CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2098Introduced by Assembly Member Garcia(Coauthors: Senators Grove and Padilla)February 05, 2024 An act to amend Item 0977-101-0001 of the Budget Act of 2022, as amended by Section 47 of Chapter 45 of the Statutes of 2022, relating to health facilities financing, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGESTAB 2098, as introduced, Garcia. California Health Facilities Financing Authority Act: nondesignated hospitals: loan repayment.Under existing law, the California Health Facilities Financing Authority Act (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. Under the act, the authority is authorized to issue revenue bonds to provide the funds for achieving these purposes. Existing law appropriates $40,000,000 to provide cashflow loans to nondesignated public hospitals, as needed, due to the financial impacts of the COVID-19 public health emergency. Existing law requires the nondesignated public hospitals participating in this loan program to repay and discharge the loan within 24 months of the date of the loan.This bill would extend the repayment requirements for nondesignated public hospitals participating in the loan program, by requiring those hospitals to begin monthly repayments on the loan 24 months after the date of the loan, and discharge the loan within 72 months of the date of the loan, as prescribed. The bill would require the monthly payments to be amortized over the term of the loan, at 0% interest. By removing restrictions limiting the expenditure of moneys appropriated for purposes of these loans, the bill would make an appropriation.Digest Key Vote: 2/3 Appropriation: YES Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 47 of Chapter 45 of the Statutes of 2022 is amended to read:Sec. 47. Item 0977-101-0001 of Section 2.00 of the Budget Act of 2022 is amended to read:0977-101-0001For local assistance, California Health Facilities Financing Authority ........................ 65,000,000Schedule:(1)0885-Health Facilities Grants and Loans ........................ 65,000,000Provisions:1.(a)The amount appropriated in this item is available for the California Health Facilities Financing Authority to provide cashflow loans not to exceed $40,000,000 to nondesignated public hospitals, as needed, due to the financial impacts of the COVID-19 public health emergency.(b)Of the funds identified in subprovision (a), the California Health Facilities Financing Authority may allocate an amount not to exceed one percent of each hospitals loan. The Department of Finance may transfer up to $400,000 to Item 0977-001-0001 to administer the loans. Any funds transferred shall be available for encumbrance or expenditure until June 30, 2025.(c)The California Health Facilities Financing Authority shall determine, in consultation with nondesignated public hospitals, the application process, eligibility criteria, and methodology for distribution of the loans pursuant to this provision.(d)In administering the loan program in this item, the California Health Facilities Financing Authority shall not be subject to the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).(e)Notwithstanding Sections 15432 and 15451.5 of the Government Code, nondesignated public hospitals shall be required to repay and discharge the loan within 24 months of the date of the loan.Notwithstanding any other law, a nondesignated public hospital participating in the loan program described in this item shall be required to begin monthly repayments on the loan 24 months after the date of the loan, and shall discharge the loan within 72 months of the date of the loan. The monthly payments shall be amortized over the term of the loan, at zero percent interest. There shall be no prepayment penalty.(f)Security for the cashflow loans in subprovisions (a) and (b) will be Medi-Cal reimbursements due to these nondesignated public hospitals from the State Department of Health Care Services. The California Health Facilities Financing Authoritys recoupment of these cashflow loans may not exceed 20 percent of the nondesignated public hospitals respective Medi-Cal checkwrite payments until the loans amount have been satisfied.(g)For purposes of this provision, the following definitions apply:(1)Nondesignated public hospital means a public hospital as that term is defined in subdivision (l) of Section 14165.55 of the Welfare and Institutions Code, excluding those affiliated with county health systems.2.(a)Of the amount appropriated in this item, $25,000,000 is available for encumbrance or expenditure until June 30, 2028, for the California Health Facilities Financing Authority to implement the Specialty Dental Clinic Grant Program to support the construction, expansion, modification, or adaptation of specialty dental clinics in California to increase access to oral health care for the special health care needs populations.(b)The Department of Finance may transfer up to $1,250,000 to Item 0977-001-0001 to administer the grants. Any funds transferred shall be available for encumbrance or expenditure until June 30, 2030.(c)The California Health Facilities Finance Authority shall determine, in consultation with the California Dental Association and other stakeholders representing patients with special health care needs, disability and consumer advocates, and specialty dental providers, the competitive grant program application process, eligibility criteria, and methodology for distribution of the grants, up to $5,000,000 per eligible entity, pursuant to this provision.(d)The California Health Facilities Financing Authority shall prioritize applications that do the following: support timely access, reduce geographic shortages, increase equity, and support quality of care, giving priority to applications that include plans to reduce the need for dental care using sedation or general anesthesia, including, but not limited to, prevention, early intervention, behavior support services and intervention, provider education, and community outreach activities that bring care to community sites.(e)Entities shall meet the criteria established by the California Health Facilities Financing Authority, which, at a minimum, shall include:(1)A commitment to provide services to special needs populations, regardless of payer or health insurance provider, for a minimum of ten years upon final completion of construction, expansion, modification, or adaption of specialty dental clinics. The special needs population shall constitute at least 50 percent of the facilitys total patient caseload. To the extent an eligible entity does not maintain the minimum patient caseload above, the entity shall repay the amount of the grant back to the California Health Facilities Financing Authority within five years at an interest rate established by the California Health Facilities Financing Authority(2)The eligible entity shall be enrolled and certified as a provider with the Medi-Cal program and, if applicable, provide copies of valid contracts with local Medi-Cal managed care plans.(3)Submission of plans to the California Health Facilities Financing Authority that demonstrate the proposed entitys ability to serve patients with physical, cognitive, or developmental disabilities.(4)Proof of appropriate licensure of the facility or providers, including, but not limited to, professional licensure and applicable permits for general anesthesia, medical general anesthesia, conscious sedation, and oral conscious sedation.(h)Special health care needs populations include children and adults who have disabilities that prevent them from receiving routine or specialty care due to their physical, developmental, or cognitive condition.(i)Notwithstanding subdivision (e) of Section 15432 of the Government Code, eligible entities may include the following:(1)Facilities licensed under Chapter 1 (commencing with Section 1200) of Division 2 of the Health and Safety Code that provide, or intend to provide, dental services.(2)Facilities licensed under Section 1250 of the Health and Safety Code that provide, or intend to provide, dental services.(3)Licensed providers with the Medical or Dental Board of California that provide, or intend to provide, dental services.(4)A dental college located in the state approved by the California Dental Board or the Commission on Dental Accreditation of the American Dental Association.(j)Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the California Health Facilities Financing Authority may implement, interpret, or make specific this provision, in whole or in part, by means of information notices or other similar instructions, without taking any further regulatory action.(k)For purposes of implementing this provision, the California Health Facilities Financing Authority may enter into exclusive or nonexclusive contracts, or amend existing contracts, on a bid or negotiated basis. Contracts entered into or amended pursuant to this provision shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, and Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code.
