county officials, this bill would impose a state-mandated local program.
This bill would make legislative findings and declarations as to the necessity of a special statute for the West Contra Costa Healthcare District.
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 the statutory provisions noted above.
Existing law provides for the formation of local health care districts and specifies district powers. Under existing law, the elective officers of a local hospital district consist of a board of hospital directors consisting of 5 members, each of whom is required to be a registered voter residing in the district and whose term shall be 4 years, except as specified.
This bill would dissolve the existing elected board of directors of the West Contra Costa Healthcare District, effective January 1, 2019, and would require the Board of Supervisors of the County of Contra Costa, at its election, to either serve as the district board or appoint a district board, as specified. By increasing duties of county officials, this bill would impose a state-mandated local program.
This bill would make legislative findings and declarations as to the necessity of a special statute for the West Contra Costa Healthcare District.
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 the statutory provisions noted above.
Existing law prohibits any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of, or any interest in, real property, and any provision of a governing document from effectively prohibiting or restricting the installation or use of a solar energy system. Existing law exempts from that prohibition provisions that impose reasonable restrictions on a solar energy system that do not significantly increase the cost of the system or significantly decrease its efficiency or specified performance. Existing law requires, whenever approval is required for the installation or use of a solar energy system, the application for approval to be processed and approved by the appropriate approving entity in the same manner as an application for approval of an architectural modification to the property. Existing law imposes specified requirements upon an approving entity that is the governing association of a common interest development.This bill would require, if the approval of an architectural modification requires a vote of the membership of the association, that only the percentage of the votes submitted on the architectural modification be counted to determine this approval.Existing law prohibits any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of, or any interest in, real property, and any provision of a governing document from effectively prohibiting or restricting the installation or use of a solar energy system. Existing law exempts from that prohibition provisions that impose reasonable restrictions on a solar energy system that do not significantly increase the cost of the system or significantly decrease its efficiency or specified performance. Existing law requires, whenever approval is required for the installation or use of a solar energy system, the application for approval to be processed and approved by the appropriate approving entity in the same manner as an application for approval of an architectural modification to the property. Existing law imposes specified requirements upon an approving entity that is the governing association of a common interest development.
This bill would require, if the approval of an architectural modification requires a vote of the membership of the association, that only the percentage of the votes submitted on the architectural modification be counted to determine this approval.
Existing law requires a legal owner to maintain vacant residential property purchased by that owner at a foreclosure sale or acquired by that owner through foreclosure under a mortgage or deed of trust and authorizes a governmental entity to impose a civil fine of up to $1,000 per day for a violation of this provision. Existing law prohibits a governmental entity from imposing fines on a legal owner under both this provision and a local ordinance.This bill would make nonsubstantive changes to these provisions.Existing law requires a legal owner to maintain vacant residential property purchased by that owner at a foreclosure sale or acquired by that owner through foreclosure under a mortgage or deed of trust and authorizes a governmental entity to impose a civil fine of up to $1,000 per day for a violation of this provision. Existing law prohibits a governmental entity from imposing fines on a legal owner under both this provision and a local ordinance.
This bill would make nonsubstantive changes to these provisions.
The Legislature finds and declares all of the following:
(a)The West Contra Costa Healthcare District has struggled financially since the mid-1990s.
(b)The district declared bankruptcy in 2006, but was never able to fully recover. In 2015, the district hospital had to permanently close its doors.
(c)The district filed a second Chapter 9 bankruptcy petition in 2016. A court-ordered plan of adjustment, allocating significant district revenues to the repayment of debt through 2027, is expected in 2018. However, the residents of west Contra Costa County have a continuing need for the medical services the district once provided.
(d)It is the intent of the Legislature in enacting this act to replace the districts elected governing body with a district board appointed by the Board of Supervisors of the County of Contra Costa. This change in governance is intended to reduce administrative costs, increase operational efficiencies, and maximize the use of health care funding through collaboration with the county, which is the only other public agency provider of medical services in the region.
SEC. 2.Section 32100.8 is added to the Health and Safety Code, to read:32100.8.(a)The following definitions shall apply for purposes of this section:
(1)Board of supervisors means the Board of Supervisors of the County of Contra Costa.
(2)County means the County of Contra Costa.
(3)District means the West Contra Costa Healthcare District.
(4)District board means the board of directors of the West Contra Costa Healthcare District.
(b)Notwithstanding any other law, the district board shall be dissolved, effective January 1, 2019, and any remaining members removed from office. Thereafter, the board of supervisors shall either elect to serve as the district board, or may appoint a district board as provided in subdivision (c).
(c)(1)If the board of supervisors elects not to serve as the district board pursuant to subdivision (b), it shall appoint a district board consisting of five members, all of whom shall reside in the district. The members appointed by the board may include, but need not be limited to, at least one of each of the following:
(A)A county supervisor.
(B)A city council member of any city located within district boundaries.
(2)The term of a district board member appointed under this subdivision shall be for four years, or until his or her successor qualifies and takes office.
(3)The board of supervisors shall determine whether members of the district board shall serve at the pleasure of the board of supervisors, or for staggered four-year terms, subject to removal for cause. Vacancies shall be filled by appointment of the board of supervisors.
SEC. 3.The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the special circumstances related to the operation and fiscal status of the West Contra Costa Healthcare District in the County of Contra Costa.
SEC. 4.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
The Legislature finds and declares all of the following:
(a)The West Contra Costa Healthcare District has struggled financially since the mid-1990s.
(b)The district declared bankruptcy in 2006, but was never able to fully recover. In 2015, the district hospital had to permanently close its doors.
(c)The district filed a second Chapter 9 bankruptcy petition in 2016. A court-ordered plan of adjustment, allocating significant district revenues to the repayment of debt through 2027, is expected in 2018. However, the residents of west Contra Costa County have a continuing need for the medical services the district once provided.
(d)It is the intent of the Legislature in enacting this act to replace the districts elected governing body with a district board appointed by the Board of Supervisors of the County of Contra Costa. This change in governance is intended to reduce administrative costs, increase operational efficiencies, and maximize the use of health care funding through collaboration with the county, which is the only other public agency provider of medical services in the region.
