Bill Text: CA AB2104 | 2015-2016 | Regular Session | Amended
Bill Title: California Health Facilities Financing Authority Act:
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2016-11-30 - From committee without further action. [AB2104 Detail]
Download: California-2015-AB2104-Amended.html
BILL NUMBER: AB 2104 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 26, 2016
AMENDED IN ASSEMBLY MARCH 28, 2016
AMENDED IN ASSEMBLY MARCH 18, 2016
INTRODUCED BY Assembly Member Dababneh
FEBRUARY 17, 2016
An act to amend Section 15432 of of, and
to add and repeal Section 15438.3 of, the Government
Code, and to amend Sections 129005, 129010, 129020, 129090, and
129173 of of, and to add and repeal Section
129107 of, the Health and Safety Code, relating to health
facilities, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
AB 2104, as amended, Dababneh. California Health Facilities
Financing Authority Act: California Health Facility Construction Loan
Insurance Law.
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.
This bill would expand the program to include for-profit skilled
nursing facilities when at least 60% of their patients are
Medi-Cal beneficiaries facilities by adding
those entities to the definition of "participating health
institutions." The bill would, until January 1, 2024, require
the authority to provide funding to skilled nursing facilities in a
specified order of priority, including by requiring skilled nursing
facilities for which at least 95% of their patients are Medi-Cal
beneficiaries to be given first priority. Because this bill
would expand the purposes for which a continuously appropriated fund
may be used, it would make an appropriation.
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.
This bill would expand the program to include for-profit
corporations that operate skilled nursing facilities when at
least 60% of their patients are Medi-Cal beneficiaries
facilities by, among other things, adding those entities to
the definition of "health facilities" and making those entities
eligible to apply for the insurance program. The bill would,
until January 1, 2024, require loan insurance to be granted to
skilled nursing facilities in a specified order of priority,
including by requiring skilled nursing facilities for which at least
95% of their patients are Medi-Cal beneficiaries to be given first
priority. 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.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 15432 of the Government Code is amended to
read:
15432. As used in this part, the following words and terms shall
have the following meanings, unless the context clearly indicates or
requires another or different meaning or intent:
(a) "Act" means the California Health Facilities Financing
Authority Act.
(b) "Authority" means the California Health Facilities Financing
Authority created by this part or any board, body, commission,
department, or officer succeeding to the principal functions thereof
or to which the powers conferred upon the authority by this part
shall be given by law.
(c) "Cost," as applied to a project or portion of a project
financed under this part, means and includes all or any part of the
cost of construction and acquisition of all lands, structures, real
or personal property, rights, rights-of-way, franchises, easements,
and interests acquired or used for a project, the cost of demolishing
or removing any buildings or structures on land so acquired,
including the cost of acquiring any lands to which those buildings or
structures may be moved, the cost of all machinery and equipment,
financing charges, interest prior to, during, and for a period not to
exceed the later of one year or one year following completion of
construction, as determined by the authority, the cost of insurance
during construction, the cost of funding or financing noncapital
expenses, reserves for principal and interest and for extensions,
enlargements, additions, replacements, renovations and improvements,
the cost of engineering, service contracts, reasonable financial and
legal services, plans, specifications, studies, surveys, estimates,
administrative expenses, and other expenses of funding or financing,
that are necessary or incident to determining the feasibility of
constructing any project, or that are incident to the construction,
acquisition, or financing of any project.
(d) "Health facility" means a facility, place, or building that is
licensed, accredited, or certified and organized, maintained, and
operated for the diagnosis, care, prevention, and treatment of human
illness, or physical, mental, or developmental disability, including
convalescence and rehabilitation and including care during and after
pregnancy, or for any one or more of these purposes, for one or more
persons, and includes, but is not limited to, all of the following
types:
(1) A general acute care hospital that is a health facility having
a duly constituted governing body with overall administrative and
professional responsibility and an organized medical staff that
provides 24-hour inpatient care, including the following basic
services: medical, nursing, surgical, anesthesia, laboratory,
radiology, pharmacy, and dietary services.
(2) An acute psychiatric hospital that is a health facility having
a duly constituted governing body with overall administrative and
professional responsibility and an organized medical staff that
provides 24-hour inpatient care for mentally disordered, incompetent,
or other patients referred to in Division 5 (commencing with Section
5000) or Division 6 (commencing with Section 6000) of the Welfare
and Institutions Code, including the following basic services:
medical, nursing, rehabilitative, pharmacy, and dietary services.
