Hospital DistrictsBonds
Section § 32300
This law allows a district to issue bonds to pay for big projects like building or improving facilities, or to cover costs in a shared insurance plan with hospitals if regular funds or special assessments aren't enough. The decision to use bonds is made by district directors when they believe regular funds won't cover it and a special assessment doesn't make sense.
Section § 32300.1
This law section explains how a legislative body in California can decide the total amount of bonds to issue for a project. They can include all costs related to acquiring, building, improving, or financing the project.
They can also factor in expenses like engineering, legal fees, inspection, costs related to having a bond election, and any interest on the bonds during and up to 12 months after construction is finished.
Section § 32300.2
This law allows a district to issue new bonds to pay off or refinance its existing debts or bonds.
Section § 32301
This law explains the process for holding an election to approve the issuance of bonds by a district. The district's board of directors can decide to hold this election on their own, or they must do so if a petition is submitted. This petition must be signed by at least 15% of the district's eligible voters and must clearly state what the bond money will be used for.
Section § 32302
This rule states that when a board of directors decides to hold an election for issuing bonds, their announcement must include details like the bond amount, interest rate, and the latest date the bonds will mature. If at least two-thirds of voters support it, the board must issue the bonds.
Section § 32303
This law section states that a board of directors must decide and record details about bonds, including their form, when the bonds and their interest are due, and their value. The maturity date can't be more than 30 years after they are issued. Bonds can be paid at the district's office, the county treasurer's office, or another designated place of the holder's choice.
Section § 32304
When bonds are issued, the first set must be paid off within five years, and the last set must be paid off within 30 years from when they were issued.
Section § 32305
This law states that the board of directors is responsible for setting the interest rate on bonds issued under this chapter. The interest rate cannot be more than 8% per year, and can be paid either once a year or twice a year.
Section § 32306
This law section states that the board of directors has the authority to determine the size and value of bonds that are issued under this chapter.
Section § 32307
This law says that bonds issued by a district must be signed by the leader and confirmed by the district's secretary. These bonds remain valid for future sales, even if the signing officer is no longer in that position when the bonds are sold.
Section § 32308
This law states that hospital districts in California cannot take on debt through bonds that exceed 10% of the assessed value of all taxable property in their area. It also mentions that bonds issued by local hospital districts are considered valid investments for trust funds, insurance companies, banks, and trust companies. These bonds can be legally used in situations where city, county, or school district bonds are typically accepted, such as investments or as security for financial obligations.
Section § 32309
This law allows the board of directors to sell bonds whenever it's needed to get the best financial outcome for the purposes the bonds were originally issued for.
Section § 32310
This law states that bonds must be sold for at least their face value (par value). Before any sale, the district's board of directors needs to pass a resolution to sell a specific amount of bonds, declaring the exact date, time, and location for receiving bids.
The district must publish a notice about the bond sale in a widely-read local newspaper at least 10 days before the sale, announcing that they will accept sealed bids at the specified place and time.
Section § 32311
When it's time to sell bonds, the board of directors will look at all the offers from bidders. They can sell the bonds to the highest responsible buyer or reject all the bids if they choose. No bid is valid unless it's backed by a certified or cashier's check for a percentage set by the board. If the bidder backs out after their proposal is accepted, they lose their check. If the board doesn't sell the bonds, they can try again by advertising them for sale.
Section § 32312
This law requires the county board to levy a tax each year to pay off bonds issued by a district. This tax is separate from other district taxes and must cover the bond interest and create a fund to repay the principal when due. All collected taxes for this purpose must be used only to pay off the bonds and their interest until full repayment.
Section § 32314
This law section allows the board to decide if a bond issued by the district can be paid off early, before it is due (also known as calling a bond). They can set the terms for this, including when and at what price the early retirement can happen. If a bond can be paid off early, this information must be included in the bond's details.