SEC. 2.Section 32100.8 is added to the Health and Safety Code, to read:32100.8.(a)The following definitions shall apply for purposes of this section:
(1)Board of supervisors means the Board of Supervisors of the County of Contra Costa.
(2)County means the County of Contra Costa.
(3)District means the West Contra Costa Healthcare District.
(4)District board means the board of directors of the West Contra Costa Healthcare District.
(b)Notwithstanding any other law, the district board shall be dissolved, effective January 1, 2019, and any remaining members removed from office. Thereafter, the board of supervisors shall either elect to serve as the district board, or may appoint a district board as provided in subdivision (c).
(c)(1)If the board of supervisors elects not to serve as the district board pursuant to subdivision (b), it shall appoint a district board consisting of five members, all of whom shall reside in the district. The members appointed by the board may include, but need not be limited to, at least one of each of the following:
(A)A county supervisor.
(B)A city council member of any city located within district boundaries.
(2)The term of a district board member appointed under this subdivision shall be for four years, or until his or her successor qualifies and takes office.
(3)The board of supervisors shall determine whether members of the district board shall serve at the pleasure of the board of supervisors, or for staggered four-year terms, subject to removal for cause. Vacancies shall be filled by appointment of the board of supervisors.
SEC. 3.The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the special circumstances related to the operation and fiscal status of the West Contra Costa Healthcare District in the County of Contra Costa.
SEC. 4.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
The Legislature finds and declares all of the following:
(a)The West Contra Costa Healthcare District has struggled financially since the mid-1990s.
(b)The district declared bankruptcy in 2006, but was never able to fully recover. In 2015, the district hospital had to permanently close its doors.
(c)In 2018, the district will emerge from its second bankruptcy with significantly reduced funding. However, the residents of West Contra Costa County have a continuing need for the medical services the district once provided.(c)The district filed a second Chapter 9 bankruptcy petition in 2016. A court-ordered plan of adjustment, allocating significant district revenues to the repayment of debt through 2027, is expected in 2018. However, the residents of west Contra Costa County have a continuing need for the medical services the district once provided.
(d)It is the intent of the Legislature in enacting this act to replace the districts elected governing body with a district board appointed by the Board of Supervisors of the County of Contra Costa. This change in governance is intended to reduce administrative costs, increase operational efficiencies, and maximize the use of health care funding through collaboration with the county, which is the only other public agency provider of medical services in the region.
SEC. 2.Section 32100.8 is added to the Health and Safety Code, to read:32100.8.(a)The following definitions shall apply for purposes of this section:
(1)Board of supervisors means the Board of Supervisors of the County of Contra Costa.
(2)County means the County of Contra Costa.
(3)District means the West Contra Costa Healthcare District.
(4)District board means the board of directors of the West Contra Costa Healthcare District.
(b)Notwithstanding any other law, the district board shall be dissolved, effective January 1, 2019, and any remaining members removed from office. Thereafter, the board of supervisors shall either elect to serve as the district board, or may appoint a district board as provided in subdivision (c).
(c)(1)If the board of supervisors elects not to serve as the district board pursuant to subdivision (b), it shall appoint a district board consisting of five members, all of whom shall reside in the district. The members appointed by the board may include, but need not be limited to, at least one of each of the following:
(A)A county supervisor.
(B)A city council member of any city located within district boundaries.
(2)The term of a district board member appointed under this subdivision shall be for four years, or until his or her successor qualifies and takes office.
(3)The board of supervisors shall determine whether members of the district board shall serve at the pleasure of the board of supervisors, or for staggered four-year terms, subject to removal for cause. Vacancies shall be filled by appointment of the board of supervisors.
SEC. 3.The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the special circumstances related to the operation and fiscal status of the West Contra Costa Healthcare District in the County of Contra Costa.
SEC. 4.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
The Legislature finds and declares all of the following:
(a)The West Contra Costa Healthcare District has struggled financially since the mid-1990s.
(b)The district declared bankruptcy in 2006, but was never able to fully recover. In 2015, the district hospital had to permanently close its doors.
(c)In 2018, the district will emerge from its second bankruptcy with significantly reduced funding. However, the residents of West Contra Costa County have a continuing need for the medical services the district once provided.
(d)It is the intent of the Legislature in enacting this act to replace the districts elected governing body with a district board appointed by the Board of Supervisors of the County of Contra Costa. This change in governance is intended to reduce administrative costs, increase operational efficiencies, and maximize the use of health care funding through collaboration with the county, which is the only other public agency provider of medical services in the region.
SEC. 2.Section 32100.8 is added to the Health and Safety Code, to read:32100.8.(a)The following definitions shall apply for purposes of this section:
(1)Board of supervisors means the Board of Supervisors of the County of Contra Costa.
(2)County means the County of Contra Costa.
(3)District means the West Contra Costa Healthcare District.
(4)District board means the board of directors of the West Contra Costa Healthcare District.
(b)Notwithstanding any other law, the district board shall be dissolved, effective January 1, 2019, and any remaining members removed from office. Thereafter, the board of supervisors shall either elect to serve as the district board, or may appoint a district board as provided in subdivision (c).
(c)(1)If the board of supervisors elects not to serve as the district board pursuant to subdivision (b), it shall appoint a district board consisting of five members, all of whom shall reside in the district. The members appointed by the board may include, but need not be limited to, at least one of each of the following:
(A)A county supervisor.
(B)A city council member of any city located within district boundaries.
(2)The term of a district board member appointed under this subdivision shall be for four years, or until his or her successor qualifies and takes office.
(3)The board of supervisors shall determine whether members of the district board shall serve at the pleasure of the board of supervisors, or for staggered four-year terms, subject to removal for cause. Vacancies shall be filled by appointment of the board of supervisors.
SEC. 3.The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the special circumstances related to the operation and fiscal status of the West Contra Costa Healthcare District in the County of Contra Costa.