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 2098Introduced by Assembly Member Garcia(Coauthors: Senators Grove and Padilla)February 05, 2024 An act to amend Item 0977-101-0001 of the Budget Act of 2022, as amended by Section 47 of Chapter 45 of the Statutes of 2022, relating to health facilities financing, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGESTAB 2098, as introduced, Garcia. California Health Facilities Financing Authority Act: nondesignated hospitals: loan repayment.Under existing law, the California Health Facilities Financing Authority Act (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. Under the act, the authority is authorized to issue revenue bonds to provide the funds for achieving these purposes. Existing law appropriates $40,000,000 to provide cashflow loans to nondesignated public hospitals, as needed, due to the financial impacts of the COVID-19 public health emergency. Existing law requires the nondesignated public hospitals participating in this loan program to repay and discharge the loan within 24 months of the date of the loan.This bill would extend the repayment requirements for nondesignated public hospitals participating in the loan program, by requiring those hospitals to begin monthly repayments on the loan 24 months after the date of the loan, and discharge the loan within 72 months of the date of the loan, as prescribed. The bill would require the monthly payments to be amortized over the term of the loan, at 0% interest. By removing restrictions limiting the expenditure of moneys appropriated for purposes of these loans, the bill would make an appropriation.Digest Key Vote: 2/3 Appropriation: YES Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Assembly Bill
No. 2098
Introduced by Assembly Member Garcia(Coauthors: Senators Grove and Padilla)February 05, 2024
Introduced by Assembly Member Garcia(Coauthors: Senators Grove and Padilla)
February 05, 2024
An act to amend Item 0977-101-0001 of the Budget Act of 2022, as amended by Section 47 of Chapter 45 of the Statutes of 2022, relating to health facilities financing, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
AB 2098, as introduced, Garcia. California Health Facilities Financing Authority Act: nondesignated hospitals: loan repayment.
Under existing law, the California Health Facilities Financing Authority Act (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. Under the act, the authority is authorized to issue revenue bonds to provide the funds for achieving these purposes. Existing law appropriates $40,000,000 to provide cashflow loans to nondesignated public hospitals, as needed, due to the financial impacts of the COVID-19 public health emergency. Existing law requires the nondesignated public hospitals participating in this loan program to repay and discharge the loan within 24 months of the date of the loan.This bill would extend the repayment requirements for nondesignated public hospitals participating in the loan program, by requiring those hospitals to begin monthly repayments on the loan 24 months after the date of the loan, and discharge the loan within 72 months of the date of the loan, as prescribed. The bill would require the monthly payments to be amortized over the term of the loan, at 0% interest. By removing restrictions limiting the expenditure of moneys appropriated for purposes of these loans, the bill would make an appropriation.
Under existing law, the California Health Facilities Financing Authority Act (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. Under the act, the authority is authorized to issue revenue bonds to provide the funds for achieving these purposes. Existing law appropriates $40,000,000 to provide cashflow loans to nondesignated public hospitals, as needed, due to the financial impacts of the COVID-19 public health emergency. Existing law requires the nondesignated public hospitals participating in this loan program to repay and discharge the loan within 24 months of the date of the loan.
