101658
. (a) Pursuant to this chapter, the board of supervisors may
establish, subject to the limitations of paragraph (1) of subdivision
(c), the Central Coast Hospital Authority, which shall, for all
purposes, be a public entity separate and apart from the county and
any other public entity. The authority established pursuant to this
chapter shall file the statement required by Section 53051 of the
Government Code, and shall be considered a public entity for purposes
of Division 3.6 (commencing with Section 810) of Title 1 of the
Government Code.
(b) (1) The purpose of the authority shall be to do all of the
following:
(A) Provide management, administration, and other controls,
consistent with this chapter, for the medical center to continue to
serve as a designated public hospital and ensure the viability of the
health care safety net in the county in a manner consistent with the
county's requirements under Section 17000 of the Welfare and
Institutions Code.
(B) Provide management, administration, and other controls for the
continued operation of one or more other health care facilities that
may be affiliated or consolidated with the medical center pursuant
to this chapter.
(2) Subject to the requirements of this chapter, the authority
shall be charged with the management, administration, and control of
the medical center, other health care facilities, and related
services and facilities.
(c) (1) Except as specifically set forth in this chapter, the
authority shall not be established, transact business, exercise
powers, or undertake duties and responsibilities pursuant to this
chapter until an agreement is reached to affiliate or consolidate the
medical center with at least one other health care facility as set
forth in this subdivision. In order for the authority to be
established, transact any business, exercise its powers, or undertake
its duties and responsibilities, the board of supervisors and at
least one governing board shall reach agreement, on terms and
conditions satisfactory to the parties, regarding the affiliation or
consolidation. This agreement may include, but is not limited to, a
transfer of the following:
(A) Real and personal property, and assets and liabilities from
the county and the other health care facility to the authority.
(B) Employees from the county and the other health care facility
to the authority.
(C) Maintenance, operation, and management or ownership of the
medical center, in accordance with Section 14000.2 of the Welfare and
Institutions Code.
(D) Maintenance, operation, and management or ownership of the
other health care facility.
(E) Other matters that the board of supervisors and the governing
board deem necessary or appropriate.
(2) If the board of supervisors and the governing board reach
agreement on the matters set forth in this subdivision, the terms and
conditions of the agreement shall be binding upon the authority.
After the agreement is reached, the board of supervisors shall adopt
an ordinance to establish the authority and authorize the authority
to exercise the powers and duties pursuant to this chapter, and the
board of supervisors and the governing board shall appoint a board of
trustees as set forth in Section 101659. The agreement set forth in
this section may be amended from time to time upon the mutual consent
of the authority and the governing board or the board of
supervisors, or both, as appropriate.
(3) (A) The agreement shall provide that upon the effective date
of the establishment ordinance described in paragraph (2), the
authority shall do all of the following:
(i) Take title to all assets associated with the medical center,
including, but not limited to, all real and personal property, funded
pension assets, and accounts receivable.
(ii) Assume, or immediately extinguish, defease, or satisfy, all
obligations and liabilities directly or indirectly associated with
the medical center, including, but not limited to, related or
associated debt, accounts payable, accrued liabilities, unfunded
pension liabilities, or financial or contractual obligations of any
kind.
(iii) Take any other actions necessary so that the county has no
continuing financial obligation or responsibility with respect to the
authority or its operations.
(B) A contract between the authority and the Public Employees'
Retirement System shall be a separate contract and not a joint
contract with the county.
(C) The authority's funds shall not remain or be kept on deposit
with the county, or otherwise be in the custody or control of the
county, and the authority shall not be permitted to deposit funds
with the county, including within the county's treasury investment
pool.
(D) The contractual provisions described in this paragraph are
mandatory.
(d) An agreement concerning the transfer of personnel shall
include a transition plan that requires all the following:
(1) Ongoing communication to employees and recognized employee
organizations regarding the impact of the transition on existing
medical center and other health care facility employees and employee
classifications.
(2) Meeting and conferring by the county and the other health care
facility with affected employee bargaining units on both of the
following issues:
(A) The timeframe for which the transfer of personnel shall occur.
(B) A specified period of time during which employees of the
county affected by the establishment of the authority may elect to be
considered for appointment to vacant positions, and exercise
reinstatement rights, for which they are qualified and eligible. An
employee who first elects to remain with the county, but who
subsequently seeks employment with the authority within 30 days of
this election, shall be subject to the requirements of this article.
(3) Acknowledgment that the authority, to the extent permitted by
federal law, shall be bound by the terms of the memoranda of
understanding executed between the county and its exclusive employee
representatives that are or will be in effect as of the date the
county adopts the ordinance pursuant to this article. Subsequent
memoranda of understanding shall be subject to approval only by the
authority.
(e) (1) Notwithstanding any other provision of this chapter, and
whether or not accompanied by a change in licensing, an agreement for
the maintenance, operation, and management or ownership of the
medical center shall not relieve the county of the ultimate
responsibility for indigent care pursuant to Section 14000.2 of the
Welfare and Institutions Code.
(2) An agreement for the maintenance, operation, and management or
ownership of the medical center shall conform to the following
requirements:
(A) Shall comply with Section 14000.2 of the Welfare and
Institutions Code.
(B) May be made upon the terms and conditions that the board of
supervisors and governing board may mutually agree, including those
terms and conditions found necessary by the board of supervisors to
ensure that the transfer of the medical center shall constitute an
ongoing benefit to the county and its residents.
(C) Shall provide that the county shall ensure that any applicable
requirements of Section 1442.5 are met.
(3) An agreement for the maintenance, operation, and management or
ownership of the other health care facility may be made upon the
terms and conditions that the board of supervisors and the governing
board may mutually agree, including those terms and conditions found
necessary by the governing board to ensure that the transfer shall
constitute an ongoing benefit to the other health care facility and
its constituents.
(f) The authority shall not be subject to the jurisdiction of a
local agency formation commission pursuant to the
Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000
(Division 3 (commencing with Section 56000) of Title 5 of the
Government Code), or any successor statute.