SEC. 4.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SECTION 1.The Legislature hereby finds and declares all of the following:(a)The existing approval process within a common interest development for the approval of architectural modifications is a burden to entry for rooftop solar installation.(b)This approval process requires a vote by mail election paid for by the person seeking to install the solar energy system.(c)These elections can be very expensive, sometimes thousands of dollars and represent an immediate barrier. Furthermore, the vote by mail process is slanted against approval for the solar energy system.(d)Vote by mail ballots that are not returned during these elections are counted as votes in opposition. Multiple instances have shown that the returned votes favor the installation of the solar energy system, but when the ballots that are not cast are counted as no votes, the outcome can be reversed.SEC. 2.Section 714 of the Civil Code is amended to read:714.(a)Any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of, or any interest in, real property, and any provision of a governing document, as defined in Section 4150 or 6552, that effectively prohibits or restricts the installation or use of a solar energy system is void and unenforceable.(b)This section does not apply to provisions that impose reasonable restrictions on solar energy systems. However, it is the policy of the state to promote and encourage the use of solar energy systems and to remove obstacles thereto. Accordingly, reasonable restrictions on a solar energy system are those restrictions that do not significantly increase the cost of the system or significantly decrease its efficiency or specified performance, or that allow for an alternative system of comparable cost, efficiency, and energy conservation benefits.(c)(1)A solar energy system shall meet applicable health and safety standards and requirements imposed by state and local permitting authorities, consistent with Section 65850.5 of the Government Code.(2)Solar energy systems used for heating water in single family residences and solar collectors used for heating water in commercial or swimming pool applications shall be certified by an accredited listing agency as defined in the Plumbing and Mechanical Codes.(3)A solar energy system for producing electricity shall also meet all applicable safety and performance standards established by the California Electrical Code, the Institute of Electrical and Electronics Engineers, and accredited testing laboratories such as Underwriters Laboratories and, where applicable, rules of the Public Utilities Commission regarding safety and reliability.(d)For the purposes of this section:(1)(A)For solar domestic water heating systems or solar swimming pool heating systems that comply with state and federal law, significantly means an amount exceeding 10 percent of the cost of the system, but in no case more than one thousand dollars ($1,000), or decreasing the efficiency of the solar energy system by an amount exceeding 10 percent, as originally specified and proposed.(B)For photovoltaic systems that comply with state and federal law, significantly means an amount not to exceed one thousand dollars ($1,000) over the system cost as originally specified and proposed, or a decrease in system efficiency of an amount exceeding 10 percent as originally specified and proposed.(2)Solar energy system has the same meaning as defined in paragraphs (1) and (2) of subdivision (a) of Section 801.5.(e)(1)Whenever approval is required for the installation or use of a solar energy system, the application for approval shall be processed and approved by the appropriate approving entity in the same manner as an application for approval of an architectural modification to the property, and shall not be willfully avoided or delayed.(2)For an approving entity that is an association, as defined in Section 4080 or 6528, and that is not a public entity, all of the following shall apply:(A)The approval or denial of an application shall be in writing.(B)If an application is not denied in writing within 45 days from the date of receipt of the application, the application shall be deemed approved, unless that delay is the result of a reasonable request for additional information.(C)Notwithstanding paragraph (1), if the approval of an architectural modification requires a vote of the membership of the association, then only the percentage of the votes submitted on the architectural modification shall be counted to determine this approval.(f)Any entity, other than a public entity, that willfully violates this section shall be liable to the applicant or other party for actual damages occasioned thereby, and shall pay a civil penalty to the applicant or other party in an amount not to exceed one thousand dollars ($1,000).(g)In any action to enforce compliance with this section, the prevailing party shall be awarded reasonable attorneys fees.(h)(1)A public entity that fails to comply with this section may not receive funds from a state-sponsored grant or loan program for solar energy. A public entity shall certify its compliance with the requirements of this section when applying for funds from a state-sponsored grant or loan program.(2)A local public entity may not exempt residents in its jurisdiction from the requirements of this section.The Legislature hereby finds and declares all of the following:
(a)The existing approval process within a common interest development for the approval of architectural modifications is a burden to entry for rooftop solar installation.
(b)This approval process requires a vote by mail election paid for by the person seeking to install the solar energy system.
(c)These elections can be very expensive, sometimes thousands of dollars and represent an immediate barrier. Furthermore, the vote by mail process is slanted against approval for the solar energy system.
(d)Vote by mail ballots that are not returned during these elections are counted as votes in opposition. Multiple instances have shown that the returned votes favor the installation of the solar energy system, but when the ballots that are not cast are counted as no votes, the outcome can be reversed.
SEC. 2.Section 714 of the Civil Code is amended to read:714.(a)Any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of, or any interest in, real property, and any provision of a governing document, as defined in Section 4150 or 6552, that effectively prohibits or restricts the installation or use of a solar energy system is void and unenforceable.
(b)This section does not apply to provisions that impose reasonable restrictions on solar energy systems. However, it is the policy of the state to promote and encourage the use of solar energy systems and to remove obstacles thereto. Accordingly, reasonable restrictions on a solar energy system are those restrictions that do not significantly increase the cost of the system or significantly decrease its efficiency or specified performance, or that allow for an alternative system of comparable cost, efficiency, and energy conservation benefits.
(c)(1)A solar energy system shall meet applicable health and safety standards and requirements imposed by state and local permitting authorities, consistent with Section 65850.5 of the Government Code.
(2)Solar energy systems used for heating water in single family residences and solar collectors used for heating water in commercial or swimming pool applications shall be certified by an accredited listing agency as defined in the Plumbing and Mechanical Codes.
(3)A solar energy system for producing electricity shall also meet all applicable safety and performance standards established by the California Electrical Code, the Institute of Electrical and Electronics Engineers, and accredited testing laboratories such as Underwriters Laboratories and, where applicable, rules of the Public Utilities Commission regarding safety and reliability.
(d)For the purposes of this section:
(1)(A)For solar domestic water heating systems or solar swimming pool heating systems that comply with state and federal law, significantly means an amount exceeding 10 percent of the cost of the system, but in no case more than one thousand dollars ($1,000), or decreasing the efficiency of the solar energy system by an amount exceeding 10 percent, as originally specified and proposed.
(B)For photovoltaic systems that comply with state and federal law, significantly means an amount not to exceed one thousand dollars ($1,000) over the system cost as originally specified and proposed, or a decrease in system efficiency of an amount exceeding 10 percent as originally specified and proposed.
(2)Solar energy system has the same meaning as defined in paragraphs (1) and (2) of subdivision (a) of Section 801.5.
