SB 1458

Bill Subjects

Abstract

Existing law, the Local Health Care District Law, provides for the formation of hospital districts, provides for appointments of their governing boards, and sets forth their powers and duties. Existing law authorizes a district to enter into a line of credit with a commercial lender that is secured, in whole or in part, by the accounts receivable or other intangible assets of the district, including anticipated tax revenues, and thereafter borrow funds against the line of credit to be used for any district purpose. Existing law requires this line of credit to be repaid within 5 years, except that it permits money borrowed under a line of credit established on or after January 1, 2010, for the sole purpose of consolidating debts incurred by a district prior to January 1, 2010, to be repaid within 20 years. Existing law establishes a maximum of $2,000,000 at any one time under this line of credit. This bill would recast these provisions to apply the $2,000,000 maximum only to the consolidated line of credit incurred after January 1, 2010. This bill would declare that it is to take effect immediately as an urgency statute.