STATE OFCALIFORNIA -OFFICE OF A R ~ L `~ ~ ~ - ~~ ~ (,See instructions on For use by Secretary of State only

NOTICE PUBLICA ~, I ~ ~ ~~ ,~~~0l reverse}~~ _,

STD. 400 (REV. 014013) - ,~ \~

OAS FIDE NOTICE FILE NUMBER REGULATORY ACTION NUf~48ER i\1ER f~~Y U~ ER

NUMBERS Z. ~ ~ "' ~` ~ 4JFor use by Office of Administrative Law. (OAS ~ or Jy

NOTICE REGULATIONS

.AGENCY WITH RULEMAKINGAUTHORITY AGENLY FILE NUMBER (If any..

CA Health Facilities Financing Authority

A. PUBLICATION OF NOTICE (Complete for publication in Notice Register)1. SUBJECT OF NOTICE TITIE(S) FIR$T SECTION AFFECTED. 2. REQUESTED PUBLICATION DATE

3. NOTICE TYPE 4. AGENCY CONTACT PERSON TELEPHONE NUMBER FAX NUMBER (Optional)

❑Notice re Proposed i—~ -Re u!ator Action Other

OAL USE ~CT~ON CN PROPOSED NOTCE y07:'CE REGISTER NU,ytBEk PUB~IGATiON DATE

~~ ~Y ~ ApproveC as i-1 .App?roved as Disapprov~R%Sub^iifte~i ~ ~ ivlpcilfied ~~ With:~rawr

$. SUBMISSION OF REGULATIONS (Complete when s~ebmitting regulations)

1a. SUBJECT OF REGU!_,4TiONjSj ib. ALL PREVIOUS RELATED OAL REGULATORY ACTION NUMBERS)

Children's Hospital Program of 2008 2g18-0320-02E, Z-201$-0604-02

2. SPECIFY CALIFORNIA CODE OF REGULATIONS T1TL[(S)AHD SECTIONS) pndyding title 26, if toxica relaCed)

SECTIOfV(S) AFFECTED AooPr

(List all section numbers)1Y1C~IVIC~Ud~~~./~~tdC~l

AMEND.:

additional sheet if needed.) 7051, 7054, 7055, 7056, 7063, 7071_

TIT~E(S) REPEAL

4

3. TYPE OF FILING

Regular Rulemaking (Gov. ~ Cercificate of Compliance; The agency o~cer named Emer enc Reado t (Gov.Code §17346) ~ g y p ~ Changes Without Regulatorybelow certifies that this agency complied with the Gode, §11346.1 (hp Effect (Cal. Code Regs., title❑ Resubmittal of disapproved or provisions of Gov. Code §§71346.2-11347.3 either 1, §100)withdrawn nonemergency before the emergency regulation was adopted or

File &Print Print Onlfiling (Gov. Code 54713493, within the time period required by statute. ❑ ~ Y11349.4)

Emergency (Gov. Code, ~ Resubmittal of disapproved or withdrawn ~ Other (Specify)§77346.7(b}) emergency filing {Gov. Code, §11346.7)

4. ALL BEGINNING AND ENDING DATES OF AVAIIABIIITY OF MODIFIED REGULATIONS AND10R MATERIAL ADDED TO THE RULEMAKING FILE (Cal. Code Regs. title 7, 444 and Gov. Code.411347.1)

5. EFFECTIVE DATE OF CHANGES (Gov. Code, 4§ 7 7343.4, 71346.1(d); Cal. Code Regs., title 1, §100)Effective January 7, April 1, July 1, or Effective on filing with n §100 Changes Without Effective

9~26~20October 9 {Gov. Code §11343.4(a)) ~ Secretary of State ~J Regulatory Effect o other (Specify)

6. CHECK 1F THESE REGULATIONS REQUIRE NOTICE Tp, OR REVIEW, CONSULTATION, APPROVAL OR CONCURRENCE BY, ANOTHER AGENCY OR ENTITY

Department of Finance (Form STD, 399j (SAM §6660) ~ Fair Political Practices Commission ~ State Fire Marshal

Other (Specify)

7. CONTACT PERSON TELEPHONE NUMBER FAX NUMBER (Optional)

CarolynAboubechara 1/9166533213

8• 1 certify that the attached copy of the regulations) is a true and correct. copy For use k

of the regulations) identified on this form, that the information specified on this formis true and correct, and that 1 am the head of the agency taking this action,or a desianp o the head of the agency, and am authorized to make this certification.