(3) A skilled nursing facility that is a health facility that
provides the following basic services: skilled nursing care and
supportive care to patients whose primary need is for availability or
skilled nursing care on an extended basis.
(4) An intermediate care facility that is a health facility that
provides the following basic services: inpatient care to ambulatory
or semiambulatory patients who have a recurring need for
skilled nursing supervision and need supportive care, but who do not
require availability or continuous skilled nursing care.
(5) A special health care facility that is a health facility
having a duly constituted governing body with overall administrative
and professional responsibility and an organized medical or dental
staff that provides inpatient or outpatient, acute or nonacute care,
including, but not limited to, medical, nursing, rehabilitation,
dental, or maternity.
(6) A clinic that is operated by a tax-exempt nonprofit
corporation that is licensed pursuant to Section 1204 or 1204.1 of
the Health and Safety Code or a clinic exempt from licensure pursuant
to subdivision (b) or (c) of Section 1206 of the Health and Safety
Code.
(7) An adult day health center that is a facility, as defined
under subdivision (b) of Section 1570.7 of the Health and Safety
Code, that provides adult day health care, as defined under
subdivision (a) of Section 1570.7 of the Health and Safety Code.
(8) A facility owned or operated by a local jurisdiction for the
provision of county health services.
(9) A multilevel facility is an institutional arrangement where a
residential facility for the elderly is operated as a part of, or in
conjunction with, an intermediate care facility, a skilled nursing
facility, or a general acute care hospital. "Elderly," for the
purposes of this paragraph, means a person 62 years of age or older.
(10) A child day care facility operated in conjunction with a
health facility. A child day care facility is a facility, as defined
in Section 1596.750 of the Health and Safety Code. For purposes of
this paragraph, "child" means a minor from birth to 18 years of age.
(11) An intermediate care facility/developmentally disabled
habilitative that is a health facility, as defined under subdivision
(e) of Section 1250 of the Health and Safety Code.
(12) An intermediate care facility/developmentally
disabled-nursing that is a health facility, as defined under
subdivision (h) of Section 1250 of the Health and Safety Code.
(13) A community care facility that is a facility, as defined
under subdivision (a) of Section 1502 of the Health and Safety Code,
that provides care, habilitation, rehabilitation, or treatment
services to developmentally disabled or mentally impaired persons.
(14) A nonprofit community care facility, as defined in
subdivision (a) of Section 1502 of the Health and Safety Code, other
than a facility that, as defined in that subdivision, is a
residential facility for the elderly, a foster family agency, a
foster family home, a full service adoption agency, or a noncustodial
adoption agency.
(15) A nonprofit accredited community work activity program, as
specified in subdivision (e) of Section 4851 and Section 4856 of the
Welfare and Institutions Code.
(16) A community mental health center, as defined in paragraph (3)
of subdivision (b) of Section 5667 of the Welfare and Institutions
Code.
(17) A nonprofit speech and hearing center, as defined in Section
1201.5 of the Health and Safety Code.
(18) A blood bank, as defined in Section 1600.2 of the Health and
Safety Code, licensed pursuant to Section 1602.5 of the Health and
Safety Code, and exempt from federal income taxation pursuant to
Section 501(c)(3) of the Internal Revenue Code.
(19) A residential facility for persons with developmental
disabilities, as defined in Sections 4688.5 and 4688.6 of the Welfare
and Institutions Code, which includes, but is not limited to, a
community care facility licensed pursuant to Section 1502 of the
Health and Safety Code and a family teaching home as defined in
Section 4689.1 of the Welfare and Institutions Code.
(20) A nonpublic school that provides educational services in
conjunction with a health facility, as defined in paragraphs (1) to
(19), inclusive, that otherwise qualifies for financing pursuant to
this part, if the nonpublic school is certified pursuant to Sections
56366 and 56366.1 of the Education Code as meeting standards relating
to the required special education and specified related services and
facilities for individuals with physical, mental, or developmental
disabilities.
"Health facility" includes a clinic that is described in
subdivision (l) of Section 1206 of the Health and Safety Code.