(e)(1)Whenever approval is required for the installation or use of a solar energy system, the application for approval shall be processed and approved by the appropriate approving entity in the same manner as an application for approval of an architectural modification to the property, and shall not be willfully avoided or delayed.
(2)For an approving entity that is an association, as defined in Section 4080 or 6528, and that is not a public entity, both all of the following shall apply:
(A)The approval or denial of an application shall be in writing.
(B)If an application is not denied in writing within 45 days from the date of receipt of the application, the application shall be deemed approved, unless that delay is the result of a reasonable request for additional information.
(C)Notwithstanding paragraph (1), if the approval of an architectural modification requires a vote of the membership of the association, then only the percentage of the votes submitted on the architectural modification shall be counted to determine this approval.
(f)Any entity, other than a public entity, that willfully violates this section shall be liable to the applicant or other party for actual damages occasioned thereby, and shall pay a civil penalty to the applicant or other party in an amount not to exceed one thousand dollars ($1,000).
(g)In any action to enforce compliance with this section, the prevailing party shall be awarded reasonable attorneys fees.
(h)(1)A public entity that fails to comply with this section may not receive funds from a state-sponsored grant or loan program for solar energy. A public entity shall certify its compliance with the requirements of this section when applying for funds from a state-sponsored grant or loan program.
(2)A local public entity may not exempt residents in its jurisdiction from the requirements of this section.
SECTION 1.Section 2929.3 of the Civil Code is amended to read:2929.3.(a)(1)A legal owner shall maintain vacant residential property purchased by that owner at a foreclosure sale or acquired by that owner through foreclosure under a mortgage or deed of trust. A governmental entity may impose a civil fine of up to one thousand dollars ($1,000) per day for a violation. If the governmental entity chooses to impose a fine pursuant to this section, it shall give notice of the alleged violation, including a description of the conditions that gave rise to the allegation, and notice of the entitys intent to assess a civil fine if action to correct the violation is not commenced within a period of not less than 14 days and completed within a period of not less than 30 days. The notice shall be mailed to the address provided in the deed or other instrument as specified in subdivision (a) of Section 27321.5 of the Government Code, or, if none, to the return address provided on the deed or other instrument.(2)The governmental entity shall provide a period of not less than 30 days for the legal owner to remedy the violation prior to imposing a civil fine and shall allow for a hearing and opportunity to contest any fine imposed. In determining the amount of the fine, the governmental entity shall take into consideration any timely and good faith efforts by the legal owner to remedy the violation. The maximum civil fine authorized by this section is one thousand dollars ($1,000) for each day that the owner fails to maintain the property, commencing on the day following the expiration of the period to remedy the violation established by the governmental entity.(3)Subject to the provisions of this section, a governmental entity may establish different compliance periods for different conditions on the same property in the notice of alleged violation mailed to the legal owner.(b)For purposes of this section, failure to maintain means failure to care for the exterior of the property, including, but not limited to, permitting excessive foliage growth that diminishes the value of surrounding properties, failing to take action to prevent trespassers or squatters from remaining on the property, or failing to take action to prevent mosquito larvae from growing in standing water or other conditions that create a public nuisance.(c)Notwithstanding subdivisions (a) and (b), a governmental entity may provide less than 30 days notice to remedy a condition before imposing a civil fine if the entity determines that a specific condition of the property threatens public health or safety and provided that notice of that determination and time for compliance is given.(d)Fines and penalties collected pursuant to this section shall be directed to local nuisance abatement programs, including, but not limited to, legal abatement proceedings.(e)A governmental entity shall not impose fines on a legal owner under both this section and a local ordinance.(f)These provisions shall not preempt any local ordinance.(g)This section shall only apply to residential real property.(h)The rights and remedies provided in this section are cumulative and in addition to any other rights and remedies provided by law.(a)(1)A legal owner shall maintain vacant residential property purchased by that owner at a foreclosure sale, sale or acquired by that owner through foreclosure under a mortgage or deed of trust. A governmental entity may impose a civil fine of up to one thousand dollars ($1,000) per day for a violation. If the governmental entity chooses to impose a fine pursuant to this section, it shall give notice of the alleged violation, including a description of the conditions that gave rise to the allegation, and notice of the entitys intent to assess a civil fine if action to correct the violation is not commenced within a period of not less than 14 days and completed within a period of not less than 30 days. The notice shall be mailed to the address provided in the deed or other instrument as specified in subdivision (a) of Section 27321.5 of the Government Code, or, if none, to the return address provided on the deed or other instrument.
(2)The governmental entity shall provide a period of not less than 30 days for the legal owner to remedy the violation prior to imposing a civil fine and shall allow for a hearing and opportunity to contest any fine imposed. In determining the amount of the fine, the governmental entity shall take into consideration any timely and good faith efforts by the legal owner to remedy the violation. The maximum civil fine authorized by this section is one thousand dollars ($1,000) for each day that the owner fails to maintain the property, commencing on the day following the expiration of the period to remedy the violation established by the governmental entity.
(3)Subject to the provisions of this section, a governmental entity may establish different compliance periods for different conditions on the same property in the notice of alleged violation mailed to the legal owner.
(b)For purposes of this section, failure to maintain means failure to care for the exterior of the property, including, but not limited to, permitting excessive foliage growth that diminishes the value of surrounding properties, failing to take action to prevent trespassers or squatters from remaining on the property, or failing to take action to prevent mosquito larvae from growing in standing water or other conditions that create a public nuisance.
(c)Notwithstanding subdivisions (a) and (b), a governmental entity may provide less than 30 days notice to remedy a condition before imposing a civil fine if the entity determines that a specific condition of the property threatens public health or safety and provided that notice of that determination and time for compliance is given.
(d)Fines and penalties collected pursuant to this section shall be directed to local nuisance abatement programs, including, but not limited to, legal abatement proceedings.
(e)A governmental entity may shall not impose fines on a legal owner under both this section and a local ordinance.
(f)These provisions shall not preempt any local ordinance.
(g)This section shall only apply to residential real property.
(h)The rights and remedies provided in this section are cumulative and in addition to any other rights and remedies provided by law.
