Amended in Assembly March 18, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2104


Introduced by Assembly Member Dababneh

February 17, 2016


begin deleteAn act to amend Section 65007 of the Government Code, relating to land use. end deletebegin insertAn act to amend Section 15432 of the Government Code, and to amend Sections 129005, 129010, 129020, 129090, and 129173 of the Health and Safety Code, relating to health facilities, and making an appropriation therefor.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2104, as amended, Dababneh. begin deletePlanning and Zoning Law. end deletebegin insertCalifornia Health Facilities Financing Authority Act: California Health Facility Construction Loan Insurance Law.end insert

begin insert

The California Health Facilities Financing Authority Act authorizes the California Health Facilities Financing Authority to, among other things, make loans from the continuously appropriated California Health Facilities Financing Authority Fund to participating health institutions, as defined, for financing or refinancing the acquisition, construction, or remodeling of health facilities.

end insert
begin insert

This bill would expand the program to include for-profit corporations or associations when at least 60% of their patients are Medi-Cal beneficiaries by adding those entities to the definition of “participating health institutions.” Because this bill would expand the purposes for which a continuously appropriated fund may be used, it would make an appropriation.

end insert
begin insert

Existing law establishes the California Health Facility Construction Loan Insurance Law to provide, without cost to the state, an insurance program for health facility construction, improvement, and expansion loans in order to stimulate the flow of private capital into health facilities construction, improvement, and expansion and in order to rationally meet the need for new, expanded, and modernized public and nonprofit health facilities necessary to protect the health of all the people of this state. Existing law establishes the Health Facility Construction Loan Insurance Fund in the State Treasury, to be continuously appropriated to carry out the provisions and administrative costs of the insurance program. Under existing law, political subdivisions, as defined, and nonprofit corporations are authorized to apply for state insurance of needed construction, improvement, or expansion loans for construction, remodeling, or acquisition of health facilities, as provided, and applicants are required to pay an application fee not to exceed $500, which is deposited into the fund.

end insert
begin insert

This bill would expand the program to include for-profit corporations when at least 60% of their patients are Medi-Cal beneficiaries by, among other things, adding those entities to the definition of “health facilities” and making those entities eligible to apply for the insurance program. Because this bill would add a new source of revenue and expand the purposes for which a continuously appropriated fund may be used, it would make an appropriation.

end insert
begin delete

The Planning and Zoning Law requires a city or county general plan to include specified mandatory elements, including a land use element that designates the proposed general distribution and general location and extent of the uses of the land for various purposes and a conservation element that considers, among other things, the effect of development within the jurisdiction, as described in the land use element, on natural resources located on public lands. The land use element is required to identify areas that are subject to flooding, and the conservation element may also cover, among other things, flood control.

end delete
begin delete

This bill would make a nonsubstantive change to a provision of the Planning and Zoning Law.

end delete

Vote: majority. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 15432 of the end insertbegin insertGovernment Codeend insertbegin insert is
2amended to read:end insert

P3    1

15432.  

As used in this part, the following words and terms
2shall have the following meanings, unless the context clearly
3indicates or requires another or different meaning or intent:

4(a) “Act” means the California Health Facilities Financing
5Authority Act.

6(b) “Authority” means the California Health Facilities Financing
7Authority created by this part or any board, body, commission,
8department, or officer succeeding to the principal functions thereof
9or to which the powers conferred upon the authority by this part
10shall be given by law.

11(c) “Cost,” as applied to a project or portion of a project financed
12under this part, means and includes all or any part of the cost of
13construction and acquisition of all lands, structures, real or personal
14property, rights, rights-of-way, franchises, easements, and interests
15acquired or used for a project, the cost of demolishing or removing
16any buildings or structures on land so acquired, including the cost
17of acquiring any lands to which those buildings or structures may
18be moved, the cost of all machinery and equipment, financing
19charges, interest prior to, during, and for a period not to exceed
20the later of one year or one year following completion of
21construction, as determined by the authority, the cost of insurance
22during construction, the cost of funding or financing noncapital
23expenses, reserves for principal and interest and for extensions,
24enlargements, additions, replacements, renovations and
25improvements, the cost of engineering, service contracts,
26reasonable financial and legal services, plans, specifications,
27studies, surveys, estimates, administrative expenses, and other
28expenses of funding or financing, that are necessary or incident to
29determining the feasibility of constructing any project, or that are
30incident to the construction, acquisition, or financing of any project.