"Health facility" includes information systems equipment and the
following facilities, if the equipment and facility is operated in
conjunction with or to support the services provided in one or more
of the facilities specified in paragraphs (1) to (20), inclusive, of
this subdivision: a laboratory, laundry, a nurses or interns
residence, housing for staff or employees and their families or
patients or relatives of patients, a physicians' facility, an
administration building, a research facility, a maintenance, storage,
or utility facility, an information systems facility, all structures
or facilities related to any of the foregoing facilities or required
or useful for the operation of a health facility and the necessary
and usual attendant and related facilities and equipment, and parking
and supportive service facilities or structures required or useful
for the orderly conduct of the health facility.
"Health facility" does not include any institution, place, or
building used or to be used primarily for sectarian instruction or
study or as a place for devotional activities or religious worship.
(e) "Participating health institution" means a city, city and
county, or county, a district hospital, or a private nonprofit
corporation or association, or a limited liability company whose sole
member is a nonprofit corporation or association authorized by the
laws of this state to provide or operate a health facility or a
nonprofit corporation that controls or manages, is controlled or
managed by, is under common control or management with, or is
affiliated with any of the foregoing, or a for-profit skilled nursing
facility when at least 60 percent of its patients are
Medi-Cal beneficiaries, facility, and that,
pursuant to this part, undertakes the financing or refinancing of the
construction or acquisition of a project or of working capital as
provided in this part. "Participating health institution" also
includes, for purposes of the California Health Facilities Revenue
Bonds (UCSF-Stanford Health Care) 1998 Series A, the Regents of the
University of California.
(f) "Project" means construction, expansion, remodeling,
renovation, furnishing, or equipping, or funding, financing, or
refinancing of a health facility or acquisition of a health facility
to be financed or refinanced with funds provided in whole or in part
pursuant to this part. "Project" may include reimbursement for the
costs of construction, expansion, remodeling, renovation, furnishing,
or equipping, or funding, financing, or refinancing of a health
facility or acquisition of a health facility. "Project" may include
any combination of one or more of the foregoing undertaken jointly by
any participating health institution with one or more other
participating health institutions.
(g) "Revenue bond" or "bond" means 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.
(h) "Working capital" means moneys to be used by, or on behalf of,
a participating health institution to pay or prepay maintenance or
operation expenses or any other costs that would be treated as an
expense item, under generally accepted accounting principles, in
connection with the ownership or operation of a health facility,
including, but not limited to, reserves for maintenance or operation
expenses, interest for not to exceed one year on any loan for working
capital made pursuant to this part, and reserves for debt service
with respect to, and any costs necessary or incidental to, that
financing.
SEC. 2. Section 15438.3 is added to the
Government Code , to read:
15438.3. (a) When providing funding to for-profit skilled nursing
facilities, the authority shall provide funding in the following
order of priority:
(1) To skilled nursing facilities for which at least 95 percent of
their patients are Medi-Cal beneficiaries.
(2) To skilled nursing facilities that will construct a new
facility or increase bed capacity at an existing facility.
(3) If funding is available and all skilled nursing facilities
described in paragraphs (1) and (2) have been provided funding, to
skilled nursing facilities for which at least 65 percent of their
patients are Medi-Cal beneficiaries.
(b) The authority shall document the number of skilled nursing
facilities funded pursuant to subdivision (a) and how access to
skilled nursing facility services has increased for Medi-Cal
beneficiaries as a result of that funding. The authority shall
include this information when complying with its existing data
collection and reporting requirements, if any.
(c) This section shall remain in effect only until January 1,
2024, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2024, deletes or extends
that date.
SEC. 2. SEC. 3. Section 129005 of
the Health and Safety Code is amended to read:
129005. The purpose of this chapter is 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, eligible for-profit, and nonprofit
health facilities necessary to protect the health of all the people
of this state. The provisions of this chapter are to be liberally
construed to achieve this purpose.
SEC. 3. SEC. 4. Section 129010 of
the Health and Safety Code is amended to read:
129010. Unless the context otherwise requires, the definitions in
this section govern the construction of this chapter and of Section
32127.2.
(a) "Bondholder" means the legal owner of a bond or other evidence
of indebtedness issued by a political subdivision or a nonprofit
corporation.