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Date
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Status
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|---|---|
| Jul 18, 2018 | Chaptered by Secretary of State. Chapter 133, Statutes of 2018. |
| Jul 18, 2018 | Approved by the Governor. |
| Jul 11, 2018 | Enrolled and presented to the Governor at 4 p.m. |
| Jul 5, 2018 | In Senate. Ordered to engrossing and enrolling. |
| Jul 5, 2018 | Read third time. Passed. Ordered to the Senate. |
| Jun 28, 2018 | Read second time. Ordered to consent calendar. |
| Jun 27, 2018 | From committee: Do pass. Ordered to consent calendar. (Ayes 16. Noes 0.) (June 27). |
| Jun 13, 2018 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 7. Noes 0.) (June 13). Re-referred to Com. on APPR. |
| Apr 19, 2018 | Referred to Com. on L. GOV. |
| Jan 30, 2018 | In Assembly. Read first time. Held at Desk. |
| Jan 29, 2018 | Read third time. Passed. (Ayes 39. Noes 0.) Ordered to the Assembly. |
| Jan 17, 2018 | Read second time. Ordered to consent calendar. |
| Jan 16, 2018 | From committee: Be ordered to second reading pursuant to Senate Rule 28.8 and ordered to consent calendar. |
| Jan 11, 2018 | Set for hearing January 16. |
| Jan 10, 2018 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 7. Noes 0.) (January 10). Re-referred to Com. on APPR. |
| Jan 5, 2018 | Set for hearing January 10. |
| Jan 3, 2018 | Re-referred to Com. on GOV. & F. |
| Jan 3, 2018 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. |
| Sep 15, 2017 | Withdrawn from committee. |
| Sep 12, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on JUD. |
| Sep 12, 2017 | Senate Rule 29.3(b) suspended. (Ayes 27. Noes 12.) |
| Apr 20, 2017 | May 9 set for first hearing canceled at the request of author. |
| Apr 13, 2017 | Set for hearing May 9. |
| Apr 5, 2017 | Re-referred to Com. on JUD. |
| Mar 29, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS. |
| Mar 2, 2017 | Referred to Com. on RLS. |
| Feb 17, 2017 | From printer. May be acted upon on or after March 19. |
| Feb 16, 2017 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Jul 5, 2018 | SB 522 Glazer Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| Jun 27, 2018 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jun 13, 2018 | Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Local Government |
Passed |
|
| Jan 29, 2018 | Consent Calendar SB522 | Senate Floor |
Passed |
|
| Jan 10, 2018 | Do pass, but first be re-referred to the Committee on [Appropriations] with the recommendation: To Consent Calendar | Senate Standing Committee on Governance and Finance |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Contra Costa County | ** Support | Jun 12, 2018 |
| Contra Costa County . | ** Support | Jan 9, 2018 |
| Unknown. | ** Against | Jan 9, 2018 |
| West Contra Costa Healthcare District | ** Support | Jun 12, 2018 |
Date of Hearing: June 27, 2018
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
SBPCA Bill Id:SB 522
Author:(Glazer) – As Amended Ver:January 3, 2018
Policy Committee: | Local Government | Vote: | 7 - 0 |
|
| ||
|
|
Urgency: No State Mandated Local Program: Yes Reimbursable: Yes
SUMMARY:
This bill dissolves the existing board of directors of the West Contra Costa Healthcare District (WCCHD) and requires the Board of Supervisors of Contra Costa County to either serve as the district board or appoint a new board.
FISCAL EFFECT:
Likely minor potential mandate costs (GF) for Contra Costa County to serve as the board or appoint a new board, subject to a determination by the Commission on State Mandates. Contra Costa County is the sponsor of the bill, and although it is unlikely the County would submit a mandate claim, the bill could be amended to add a “local request disclaimer” to alleviate potential mandate costs to the state.
COMMENTS:
- Purpose. This bill seeks to restore financially stability to the WCCHD by converting it from an independent special district to a dependent special district thereby eliminating the cost of conducting elections. According to the author:
Since the mid-1990s the district has struggled financially — from increasing costs and a growing service demand, to declining reimbursements. In 2015, the district’s hospital closed down, further exacerbating healthcare challenges for residents of West Contra Costa... modifying the board membership from an elected to an appointed board would help restore financial stability to the district, while also maintaining essential health services to the community it serves.
- Background. The WCCHD was formed in 1948 to build and operate a hospital to benefit the residents of West Contra Costa County. Beginning in the mid-1990’s, the WCCHD has struggled financially, experiencing increasing costs, declining reimbursements, and growing service demand from low-income populations, the uninsured and underinsured. Although the WCCHD emerged from a 2006 bankruptcy, it never regained financial solvency and fell further into debt. The WCCHD closed its full-service acute care hospital in 2015. The closure resulted in a significant loss of hospital beds and emergency department facilities, as well as the elimination of other specialized services. After failing to sell the hospital building, the WCCHD filed for bankruptcy protections again in late 2016.
The WCCHD’s board continues to function with limited staff as it arranges to sell assets and plan for resolving outstanding debts and obligations. With limited available resources, significant debts, and other ongoing costs, the district currently has no funds available for health-related programs. This adverse financial situation is likely to continue until the WCCHD’s debt to the county and other outstanding financial obligations are repaid over the next 10-12 years, but after that time the district could have more than $9 million in annual revenue available, after administrative expenses, for healthcare-related services and facilities for residents of west Contra Costa County.
This bill implements a recommendation from a 2016 LAFCO study on governance options for the district. The LAFCO and the county agree that modifying the board membership from elected to appointed is important to ensure the future financial stability of the WCCHD as it will save approximately $450,000 in election costs every two years.
In order to fulfill the LAFCO’s recommendation, SB 522 dissolves the existing board of directors of the WCCHD and requires the board of supervisors of Contra Costa County to either serve as or appoint the district board.
Analysis Prepared by: Jennifer Swenson / APPR. / (916) 319-2081
Date of Hearing: June 13, 2018
ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
Cecilia Aguiar-Curry, Chair
SBPCA Bill Id:SB 522
Author:(Glazer) – As Amended Ver:January 3, 2018
SENATE VOTE: 39-0
SUBJECT: West Contra Costa Healthcare District.
SUMMARY: Dissolves the existing Board of Directors of the West Contra Costa Healthcare District (WCCHD) and requires the Board of Supervisors of Contra Costa County to either serve as or appoint the district board. Specifically, this bill:
- Dissolves the existing district board of the WCCHD and removes any remaining board members from office effective January 1, 2019.
