Part 5 - OFFICE OF RURAL HEALTH

California Health and Safety Code — §§ 1179-1179.6

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Sections (39)

Added by Stats. 1995, Ch. 305, Sec. 1. Effective August 3, 1995.

The Legislature finds and declares all of the following:

(a)Outside of California’s four major metropolitan areas, the majority of the state is rural. In general, the rural population is older, sicker, poorer, and more likely to be unemployed, uninsured, or underinsured. The lack of primary care, specialty providers and transportation continue to be significant barriers to access to health services in rural areas.

(b)There is no coordinated or comprehensive plan of action for rural health care in California to ensure the health of California’s rural residents. Most of the interventions that have taken place on behalf of rural communities have been limited in scope and purpose and were not conceived or implemented with any comprehensive or systematic approach in mind. Because health planning tends to focus on approaches for population centers, the unique needs of rural communities may not be addressed. A comprehensive plan and approach is necessary to obtain federal support and relief, as well as to realistically institute state and industry interventions.

(c)Rural communities lack the resources to make the transition from present practices to managed care, and to make other changes that may be necessary as the result of health care reform efforts. With numerous health care reform proposals being debated and with the extensive changes in the current health care delivery system, a comprehensive and coordinated analysis must take place regarding the impact of these proposals on rural areas.

(d)Rural areas lack the technical expertise and resources to improve and coordinate their local data collection activities, which are necessary for well-targeted health planning, program development, and resource development. Data must be available to local communities to enable them to plan effectively.

(e)The Legislature recognizes the need to take a comprehensive approach to strengthen and coordinate rural health programs and health care delivery systems in order to:

(1)Facilitate access to high quality health care for California’s rural communities.

(2)Promote coordinated planning and policy development among state departments and between the State and local public and private providers.

§ 1179.1

Added by Stats. 1995, Ch. 305, Sec. 1. Effective August 3, 1995.

(a)The Secretary of the Health and Welfare Agency shall establish an Office of Rural Health, or an alternative organizational structure, in one of the departments of the Health and Welfare Agency to promote a strong working relationship between state government and local and federal agencies, universities, private and public interest groups, rural consumers, health care providers, foundations, and other offices of rural health, as well as to develop health initiatives and maximize the use of existing resources without duplicating existing effort. The office or alternative organizational structure shall serve as a key information and referral source to promote coordinated planning for the delivery of health services in rural California.

(b)To the extent funds are appropriated by the Legislature, these efforts may include:

(1)Educating the public and recommending appropriate public policies regarding the viability of rural health care in California.

(2)Monitoring and working with state and federal agencies to assess the impact of proposed rules and regulations on rural areas.

(3)Promoting community involvement and community support in maintaining, rebuilding, and diversifying local health services in rural areas.

(4)Encouraging and evaluating the use of advanced communications technology to provide access to health promotion and disease prevention information, specialty expertise, clinical consultation, and continuing education for health professionals.

(5)Encouraging the development of regional health care and public health networks and collaborative efforts, including, but not limited to, emergency transportation networks.

(6)Working with state and local agencies, universities, and private and public interest groups to promote research on rural health issues.

(7)Soliciting the assistance of other offices or programs of rural health in California to carry out the duties of this part.

(8)Disseminating information and providing technical assistance to communities, health care providers, and consumers of health care services.

(9)Promoting strategies to improve health care professional recruitment and retention in rural areas.

(10)Encouraging innovative responses by public and private entities to address rural health issues.

§ 1179.10

This part shall be known and may be cited as the Children’s Hospital Bond Act of 2004.

§ 1179.100

Notwithstanding any other provision of this part, or of the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code), if the Treasurer sells bonds pursuant to this part that include a bond counsel opinion to the effect that the interest on the bonds is excluded from gross income for federal tax purposes, subject to designated conditions, the Treasurer may maintain separate accounts for the investment of bond proceeds and for the investment of earnings on those proceeds. The Treasurer may use or direct the use of those proceeds or earnings to pay any rebate, penalty, or other payment required under federal law or take any other action with respect to the investment and use of those bond proceeds required or desirable under federal law to maintain

the tax-exempt status of those bonds and to obtain any other advantage under federal law on behalf of the funds of this state.