31(d) “Health facility” means a facility, place, or building that is
32licensed, accredited, or certified and organized, maintained, and
33operated for the diagnosis, care, prevention, and treatment of
34human illness, or physical, mental, or developmental disability,
35including convalescence and rehabilitation and including care
36during and after pregnancy, or for any one or more of these
37purposes, for one or more persons, and includes, but is not limited
38to, all of the following types:

39(1) A general acute care hospital that is a health facility having
40a duly constituted governing body with overall administrative and
P4    1professional responsibility and an organized medical staff that
2provides 24-hour inpatient care, including the following basic
3services: medical, nursing, surgical, anesthesia, laboratory,
4radiology, pharmacy, and dietary services.

5(2) An acute psychiatric hospital that is a health facility having
6a duly constituted governing body with overall administrative and
7professional responsibility and an organized medical staff that
8provides 24-hour inpatient care for mentally disordered,
9incompetent, or other patients referred to in Division 5
10(commencing with Section 5000) or Division 6 (commencing with
11Section 6000) of the Welfare and Institutions Code, including the
12following basic services: medical, nursing, rehabilitative,
13pharmacy, and dietary services.

14(3) A skilled nursing facility that is a health facility that provides
15the following basic services: skilled nursing care and supportive
16care to patients whose primary need is for availability or skilled
17nursing care on an extended basis.

18(4) An intermediate care facility that is a health facility that
19provides the following basic services: inpatient care to ambulatory
20or semiambulatory patients who have recurring need for skilled
21nursing supervision and need supportive care, but who do not
22require availability or continuous skilled nursing care.

23(5) A special health care facility that is a health facility having
24a duly constituted governing body with overall administrative and
25professional responsibility and an organized medical or dental staff
26that provides inpatient or outpatient, acute or nonacute care,
27including, but not limited to, medical, nursing, rehabilitation,
28dental, or maternity.

29(6) A clinic that is operated by a tax-exempt nonprofit
30corporation that is licensed pursuant to Section 1204 or 1204.1 of
31the Health and Safety Code or a clinic exempt from licensure
32pursuant to subdivision (b) or (c) of Section 1206 of the Health
33and Safety Code.

34(7) An adult day health center that is a facility, as defined under
35subdivision (b) of Section 1570.7 of the Health and Safety Code,
36that provides adult day health care, as defined under subdivision
37(a) of Section 1570.7 of the Health and Safety Code.

38(8) A facility owned or operated by a local jurisdiction for the
39provision of county health services.

P5    1(9) A multilevel facility is an institutional arrangement where
2a residential facility for the elderly is operated as a part of, or in
3conjunction with, an intermediate care facility, a skilled nursing
4facility, or a general acute care hospital. “Elderly,” for the purposes
5of this paragraph, means a person 62 years of age or older.

6(10) A child day care facility operated in conjunction with a
7health facility. A child day care facility is a facility, as defined in
8Section 1596.750 of the Health and Safety Code. For purposes of
9this paragraph, “child” means a minor from birth to 18 years of
10age.

11(11) An intermediate care facility/developmentally disabled
12habilitative that is a health facility, as defined under subdivision
13(e) of Section 1250 of the Health and Safety Code.

14(12) An intermediate care facility/developmentally
15disabled-nursing that is a health facility, as defined under
16subdivision (h) of Section 1250 of the Health and Safety Code.