- Requires the Board of Supervisors of Contra Costa County to either serve as the district board or appoint a new board.
- Specifies that if the new board is filled by appointment, the board may include at least one Contra Costa County Supervisor and one city council member of any city located within district boundaries. The term of the appointed board member must be four years, or until a successor qualifies and takes office.
- Requires the Board of Supervisors to determine whether the appointed members serve at its pleasure or staggered four-year terms, subject to removal for cause. Vacancies must be filled by appointment of the Board of Supervisors.
- Contains legislative findings and declarations to support it purposes.
EXISTING LAW:
- Provides for the formation of local health care districts and specifies the services that can be provided.
- Requires that the board of a healthcare district consist of five directors, each of whom is required to be a registered voter residing in the district boundaries. Board members shall serve terms of four years, unless otherwise specified by law.
FISCAL EFFECT: According to the Senate Appropriations Committee, pursuant to Senate Rule 28.8, negligible state costs.
COMMENTS:
- Healthcare Districts. To respond to the inadequacy of acute care services in rural areas,
the Legislature enacted the Local Hospital District Law to provide medically underserved areas without access to hospital facilities to construct and operate community hospitals.
SB 1169 (Maddy), Chapter 696, Statutes of 1994, changed the name of the principal act to “The Local Healthcare District Law” to better reflect the shift in the provision of healthcare services outside of hospital settings. The powers and duties granted to healthcare districts have remained largely unchanged while demographics and the districts themselves have changed significantly. Over one-third of the healthcare districts in California have either closed or sold their hospital, thus moving away from the original legislative intent of “hospital districts” following the change in law in 1994.
There are currently 79 healthcare districts in California. Of the total, 38 healthcare districts own and operate a hospital; five districts own, but do not operate, a hospital; and 36 healthcare districts do not own or operate a hospital. Of the 36 districts that do not own or operate a hospital, 19 districts provide direct services (like ambulance or clinic services), and 17 districts do not provide direct services, and instead, administer grant funding as their sole purpose.
- Background and Bill Summary. The WCCHD was formed in 1948 for the purpose of building and operating a hospital to benefit the residents of West Contra Costa County. The WCCHD operated a full-service acute care facility until its closure in 2015, providing services to both inpatients and outpatients. However, the WCCHD struggled financially beginning in the mid-1990’s, experiencing increasing costs, declining reimbursements, and growing service demand from low-income populations, the uninsured and underinsured. Although the WCCHD emerged from a 2006 bankruptcy, it never managed to regain financial solvency and fell further into debt. The WCCHD shut its hospital, a full-service acute care facility in 2015. The closure resulted in a significant loss of hospital beds and emergency department facilities, as well as the elimination of other specialized services.
The WCCHD’s board continues to function with limited staff as it sells its building, equipment, and other property, and arranges for ongoing resolution of its outstanding debts and obligations. With limited available resources, significant debts and other ongoing costs, the District has no funds available for health-related programs; it faces potential future financial shortfalls and increases in debt. This adverse financial situation is likely to continue until the WCCHD’s debt to the County and other outstanding financial obligations are repaid over the next 10-12 years. After the WCCHD extinguishes its debts, more than
$9 million in annual revenue could be available, after administrative expenses, for healthcare-related services and facilities for residents of west Contra Costa County.
In a 2016 special study, the Contra Costa Local Agency Formation Commission (LAFCO) determined that dissolving the WCCHD would eliminate millions of dollars in funding for healthcare in the community, further exacerbating existing healthcare challenges faced by residents of West Contra Costa County. The LAFCO recommended, and the County agreed, that modifying the board membership of the WCCHD from an elected to an appointed board is important to ensure the future financial stability of the WCCHD, as it will save approximately $450,000 in election costs every two years. In order to fulfill the LAFCO’s recommendation, SB 522 dissolves the existing Board of Directors of the WCCHD and requires the Board of Supervisors of Contra Costa County to either serve as or appoint the district board. This bill is sponsored by the author.
- Author’s Statement. According to the author, “The WCCHD was established in 1948 to provide essential health services to the communities of West Contra Costa. Since the mid-1990s, the district has struggled financially — from increasing costs and a growing service demand, to declining reimbursements. In 2015, the district’s hospital closed down, further exacerbating healthcare challenges for residents of West Contra Costa.
“In 2016, a county commission reported that dissolving the WCCHD entirely would eliminate millions of dollars in funding for the community. The commission, along with the county, agreed that modifying the board membership from an elected to an appointed board would help restore financial stability to the district, while also maintaining essential health services to the community it serves.
“The district currently spends half of its budget, or $450,000, every other year to conduct elections. SB 522 gives the County Board of Supervisors authority to appoint a board which would result in the district saving $450,000 every other year which would help bring financial stability to the district while allowing the community to continue accessing essential health services.”
- Local Problems, Local Solutions. By dissolving the existing board of the WCCHD and allowing the Contra Costa County Board of Supervisors to either serve as or appoint new board members to serve at its pleasure, SB 522 effectively makes the WCCHD a dependent district. As opposed to independent special districts where the board members are elected
by their constituents or are appointed to terms of fixed length, dependent special districts function akin to a city or county department, ultimately dependent upon the decisions made by the governing city council or board of supervisors. The Legislature has delegated the power to control local boundaries and local governance authority to the 58 countywide LAFCOs, including the authority to change an independent special district into a dependent one. - Arguments in Support. Supporters argue that, “By appointing the Board of Supervisors as the governing body for the District, SB 522 allows the District to retain monies that would otherwise be spent on election and administrative costs associated with an elected governing body. These funds can be used to provide needed health care services within the County, addressing immediate needs as well as alleviating overcrowding at local emergency departments.”
- Arguments in Opposition. None on file.
REGISTERED SUPPORT / OPPOSITION:
Support
Contra Costa County
West Contra Costa Healthcare District
Opposition
None on file
Analysis Prepared by: Jimmy MacDonald / L. GOV. / (916) 319-3958
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
CONSENT
Bill No: SB 522
:
SENATE GOVERNANCE & FIN. COMMITTEE: 7-0, 1/10/18
AYES: McGuire, Nguyen, Beall, Hernandez, Hertzberg, Lara, Moorlach
SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8
DIGEST:
This bill dissolves the existing Board of Directors of the West Contra Costa Healthcare District (WCCHD) and requires the Board of Supervisors of Contra Costa County to either serve as or appoint the district board.
