2009 California Welfare and Institutions Code - Section 16994 :: Article 9. Capital Outlay

16994.  (a) (1) Ninety percent of the amount appropriated for the
purposes of this article shall be allocated to MISP counties
according to the percentages specified in this chapter.
   (2) The remaining 10 percent shall be allocated to CMSP counties,
according to the following procedures:
   (A) Calculate the sum of uncompensated care costs for all
hospitals in each CMSP county.
   (B) Divide the sum of subparagraph (A) by the sum of uncompensated
care costs for all hospitals within all CMSP counties.
   (C) Multiply the quotient derived from the application of
subparagraph (B) by the total amount appropriated pursuant to
paragraph (2) for the purposes of this article.
   (b) Funding utilized under this section shall be for capital
expenditure and equipment acquisition purposes associated with the
direct delivery of patient care. In addition, each county may utilize
up to two million dollars ($2,000,000) or 25 percent of its
allocation under this section, whichever is greater, on a one-time
basis only in the 1989-90 fiscal year to restore county special fund
balances to their July 1, 1988, levels. Funds from this section may
be allocated for this purpose only in circumstances where the county
board of supervisors transferred moneys from those special funds to
the county general fund or from the county general fund to health
facilities enterprise funds in order to support indigent health care
services in the 1988-89 fiscal year. All capital outlay moneys under
this section utilized to restore county special fund or general fund
balances shall be appropriated for capital expenditures and equipment
acquisition associated with the direct delivery of patient care in
the 1990-91 fiscal year.
   (c) Except as provided in subdivision (b), no less than 67 percent
of the moneys a county receives under this section shall be
allocated to county acute care hospitals, University of California
hospitals, or any private hospital licensed pursuant to subdivision
(a) of Section 1250 of the Health and Safety Code, which operates an
emergency room or a burn unit or outpatient clinic. The moneys may be
expended for facility repair, renovation, remodeling, expansion, or
acquisition or equipment needs.
   (d) Except as provided in subdivision (b), up to 33 percent of the
moneys a county receives under this section may be expended for
capital improvement and equipment needs for outpatient clinics, or
mental health facilities, or public health clinics or licensed
community and free clinics or clinics operated by tribes or tribal
organizations.
   (e) Noncounty hospitals shall utilize funds received under this
section only for capital expenditures related to emergency room, burn
unit, and outpatient clinics.
   (f) County hospitals may utilize funds received under this section
for expenditures related to inpatient, outpatient, emergency room,
or burn unit services.
   (g) Funds utilized from this section shall be for capital
expenditure purposes associated with the direct treatment of
patients.
   (h) Each county receiving moneys under this section shall submit a
plan for the use of these moneys to the department for review and
approval prior to making any commitment for the expenditure of such
funds. Any subsequent revision to the county's capital improvements
plan shall also be submitted for review and approval. The department'
s approval authority shall be limited to a determination of whether
the county's plan conforms to statutory provisions as contained in
this section and part. The department may establish necessary
procedures and forms for the submission, review, and approval of
county plans and reports.
   (i) (1) Counties receiving moneys pursuant to this section shall
deposit them in a separate capital outlay fund, established solely
for this purpose, before transferring or expending them.
   (2) Interest earnings on the fund established pursuant to
paragraph (1) shall accrue to the benefit of that capital outlay
fund, and shall be expended for uses authorized by this section.
   (3) County costs of administering the fund established pursuant to
this section shall be reimbursed from that fund.
   (j) The expenditure of moneys authorized by this section may be
made without regard to fiscal year provided that moneys authorized by
this section shall be available for encumbrance for three fiscal
years and for expenditure for five fiscal years, including the
1989-90 fiscal year. At the end of five years any moneys which have
not been expended shall be recouped by the department.
   (k) Counties shall submit an annual report, in accordance with
guidelines provided by the department, detailing the use and actual
expenditure of moneys received pursuant to this section. The
department shall recoup the amount of any county expenditure which
does not conform to the provisions of this section.
   (l) Payment of moneys under this section shall be made as follows:
   (1) Half of the county's allocation shall be paid upon the
department's approval of the county plan specified in subdivision
(h).
   (2) The remaining half of the county's allocation shall be paid
upon execution of a capital outlay standard agreement, between the
county board of supervisors and the department.
   (m) For the purposes of this section, "capital expenditures" means
expenditures for fixed assets, major movable equipment, fixtures,
structures, emergency communications systems necessary to perform the
duties of a base station hospital or base hospital physician, as
defined in Sections 1797.58 and 1797.59 of the Health and Safety
Code, and improvements as defined for counties in "Accounting
Standards and Procedures for Counties" issued by the Office of the
Controller, Division of Local Government, Fiscal Affairs and for
other providers as defined by generally accepted standards of
accounting practices.