17(13) A community care facility that is a facility, as defined under
18subdivision (a) of Section 1502 of the Health and Safety Code,
19that provides care, habilitation, rehabilitation, or treatment services
20to developmentally disabled or mentally impaired persons.

21(14) A nonprofit community care facility, as defined in
22subdivision (a) of Section 1502 of the Health and Safety Code,
23other than a facility that, as defined in that subdivision, is a
24residential facility for the elderly, a foster family agency, a foster
25family home, a full service adoption agency, or a noncustodial
26adoption agency.

27(15) A nonprofit accredited community work activity program,
28as specified in subdivision (e) of Section 4851 and Section 4856
29of the Welfare and Institutions Code.

30(16) A community mental health center, as defined in paragraph
31(3) of subdivision (b) of Section 5667 of the Welfare and
32Institutions Code.

33(17) A nonprofit speech and hearing center, as defined in Section
341201.5 of the Health and Safety Code.

35(18) A blood bank, as defined in Section 1600.2 of the Health
36and Safety Code, licensed pursuant to Section 1602.5 of the Health
37and Safety Code, and exempt from federal income taxation
38pursuant to Section 501(c)(3) of the Internal Revenue Code.

39(19) A residential facility for persons with developmental
40disabilities, as defined in Sections 4688.5 and 4688.6 of the
P6    1Welfare and Institutions Code, which includes, but is not limited
2to, a community care facility licensed pursuant to Section 1502 of
3the Health and Safety Code and a family teaching home as defined
4in Section 4689.1 of the Welfare and Institutions Code.

5(20) A nonpublic school that provides educational services in
6conjunction with a health facility, as defined in paragraphs (1) to
7(19), inclusive, that otherwise qualifies for financing pursuant to
8this part, if the nonpublic school is certified pursuant to Sections
956366 and 56366.1 of the Education Code as meeting standards
10relating to the required special education and specified related
11services and facilities for individuals with physical, mental, or
12developmental disabilities.

13“Health facility” includes a clinic that is described in subdivision
14(l) of Section 1206 of the Health and Safety Code.

15“Health facility” includes information systems equipment and
16the following facilities, if the equipment and facility is operated
17in conjunction with or to support the services provided in one or
18more of the facilities specified in paragraphs (1) to (20), inclusive,
19of this subdivision: a laboratory, laundry, a nurses or interns
20residence, housing for staff or employees and their families or
21patients or relatives of patients, a physicians’ facility, an
22administration building, a research facility, a maintenance, storage,
23or utility facility, an information systems facility, all structures or
24facilities related to any of the foregoing facilities or required or
25useful for the operation of a health facility and the necessary and
26usual attendant and related facilities and equipment, and parking
27and supportive service facilities or structures required or useful
28for the orderly conduct of the health facility.

29“Health facility” does not include any institution, place, or
30building used or to be used primarily for sectarian instruction or
31study or as a place for devotional activities or religious worship.

32(e) “Participating health institution” means a city, city and
33county, or county, a district hospital, or a private nonprofit
34corporation or association, or a limited liability company whose
35sole member is a nonprofit corporation or association authorized
36by the laws of this state to provide or operate a health facility or
37a nonprofit corporation that controls or manages, is controlled or
38managed by, is under common control or management with, or is
39affiliated with any of the foregoing,begin insert or a for-profit corporation or
40association when at least 60 percent of itsend insert
begin insert patients are Medi-Cal
P7    1beneficiaries,end insert
and that, pursuant to this part, undertakes the
2financing or refinancing of the construction or acquisition of a
3project or of working capital as provided in this part. “Participating
4health institution” also includes, for purposes of the California
5Health Facilities Revenue Bonds (UCSF-Stanford Health Care)
61998 Series A, the Regents of the University of California.