E-MAIL ADDRESS (Opfional)

Office of Administrative Law {OAL) only ,

S d."~' FAGENCY IGNEE DATE ~y

TYPEDi AME AND TITLE OF SIGNATpRY

Ronald L. Washington, Executive Director, CA Health Facilities. Financing Authority

CALIFORNIA CODE OF REGULATIONSTitle 4, Division '!

Chapter 2.5 The Children's Hospital Program of 2008

Amend Section 705'1. Definitions to read:

The following .words and phrases, as used in this chapter are .defined as follows

(a) No change

(b) No change

(c) No change

(d) "Application Form" means, for the purposes of the First Funding Round the..written request by an Applicant to the Authority for a Grant under the Children'sHospital Program of 2008, which includes pages 1-9, Attachments A-B :and. allmaterials submitted with Form #CHFFA 6, Rev. 10-2016-4-f^r +hn c;r~+ ~„n,~~nn~~r-~~. "A~plication Form" means, for purposes of the Second Funding Roundthe written request by an Applicant to the Authority for a Grant under theChildren's Hospital Program of 2008~which includes pages 1-9 Attachments A-Band all materials submitted with Form #CHFFA 6 Rev. 01-201$-3. If necessary,#fie an Application Form for #~~e-des -a Third Funding Round arid-~e~~~,~i#~era,., ~~~+,,,,,~ shall be developed-~-ratea~du~e-~-~8.

(e) - ({) No change

{m) "First Funding Round" means the period of time prior to July 1, 2018 -~e-39;~-~.

Vin) — (~} No change..

(gg) "Second Funding .Round" means the period of time after June 30, .201.8, andbefore July 1, 2022, when Grants may be awarded from ~~~"„~~«~unawardedfunds made available pursuant to the Program.

(hh) — (II) No change

tmm) "Third Funding Round" means the period of time after June 34 2022 whenadditional Grants may be awarded from unawarded Grant funds pursuant to theProgram.

Nate: Authority cited: Sections 1179.55, 1179.57 and 1179,61, Health and .Safety Code..Reference: Sections 1179.50, 1179.5.1, 1179.54, 1179.55, 1179.56, 1179.57,1.179.59, 1179.67 and 1179.68, Health and Safety Code.

1

Amend Section 7054.. Maximum Grant, Second .Funding Round.#o read:

(a) Funds remaining after June 30 2018 shall be available to any Children's Hospitalas defined in Section 7051,. subdivision (g)(1) or (g)(2) without regard to amaximum Grant amount.. Complete and timely Application Forms shall beaccepted on a first-come first-served basis and subject to funding availabilitLr

(b) .Complete Application Forms received during the same business day and time(Monday through Friday, 8:00 a.m. (PT) to 5:00 p.m. (PT) excludin stateobserved holidays) may receive Initial Allocations in equal amounts sub;~ct toavailability of funds and Project readiness and feasibility as specified in Section7059, subdivision tc).

Note: Authority cited: Sections 1179.55, 1.179.57. and: 1.179.61, Health and Safety Code.Reference: Sections 1179.55, 7179.56 and 1179.57., Health and Safety Code.

Amend Section 7055. Application Form to read:.

!a) fA blank Application Form for the First Funding Round shall be available. from the.Authority and the Authority's website and may be referred. to as the Children'sHospital Program of 2008 Grant Application Form #CHFFA 6, Rev.10-2076-4,which is hereby incorporated by reference. The Applicant shall submit acompleted Application Form in the manner set Earth in Sections 7056 and 7057.The Children's Hospital Overview and Instructions for Grant Application, Form#CHFFA 6A, Rev:10-2016-4, which is only applicable to the First Funding .Round,is hereby incorporated by reference.

(b) A blank Application Form for the Second Funding Round shall be available anthe Authority's website at www.treasurer.ca.gov/chffa and will be referred to asthe Children's Hospital Program of 2008 Grant Application Form #GHFFA 6 Rev.01-2018-3, which is h~erebv incorporated by reference.

