Section § 32498.5

Explanation

This law establishes the Pajaro Valley Health Care District in Santa Cruz and Monterey counties. The district can only be formed if the relevant county board appoints an initial board of directors. The district covers areas corresponding to the Pajaro Valley Unified School District, with specific boundaries detailed in the text. Once the district is formed, any changes must follow the rules of the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000.

(a)CA Health and Safety Code § 32498.5(a) A local hospital district designated as the Pajaro Valley Health Care District is hereby formed within the Counties of Santa Cruz and Monterey. The Pajaro Valley Health Care District may be organized, incorporated, and managed as provided in this division, and may exercise the powers granted or necessarily implied by this division, only if the relevant county board of supervisors chooses to appoint an initial board of directors, as described in Section 32100. All other provisions of this division apply to the Pajaro Valley Health Care District, except as provided in this chapter.
(b)CA Health and Safety Code § 32498.5(b) The territory of the district shall be the following area: Situated in the Counties of Santa Cruz and Monterey, State of California; being all the lands within the boundary of the Pajaro Valley Unified School District, excepting the lands to the north and west of the following described line: beginning at a point on the edge of the Pacific Ocean at the intersection with the projected centerline of Aptos Beach Drive; thence along said projected centerline to the intersection of the centerline of Aptos Beach Drive and the centerline of Rio Del Mar Boulevard; thence along the centerline of Rio Del Mar Boulevard in a northeasterly direction to the intersection of the centerline of Rio Del Mar Boulevard and the centerline of Bonita Drive; thence along the centerline of Bonita Drive in a westerly direction to the intersection of the centerline of Bonita Drive and the centerline of Freedom Boulevard; thence along the centerline of Freedom Boulevard in a northerly and easterly direction to the intersection of the centerline of Freedom Boulevard and the centerline of Hames Road; thence along the centerline of Hames Road in an easterly direction to the end of the centerline of Hames Road and the beginning of the centerline of Browns Valley Road; thence along the centerline of Browns Valley Road in a northerly and easterly direction to the end of the centerline of Browns Valley Road and the beginning of the centerline of Hazel Dell Road; thence along the centerline of Hazel Dell Road in an easterly and southerly direction to the intersection of the centerline of Hazel Dell Road and the centerline of Mount Madonna Road; thence along the centerline of Mount Madonna Road in a southerly direction to the intersection of the centerline of Mount Madonna Road and the centerline of Gaffey Road; thence along the centerline of Gaffey Road 1300 feet, more or less, in an easterly direction to a point on the centerline of Gaffey Road; thence leaving the centerline of Gaffey Road 90 feet, more or less, in a northeasterly direction to a point on the Santa Cruz County line.
(c)CA Health and Safety Code § 32498.5(c) Following the formation of the district, the Cortese-Knox-Hertzberg Local Government Reorganization Act of 2000 (Division 3 (commencing with Section 56000) of Title 5 of the Government Code) governs any change of organization.

Section § 32498.6

Explanation

This law requires the Pajaro Valley Health Care District Board of Directors to create zones within the district within five years of their first meeting. These zones should reflect the area's demographics and geography, including population distribution.

The board must hold a hearing where local voters can share their thoughts on the proposed zones, but the board's decision will be final. These zones will then be used for the next district election as long as there is enough time to prepare accordingly.

(a)CA Health and Safety Code § 32498.6(a) Notwithstanding any other law, within five years of the date of the first meeting of the Board of Directors of the Pajaro Valley Health Care District, the board of directors shall adopt a resolution to divide the district into zones and number the zones consecutively.
(b)CA Health and Safety Code § 32498.6(b) In establishing these zones, the board of directors shall provide for representation in accordance with demographic and geographic factors of the entire area of the district, including population factors. The board of directors shall fix the time and place for a hearing on the proposed establishment of zones. At this hearing, any elector of the district may present their views and plans in relation to the proposed zoning, but the board of directors shall not be bound thereby and their decision, in the resolution adopted, shall be final.
(c)CA Health and Safety Code § 32498.6(c) The zones shall be effective for the next district election after the resolution of the board of directors for which there is time to implement the zones and elections within the zones.

Section § 32498.7

Explanation

This law requires the district to inform the Santa Cruz local agency formation commission (LAFCO) if it or any other group acquires Watsonville Community Hospital. If the district hasn't acquired the hospital through a bankruptcy process by January 1, 2024, LAFCO must dissolve the district.

(a)CA Health and Safety Code § 32498.7(a) The district shall notify the County of Santa Cruz local agency formation commission (LAFCO) of when the district, or any other entity, acquires the Watsonville Community Hospital.
(b)CA Health and Safety Code § 32498.7(b) If the district does not acquire the Watsonville Community Hospital through the bankruptcy proceeding pursuant to Chapter 11 (commencing with Section 1101) of Title 11 of the United States Code by January 1, 2024, the LAFCO shall order the dissolution of the district.

Section § 32498.8

Explanation

If the district that operates Watsonville Community Hospital either sells the hospital or stops providing healthcare services there, they must inform the Santa Cruz County local agency formation commission. Upon receiving such a notification, the commission is required to dissolve the district.

Importantly, this dissolution process is exempt from certain government procedures and requirements usually involved in organizational changes, as well as certain taxation code requirements.

(a)CA Health and Safety Code § 32498.8(a) The district shall notify the Santa Cruz County local agency formation commission if the district sells the Watsonville Community Hospital to another entity or stops providing health care services at the facility.
(b)CA Health and Safety Code § 32498.8(b) If the commission receives notification subject to subdivision (a), it shall order the dissolution of the district.
(c)CA Health and Safety Code § 32498.8(c) The dissolution of the district pursuant to this section is not subject to any of the following:
(1)CA Health and Safety Code § 32498.8(c)(1) Chapter 1 (commencing with Section 57000) to Chapter 7 (commencing with Section 57176), inclusive, of Part 4 of Division 3 of Title 5 of the Government Code.
(2)CA Health and Safety Code § 32498.8(c)(2) Determinations pursuant to subdivision (b) of Section 56881 of the Government Code.
(3)CA Health and Safety Code § 32498.8(c)(3) Requirements for commission-initiated changes of organization described in paragraph (3) of subdivision (a) of Section 56375 of the Government Code.
(4)CA Health and Safety Code § 32498.8(c)(4) Sections 99 and 99.01 of the Revenue and Taxation Code.

Section § 32498.9

Explanation

This law mandates that within a year of its creation, the Santa Cruz County local agency must establish a "sphere of influence" for the district unless it dissolves before then. The district is also required to submit annual reports on healthcare services within its area by the end of 2023 and 2024.

Moreover, starting December 31, 2025, and every five years after, a municipal service review on healthcare services in the district must be conducted unless the district dissolves earlier.

(a)CA Health and Safety Code § 32498.9(a) Within one year of the district’s date of formation, the Santa Cruz County local agency formation commission shall develop and determine a sphere of influence for the district pursuant to Section 56426.5 of the Government Code, unless the district is dissolved before that date.
(b)CA Health and Safety Code § 32498.9(b) The district shall make annual reports to the commission, by December 31, 2023, and December 31, 2024, regarding health care service provision within the boundaries of the district, using the indices outlined in paragraphs (1) to (6), inclusive, of subdivision (a) of Section 56430 of the Government Code, unless the district is dissolved before the date the report is required.
(c)CA Health and Safety Code § 32498.9(c) By December 31, 2025, and by December 31 every five years thereafter, the commission shall conduct a municipal service review regarding health care service provision within the boundaries of the district pursuant to Section 56430 of the Government Code, unless the district is dissolved before the date the municipal service review is required.