This bill would extend the repayment requirements for nondesignated public hospitals participating in the loan program, by requiring those hospitals to begin monthly repayments on the loan 24 months after the date of the loan, and discharge the loan within 72 months of the date of the loan, as prescribed. The bill would require the monthly payments to be amortized over the term of the loan, at 0% interest. By removing restrictions limiting the expenditure of moneys appropriated for purposes of these loans, the bill would make an appropriation.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 47 of Chapter 45 of the Statutes of 2022 is amended to read:Sec. 47. Item 0977-101-0001 of Section 2.00 of the Budget Act of 2022 is amended to read:0977-101-0001For local assistance, California Health Facilities Financing Authority ........................ 65,000,000Schedule:(1)0885-Health Facilities Grants and Loans ........................ 65,000,000Provisions:1.(a)The amount appropriated in this item is available for the California Health Facilities Financing Authority to provide cashflow loans not to exceed $40,000,000 to nondesignated public hospitals, as needed, due to the financial impacts of the COVID-19 public health emergency.(b)Of the funds identified in subprovision (a), the California Health Facilities Financing Authority may allocate an amount not to exceed one percent of each hospitals loan. The Department of Finance may transfer up to $400,000 to Item 0977-001-0001 to administer the loans. Any funds transferred shall be available for encumbrance or expenditure until June 30, 2025.(c)The California Health Facilities Financing Authority shall determine, in consultation with nondesignated public hospitals, the application process, eligibility criteria, and methodology for distribution of the loans pursuant to this provision.(d)In administering the loan program in this item, the California Health Facilities Financing Authority shall not be subject to the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).(e)Notwithstanding Sections 15432 and 15451.5 of the Government Code, nondesignated public hospitals shall be required to repay and discharge the loan within 24 months of the date of the loan.Notwithstanding any other law, a nondesignated public hospital participating in the loan program described in this item shall be required to begin monthly repayments on the loan 24 months after the date of the loan, and shall discharge the loan within 72 months of the date of the loan. The monthly payments shall be amortized over the term of the loan, at zero percent interest. There shall be no prepayment penalty.(f)Security for the cashflow loans in subprovisions (a) and (b) will be Medi-Cal reimbursements due to these nondesignated public hospitals from the State Department of Health Care Services. The California Health Facilities Financing Authoritys recoupment of these cashflow loans may not exceed 20 percent of the nondesignated public hospitals respective Medi-Cal checkwrite payments until the loans amount have been satisfied.(g)For purposes of this provision, the following definitions apply:(1)Nondesignated public hospital means a public hospital as that term is defined in subdivision (l) of Section 14165.55 of the Welfare and Institutions Code, excluding those affiliated with county health systems.2.(a)Of the amount appropriated in this item, $25,000,000 is available for encumbrance or expenditure until June 30, 2028, for the California Health Facilities Financing Authority to implement the Specialty Dental Clinic Grant Program to support the construction, expansion, modification, or adaptation of specialty dental clinics in California to increase access to oral health care for the special health care needs populations.(b)The Department of Finance may transfer up to $1,250,000 to Item 0977-001-0001 to administer the grants. Any funds transferred shall be available for encumbrance or expenditure until June 30, 2030.(c)The California Health Facilities Finance Authority shall determine, in consultation with the California Dental Association and other stakeholders representing patients with special health care needs, disability and consumer advocates, and specialty dental providers, the competitive grant program application process, eligibility criteria, and methodology for distribution of the grants, up to $5,000,000 per eligible entity, pursuant to this provision.(d)The California Health Facilities Financing Authority shall prioritize applications that do the following: support timely access, reduce geographic shortages, increase equity, and support quality of care, giving priority to applications that include plans to reduce the need for dental care using sedation or general anesthesia, including, but not limited to, prevention, early intervention, behavior support services and intervention, provider education, and community outreach activities that bring care to community sites.(e)Entities shall meet the criteria established by the California Health Facilities Financing Authority, which, at a minimum, shall include:(1)A commitment to provide services to special needs populations, regardless of payer or health insurance provider, for a minimum of ten years upon final completion of construction, expansion, modification, or adaption of specialty dental clinics. The special needs population shall constitute at least 50 percent of the facilitys total patient caseload. To the extent an eligible entity does not maintain the minimum patient caseload above, the entity shall repay the amount of the grant back to the California Health Facilities Financing Authority within five years at an interest rate established by the California Health Facilities Financing Authority(2)The eligible entity shall be enrolled and certified as a provider with the Medi-Cal program and, if applicable, provide copies of valid contracts with local Medi-Cal managed care plans.(3)Submission of plans to the California Health Facilities Financing Authority that demonstrate the proposed entitys ability to serve patients with physical, cognitive, or developmental disabilities.(4)Proof of appropriate licensure of the facility or providers, including, but not limited to, professional licensure and applicable permits for general anesthesia, medical general anesthesia, conscious sedation, and oral conscious sedation.(h)Special health care needs populations include children and adults who have disabilities that prevent them from receiving routine or specialty care due to their physical, developmental, or cognitive condition.(i)Notwithstanding subdivision (e) of Section 15432 of the Government Code, eligible entities may include the following:(1)Facilities licensed under Chapter 1 (commencing with Section 1200) of Division 2 of the Health and Safety Code that provide, or intend to provide, dental services.(2)Facilities licensed under Section 1250 of the Health and Safety Code that provide, or intend to provide, dental services.(3)Licensed providers with the Medical or Dental Board of California that provide, or intend to provide, dental services.(4)A dental college located in the state approved by the California Dental Board or the Commission on Dental Accreditation of the American Dental Association.(j)Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the California Health Facilities Financing Authority may implement, interpret, or make specific this provision, in whole or in part, by means of information notices or other similar instructions, without taking any further regulatory action.