32315-32322

HEALTH AND SAFETY CODE
SECTION 32315-32322




32315.  Notwithstanding any other provision of law, a local hospital
district may issue revenue bonds pursuant to the provisions of
Chapter 6 (commencing with Section 54300) of Part 1 of Division 2 of
Title 5 of the Government Code. However, the provisions of Article 3
(commencing with Section 54380) of Chapter 6 of Part 1 of Division 2
of Title 5 of the Government Code shall not be applicable to local
hospital districts.



32316.  By resolution of the board of directors adopted by a vote of
four-fifths of the membership of the board, the district may issue
bonds of not more than a maximum of 50 percent of the average of the
district's gross revenues for the preceding three years, pursuant to
Chapter 6 (commencing with Section 54300) of Part 1 of Division 2 of
Title 5 of the Government Code, to provide funds for the acquisition,
construction, improvement, financing or refinancing of an
enterprise, or the refunding of any bonds, notes, loans, or other
indebtedness of the district, including, but not limited to, any or
all expenses incidental thereto, or connected therewith, or any
combination of two or more of those purposes.



32317.  The resolution adopted pursuant to Section 32316 shall
include all of the following:
   (a) The purpose for which the bonds are proposed to be issued.
   (b) The estimated cost of the acquisition, construction,
improvement, financing, and refinancing.
   (c) The principal amount of the bonds.
   (d) The maximum rate of the interest on the bonds, which shall not
exceed 12 percent per year, and the frequency of interest payments.
   (e) A statement that the bonds are to be revenue bonds, payable
exclusively from the revenues of the enterprise, and that the bonds
are not to be secured by the taxing power of the district.



32318.  The resolution adopted pursuant to Section 32316 shall be
published once a week for two successive weeks in a newspaper of
general circulation published in the district, or if there is none,
in the newspaper of general circulation published nearest to the
district. If there is no newspaper of general circulation published
in the district, the resolution shall also be posted in three public
places in the district for two succeeding weeks.



32319.  The board of directors may sell the bonds pursuant to the
resolution as follows:
   (a) By giving notice inviting sealed bids and selling to the
highest responsible bidder.
   (b) By private sale, pursuant to a vote of four-fifths of the
entire board.



32320.  No hospital district shall sell revenue bonds until a formal
agreement of the sale has been approved by the board of directors,
by ordinance, which shall state that the agreement is subject to
referendum as provided by Article 1 (commencing with Section 9300) of
Chapter 4 of Division 9 of the Elections Code.



32321.  (a) Any ordinance subject to Section 32320 shall be
published after adoption once a week for two successive weeks,
commencing within 15 days after adoption, in a newspaper of general
circulation published in the district, or if there is none, in the
newspaper of general circulation published nearest to the district.
If there is no newspaper of general circulation published in the
district, the ordinance shall also be posted in three public places
in the district for two succeeding weeks.
   (b) The board of directors of the district may introduce and enact
an ordinance at any regular or adjourned regular meeting by the
approving votes of a majority of all its members. The electors of the
district shall have the right to petition for referendum on an
ordinance pursuant to Article 2 (commencing with Section 9140) of
Chapter 2 of Division 9 of the Elections Code, except that all
computations referred to in those sections, and officers of the
county mentioned in those sections, shall be construed to refer to
comparable computations and officers of the district. For the purpose
of the section, the term "electors" means the electors of territory
entitled to vote at elections for the members of the board of
directors.



32322.  If an ordinance enacted pursuant to Section 32320 is
subjected to a successful referendum election, or is repealed or
rescinded by the board of directors, no ordinance authorizing the
district to sell revenue bonds shall be adopted by the district for a
period of one year from the date of the referendum repeal or
rescission.