California Health Facilities Financing Authority.

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 for financing or refinancing the acquisition, construction, or remodeling of health facilities. The act authorizes the authority to issue its negotiable revenue bonds in order to provide funds for achieving any of its purposes under the act. The act provides that these revenue bonds shall be deemed negotiable instruments notwithstanding that they may be payable from a special fund and requires that those bonds contain on their face a statement to the effect that neither the state nor the authority are obligated to pay the principal of, or interest on, the bond, except from revenues from the authority. This bill would instead authorize the authority to issue its revenue bonds, regardless of whether they are negotiable, in order to provide funds for achieving any of its purposes under the act, and would provide that negotiable bonds shall be deemed to be negotiable instruments for all purposes notwithstanding that they may be payable from a special fund. The bill would also eliminate the requirement that the statement regarding the obligation of the state or the authority to pay the principal of, or interest on, the revenue bond appear on the face of the bond. To the extent the bill would increase deposits and expenditures of moneys in a continuously appropriated fund, the bill would make an appropriation. 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 authorize any provision that the authority may include in a trust agreement or resolution to alternatively be included in a bond with the same effect. The act defines a revenue bond to include a bond, warrant, note, lease, or installment sale obligation that is evidenced by a certificate of participation or other evidence of indebtedness issued by the authority. The act specifies that all moneys received pursuant to the act, whether as proceeds from the sale of revenue bonds or as revenues, shall be deemed to be trust funds held and applied solely as provided in the act. This bill would specify that those moneys also include moneys received as proceeds from incurring revenue bonds pursuant to the act. The bill would make other technical changes to the provisions governing the authority.