Health care facilities: financing.

(1) The California Health Facilities Financing Authority Act authorizes the California Health Facilities Financing Authority to make loans from the continuously appropriated California Health Facilities Financing Authority Fund to participating health institutions for financing or refinancing the acquisition, construction, or remodeling of health facilities. The act defines a health facility to include various specified facilities and facilities operated in conjunction with these facilities. It also defines a participating health institution to mean specified entities authorized by state law to provide or operate a health facility and undertake the financing or refinancing of the construction or acquisition of a project or of working capital, as defined. The bill would expand the definition of a health facility to include a specified nonpublic school and information systems equipment and facilities operated to support the services provided in the specified facilities. It would expand the definition of a participating health institution to include a nonprofit corporation that has a specified relationship with certain entities that are authorized to provide or operate a health facility. (2) The act specifies the powers of the authority as including making secured and unsecured loans to any participating health institution, as specified. This bill would revise these powers to expand the instances when the authority may make secured and unsecured loans, as specified, and to include the power to enter into bond exchange agreements. (3) The act authorizes, if a health facility seeking financing for a project pursuant to the act does not meet the guidelines established by the authority with respect to bond rating, the authority to give special consideration, on a case-by-case basis, to financing the project if the health facility demonstrates to the satisfaction of the authority the financial feasibility of the project, and the performance of significant community service. The act provides that it is not the intent of the Legislature to authorize the control or participation in the operation of hospitals by the authority, except where default occurs or appears likely. This bill would revise the above-described intent of the Legislature regarding default, as specified. (4) The act authorizes the authority to hold, pledge, cancel, or resell its bonds, subject to and in accordance with agreements with bondholders. This bill would additionally authorize the authority to exchange its bonds, subject to and in accordance with its agreements with bondholders. It would authorize the authority to exchange bonds for its bonds and to issue bonds to redeem or retire certain bonds then outstanding. (5) Existing law authorizes revenue bonds issued pursuant to the act to be secured by a specified trust agreement or indenture. The act authorizes indentures, trust agreements, or resolutions for issuance of these bonds to contain provisions for protecting and enforcing the rights and remedies of the bondholders, as specified. This bill would additionally authorize provisions in these indentures, trust agreements, or resolutions for protecting and enforcing the rights and remedies of any provider of credit or liquidity support for these bonds. (6) By expanding the purposes for which a continuously appropriated fund may be used, this bill would result in an appropriation.