(k)For purposes of implementing this provision, the California Health Facilities Financing Authority may enter into exclusive or nonexclusive contracts, or amend existing contracts, on a bid or negotiated basis. Contracts entered into or amended pursuant to this provision shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, and Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 47 of Chapter 45 of the Statutes of 2022 is amended to read:Sec. 47. Item 0977-101-0001 of Section 2.00 of the Budget Act of 2022 is amended to read:0977-101-0001For local assistance, California Health Facilities Financing Authority ........................ 65,000,000Schedule:(1)0885-Health Facilities Grants and Loans ........................ 65,000,000Provisions:1.(a)The amount appropriated in this item is available for the California Health Facilities Financing Authority to provide cashflow loans not to exceed $40,000,000 to nondesignated public hospitals, as needed, due to the financial impacts of the COVID-19 public health emergency.(b)Of the funds identified in subprovision (a), the California Health Facilities Financing Authority may allocate an amount not to exceed one percent of each hospitals loan. The Department of Finance may transfer up to $400,000 to Item 0977-001-0001 to administer the loans. Any funds transferred shall be available for encumbrance or expenditure until June 30, 2025.(c)The California Health Facilities Financing Authority shall determine, in consultation with nondesignated public hospitals, the application process, eligibility criteria, and methodology for distribution of the loans pursuant to this provision.(d)In administering the loan program in this item, the California Health Facilities Financing Authority shall not be subject to the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).(e)Notwithstanding Sections 15432 and 15451.5 of the Government Code, nondesignated public hospitals shall be required to repay and discharge the loan within 24 months of the date of the loan.Notwithstanding any other law, a nondesignated public hospital participating in the loan program described in this item shall be required to begin monthly repayments on the loan 24 months after the date of the loan, and shall discharge the loan within 72 months of the date of the loan. The monthly payments shall be amortized over the term of the loan, at zero percent interest. There shall be no prepayment penalty.(f)Security for the cashflow loans in subprovisions (a) and (b) will be Medi-Cal reimbursements due to these nondesignated public hospitals from the State Department of Health Care Services. The California Health Facilities Financing Authoritys recoupment of these cashflow loans may not exceed 20 percent of the nondesignated public hospitals respective Medi-Cal checkwrite payments until the loans amount have been satisfied.(g)For purposes of this provision, the following definitions apply:(1)Nondesignated public hospital means a public hospital as that term is defined in subdivision (l) of Section 14165.55 of the Welfare and Institutions Code, excluding those affiliated with county health systems.2.(a)Of the amount appropriated in this item, $25,000,000 is available for encumbrance or expenditure until June 30, 2028, for the California Health Facilities Financing Authority to implement the Specialty Dental Clinic Grant Program to support the construction, expansion, modification, or adaptation of specialty dental clinics in California to increase access to oral health care for the special health care needs populations.(b)The Department of Finance may transfer up to $1,250,000 to Item 0977-001-0001 to administer the grants. Any funds transferred shall be available for encumbrance or expenditure until June 30, 2030.(c)The California Health Facilities Finance Authority shall determine, in consultation with the California Dental Association and other stakeholders representing patients with special health care needs, disability and consumer advocates, and specialty dental providers, the competitive grant program application process, eligibility criteria, and methodology for distribution of the grants, up to $5,000,000 per eligible entity, pursuant to this provision.(d)The California Health Facilities Financing Authority shall prioritize applications that do the following: support timely access, reduce geographic shortages, increase equity, and support quality of care, giving priority to applications that include plans to reduce the need for dental care using sedation or general anesthesia, including, but not limited to, prevention, early intervention, behavior support services and intervention, provider education, and community outreach activities that bring care to community sites.(e)Entities shall meet the criteria established by the California Health Facilities Financing Authority, which, at a minimum, shall include:(1)A commitment to provide services to special needs populations, regardless of payer or health insurance provider, for a minimum of ten years upon final completion of construction, expansion, modification, or adaption of specialty dental clinics. The special needs population shall constitute at least 50 percent of the facilitys total patient caseload. To the extent an eligible entity does not maintain the minimum patient caseload above, the entity shall repay the amount of the grant back to the California Health Facilities Financing Authority within five years at an interest rate established by the California Health Facilities Financing Authority(2)The eligible entity shall be enrolled and certified as a provider with the Medi-Cal program and, if applicable, provide copies of valid contracts with local Medi-Cal managed care plans.(3)Submission of plans to the California Health Facilities Financing Authority that demonstrate the proposed entitys ability to serve patients with physical, cognitive, or developmental disabilities.(4)Proof of appropriate licensure of the facility or providers, including, but not limited to, professional licensure and applicable permits for general anesthesia, medical general anesthesia, conscious sedation, and oral conscious sedation.(h)Special health care needs populations include children and adults who have disabilities that prevent them from receiving routine or specialty care due to their physical, developmental, or cognitive condition.(i)Notwithstanding subdivision (e) of Section 15432 of the Government Code, eligible entities may include the following:(1)Facilities licensed under Chapter 1 (commencing with Section 1200) of Division 2 of the Health and Safety Code that provide, or intend to provide, dental services.(2)Facilities licensed under Section 1250 of the Health and Safety Code that provide, or intend to provide, dental services.(3)Licensed providers with the Medical or Dental Board of California that provide, or intend to provide, dental services.(4)A dental college located in the state approved by the California Dental Board or the Commission on Dental Accreditation of the American Dental Association.(j)Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the California Health Facilities Financing Authority may implement, interpret, or make specific this provision, in whole or in part, by means of information notices or other similar instructions, without taking any further regulatory action.(k)For purposes of implementing this provision, the California Health Facilities Financing Authority may enter into exclusive or nonexclusive contracts, or amend existing contracts, on a bid or negotiated basis. Contracts entered into or amended pursuant to this provision shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, and Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code.
