SENATE BILL REPORT

                   SB 6553

              As Reported By Senate Committee On:

           Health & Long-Term Care, February 2, 2000

Title:  An act relating to public health facilities.

Brief Description:  Modifying the definition of health care facility in the authority statute to include public health facilities.

Sponsors:  Senators Thibaudeau, Deccio, Prentice and Winsley; by request of Washington Health Care Facilities Authority.

Brief History:

Committee Activity:  Health & Long‑Term Care:  1/31/2000, 2/2/2000 [DP].

SENATE COMMITTEE ON HEALTH & LONG-TERM CARE

Majority Report:  Do pass.

  Signed by Senators Thibaudeau, Chair; Wojahn, Vice Chair; Costa, Franklin, Johnson and Winsley.

Staff:  Jonathan Seib (786-7427)

Background:  The Washington Health Care Facilities Authority (WHCFA) was created in 1974 to help reduce the capital cost of building and upgrading health care facilities in the state. It does this through the issuance of non-recourse, tax-exempt revenue bonds, the proceeds of which are loaned to nonprofit health care providers.

The authority consists of the Governor, the Lieutenant Governor, the Insurance Commissioner, the Secretary of Health, and one public member.  The bonds issued are non-recourse bonds of the agency and not obligations of the state of Washington.  The authority derives its operating revenues from fees charged to facilities receiving its assistance.

The WHCFA statute contains a definition of "health care facility" which identifies the projects eligible to receive assistance.  This definition generally limits WHCFA to providing loans for diagnostic and treatment facilities.

Summary of Bill:  The definition of "health care facility" in the WHCFA statute is amended to include any real or personal property associated with the promotion and maintenance of public health, or with the delivery of inpatient or outpatient care where such care is undertaken in connection with a facility providing public health services.

Appropriation:  None.

Fiscal Note:  Not requested.

Effective Date:  Ninety days after adjournment of session in which bill is passed.

Testimony For:  The Facilities Authority allows those building or upgrading health care facilities to save money.  The bonds are not a obligation of the state of Washington.  This bill would allow them to further assist public health districts and county health departments, and would provide a source of funding for smaller public health projects which often are difficult to fund through standard means.

Testimony Against:  None.

Testified:  PRO:  John Van Gorkom, Washington Health Care Authority; Mary Selecky, Department of Health.