Existing law:
- Provides for the formation of local health care districts and specifies the services that can be provided.
- Requires that the board of a healthcare district consist of five directors, each of whom is required to be a registered voter residing in the district boundaries. Unless, otherwise specified by law, board members shall serve terms of four years.
This bill:
- Dissolves the existing district board of the WCCHD and removes any remaining board members from office effective January 1, 2019. This bill requires the Board of Supervisors of Contra Costa County to either serve as the district board or appoint a new board.
- Specifies that if the new board is filled by appointment, the board may include at least one Contra Costa County Supervisor and one city council member of any city located within district boundaries. The term of the appointed board member must be four years, or until a successor qualifies and takes office.
- Requires the Board of Supervisors to determine whether the appointed members serve at its pleasure or staggered four-year terms, subject to removal for cause. Vacancies must be filled by appointment of the Board of Supervisors.
- Contains legislative findings and declarations to support its purposes.
Background
Healthcare Districts. To respond to the inadequacy of acute care services in rural areas, the Legislature enacted the Local Hospital District Law to provide medically underserved areas without access to hospital facilities to construct and operate community hospitals. SB 1169 (Maddy, 1994) changed the name of the principal act to “The Local Healthcare District Law” to better reflect the shift in the provision of healthcare services outside of hospital settings. The powers and duties granted to healthcare districts have remained largely unchanged while demographics and the districts themselves have changed significantly. Over one-third of the healthcare districts in California have either closed or sold their hospital, thus moving away from the original legislative intent of “hospital districts” following the change in law in 1994.
There are currently 79 healthcare districts in California. Of the total, 38 healthcare districts own and operate a hospital; five districts own, but do not operate, a hospital; and 36 healthcare districts do not own or operate a hospital. Of the 36 districts that do not own or operate a hospital, 19 districts provide direct services (like ambulance or clinic services), and 17 districts do not provide direct services and instead administer grant funding as their sole purpose.
West Contra Costa Health Care District. The WCCHD was formed in 1948 for the purpose of building and operating a hospital to benefit the residents of West Contra Costa County. The WCCHD operated a full-service acute care facility until its closure in 2015, providing services to both inpatients and outpatients. However, the WCCHD struggled financially beginning in the mid-1990s, experiencing increasing costs, declining reimbursements, and growing service demand from low-income populations, the uninsured and underinsured. Although the WCCHD emerged from a 2006 bankruptcy, it never managed to regain financial solvency and fell further into debt. The WCCHD shut its hospital, a full-service acute care facility in 2015. The closure resulted in a significant loss of hospital beds and emergency department facilities, as well as the elimination of other specialized services.
The WCCHD’s board continues to function with limited staff as it sells its building, equipment, and other property, and arranges for ongoing resolution of its outstanding debts and obligations. With limited available resources, significant debts and other ongoing costs, the District has no funds available for health-related programs; it faces potential future financial shortfalls and increases in debt. This adverse financial situation is likely to continue until the WCCHD’s debt to the County and other outstanding financial obligations are repaid over the next 10-12 years. After the WCCHD extinguishes its debts, more than $9 million in annual revenue could be available, after administrative expenses, for healthcare-related services and facilities for residents of West Contra Costa County.
In a 2016 special study, the Contra Costa Local Agency Formation Commission (LAFCO) determined that dissolving the WCCHD would eliminate millions of dollars in funding for healthcare in the community, further exacerbating existing healthcare challenges faced by residents of West Contra Costa County. The LAFCO recommended, and the County agreed, that modifying the board membership of the WCCHD from an elected to an appointed board is important to ensure the future financial stability of the WCCHD as it will save approximately $450,000 in election costs every two years.
Comments
Purpose of the bill. According to the author, “On October 20, 2016, the West Contra Costa Healthcare District filed a petition in the Northern District of California, Oakland Division to initiate a Chapter 9 bankruptcy proceeding. The purpose of the Chapter 9 bankruptcy is to obtain relief from creditor collection actions and access revenues necessary to provide the District with time to effect a ‘Plan of Adjustment’ of the District’s debts. The elections held to select new governing body members cost about $450,000 every other year. Continuing to spend nearly half of the District’s revenue every other year simply to conduct elections is fiscally irresponsible and unnecessary. Given the District’s limited funding and change in operations, legislation that would allow the County Board of Supervisors to appoint the District’s governing body is necessary and appropriate. It eliminates the cost of elections and will foster collaboration between the District and the County as these two public agencies work together to meet the medical needs of District residents.”
Local problems, local solutions. By dissolving the existing board of the WCCHD and allowing the Contra Costa County Board of Supervisors to either serve as or appoint new board members to serve at its pleasure, SB 522 effectively makes the WCCHD a dependent district. As opposed to independent special districts where the board members are elected by their constituents or are appointed to terms of fixed length, dependent special districts function akin to a city or county department, ultimately dependent upon the decisions made by the governing city council or board of supervisors. The Legislature has delegated the power to control local boundaries and local governance authority to the 58 countywide LAFCOs, including the authority to change an independent special district into a dependent one. This bill bypasses the Contra Costa LAFCO by not requiring the usual reorganization process to occur.
Special legislation. The California Constitution prohibits special legislation when a general law can apply (Article IV, §16). SB 522 contains findings and declarations explaining the need for legislation that applies only to the WCCHD.
Mandate. The California Constitution generally requires the state to reimburse local agencies for their costs when the state imposes new programs or additional duties on them. According to the Legislative Counsel’s Office, SB 522 creates a new state-mandated local program. Ultimately, the Commission on State Mandates determines if a mandate is reimbursable and the amount of reimbursement to be provided.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
Contra Costa County (source)
OPPOSITION: (Verified 1/16/18)
None received
1/17/18 13:34:40
**** END ****
SENATE COMMITTEE ON GOVERNANCE AND FINANCE
Senator Mike McGuire, Chair
2017 - 2018 Regular
Bill No: | SB 522 | Hearing Date: | 1/10/18 |
Author: | Glazer | Tax Levy: | No |
Version: | 1/3/18 | Fiscal: | Yes |
Consultant: | MacDonald | ||
West Contra Costa Healthcare District
Dissolves the existing Board of Directors of the West Contra Costa Healthcare District (WCCHD) and requires the Board of Supervisors of Contra Costa County to either serve as or appoint the district board.