(b) "Borrower" means a political subdivision or nonprofit
corporation that has secured or intends to secure a loan for the
construction of a health facility.
(c) "Construction, improvement, or expansion" or "construction,
improvement, and expansion" includes construction of new buildings,
expansion, modernization, renovation, remodeling and alteration of
existing buildings, acquisition of existing buildings or health
facilities, and initial or additional equipping of any of these
buildings.
In connection therewith, "construction, improvement, or expansion"
or "construction, improvement, and expansion" includes the cost of
construction or acquisition of all structures, including parking
facilities, real or personal property, rights, rights-of-way, the
cost of demolishing or removing any buildings or structures on land
so acquired, including the cost of acquiring any land where the
buildings or structures may be moved, the cost of all machinery and
equipment, financing charges, interest (prior to, during, and for a
period after completion of the construction), provisions for working
capital, reserves for principal and interest and for extensions,
enlargements, additions, replacements, renovations and improvements,
cost of engineering, financial and legal services, plans,
specifications, studies, surveys, estimates of cost and of revenues,
administrative expenses, expenses necessary or incident to
determining the feasibility or practicability of constructing or
incident to the construction; or the financing of the construction or
acquisition.
(d) "Committee" means the Advisory Loan Insurance Committee.
(e) "Debenture" means any form of written evidence of indebtedness
issued by the State Treasurer pursuant to this chapter, as
authorized by Section 4 of Article XVI of the California
Constitution.
(f) "Fund" means the Health Facility Construction Loan Insurance
Fund.
(g) "Health facility" means any facility providing or designed to
provide services for the acute, convalescent, and chronically ill and
impaired, including, but not limited to, public health centers,
community mental health centers, facilities for the developmentally
disabled, nonprofit community care facilities that provide care,
habilitation, rehabilitation or treatment to developmentally disabled
persons, facilities for the treatment of chemical dependency,
including a community care facility, licensed pursuant to Chapter 3
(commencing with Section 1500) of Division 2, a clinic, as defined
pursuant to Chapter 1 (commencing with Section 1200) of Division 2,
an alcoholism recovery facility, defined pursuant to former Section
11834.11, and a structure located adjacent or attached to another
type of health facility and that is used for storage of materials
used in the treatment of chemical dependency, and general
tuberculosis, mental, and other types of hospitals and related
facilities, such as laboratories, outpatient departments, extended
care, nurses' home and training facilities, offices and central
service facilities operated in connection with hospitals, diagnostic
or treatment centers, extended care facilities, nursing homes, and
rehabilitation facilities. "Health facility" also means an adult day
health center and a multilevel facility. Except for facilities for
the developmentally disabled, facilities for the treatment of
chemical dependency, or a multilevel facility, or as otherwise
provided in this subdivision, "health facility" does not include any
institution furnishing primarily domiciliary care.
"Health facility" also means accredited nonprofit work activity
programs as defined in subdivision (e) of Section 4851 of the Welfare
and Institutions Code, and nonprofit community care facilities as
defined in Section 1502, excluding foster family homes, foster family
agencies, adoption agencies, and residential care facilities for the
elderly.
Unless the context dictates otherwise, "health facility" includes
a political subdivision of the state or nonprofit corporation that
operates a facility included within the definition set forth in this
subdivision.
Unless the context dictates otherwise, "health facility" includes
a for-profit corporation that operates a skilled nursing
facility when at least 60 percent of its patients are Medi-Cal
beneficiaries. facility.
(h) "Office" means the Office of Statewide Health Planning and
Development.
(i) "Lender" means the provider of a loan and its successors and
assigns.
(j) "Loan" means money or credit advanced for the costs of
construction or expansion of the health facility, and includes both
initial loans and loans secured upon refinancing and may include both
interim, or short-term loans, and long-term loans. A duly authorized
bond or bond issue, or an installment sale agreement, may constitute
a "loan."
(k) "Maturity date" means the date that the loan indebtedness
would be extinguished if paid in accordance with periodic payments
provided for by the terms of the loan.
(l) "Mortgage" means a first mortgage on real estate. "Mortgage"
includes a first deed of trust.
(m) "Mortgagee" includes a lender whose loan is secured by a
mortgage. "Mortgagee" includes a beneficiary of a deed of trust.