Note: Authority cited: Sections 1179.55, 1.179.57 and. 1.179,61, Health and.Safety Code.Reference: Sections 1179.55., .1179.57 and 1179.58, Health and Safety Code.

Amend section 7056. Application Form Submission #o read:

For the First Funding Round, Application Forms shall be submitted in duplicate tothe Authority.. The Authority shall accept. Application .Forms for the First FundingRound an an on-going basis until June 30, 2078 '

.Each Applicant may apply for more thanone Grant far different Projects until .its Maximum Grant for the First FundingRound is reached.~ sl-s#ail-~e-a~a+~a~le-~e-~a#~#~a+~-d~t~~~-

2

(b) For the Second Funding Round Application Forms shall be submitted induplicate to the Authority. Subject to availability of funds, Application Farms maybe submitted to the Authority for the Second Funding Round from July 1 2018.until June 30, 2022. Each Applicant may app for more than one Grant fordifferent Projects.

Note: Authority cited: Sections 1179.55, 1179.57 and .1179.61, Health and Safety Code.Reference: Sections 1179.55. and .1179..57, Health and. Safety Code.

Amend Section 7063. Any Remaining Funds #o read:

~a,Z If there are any remaining funds after the First Funding Round, the Authority :.may, in its sole discretion, award Grants of #hose remaining funds to Applicantsin the Second Funding Round in a manner that. is consistent with the. purposeand requirements of the. Children's. Hospital Program of 2008.

If there are anv remaining funds after the Second Funding Round the Authoritymav, in its sole discretion award Grants of those remaining funds to Applicantsin a Third Fundinq_Round in a manner that is consistent with the statutoryrequirements and requlatio~s of the Children's Hospital Prograrn of 2008

Note: ~Ruthority cited: Sections 1179.55, 1179,57 and :1179.6.1, Health and Safety Code.Reference: Sections 1179.55, 7179.57 and 1179.58, Health and Safety Cody.

Amend Section 7071. Audits to read:

The Bureau of State Audits and Authority staff may conduct periodic audits toensure Grantees are using Grants consistent with the Children's HospitalProgram of 2008 requirements and the terms of the .Grant Agreement for anapproved Project. Grantees shall retain all Children's Hospital Program of 2008documentation and financial data necessary to substantiate the purposes forwhich the Grant funds were spent

~~ "~~~~~~as follows:

(1) First Funding Round: A period of three years after the certification ofcompletion of the Project has been submitted or until June 30 2021 whichever islater.

;(2) Second Funding Round: A period of three years after the certification ofcompletion of the Project has been submitted or until June 30 2025 whichever islater.

Note: Authority cited.:. Sections 1179.55, 1179.57 and 1179.61, Health and Safety Code.Reference: Section 1179.58, .Health and Safety Code.

3

CALIFOI~I~TIA I-HEALTH FACILITIESFI~~TANCING AUTHORITY

~Ch~dren's Hos ital Pro ram of2~~8

Grant A licatlonply

915 Capitol Mall, Room 43 5Sacramento, California 95.814

Fhone:..(91.6) .653-2799Fax: (9.16} 654-5362

Form # CHFFA 6, Rev. 01-2018-03' n~~-94

The Children's Hos~aital Program of 2008Application Submission Instructions

Applicants shall submit Applications for Grant funds to the California Health FacilitiesFinancing Authority. (NOTE: An on ig'nal and one copy of the Application is to beprovided in separate binders and tabbed as specified below

TAB 1. Ap 1p ication Form1. Com 1p eted ~a~es 1-9 of the Application Form2. Anv third-party data or other information requested in the

appropriate Application sections.

`TAB ~.A enc~Finances

Most Recent Audited Financial Statements California Code ofRegulations (CCR , Tit1e 4, Section 7052 subdivision (aTAB 3 Organizational Information

L A copy of the current general acute care hospital license issued bythe California Department of Public Health or the current eneralacute care hospital license issued b tie California Department ofPublic Health to the California nonprofit corporation of which theChildren's Hospital is an o~eratin~entitv~CCR Title 4 Section7052,subdivision(a)(1))

2. Tf the Applicant is a Non University of California Children'sHospital, submit both of the following(a) A co~v of the 501(c)(3) determination letter from the Internal