7(f) “Project” means construction, expansion, remodeling,
8renovation, furnishing, or equipping, or funding, financing, or
9refinancing of a health facility or acquisition of a health facility
10to be financed or refinanced with funds provided in whole or in
11part pursuant to this part. “Project” may include reimbursement
12for the costs of construction, expansion, remodeling, renovation,
13furnishing, or equipping, or funding, financing, or refinancing of
14a health facility or acquisition of a health facility. “Project” may
15include any combination of one or more of the foregoing
16undertaken jointly by any participating health institution with one
17or more other participating health institutions.

18(g) “Revenue bond” or “bond” means a bond, warrant, note,
19lease, or installment sale obligation that is evidenced by a
20certificate of participation or other evidence of indebtedness issued
21by the authority.

22(h) “Working capital” means moneys to be used by, or on behalf
23of, a participating health institution to pay or prepay maintenance
24or operation expenses or any other costs that would be treated as
25an expense item, under generally accepted accounting principles,
26in connection with the ownership or operation of a health facility,
27including, but not limited to, reserves for maintenance or operation
28expenses, interest for not to exceed one year on any loan for
29working capital made pursuant to this part, and reserves for debt
30service with respect to, and any costs necessary or incidental to,
31that financing.

32begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 129005 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
33amended to read:end insert

34

129005.  

The purpose of this chapter is to provide, without cost
35to the state, an insurance program for health facility construction,
36improvement, and expansion loans in order to stimulate the flow
37of private capital into health facilities construction, improvement,
38and expansion and in order to rationally meet the need for new,
39begin delete expandedend deletebegin insert expanded,end insert and modernizedbegin delete publicend deletebegin insert public, eligible
40for-profit,end insert
and nonprofit health facilities necessary to protect the
P8    1health of all the people of this state. The provisions of this chapter
2are to be liberally construed to achieve this purpose.

3begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 129010 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
4amended to read:end insert

5

129010.  

Unless the context otherwise requires, the definitions
6in this section govern the construction of this chapter and of Section
732127.2.

8(a) “Bondholder” means the legal owner of a bond or other
9evidence of indebtedness issued by a political subdivision or a
10nonprofit corporation.

11(b) “Borrower” means a political subdivision or nonprofit
12corporation that has secured or intends to secure a loan for the
13construction of a health facility.

14(c) “Construction, improvement, or expansion” or “construction,
15improvement, and expansion” includes construction of new
16buildings, expansion, modernization, renovation, remodeling and
17alteration of existing buildings, acquisition of existing buildings
18or health facilities, and initial or additional equipping of any of
19these buildings.

20In connection therewith, “construction, improvement, or
21expansion” or “construction, improvement, and expansion”
22includes the cost of construction or acquisition of all structures,
23including parking facilities, real or personal property, rights,
24rights-of-way, the cost of demolishing or removing any buildings
25or structures on land so acquired, including the cost of acquiring
26any land where the buildings or structures may be moved, the cost
27of all machinery and equipment, financing charges, interest (prior
28to,begin delete duringend deletebegin insert during,end insert and for a period after completion of the
29construction), provisions for working capital, reserves for principal
30and interest and for extensions, enlargements, additions,
31replacements, renovations and improvements, cost of engineering,
32financial and legal services, plans, specifications, studies, surveys,
33estimates of cost and of revenues, administrative expenses,
34expenses necessary or incident to determining the feasibility or
35practicability of constructing or incident to the construction; or
36the financing of the construction or acquisition.

37(d) “Committee” means the Advisory Loan Insurance
38Committee.

39(e) “Debenture” means any form of written evidence of
40indebtedness issued by the State Treasurer pursuant to this chapter,
P9    1as authorized by Section 4 of Article XVI of the California
2Constitution.

3(f) “Fund” means the Health Facility Construction Loan
4Insurance Fund.