SECTION 1. Section 47 of Chapter 45 of the Statutes of 2022 is amended to read:
### SECTION 1.
Sec. 47. Item 0977-101-0001 of Section 2.00 of the Budget Act of 2022 is amended to read:0977-101-0001For local assistance, California Health Facilities Financing Authority ........................ 65,000,000Schedule:(1)0885-Health Facilities Grants and Loans ........................ 65,000,000Provisions:1.(a)The amount appropriated in this item is available for the California Health Facilities Financing Authority to provide cashflow loans not to exceed $40,000,000 to nondesignated public hospitals, as needed, due to the financial impacts of the COVID-19 public health emergency.(b)Of the funds identified in subprovision (a), the California Health Facilities Financing Authority may allocate an amount not to exceed one percent of each hospitals loan. The Department of Finance may transfer up to $400,000 to Item 0977-001-0001 to administer the loans. Any funds transferred shall be available for encumbrance or expenditure until June 30, 2025.(c)The California Health Facilities Financing Authority shall determine, in consultation with nondesignated public hospitals, the application process, eligibility criteria, and methodology for distribution of the loans pursuant to this provision.(d)In administering the loan program in this item, the California Health Facilities Financing Authority shall not be subject to the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).(e)Notwithstanding Sections 15432 and 15451.5 of the Government Code, nondesignated public hospitals shall be required to repay and discharge the loan within 24 months of the date of the loan.Notwithstanding any other law, a nondesignated public hospital participating in the loan program described in this item shall be required to begin monthly repayments on the loan 24 months after the date of the loan, and shall discharge the loan within 72 months of the date of the loan. The monthly payments shall be amortized over the term of the loan, at zero percent interest. There shall be no prepayment penalty.(f)Security for the cashflow loans in subprovisions (a) and (b) will be Medi-Cal reimbursements due to these nondesignated public hospitals from the State Department of Health Care Services. The California Health Facilities Financing Authoritys recoupment of these cashflow loans may not exceed 20 percent of the nondesignated public hospitals respective Medi-Cal checkwrite payments until the loans amount have been satisfied.(g)For purposes of this provision, the following definitions apply:(1)Nondesignated public hospital means a public hospital as that term is defined in subdivision (l) of Section 14165.55 of the Welfare and Institutions Code, excluding those affiliated with county health systems.2.(a)Of the amount appropriated in this item, $25,000,000 is available for encumbrance or expenditure until June 30, 2028, for the California Health Facilities Financing Authority to implement the Specialty Dental Clinic Grant Program to support the construction, expansion, modification, or adaptation of specialty dental clinics in California to increase access to oral health care for the special health care needs populations.(b)The Department of Finance may transfer up to $1,250,000 to Item 0977-001-0001 to administer the grants. Any funds transferred shall be available for encumbrance or expenditure until June 30, 2030.(c)The California Health Facilities Finance Authority shall determine, in consultation with the California Dental Association and other stakeholders representing patients with special health care needs, disability and consumer advocates, and specialty dental providers, the competitive grant program application process, eligibility criteria, and methodology for distribution of the grants, up to $5,000,000 per eligible entity, pursuant to this provision.(d)The California Health Facilities Financing Authority shall prioritize applications that do the following: support timely access, reduce geographic shortages, increase equity, and support quality of care, giving priority to applications that include plans to reduce the need for dental care using sedation or general anesthesia, including, but not limited to, prevention, early intervention, behavior support services and intervention, provider education, and community outreach activities that bring care to community sites.(e)Entities shall meet the criteria established by the California Health Facilities Financing Authority, which, at a minimum, shall include:(1)A commitment to provide services to special needs populations, regardless of payer or health insurance provider, for a minimum of ten years upon final completion of construction, expansion, modification, or adaption of specialty dental clinics. The special needs population shall constitute at least 50 percent of the facilitys total patient caseload. To the extent an eligible entity does not maintain the minimum patient caseload above, the entity shall repay the amount of the grant back to the California Health Facilities Financing Authority within five years at an interest rate established by the California Health Facilities Financing Authority(2)The eligible entity shall be enrolled and certified as a provider with the Medi-Cal program and, if applicable, provide copies of valid contracts with local Medi-Cal managed care plans.(3)Submission of plans to the California Health Facilities Financing Authority that demonstrate the proposed entitys ability to serve patients with physical, cognitive, or developmental disabilities.(4)Proof of appropriate licensure of the facility or providers, including, but not limited to, professional licensure and applicable permits for general anesthesia, medical general anesthesia, conscious sedation, and oral conscious sedation.(h)Special health care needs populations include children and adults who have disabilities that prevent them from receiving routine or specialty care due to their physical, developmental, or cognitive condition.(i)Notwithstanding subdivision (e) of Section 15432 of the Government Code, eligible entities may include the following:(1)Facilities licensed under Chapter 1 (commencing with Section 1200) of Division 2 of the Health and Safety Code that provide, or intend to provide, dental services.(2)Facilities licensed under Section 1250 of the Health and Safety Code that provide, or intend to provide, dental services.(3)Licensed providers with the Medical or Dental Board of California that provide, or intend to provide, dental services.(4)A dental college located in the state approved by the California Dental Board or the Commission on Dental Accreditation of the American Dental Association.(j)Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the California Health Facilities Financing Authority may implement, interpret, or make specific this provision, in whole or in part, by means of information notices or other similar instructions, without taking any further regulatory action.(k)For purposes of implementing this provision, the California Health Facilities Financing Authority may enter into exclusive or nonexclusive contracts, or amend existing contracts, on a bid or negotiated basis. Contracts entered into or amended pursuant to this provision shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, and Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code.