Revenue Service (IRS~nd either the tax-exemption letter orLetter of Good Standing from the Franchise Tax Board (FTB).Children's Hospitals that are operating entities of a Californianonprofit corporation, the IRS and FT$ letters are rewired forthe parent corporation. (CCR, Title 4, Section 7457 .subdivision (b)(1)(A))

{b) A copy of the Applicant's Articles of Incorporation andB '1~ Children's Hospitals that are operating entities of aCalifornia nonprofit corporation, the Articles of Incorporationand Bylaws are required for the parent corporation. (SCRTitle 4, Section 7057, subdivision (b (1)(B))

TAB_4 Le~alInformationLeal Status Questionnaire {Attachment A of the Application)

TAB 5 Certification

The Agreement and Certification (Attachment B of the Application

Submit the original and one copy of the Application to:

California Health Facilities Financing Authority915 Capital Mall, Suite 43 5Sacramento CA 95814

ti)

The Children's I3ospital .Program of 2008APPLICATIC)N FORM

Please type all responses. Incomplete or illegible applications will not be considered.

A. Summary Information

Applicant Legal Name:

Federal Tax ID #:

Street Address:

City State Zip

County:..

Address of .Project (if different from above}:

CounTy:

Contact Person: Title:'Phone: Fax:E=mail Address:.

Requested amount: $,

NOTE: For the First Funding Round onl~e~ligible University of CaliforniaChildren's Hospitals are limited to $39.2 million in grant funding less bond issuanceand administrative costs. Eligible non-University of California. Children's Hospitalsare limited. to $98 million in grant funding less. bond ..issuance costs andadministra±i~.~e costs.

Date of Application:

<Autharity Use Only>Date Received:. (stamp below) Allocation Meefing Date:

Resolution Number:

1

B. Applicant and Proiect Eli~ibility

1. Is your facility:

❑ A University of California general acute care hospital described as:University of California Davis Children's Hospital

- Mattel Children's Hospital at University of California, Los Angeles.- University Children's Hospital at University of California, Irvine.- University of California, San Francisco Children's Hospital.- University of California, San Diego Children's Hospital

OR

❑ A General. Acute Care. Hospital that is, or is an operating entity of, a Californianonprofit .corporation incorporated prior to January 1, .2003, whose . mission ofclinical care, teaching, research, .and advocacy focuses on children, and .thatprovides comprehensive pediatric .services to a high volume of .children eligiblefor Government Health Insurance .Programs and to children with special health.care needs. eligible for the California Children's Services program and:

➢ Provided at least 160. license beds in the categories of pediatric. acute,pediatric intensive care and neonatal intensive care in the fiscal yearending between June. 30, 2001 and June 29, 2002, as reported to .theOffice of Statewide Health .Planning and Development (OSHPD) on orbefore July 1, 2003.

Provided over .30,000 total. pediatric.. patient (census) .days, excludingnursery acute days, in the fiscal year ending between June 30, 2001 .andJune 29, 2002, ̀as reported to OSPHD on or before July 1, 2003,

Provided medical education of at least eight. (rounded to the nearestinteger] full-time equivalent. pediatric or, pediatric subspecialty residentsin the fiscal year ending between June 30, 2001, and June 29, .2002, asreported to QSPHD on or before July 1, 2003.

The Authority, at its_ discretion, :shall .confirm with OSHPD that the non-University of California Children's Hospital or the..California nonprofitcorporation of which the. Children's Hospital is an operating entity hassubmitted to OSHPD its Annual Disclosure .Report .for the fiscal year endingbetween June 30, 2001 and June 29, 2002, on or before July 1, 2003

If the orgaa~ization is not one of .the above, the organization is ineligible for this. program.

2

Yes No

2. Is the Project an eligible project?, Project means:.

Constructing, expanding, remodeling, renovating, furnishing,equipping, .financing, or refinancing capital assets, as .defined inSection 16727(a) of the Government Code, of a Children's Hospital..This may include reimbursement for the costs of constructing,expanding, remodeling, renovating, furnishing,. equipping, financingor refinancing where such costs are incurred after January 31, 2008.The definition of Project .does not include costs of issuance .for anyfinancing or refinancing of a Project.

3. If the Children's Hospital is not a ..University. of CaliforniaChildren's. Hospital, is the Children's :Hospital, or the Californianonprofit corporation of which the :Children's .Hospital is anoperating entity, anon-profit 501(c)(3) corporation, for purposes offederal and state tax law?