§ 1179.101

The people hereby find and declare that, inasmuch as the proceeds from the sale of bonds authorized by this part are not “proceeds of taxes” as that term is used in Article XIII B of the California Constitution, the disbursement of these proceeds is not subject to the limitations imposed by that article.

§ 1179.102

Notwithstanding any other provision of this part, the provisions of this part are severable. If any provision of this part or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.

§ 1179.11

As used in this part, the following terms have the following meanings:

(a)“Authority” means the California Health Facilities Financing Authority established pursuant to Section 15431 of the Government Code.

(b)“Children’s hospital” means either:

(1)A University of California general acute care hospital described below:

(A)University of California, Davis Children’s Hospital.

(B)Mattel Children’s Hospital at University of California, Los Angeles.

(C)University Children’s Hospital at University of California, Irvine.

(D)University of California, San Francisco Children’s Hospital.

(E)University of California, San Diego Children’s Hospital.

(2)A general acute care hospital that is, or is an operating entity of, a California nonprofit corporation incorporated prior to January 1, 2003, whose mission of clinical care, teaching, research, and advocacy focuses on children, and that provides comprehensive pediatric services to a high volume of children eligible for governmental programs and to children with special health care needs eligible for the California Children’s Services program and:

(A)Provided at least 160 licensed beds in the categories of pediatric acute, pediatric intensive care and neonatal intensive care in the fiscal year ending between June 30, 2001, and June 29, 2002, as reported to the Office of Statewide Health Planning and Development on or before July 1, 2003.

(B)Provided over 30,000 total pediatric patient (census) days, excluding nursery acute days, in the fiscal year ending between June 30, 2001, and June 29, 2002, as reported to the Office of Statewide Health Planning and Development on or before July 1, 2003.

(C)Provided medical education of at least eight (rounded to the nearest integer) full-time equivalent pediatric or pediatric subspecialty residents in the fiscal year ending between June 30, 2001, and June 29, 2002, as reported to the Office of Statewide Health Planning and Development on or before July 1, 2003.

(c)“Committee” means the Children’s Hospital Bond Act Finance Committee created pursuant to Section 1179.32.

(d)“Fund” means the Children’s Hospital Fund created pursuant to Section 1179.20.

(e)“Grant” means the distribution of money in the fund by the authority to children’s hospitals for projects pursuant to this part.

(f)“Program” means the Children’s Hospital Program established pursuant to this part.

(g)“Project” means constructing, expanding, remodeling, renovating, furnishing, equipping, financing, or refinancing of a children’s hospital to be financed or refinanced with funds provided in whole or in part pursuant to this part. “Project” may include reimbursement for the costs of constructing, expanding, remodeling, renovating, furnishing, equipping, financing, or refinancing of a children’s hospital where such costs are incurred after January 31, 2003. “Project” may include any combination of one or more of the foregoing undertaken jointly by any participating children’s hospital that qualifies under this part.

§ 1179.20

The proceeds of bonds issued and sold pursuant to this part shall be deposited in the Children’s Hospital Fund, which is hereby created.

§ 1179.21

The purpose of the Children’s Hospital Program is to improve the health and welfare of California’s critically ill children, by providing a stable and ready source of funds for capital improvement projects for children’s hospitals. The program provided for in this part is in the public interest, serves a public purpose, and will promote the health, welfare, and safety of the citizens of the state.

§ 1179.22

The authority is authorized to award grants to any children’s hospital for purposes of funding projects, as defined in subdivision (g) of Section 1179.11.