5(g) “Health facility” means any facility providing or designed
6to provide services for the acute, convalescent, and chronically ill
7and impaired, including, but not limited to, public health centers,
8community mental health centers, facilities for the developmentally
9disabled, nonprofit community care facilities that provide care,
10habilitation, rehabilitation or treatment to developmentally disabled
11persons, facilities for the treatment of chemical dependency,
12including a community care facility, licensed pursuant to Chapter
133 (commencing with Section 1500) of Division 2, a clinic, as
14defined pursuant to Chapter 1 (commencing with Section 1200)
15of Division 2, an alcoholism recovery facility, defined pursuant
16to former Section 11834.11, and a structure located adjacent or
17attached to another type of health facility and that is used for
18storage of materials used in the treatment of chemical dependency,
19and general tuberculosis, mental, and other types of hospitals and
20related facilities, such as laboratories, outpatient departments,
21extended care, nurses’ home and training facilities, offices and
22central service facilities operated in connection with hospitals,
23diagnostic or treatment centers, extended care facilities, nursing
24homes, and rehabilitation facilities. “Health facility” also means
25an adult day health center and a multilevel facility. Except for
26facilities for the developmentally disabled, facilities for the
27treatment of chemical dependency, or a multilevel facility, or as
28otherwise provided in this subdivision, “health facility” does not
29include any institution furnishing primarily domiciliary care.

30“Health facility” also means accredited nonprofit work activity
31programs as defined in subdivision (e) of Sectionbegin delete 19352 and
32Section 19355end delete
begin insert 4851end insert of the Welfare and Institutions Code, and
33 nonprofit community care facilities as defined in Section 1502,
34excluding foster family homes, foster family agencies, adoption
35agencies, and residential care facilities for the elderly.

36Unless the context dictates otherwise, “health facility” includes
37a political subdivision of the state or nonprofit corporation that
38operates a facility included within the definition set forth in this
39subdivision.

begin insert

P10   1Unless the context dictates otherwise, “health facility” includes
2a for-profit corporation when at least 60 percent of its patients
3are Medi-Cal beneficiaries and that operates a facility included
4within the definition set forth in this subdivision.

end insert

5(h) “Office” means the Office of Statewide Health Planning and
6Development.

7(i) “Lender” means the provider of a loan and its successors and
8assigns.

9(j) “Loan” means money or credit advanced for the costs of
10construction or expansion of the health facility, and includes both
11initial loans and loans secured upon refinancing and may include
12both interim, or short-term loans, and long-term loans. A duly
13authorized bond or bond issue, or an installment sale agreement,
14may constitute a “loan.”

15(k) “Maturity date” means the date that the loan indebtedness
16would be extinguished if paid in accordance with periodic
17payments provided for by the terms of the loan.

18(l) “Mortgage” means a first mortgage on real estate. “Mortgage”
19includes a first deed of trust.

20(m) “Mortgagee” includes a lender whose loan is secured by a
21mortgage. “Mortgagee” includes a beneficiary of a deed of trust.

22(n) “Mortgagor” includes a borrower, a loan to whom is secured
23by a mortgage, and the trustor of a deed of trust.

24(o) “Nonprofit corporation” means any corporation formed
25under or subject to the Nonprofit Public Benefit Corporation Law
26(Part 2 (commencing with Section 5110) of Division 2 of Title 1
27of the Corporations Code) that is organized for the purpose of
28owning and operating a health facility and that also meets the
29requirements of Section 501(c)(3) of the Internal Revenue Code.

30(p) “Political subdivision” means any city, county, joint powers
31entity, local hospital district, or the California Health Facilities
32Authority.

33(q) “Project property” means the real property where the health
34facility is, or is to be, constructed, improved, or expanded, and
35also means the health facility and the initial equipment in that
36health facility.

37(r) “Public health facility” means any health facility that is or
38will be constructed for and operated and maintained by any city,
39county, or local hospital district.

P11   1(s) “Adult day health center” means a facility defined under
2subdivision (b) of Section 1570.7, that provides adult day health
3care, as defined under subdivision (a) of Section 1570.7.