Sec. 47. Item 0977-101-0001 of Section 2.00 of the Budget Act of 2022 is amended to read:0977-101-0001For local assistance, California Health Facilities Financing Authority ........................ 65,000,000Schedule:(1)0885-Health Facilities Grants and Loans ........................ 65,000,000Provisions:1.(a)The amount appropriated in this item is available for the California Health Facilities Financing Authority to provide cashflow loans not to exceed $40,000,000 to nondesignated public hospitals, as needed, due to the financial impacts of the COVID-19 public health emergency.(b)Of the funds identified in subprovision (a), the California Health Facilities Financing Authority may allocate an amount not to exceed one percent of each hospitals loan. The Department of Finance may transfer up to $400,000 to Item 0977-001-0001 to administer the loans. Any funds transferred shall be available for encumbrance or expenditure until June 30, 2025.(c)The California Health Facilities Financing Authority shall determine, in consultation with nondesignated public hospitals, the application process, eligibility criteria, and methodology for distribution of the loans pursuant to this provision.(d)In administering the loan program in this item, the California Health Facilities Financing Authority shall not be subject to the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).(e)Notwithstanding Sections 15432 and 15451.5 of the Government Code, nondesignated public hospitals shall be required to repay and discharge the loan within 24 months of the date of the loan.Notwithstanding any other law, a nondesignated public hospital participating in the loan program described in this item shall be required to begin monthly repayments on the loan 24 months after the date of the loan, and shall discharge the loan within 72 months of the date of the loan. The monthly payments shall be amortized over the term of the loan, at zero percent interest. There shall be no prepayment penalty.(f)Security for the cashflow loans in subprovisions (a) and (b) will be Medi-Cal reimbursements due to these nondesignated public hospitals from the State Department of Health Care Services. The California Health Facilities Financing Authoritys recoupment of these cashflow loans may not exceed 20 percent of the nondesignated public hospitals respective Medi-Cal checkwrite payments until the loans amount have been satisfied.(g)For purposes of this provision, the following definitions apply:(1)Nondesignated public hospital means a public hospital as that term is defined in subdivision (l) of Section 14165.55 of the Welfare and Institutions Code, excluding those affiliated with county health systems.2.(a)Of the amount appropriated in this item, $25,000,000 is available for encumbrance or expenditure until June 30, 2028, for the California Health Facilities Financing Authority to implement the Specialty Dental Clinic Grant Program to support the construction, expansion, modification, or adaptation of specialty dental clinics in California to increase access to oral health care for the special health care needs populations.(b)The Department of Finance may transfer up to $1,250,000 to Item 0977-001-0001 to administer the grants. Any funds transferred shall be available for encumbrance or expenditure until June 30, 2030.(c)The California Health Facilities Finance Authority shall determine, in consultation with the California Dental Association and other stakeholders representing patients with special health care needs, disability and consumer advocates, and specialty dental providers, the competitive grant program application process, eligibility criteria, and methodology for distribution of the grants, up to $5,000,000 per eligible entity, pursuant to this provision.(d)The California Health Facilities Financing Authority shall prioritize applications that do the following: support timely access, reduce geographic shortages, increase equity, and support quality of care, giving priority to applications that include plans to reduce the need for dental care using sedation or general anesthesia, including, but not limited to, prevention, early intervention, behavior support services and intervention, provider education, and community outreach activities that bring care to community sites.(e)Entities shall meet the criteria established by the California Health Facilities Financing Authority, which, at a minimum, shall include:(1)A commitment to provide services to special needs populations, regardless of payer or health insurance provider, for a minimum of ten years upon final completion of construction, expansion, modification, or adaption of specialty dental clinics. The special needs population shall constitute at least 50 percent of the facilitys total patient caseload. To the extent an eligible entity does not maintain the minimum patient caseload above, the entity shall repay the amount of the grant back to the California Health Facilities Financing Authority within five years at an interest rate established by the California Health Facilities Financing Authority(2)The eligible entity shall be enrolled and certified as a provider with the Medi-Cal program and, if applicable, provide copies of valid contracts with local Medi-Cal managed care plans.(3)Submission of plans to the California Health Facilities Financing Authority that demonstrate the proposed entitys ability to serve patients with physical, cognitive, or developmental disabilities.(4)Proof of appropriate licensure of the facility or providers, including, but not limited to, professional licensure and applicable permits for general anesthesia, medical general anesthesia, conscious sedation, and oral conscious sedation.(h)Special health care needs populations include children and adults who have disabilities that prevent them from receiving routine or specialty care due to their physical, developmental, or cognitive condition.(i)Notwithstanding subdivision (e) of Section 15432 of the Government Code, eligible entities may include the following:(1)Facilities licensed under Chapter 1 (commencing with Section 1200) of Division 2 of the Health and Safety Code that provide, or intend to provide, dental services.(2)Facilities licensed under Section 1250 of the Health and Safety Code that provide, or intend to provide, dental services.(3)Licensed providers with the Medical or Dental Board of California that provide, or intend to provide, dental services.(4)A dental college located in the state approved by the California Dental Board or the Commission on Dental Accreditation of the American Dental Association.(j)Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the California Health Facilities Financing Authority may implement, interpret, or make specific this provision, in whole or in part, by means of information notices or other similar instructions, without taking any further regulatory action.(k)For purposes of implementing this provision, the California Health Facilities Financing Authority may enter into exclusive or nonexclusive contracts, or amend existing contracts, on a bid or negotiated basis. Contracts entered into or amended pursuant to this provision shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, and Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code.