§ 1179.23

(a)Twenty percent of the total funds available for grants pursuant to this part shall be awarded to children’s hospitals as defined in paragraph (1) of subdivision (b) of Section 1179.11.

(b)Eighty percent of the total funds available for grants pursuant to this part shall be awarded to children’s hospitals as defined in paragraph (2) of subdivision (b) of Section 1179.11.

§ 1179.24

(a)The authority shall develop a written application for the awarding of grants under this part within 90 days of the adoption of this act. The authority shall award grants to eligible children’s hospitals, subject to the limitations of this part and to further the purposes of this part based on the following factors:

(1)The grant will contribute toward expansion or improvement of health care access by children eligible for governmental health insurance programs and indigent, underserved, and uninsured children.

(2)The grant will contribute toward the improvement of child health care or pediatric patient outcomes.

(3)The children’s hospital provides uncompensated or undercompensated care to indigent or public pediatric patients.

(4)The children’s hospital provides services to vulnerable pediatric populations.

(5)The children’s hospital promotes pediatric teaching or research programs.

(6)Demonstration of project readiness and project feasibility.

(b)An application for funds shall be submitted to the authority for approval as to its conformity with the requirements of this part. The authority shall process and award grants in a timely manner, not to exceed 60 days.

(c)A children’s hospital identified in paragraph (1) of subdivision (b) of Section 1179.11 shall not apply for, and the authority shall not award to that children’s hospital, a grant that would cause the total amount of grants awarded to that children’s hospital to exceed one-fifth of the total funds available for grants to all children’s hospitals pursuant to subdivision (a) of Section 1179.23. Notwithstanding this grant limitation, any funds available under subdivision (a) of Section 1179.23 that have not been exhausted by June 30, 2014, shall become available for an application from any children’s hospital identified in paragraph (1) of subdivision (b) of Section 1179.11.

(d)A children’s hospital identified in paragraph (2) of subdivision (b) of Section 1179.11 shall not apply for, and the authority shall not award to that children’s hospital, a grant that would cause the total amount of grants awarded to that children’s hospital to exceed seventy-four million dollars ($74,000,000) from funds available for grants to all children’s hospitals pursuant to subdivision (b) of Section 1179.23. Notwithstanding this grant limitation, any funds available under subdivision (b) of Section 1179.23 that have not been exhausted by June 30, 2014, shall become available for an application from any children’s hospital defined in paragraph (2) of subdivision (b) of Section 1179.11.

(e)In no event shall a grant to finance a project exceed the total cost of the project, as determined by the children’s hospital and approved by the authority.

(f)All projects that are awarded grants shall be completed within a reasonable period of time. If the authority determines that the children’s hospital has failed to complete the project under the terms specified in awarding the grant, the authority may require remedies, including the return of all or a portion of the grant. A children’s hospital receiving a grant under this part shall submit certification of project completion to the authority.

(g)Grants shall only be available pursuant to this section if the authority determines that it has sufficient money available in the fund. Nothing in this section shall require the authority to award grants if the authority determines that it has insufficient moneys available in the fund to do so.

(h)The authority may annually determine the amount available for purposes of this part. Administrative costs for this program shall not exceed the actual costs or one percent, whichever is less.

§ 1179.25

The Bureau of State Audits may conduct periodic audits to ensure that bond proceeds are awarded in a timely fashion and in a manner consistent with the requirements of this part, and that awardees of bond proceeds are using funds in compliance with applicable provisions of this part.

§ 1179.3

Amended by Stats. 2013, Ch. 22, Sec. 13. (AB 75) Effective June 27, 2013. Operative July 1, 2013, by Sec. 110 of Ch. 22.

(a)(1) The Office of Statewide Health Planning and Development shall develop and administer a competitive grants program for projects located in rural areas of California.

(2)The office shall define “rural area” for the purposes of this section after receiving public input and upon recommendation of the Interdepartmental Rural Health Coordinating Committee and the Rural Health Programs Liaison.

