Health care districts: transfers of assets.

A new Section 1 amends Health and Safety Code Section 32121 to add paragraph (p)(13), which prohibits a health care district from entering into a transfer agreement that allows a private party to prohibit, restrict, or otherwise place conditions upon the district's expenditure of taxpayer funds.

The bill's stated purpose was expanded from solely adding the Use of Taxpayer Funds Act to Government Code to also amending the Local Health Care District Law, broadening the bill's applicability to specifically address health care district asset transfers.

The amended Section 32121 includes detailed requirements for asset transfers by health care districts, including: voter approval required when transferring 50 percent or more of assets; public meeting requirements (five meetings for 50%+ transfers to nonprofits without adequate consideration, two meetings for 10-50% transfers); independent appraisals within six months; asset reversion requirements upon termination; and a prohibition on transferring assets without adequate consideration to religious organizations.

New paragraph (p)(12) requires health care districts to report to the Attorney General within 30 days of any transfer of district assets to nonprofit or for-profit corporations, specifying the type of transaction and the receiving entity.