Sec. 47. Item 0977-101-0001 of Section 2.00 of the Budget Act of 2022 is amended to read:
### Sec. 47.
0977-101-0001For local assistance, California Health Facilities Financing Authority ........................ 65,000,000Schedule:(1)0885-Health Facilities Grants and Loans ........................ 65,000,000Provisions:1.(a)The amount appropriated in this item is available for the California Health Facilities Financing Authority to provide cashflow loans not to exceed $40,000,000 to nondesignated public hospitals, as needed, due to the financial impacts of the COVID-19 public health emergency.(b)Of the funds identified in subprovision (a), the California Health Facilities Financing Authority may allocate an amount not to exceed one percent of each hospitals loan. The Department of Finance may transfer up to $400,000 to Item 0977-001-0001 to administer the loans. Any funds transferred shall be available for encumbrance or expenditure until June 30, 2025.(c)The California Health Facilities Financing Authority shall determine, in consultation with nondesignated public hospitals, the application process, eligibility criteria, and methodology for distribution of the loans pursuant to this provision.(d)In administering the loan program in this item, the California Health Facilities Financing Authority shall not be subject to the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).(e)Notwithstanding Sections 15432 and 15451.5 of the Government Code, nondesignated public hospitals shall be required to repay and discharge the loan within 24 months of the date of the loan.Notwithstanding any other law, a nondesignated public hospital participating in the loan program described in this item shall be required to begin monthly repayments on the loan 24 months after the date of the loan, and shall discharge the loan within 72 months of the date of the loan. The monthly payments shall be amortized over the term of the loan, at zero percent interest. There shall be no prepayment penalty.(f)Security for the cashflow loans in subprovisions (a) and (b) will be Medi-Cal reimbursements due to these nondesignated public hospitals from the State Department of Health Care Services. The California Health Facilities Financing Authoritys recoupment of these cashflow loans may not exceed 20 percent of the nondesignated public hospitals respective Medi-Cal checkwrite payments until the loans amount have been satisfied.(g)For purposes of this provision, the following definitions apply:(1)Nondesignated public hospital means a public hospital as that term is defined in subdivision (l) of Section 14165.55 of the Welfare and Institutions Code, excluding those affiliated with county health systems.2.(a)Of the amount appropriated in this item, $25,000,000 is available for encumbrance or expenditure until June 30, 2028, for the California Health Facilities Financing Authority to implement the Specialty Dental Clinic Grant Program to support the construction, expansion, modification, or adaptation of specialty dental clinics in California to increase access to oral health care for the special health care needs populations.(b)The Department of Finance may transfer up to $1,250,000 to Item 0977-001-0001 to administer the grants. Any funds transferred shall be available for encumbrance or expenditure until June 30, 2030.(c)The California Health Facilities Finance Authority shall determine, in consultation with the California Dental Association and other stakeholders representing patients with special health care needs, disability and consumer advocates, and specialty dental providers, the competitive grant program application process, eligibility criteria, and methodology for distribution of the grants, up to $5,000,000 per eligible entity, pursuant to this provision.(d)The California Health Facilities Financing Authority shall prioritize applications that do the following: support timely access, reduce geographic shortages, increase equity, and support quality of care, giving priority to applications that include plans to reduce the need for dental care using sedation or general anesthesia, including, but not limited to, prevention, early intervention, behavior support services and intervention, provider education, and community outreach activities that bring care to community sites.(e)Entities shall meet the criteria established by the California Health Facilities Financing Authority, which, at a minimum, shall include:(1)A commitment to provide services to special needs populations, regardless of payer or health insurance provider, for a minimum of ten years upon final completion of construction, expansion, modification, or adaption of specialty dental clinics. The special needs population shall constitute at least 50 percent of the facilitys total patient caseload. To the extent an eligible entity does not maintain the minimum patient caseload above, the entity shall repay the amount of the grant back to the California Health Facilities Financing Authority within five years at an interest rate established by the California Health Facilities Financing Authority(2)The eligible entity shall be enrolled and certified as a provider with the Medi-Cal program and, if applicable, provide copies of valid contracts with local Medi-Cal managed care plans.(3)Submission of plans to the California Health Facilities Financing Authority that demonstrate the proposed entitys ability to serve patients with physical, cognitive, or developmental disabilities.(4)Proof of appropriate licensure of the facility or providers, including, but not limited to, professional licensure and applicable permits for general anesthesia, medical general anesthesia, conscious sedation, and oral conscious sedation.(h)Special health care needs populations include children and adults who have disabilities that prevent them from receiving routine or specialty care due to their physical, developmental, or cognitive condition.(i)Notwithstanding subdivision (e) of Section 15432 of the Government Code, eligible entities may include the following:(1)Facilities licensed under Chapter 1 (commencing with Section 1200) of Division 2 of the Health and Safety Code that provide, or intend to provide, dental services.(2)Facilities licensed under Section 1250 of the Health and Safety Code that provide, or intend to provide, dental services.(3)Licensed providers with the Medical or Dental Board of California that provide, or intend to provide, dental services.(4)A dental college located in the state approved by the California Dental Board or the Commission on Dental Accreditation of the American Dental Association.(j)Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the California Health Facilities Financing Authority may implement, interpret, or make specific this provision, in whole or in part, by means of information notices or other similar instructions, without taking any further regulatory action.(k)For purposes of implementing this provision, the California Health Facilities Financing Authority may enter into exclusive or nonexclusive contracts, or amend existing contracts, on a bid or negotiated basis. Contracts entered into or amended pursuant to this provision shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, and Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code.
0977-101-0001For local assistance, California Health Facilities Financing Authority ........................ 65,000,000
Schedule:
(1) 0885-Health Facilities Grants and Loans ........................ 65,000,000
Provisions:
1. (a) The amount appropriated in this item is available for the California Health Facilities Financing Authority to provide cashflow loans not to exceed $40,000,000 to nondesignated public hospitals, as needed, due to the financial impacts of the COVID-19 public health emergency.