4. Is the Children's Hospital, ar the. California nonprofit corporation ofwhich the Children's Hospital is an operating entity, licensed by theState Department of Health Services as a general acute care hospitalprior to.January 1, 2003 and is the license current?

5. Are the most recent audited financial statements of the Children'sHospital or the California nonprofit corporation of which theChildren's Hospital is an operating .entity free of Going ConcernQualification language?

6. If the Children's Hospital. proposes to .use Grant funds for the.acquisition of real property, does the Children's Hospital have avalid, current, enforceable contingent purchase and sale agreementor option agreement between the .Children's Hospital or theCalifornia nonprofit corporation of which the Children's .Hospital isan operating entity and the owner of the subject property, includingevidence that all extensions necessary to keep .the agreement currentthrough the Final Allocation have been executed, if applicable?

7. If the proposed Project includes .the acquisition of real property, canthe Children's Hospital provide the. Authority with reasonableassurance that the acquisition is a component of a larger Project thatwill ultimately benefit the health and welfare of California's sickand/or injured children, such as the construction of a new facility tobenefit pediatric patients?

3

Yes No8. If the Children's Hospital_proposes to .use Grant funds for a Project

other than equipment acquisition. on certain property, can theChildren's Hospital provide evidence that either:.

• The Children's Hospital or the California nonprofit corporationof which the Children's Hospital. is an operating entity owns.the property, OR

• The Children's Hospital or the California nonprofit corporationof which the Children's Hospital is an operating .entity is alessee under a lease agreement that satisfies Section 7047 ofthe .Children's Hospital Program Regulations.

9. If the Children's Hospital. proposes to use Grant funds fora .Projectthat. . includes architect, design, and/or engineering fees, can theChildren's Hospital provide assurance to the Authority that any. ofthese fees are components of a larger. Project. :that will ultimatelybenefit the health and welfare of California's sick and/or injured.children? The Authority shall rely on timelines. associated with theentire Project to assess whether or not the Project will benefitpediatric patients.

If the Children's Hospital answered"No" to any question above,the Children's Hospital is not eligible to receive a grant.

4

C. Praiect Description

(a) Describe the Project and .explain:

1. How well the Project contributes to bath of the following:

A Expansion or Improvement of Health Care Access by childreneligible for Governmental Health Insurance Programs andindigent, underserved, and uninsured children.

B Improvement of Child Health Care or Improvement. of PediatricPatient Outcomes.

2. How well the Children's Hospital does. any or .all of the following:

A Provides Uncompensated Indigent Care or UndercompensatedCare to .eligible pediatric. patients.

B Provides services to Vulnerable Pediatric Populations.

C Promotes Pediatric :Teaching Programs. or Pediatric ResearchPrograms.

(b) To ensure that the tax-exempt ..status of the. General. Obligation bonds fundingthis program conforms to all applicable bond law, please answer the following:

1. Was any portion of the Project to be refinanced. with the.:Grantoriginally funded with the. proceeds of atax-exempt. financing? If yes,please .describe the .tax-exempt financing.

2. Far any requests by the. University of California Children's Hospitalsto refinance Projects that have alreadybeencompleted, whenwere. the -expenditures incurred for .the Project to be refinanced with the .Grant?

5

D. Proiect Readiness and Feasibility

1. A11 Applicants shall provide a project timeline, which:

• Describes expected project start and completion dates.• Describes any .problems anticipated, in implementing the Project and

how problems will be managed to ensure timely .completion.

2. All..Applicants shall identify ..and .provide .supporting documentation. asdescribed for the following types of Projects and funding sources:

• For all Projects with the exception of equipment acquisition projects,:Applicant shall submit estimates of Project costs and evidence ofproperty ownership or, if the property is leased to a Children'sHospital or the California nonprofit corporation of which theChildren's Hospital is an operating entity, a copy of a lease agreementthat satisfies ..the requirements of Section ..7068 of the .Children's.Hospital Program Regulations, The Applicant shall .also :providebuilding permits andlor executed construction, architect, design and.engineering contracts, if available. An Applicant. with a Project that.does not yet have an executed construction contract or building permitbut is actively. in the process of obtaining one shall. provide a detailedstatement that explains thestatus of obtaining the document.