4(t) “Multilevel facility” means an institutional arrangement
5where a residential facility for the elderly is operated as a part of,
6or in conjunction with, an intermediate care facility, a skilled
7nursing facility, or a general acute care hospital. “Elderly,” for the
8purposes of this subdivision, means a person 60 years of age or
9older.

10(u) “State plan” means the plan described in Section 129020.

11begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 129020 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
12amended to read:end insert

13

129020.  

begin insert(a)end insertbegin insertend insertThe office shall implement the loan insurance
14program for the construction, improvement, and expansion of
15begin delete publicend deletebegin insert public, eligible for-profit,end insert and nonprofit corporation health
16facilities so that, in conjunction with all other existing facilities,
17the necessary physical facilities for furnishing adequate health
18facility services will be available to all the people of the state.

begin delete

19 Every

end delete

20begin insert(b)end insertbegin insertend insertbegin insertEveryend insert odd-numbered year the office shall develop a state
21plan for use under this chapter. The plan shall include an overview
22of the changes in the health care industry, an overview of the
23financial status of the fund and the loan insurance program
24implemented by the office, a statement of the guiding principles
25of the loan insurance program, an evaluation of the program’s
26success in meeting its mission as outlined in Section 129005, a
27discussion of administrative, procedural, or statutory changes that
28may be needed to improve management of program risks or to
29ensure the program effectively addresses the health needs of
30Californians, and the priority needs to be addressed by the loan
31insurance program.

begin delete

32 The

end delete

33begin insert(c)end insertbegin insertend insertbegin insertTheend insert health facility construction loan insurance program shall
34provide for health facility distribution throughout the state in a
35manner that will make all types of health facility services
36reasonably accessible to all persons in the state according to the
37state plan.

38begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 129090 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
39amended to read:end insert

P12   1

129090.  

begin insert(a)end insertbegin insertend insertPursuant to this chapter, politicalbegin delete subdivisionsend delete
2begin insert subdivisions, eligible for-profit corporations,end insert and nonprofit
3corporations may apply for state insurance of needed construction,
4improvement, or expansion loans for construction, remodeling, or
5acquisition of health facilities to be or already owned, established,
6and operated by them as provided in this chapter. Applications
7shall be submitted to the office by the nonprofitbegin delete corporationend delete
8begin insert corporation, eligible for-profit corporation,end insert or political subdivision
9authorized to construct and operate a health facility.begin delete Eachend delete

10begin insert(b)end insertbegin insertend insertbegin insertEachend insert application shall conform to the requirements of the
11office, shall be submitted in the manner and form prescribed by
12the office, and shall be accompanied by an application fee of
13one-half of 1 percent of the amount of the loan applied for, but in
14no case shall the application fee exceed five hundred dollars ($500).
15The fees shall be deposited by the office in the fund and used to
16defray the office’s expenditures in the administration of this
17chapter.

18begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 129173 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
19amended to read:end insert

20

129173.  

(a) In fulfilling the purposes of this article, as set forth
21in Section 129005, and upon making a determination that the
22financial status of a borrower may jeopardize a borrower’s ability
23to fulfill its obligations under any insured loan transaction so as
24to threaten the economic interest of the office in the borrower or
25to jeopardize the borrower’s ability to continue to provide needed
26health care services in its community, including, but not limited
27to, a declaration of default under any contract related to the
28transaction, the borrower missing any payment to its lender, or the
29borrower’s accounts payable exceeding three months, the office
30may assume or direct managerial or financial control of the
31borrower in any or all of the following ways:

32(1) The office may supervise and prescribe the activities of the
33borrower in the manner and under the terms and conditions as the
34office may stipulate in any contract with the borrower.

35(2) Notwithstanding the provisions of the articles of
36incorporation or other documents of organization of a nonprofit
37corporation borrower, this control may be exercised through the
38removal and appointment by the office of members of the
39governing body of the borrower sufficient so that the new members
40constitute a voting majority of the governing body.