(n) "Mortgagor" includes a borrower, a loan to whom is secured by
a mortgage, and the trustor of a deed of trust.
(o) "Nonprofit corporation" means any corporation formed under or
subject to the Nonprofit Public Benefit Corporation Law (Part 2
(commencing with Section 5110) of Division 2 of Title 1 of the
Corporations Code) that is organized for the purpose of owning and
operating a health facility and that also meets the requirements of
Section 501(c)(3) of the Internal Revenue Code.
(p) "Political subdivision" means any city, county, joint powers
entity, local hospital district, or the California Health Facilities
Authority.
(q) "Project property" means the real property where the health
facility is, or is to be, constructed, improved, or expanded, and
also means the health facility and the initial equipment in that
health facility.
(r) "Public health facility" means any health facility that is or
will be constructed for and operated and maintained by any city,
county, or local hospital district.
(s) "Adult day health center" means a facility defined under
subdivision (b) of Section 1570.7, that provides adult day health
care, as defined under subdivision (a) of Section 1570.7.
(t) "Multilevel facility" means an institutional arrangement where
a residential facility for the elderly is operated as a part of, or
in conjunction with, an intermediate care facility, a skilled nursing
facility, or a general acute care hospital. "Elderly," for the
purposes of this subdivision, means a person 60 years of age or
older.
(u) "State plan" means the plan described in Section 129020.
SEC. 4. SEC. 5. Section 129020 of
the Health and Safety Code is amended to read:
129020. (a) The office shall implement the loan insurance program
for the construction, improvement, and expansion of public, eligible
for-profit, and nonprofit corporation health facilities so that, in
conjunction with all other existing facilities, the necessary
physical facilities for furnishing adequate health facility services
will be available to all the people of the state.
(b) Every odd-numbered year the office shall develop a state plan
for use under this chapter. The plan shall include an overview of the
changes in the health care industry, an overview of the financial
status of the fund and the loan insurance program implemented by the
office, a statement of the guiding principles of the loan insurance
program, an evaluation of the program's success in meeting its
mission as outlined in Section 129005, a discussion of
administrative, procedural, or statutory changes that may be needed
to improve management of program risks or to ensure the program
effectively addresses the health needs of Californians, and the
priority needs to be addressed by the loan insurance program.
(c) The health facility construction loan insurance program shall
provide for health facility distribution throughout the state in a
manner that will make all types of health facility services
reasonably accessible to all persons in the state according to the
state plan.
SEC. 5. SEC. 6. Section 129090 of
the Health and Safety Code is amended to read:
129090. (a) Pursuant to this chapter, political subdivisions,
eligible for-profit corporations, and nonprofit corporations may
apply for state insurance of needed construction, improvement, or
expansion loans for construction, remodeling, or acquisition of
health facilities to be or already owned, established, and operated
by them as provided in this chapter. Applications shall be submitted
to the office by the nonprofit corporation, eligible for-profit
corporation, or political subdivision authorized to construct and
operate a health facility.
(b) Each application shall conform to the requirements of the
office, shall be submitted in the manner and form prescribed by the
office, and shall be accompanied by an application fee of one-half of
1 percent of the amount of the loan applied for, but in no case
shall the application fee exceed five hundred dollars ($500). The
fees shall be deposited by the office in the fund and used to defray
the office's expenditures in the administration of this chapter.
SEC. 7. Section 129107 is added to the
Health and Safety Code , to read:
129107. (a) When insuring loans for for-profit skilled nursing
facilities, the office shall grant loan insurance in the following
order of priority:
(1) To skilled nursing facilities for which at least 95 percent of
their patients are Medi-Cal beneficiaries.
(2) To skilled nursing facilities that will construct a new
facility or increase bed capacity at an existing facility.
(3) If funding is available and all skilled nursing facilities
described in paragraphs (1) and (2) have been granted loan insurance,
to skilled nursing facilities for which at least 65 percent of their
patients are Medi-Cal beneficiaries.
(b) The office shall document the number of skilled nursing
facilities granted insurance pursuant to subdivision (a) and how
access to skilled nursing facility services has increased for
Medi-Cal beneficiaries as a result of those grants. The office shall
include this information in the annual reports required pursuant to
Section 129045.
(c) This section shall remain in effect only until January 1,
2024, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2024, deletes or extends
that date.