Background
Healthcare Districts. To respond to the inadequacy of acute care services in rural areas, the Legislature enacted the Local Hospital District Law to provide medically underserved areas without access to hospital facilities to construct and operate community hospitals. SB 1169 (Maddy, 1994) changed the name of the principal act to “The Local Healthcare District Law” to better reflect the shift in the provision of healthcare services outside of hospital settings. The powers and duties granted to healthcare districts have remained largely unchanged while demographics and the districts themselves have changed significantly. Over one-third of the healthcare districts in California have either closed or sold their hospital, thus moving away from the original legislative intent of “hospital districts” following the change in law in 1994.
There are currently 79 healthcare districts in California. Of the total, 38 healthcare districts own and operate a hospital; five districts own, but do not operate, a hospital; and 36 healthcare districts do not own or operate a hospital. Of the 36 districts that do not own or operate a hospital, 19 districts provide direct services (like ambulance or clinic services), and 17 districts do not provide direct services and instead administer grant funding as their sole purpose.
West Contra Costa Health Care District. The West Contra Costa Healthcare District (WCCHD) was formed in 1948 for the purpose of building and operating a hospital to benefit the residents of West Contra Costa County. The WCCHD operated a full-service acute care facility until its closure in 2015, providing services to both inpatients and outpatients. However, the WCCHD struggled financially beginning in the mid-1990’s, experiencing increasing costs, declining reimbursements, and growing service demand from low-income populations, the uninsured and underinsured. Although the WCCHD emerged from a 2006 bankruptcy, it never managed to regain financial solvency and fell further into debt. The WCCHD shut its hospital, a full-service acute care facility in 2015. The closure resulted in a significant loss of hospital beds and emergency department facilities, as well as the elimination of other specialized services.
The WCCHD’s board continues to function with limited staff as it sells its building, equipment, and other property, and arranges for ongoing resolution of its outstanding debts and obligations. With limited available resources, significant debts and other ongoing costs, the District has no funds available for health-related programs; it faces potential future financial shortfalls and increases in debt. This adverse financial situation is likely to continue until the WCCHD’s debt to the County and other outstanding financial obligations are repaid over the next 10-12 years. After the WCCHD extinguishes its debts, more than $9 million in annual revenue could be available, after administrative expenses, for healthcare-related services and facilities for residents of west Contra Costa County.
In a 2016 special study, the Contra Costa Local Agency Formation Commission (LAFCO) determined that dissolving the WCCHD would eliminate millions of dollars in funding for healthcare in the community, further exacerbating existing healthcare challenges faced by residents of west Contra Costa County. The LAFCO recommended, and the County agreed, that modifying the board membership of the WCCHD from an elected to an appointed board is important to ensure the future financial stability of the WCCHD as it will save approximately $450,000 in election costs every two years. Contra Costa County wants authority to appoint the WCCHD’s board members starting January 1, 2019.
Proposed Law
Senate Bill 522 dissolves the existing district board of the West Contra Costa Healthcare District and removes any remaining board members from office effective January 1, 2019. This bill requires the Board of Supervisors of Contra Costa County to either serve as the district board or appoint a new board. This measure specifies that if the new board is filled by appointment, the board may include at least one Contra Costa County Supervisor and one city council member of any city located within district boundaries. The term of the appointed board member must be four years, or until a successor qualifies and takes office.
SB 522 requires the Board of Supervisors to determine whether the appointed members serve at its pleasure or staggered four-year terms, subject to removal for cause. Vacancies must be filled by appointment of the Board of Supervisors. This bill contains legislative findings and declarations to support it purposes.
State Revenue Impact
No estimate.
Comments
1. Purpose of the bill. According to the author, “On October 20, 2016, the West Contra Costa Healthcare District filed a petition in the Northern District of California, Oakland Division to initiate a Chapter 9 bankruptcy proceeding. The purpose of the Chapter 9 bankruptcy is to obtain relief from creditor collection actions and access revenues necessary to provide the District with time to effect a ‘Plan of Adjustment’ of the District’s debts. The elections held to select new governing body members cost about $450,000 every other year. Continuing to spend nearly half of the District’s revenue every other year simply to conduct elections is fiscally irresponsible and unnecessary. Given the District’s limited funding and change in operations, legislation that would allow the County Board of Supervisors to appoint the District’s governing body is necessary and appropriate. It eliminates the cost of elections and will foster collaboration between the District and the County as these two public agencies work together to meet the medical needs of District residents.”
2. Local problems, local solutions. By dissolving the existing board of the WCCHD and allowing the Contra Costa County Board of Supervisors to either serve as or appoint new board members to serve at its pleasure, SB 522 effectively makes the WCCHD a dependent district. As opposed to independent special districts where the board members are elected by their constituents or are appointed to terms of fixed length, dependent special districts function akin to a city or county department, ultimately dependent upon the decisions made by the governing city council or board of supervisors. The Legislature has delegated the power to control local boundaries and local governance authority to the 58 countywide LAFCOs, including the authority to change an independent special district into a dependent one. This bill bypasses the Contra Costa LAFCO by not requiring the usual reorganization process to occur. While the Committee has approved several bills bypassing the LAFCO process, it may wish to consider whether this issue is better resolved by local officials according to the current local process.
3. Special legislation. The California Constitution prohibits special legislation when a general law can apply (Article IV, §16). SB 522 contains findings and declarations explaining the need for legislation that applies only to the West Contra Costa Healthcare District.
4. Mandate. The California Constitution generally requires the state to reimburse local agencies for their costs when the state imposes new programs or additional duties on them. According to the Legislative Counsel’s Office, SB 522 creates a new state-mandated local program. Ultimately, the Commission on State Mandates determines if a mandate is reimbursable and the amount of reimbursement to be provided.
Support and Opposition
(1/4/18)
Support: Contra Costa County (sponsor).
Opposition: Unknown.
-- END --
Bill Author
Bill Co-Author(s):