P13   1(3) In the event the borrower is a nonprofitbegin delete corporationend delete
2begin insert corporation, an eligible for-profit corporation,end insert or a political
3subdivision, the office may request the Secretary of the California
4Health and Human Services Agency to appoint a trustee. The
5trustee shall have full and complete authority of the borrower over
6the insured project, including all property on which the office holds
7a security interest.begin delete Noend deletebegin insert Aend insert trustee shallbegin insert notend insert be appointed unless
8approved by the office. A trustee appointed by the secretary
9pursuant to this subdivision may exercise all the powers of the
10officers and directors of the borrower, including the filing of a
11petition for bankruptcy.begin delete Noend deletebegin insert Anend insert action at law or in equitybegin delete mayend deletebegin insert shall
12notend insert
be maintained by any party against the office or a trustee by
13reason of their exercising the powers of the officers and directors
14of a borrower pursuant to the direction of, or with the approval of,
15the secretary.

16(4) The office may institute any action or proceeding, or the
17office may request the Attorney General to institute any action or
18proceeding against any borrower, to obtain injunctive or other
19equitable relief, including the appointment of a receiver for the
20borrower or the borrower’s assets, in the superior court in and for
21the county in which the assets or a substantial portion of the assets
22are located. The proceeding under this section for injunctive relief
23shall conform with the requirements of Chapter 3 (commencing
24with Section 525) of Title 7 of Part 2 of the Code of Civil
25Procedure, except that the office shall not be required to allege
26facts necessary to show lack of adequate remedy at law, or to show
27 irreparable loss or damage. Injunctive relief may compel the
28borrower, its officers, agents, or employees to perform each and
29every provision contained in any regulatory agreement, contract
30of insurance, or any other loan closing document to which the
31borrower is a party, or any obligation imposed on the borrower by
32law, and require the carrying out of any and all covenants and
33agreements and the fulfillment of all duties imposed on the
34borrower by law or those documents.

35A receiver may be appointed pursuant to Chapter 5 (commencing
36with Section 564) of Title 7 of Part 2 of the Code of Civil
37Procedure. In cooperation with the Attorney General, the office
38shall develop and maintain a list of receivers who have
39demonstrated experience both in the health care field and as a
40receiver. Upon a proper showing, the court shall grant the relief
P14   1provided by law and requested by the office or the Attorney
2General. No receiver shall be appointed unless approved by the
3office. The office shall establish reporting requirements for
4receivers to ensure that the office is fully apprised of all costs
5incurred and progress made by the receiver. A receiver appointed
6by the superior court pursuant to this subdivision and Section 564
7of the Code of Civil Procedure may, with the approval of the court,
8exercise all of the powers of the officers and directors of the
9borrower, including the filing of a petition for bankruptcy.begin delete Noend deletebegin insert Anend insert
10 action at law or in equitybegin delete mayend deletebegin insert shall notend insert be maintained by any party
11against the office, the Attorney General, or a receiver by reason
12of their exercising the powers of the officers and directors of a
13borrower pursuant to the order of, or with the approval of, the
14superior court.

15(5) The borrower shall inform the office in advance of all
16meetings of its governing body. The borrower shall not exclude
17the office from attending any meeting of the borrower’s governing
18body.

19(b) Other than the loan insured under this chapter, the office
20shall not be liable for any debt of a borrower, or to a borrower, as
21a result of the office asserting its legal remedies against a borrower
22insured under this chapter.

23(c) It is the intent of the Legislature that this section is remedial
24in nature, and is applicable retroactively to any health facility
25construction loans in existence at the time of its enactment, to the
26extent that the application of this section does not unlawfully impair
27existing contract rights.

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28

SECTION 1.  

Section 65007 of the Government Code is
29amended to read:

30

65007.  

As used in this title, the following terms have the
31following meanings, unless the context requires otherwise:

32(a) “Adequate progress” means all of the following:

33(1) The total project scope, schedule, and cost of the completed
34flood protection system have been developed to meet the
35appropriate standard of protection.