(3)The purpose of the grants program shall be to fund innovative, collaborative, cost-effective, and efficient projects that pertain to the delivery of health and medical services in rural areas of the state.

(4)The office shall develop and establish uses for the funds to fund special projects that alleviate problems of access to quality health care in rural areas and to compensate public and private health care providers associated with direct delivery of patient care. The funds shall be used for medical and hospital care and treatment of patients who cannot afford to pay for services and for whom payment will not be made through private or public programs.

(5)The office shall administer the funds appropriated by the Legislature for purposes of this section. Entities eligible for these funds shall include rural health providers served by the programs operated by the office, the Emergency Medical Services Authority, the State Department of Health Care Services, the State Department of Public Health, and the Managed Risk Medical Insurance Board. The grant funds shall be used to expand

existing services or establish new services and shall not be used to supplant existing levels of service. Funds appropriated by the Legislature for this purpose may be expended in the fiscal year of the appropriation or the subsequent fiscal year.

(b)The Office of Statewide Health Planning and Development shall establish the criteria and standards for eligibility to be used in requests for proposals or requests for application, the application review process, determining the maximum amount and number of grants to be awarded, preference and priority of projects, compliance monitoring, and the measurement of outcomes achieved after receiving comment from the public at a meeting held pursuant to the Bagley-Keene Open Meeting Act (Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code).

(c)The Office of Statewide Health

Planning and Development shall make information regarding the status of the funded projects available at the public meetings described in subdivision (b).

§ 1179.30

Bonds in the total amount of seven hundred fifty million dollars ($750,000,000), not including the amount of any refunding bonds, may be issued and sold to provide a fund to be used for carrying out the purposes expressed in this part and to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5 of the Government Code. The bonds, when sold, shall be and constitute a valid and binding obligation of the State of California, and the full faith and credit of the State of California is hereby pledged for the punctual payment of the principal of, and interest on, the bonds as the principal and interest become due and payable.

§ 1179.31

The bonds authorized by this part shall be prepared, executed, issued, sold, paid, and redeemed as provided in the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4 of Title 2 of the Government Code), and all of the provisions of that law apply to the bonds and to this part and are hereby incorporated in this part as though set forth in full in this part.

§ 1179.32

(a)Solely for the purpose of authorizing the issuance and sale pursuant to the State General Obligation Bond Law of the bonds authorized by this part, the Children’s Hospital Bond Act Finance Committee is hereby created. For purposes of this part, the Children’s Hospital Bond Act Finance Committee is “the committee” as that term is used in the State General Obligation Bond Law. The committee consists of the Controller, Director of Finance, and the Treasurer, or their designated representatives. The Treasurer shall serve as chairperson of the committee. A majority of the committee may act for the committee.

(b)The authority is designated the “board” for purposes of the State General Obligation Bond Law, and shall administer the fund pursuant to this part.

§ 1179.33

The committee shall determine whether or not it is necessary or desirable to issue bonds authorized pursuant to this part in order to carry out the actions specified in Section 1179.21 and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be authorized and sold to carry out those actions progressively, and it is not necessary that all of the bonds be issued or sold at any one time.

§ 1179.34

There shall be collected each year and in the same manner and at the same time as other state revenue is collected, in addition to the ordinary revenues of the state, a sum in an amount required to pay the principal of, and interest on, the bonds each year. It is the duty of all officers charged by law with any duty in regard to the collection of the revenue to do and perform each and every act that is necessary to collect that additional sum.

§ 1179.35

Notwithstanding Section 13340 of the Government Code, there is hereby appropriated continuously from the General Fund in the State Treasury, for the purposes of this part, an amount that will equal the total of the following:

(a)The sum annually necessary to pay the principal of, and interest on, bonds issued and sold pursuant to this part, as the principal and interest become due and payable.

(b)The sum necessary to carry out Section 1179.36, appropriated without regard to fiscal years.

§ 1179.36