(b) Of the funds identified in subprovision (a), the California Health Facilities Financing Authority may allocate an amount not to exceed one percent of each hospitals loan. The Department of Finance may transfer up to $400,000 to Item 0977-001-0001 to administer the loans. Any funds transferred shall be available for encumbrance or expenditure until June 30, 2025.
(c) The California Health Facilities Financing Authority shall determine, in consultation with nondesignated public hospitals, the application process, eligibility criteria, and methodology for distribution of the loans pursuant to this provision.
(d) In administering the loan program in this item, the California Health Facilities Financing Authority shall not be subject to the rulemaking provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code).
(e) Notwithstanding Sections 15432 and 15451.5 of the Government Code, nondesignated public hospitals shall be required to repay and discharge the loan within 24 months of the date of the loan.Notwithstanding any other law, a nondesignated public hospital participating in the loan program described in this item shall be required to begin monthly repayments on the loan 24 months after the date of the loan, and shall discharge the loan within 72 months of the date of the loan. The monthly payments shall be amortized over the term of the loan, at zero percent interest. There shall be no prepayment penalty.
(f) Security for the cashflow loans in subprovisions (a) and (b) will be Medi-Cal reimbursements due to these nondesignated public hospitals from the State Department of Health Care Services. The California Health Facilities Financing Authoritys recoupment of these cashflow loans may not exceed 20 percent of the nondesignated public hospitals respective Medi-Cal checkwrite payments until the loans amount have been satisfied.
(g) For purposes of this provision, the following definitions apply:
(1) Nondesignated public hospital means a public hospital as that term is defined in subdivision (l) of Section 14165.55 of the Welfare and Institutions Code, excluding those affiliated with county health systems.
2. (a) Of the amount appropriated in this item, $25,000,000 is available for encumbrance or expenditure until June 30, 2028, for the California Health Facilities Financing Authority to implement the Specialty Dental Clinic Grant Program to support the construction, expansion, modification, or adaptation of specialty dental clinics in California to increase access to oral health care for the special health care needs populations.
(b) The Department of Finance may transfer up to $1,250,000 to Item 0977-001-0001 to administer the grants. Any funds transferred shall be available for encumbrance or expenditure until June 30, 2030.
(c) The California Health Facilities Finance Authority shall determine, in consultation with the California Dental Association and other stakeholders representing patients with special health care needs, disability and consumer advocates, and specialty dental providers, the competitive grant program application process, eligibility criteria, and methodology for distribution of the grants, up to $5,000,000 per eligible entity, pursuant to this provision.
(d) The California Health Facilities Financing Authority shall prioritize applications that do the following: support timely access, reduce geographic shortages, increase equity, and support quality of care, giving priority to applications that include plans to reduce the need for dental care using sedation or general anesthesia, including, but not limited to, prevention, early intervention, behavior support services and intervention, provider education, and community outreach activities that bring care to community sites.
(e) Entities shall meet the criteria established by the California Health Facilities Financing Authority, which, at a minimum, shall include:
(1) A commitment to provide services to special needs populations, regardless of payer or health insurance provider, for a minimum of ten years upon final completion of construction, expansion, modification, or adaption of specialty dental clinics. The special needs population shall constitute at least 50 percent of the facilitys total patient caseload. To the extent an eligible entity does not maintain the minimum patient caseload above, the entity shall repay the amount of the grant back to the California Health Facilities Financing Authority within five years at an interest rate established by the California Health Facilities Financing Authority
(2) The eligible entity shall be enrolled and certified as a provider with the Medi-Cal program and, if applicable, provide copies of valid contracts with local Medi-Cal managed care plans.
(3) Submission of plans to the California Health Facilities Financing Authority that demonstrate the proposed entitys ability to serve patients with physical, cognitive, or developmental disabilities.
(4) Proof of appropriate licensure of the facility or providers, including, but not limited to, professional licensure and applicable permits for general anesthesia, medical general anesthesia, conscious sedation, and oral conscious sedation.
(h) Special health care needs populations include children and adults who have disabilities that prevent them from receiving routine or specialty care due to their physical, developmental, or cognitive condition.
(i) Notwithstanding subdivision (e) of Section 15432 of the Government Code, eligible entities may include the following:
(1) Facilities licensed under Chapter 1 (commencing with Section 1200) of Division 2 of the Health and Safety Code that provide, or intend to provide, dental services.
(2) Facilities licensed under Section 1250 of the Health and Safety Code that provide, or intend to provide, dental services.
(3) Licensed providers with the Medical or Dental Board of California that provide, or intend to provide, dental services.
(4) A dental college located in the state approved by the California Dental Board or the Commission on Dental Accreditation of the American Dental Association.
(j) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the California Health Facilities Financing Authority may implement, interpret, or make specific this provision, in whole or in part, by means of information notices or other similar instructions, without taking any further regulatory action.
(k) For purposes of implementing this provision, the California Health Facilities Financing Authority may enter into exclusive or nonexclusive contracts, or amend existing contracts, on a bid or negotiated basis. Contracts entered into or amended pursuant to this provision shall be exempt from Chapter 6 (commencing with Section 14825) of Part 5.5 of Division 3 of Title 2 of the Government Code, Section 19130 of the Government Code, and Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code.
0977-101-0001For local assistance, California Health Facilities Financing Authority ........................
Notwithstanding any other law, a nondesignated public hospital participating in the loan program described in this item shall be required to begin monthly repayments on the loan 24 months after the date of the loan, and shall discharge the loan within 72 months of the date of the loan. The monthly payments shall be amortized over the term of the loan, at zero percent interest. There shall be no prepayment penalty.