36(2) (A) Revenues that are sufficient to fund each year of the
37project schedule developed in paragraph (1) have been identified
38and, in any given year and consistent with that schedule, at least
3990 percent of the revenues scheduled to be received by that year
40have been appropriated and are currently being expended.

P15   1(B) Notwithstanding subparagraph (A), for any year in which
2state funding is not appropriated consistent with an agreement
3between a state agency and a local flood management agency, the
4Central Valley Flood Protection Board may find that the local
5flood management agency is making adequate progress in working
6toward the completion of the flood protection system.

7(3) Critical features of the flood protection system are under
8construction, and each critical feature is progressing as indicated
9by the actual expenditure of the construction budget funds.

10(4) The city or county has not been responsible for a significant
11delay in the completion of the system.

12(5) The local flood management agency shall provide the
13Department of Water Resources and the Central Valley Flood
14Protection Board with the information specified in this subdivision
15sufficient to determine substantial completion of the required flood
16protection. The local flood management agency shall annually
17report to the Central Valley Flood Protection Board on the efforts
18in working toward completion of the flood protection system.

19(b) “Central Valley Flood Protection Plan” has the same
20meaning as that set forth in Section 9612 of the Water Code.

21(c) “Developed area” has the same meaning as that set forth in
22Section 59.1 of Title 44 of the Code of Federal Regulations.

23(d) “Flood hazard zone” means an area subject to flooding that
24is delineated as either a special hazard area or an area of moderate
25hazard on an official flood insurance rate map issued by the Federal
26Emergency Management Agency. The identification of flood
27hazard zones does not imply that areas outside the flood hazard
28zones, or uses permitted within flood hazard zones, will be free
29from flooding or flood damage.

30(e) “National Federal Emergency Management Agency standard
31of flood protection” means the level of flood protection that is
32necessary to withstand flooding that has a 1-in-100 chance of
33occurring in any given year using criteria developed by the Federal
34Emergency Management Agency for application in the National
35Flood Insurance Program.

36(f) “Nonurbanized area” means a developed area or an area
37outside a developed area in which there are fewer than 10,000
38residents that is not an urbanizing area.

39(g) “Project levee” means a levee that is part of the facilities of
40the State Plan of Flood Control.

P16   1(h) “Sacramento-San Joaquin Valley” means lands in the bed
2or along or near the banks of the Sacramento River or San Joaquin
3River, or their tributaries or connected therewith, or upon any land
4adjacent thereto, or within the overflow basins thereof, or upon
5land susceptible to overflow therefrom. The Sacramento-San
6Joaquin Valley does not include lands lying within the Tulare Lake
7basin, including the Kings River.

8(i) “State Plan of Flood Control” has the same meaning as that
9set forth in subdivision (j) of Section 5096.805 of the Public
10Resources Code.

11(j) “Tulare Lake basin” means the Tulare Lake Hydrologic
12Region as defined in the California Water Plan Update 2009,
13prepared by the Department of Water Resources pursuant to
14Chapter 1 (commencing with Section 10004) of Part 1.5 of Division
156 of the Water Code.

16(k) “Undetermined risk area” means an urban or urbanizing area
17within a moderate flood hazard zone, as delineated on an official
18flood insurance rate map issued by the Federal Emergency
19Management Agency, which has not been determined to have an
20urban level of protection.

21(l) “Urban area” means a developed area in which there are
2210,000 residents or more.

23(m) “Urbanizing area” means a developed area or an area outside
24 a developed area that is planned or anticipated to have 10,000
25residents or more within the next 10 years.

26(n) “Urban level of flood protection” means the level of
27protection that is necessary to withstand flooding that has a
281-in-200 chance of occurring in any given year using criteria
29consistent with, or developed by, the Department of Water
30Resources. “Urban level of flood protection” shall not mean
31shallow flooding or flooding from local drainage that meets the
32criteria of the national Federal Emergency Management Agency
33standard of flood protection.

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