SEC. 6. SEC. 8. Section 129173 of the
Health and Safety Code is amended to read:
129173. (a) In fulfilling the purposes of this article, as set
forth in Section 129005, and upon making a determination that the
financial status of a borrower may jeopardize a borrower's ability to
fulfill its obligations under any insured loan transaction so as to
threaten the economic interest of the office in the borrower or to
jeopardize the borrower's ability to continue to provide needed
health care services in its community, including, but not limited to,
a declaration of default under any contract related to the
transaction, the borrower missing any payment to its lender, or the
borrower's accounts payable exceeding three months, the office may
assume or direct managerial or financial control of the borrower in
any or all of the following ways:
(1) The office may supervise and prescribe the activities of the
borrower in the manner and under the terms and conditions as the
office may stipulate in any contract with the borrower.
(2) Notwithstanding the provisions of the articles of
incorporation or other documents of organization of a nonprofit
corporation borrower, this control may be exercised through the
removal and appointment by the office of members of the governing
body of the borrower sufficient so that the new members constitute a
voting majority of the governing body.
(3) In the event the borrower is a nonprofit corporation, an
eligible for-profit corporation, or a political subdivision, the
office may request the Secretary of the California Health and Human
Services Agency to appoint a trustee. The trustee shall have full and
complete authority of the borrower over the insured project,
including all property on which
the office holds a security interest. A trustee shall not be
appointed unless approved by the office. A trustee appointed by the
secretary pursuant to this subdivision may exercise all the powers of
the officers and directors of the borrower, including the filing of
a petition for bankruptcy. An action at law or in equity shall not be
maintained by any party against the office or a trustee by reason of
their exercising the powers of the officers and directors of a
borrower pursuant to the direction of, or with the approval of, the
secretary.
(4) The office may institute any action or proceeding, or the
office may request the Attorney General to institute any action or
proceeding against any borrower, to obtain injunctive or other
equitable relief, including the appointment of a receiver for the
borrower or the borrower's assets, in the superior court in and for
the county in which the assets or a substantial portion of the assets
are located. The proceeding under this section for injunctive relief
shall conform with the requirements of Chapter 3 (commencing with
Section 525) of Title 7 of Part 2 of the Code of Civil Procedure,
except that the office shall not be required to allege facts
necessary to show lack of adequate remedy at law, or to show
irreparable loss or damage. Injunctive relief may compel the
borrower, its officers, agents, or employees to perform each and
every provision contained in any regulatory agreement, contract of
insurance, or any other loan closing document to which the borrower
is a party, or any obligation imposed on the borrower by law, and
require the carrying out of any and all covenants and agreements and
the fulfillment of all duties imposed on the borrower by law or those
documents.
A receiver may be appointed pursuant to Chapter 5 (commencing with
Section 564) of Title 7 of Part 2 of the Code of Civil Procedure. In
cooperation with the Attorney General, the office shall develop and
maintain a list of receivers who have demonstrated experience both in
the health care field and as a receiver. Upon a proper showing, the
court shall grant the relief provided by law and requested by the
office or the Attorney General. No receiver shall be appointed unless
approved by the office. The office shall establish reporting
requirements for receivers to ensure that the office is fully
apprised of all costs incurred and progress made by the receiver. A
receiver appointed by the superior court pursuant to this subdivision
and Section 564 of the Code of Civil Procedure may, with the
approval of the court, exercise all of the powers of the officers and
directors of the borrower, including the filing of a petition for
bankruptcy. An action at law or in equity shall not be maintained by
any party against the office, the Attorney General, or a receiver by
reason of their exercising the powers of the officers and directors
of a borrower pursuant to the order of, or with the approval of, the
superior court.
(5) The borrower shall inform the office in advance of all
meetings of its governing body. The borrower shall not exclude the
office from attending any meeting of the borrower's governing body.
(b) Other than the loan insured under this chapter, the office
shall not be liable for any debt of a borrower, or to a borrower, as
a result of the office asserting its legal remedies against a
borrower insured under this chapter.
(c) It is the intent of the Legislature that this section is
remedial in nature, and is applicable retroactively to any health
facility construction loans in existence at the time of its
enactment, to the extent that the application of this section does
not unlawfully impair existing contract rights.