• For Projects that include the acquisition of real. property, the Applicantshall submit a copy of an executed purchase and.. sale agreement orstatus of obtaining one ar other evidence.... of site control to thesatisfaction of the Authority and a timeline that :specifies when .theentire Project will be complete.

• For equipment. acquisition projects, the Applicant shall submit a:specific list of items and cost .estimates of equipment or copies ofinvoices, and if .applicable, cost estimates of installation of suchequipment.

• If funding sources other than the Grant are .required to complete .theProject, the Applicant shall provide proof of the other funding source,including but not. limited to, commitment..letters, board :approvedcapital campaign plans or any other documentation acceptable: to theAuthority. Such documentation shall be in accordance with .the.Project timeline and budget.

6

3. Applicants ,shall adequately describe their plans for implementing theProject, including:

• The Applicant shall submit athird-party prepared feasibility study,.funding letters or other. documentation to demonstrate that the $rojectwill .generate sufficient revenues to provide on-going support for newor expanded services and/or research programs: If revenues generatedby the. Project will be insufficient, the Applicant's revenues shall besufficient as determined... by Authority staff, to provide on-goingsupport.

~ When applicable, .:the Applicant shall submit evidence that it is incompliance with the California Environmental Quality... Act and allother applicable law for all Projects.

7

E. Sources and Uses of Funds*

~-Applicants must submit the budget for their proposed Project including all sources anduses of funds. If other sources of funds will be used to complete the Project,-~ theApplicants must submit copies, if available, of .written confirmation, including bank andgrant commitment letters of these funding sources. If documentation for other sources offunds has been provided for .Section D (3), Applicants. do not need to pra~ide additionalcopies.

The Applicant must itemize what portion of the .total funds available will be used foreach specific portion of the proposed Project. In some. instances,. funds from. sourcesother than :the proposed grant may be used for .portions of a .proposed .Project thatwould otherwise be ineligible. for the grant. The Applicant therefore shall describehow the grant funds as well. as other grants, loans, or internal. funds will be used..Authority staff must be .able to determine that the entire grant will be used. for eligibleportions of the proposed Project..

Sources of Funds:

Total CHFFA Grant Requested ..........:... $Applicant Internal Funds ....................... $Other (bank loans, grants, .etc,):

Total Sources .....:.......................... $ 0

Uses of Funds:

Construct facilities .............:.................. $Acquire facilities .................................. $Remodel $Purchase equipment .............................. $

Other (list):

'$

Total Uses .........:...................... $ 0

*Total Sources must equal Total Uses. In no case can a grant awardexceed the total cost of the Project.

8

F. Financial Canacity

As part of its due diligence review, the Authority staff will review the Most Recent AuditedFinancial Statements of the Children's Hospital or the California nonprofit corporation ofwhich the Children's Hospital is an operating entity to .ensure there is no ̀ going concernqualification' language as part. of the audit.

G, Application Submission

Applications are due the first business day of each month except October and Novemberand will be presented to the Authority members the following month. For the month ofOctober, Applications are due on October 7 or the next business da~~plicationsreceived an October 7 will be presented for Authority consideration at a re ularlXscheduled meeting in December or January. Applications are not accepted in November.

Applications must be submitted in duplicate to .the Authority. T~~ z ~~*'~^~-~*~~ ~_~~" ~~~~N*Each Applicant

may apply more than once, .Submit com lep ted application by mail to:

California Health Facilities Financing Authority915 Capitol Mall, Room 435

Sacramento, CA .95814

A ll~'NAYf'fIt 1"~~ Tl1~~A[SIt Y1 h...'YYl 11Y1'f~ .. <i)1~~...}'~p }ti~~~T2l~vi (Y ov/~oYl~'1 /lH [~..~... ~....

~ .

~ 1~T.. ~ ,~1;.,~t;..,,r ., o o,~,~o.a ;,~, AT.,.~o,v,l~o,~

9

Attachment A

LEGAL STATUS OUESTIONNAIRF

1. Disclose material information relating to any legal or regulatory proceeding arinvestigation in which the Applicant is or has been a party and which might have amaterial impact on the f nanciai viability of the project or the Applicant. Suchdisclosures should include any parent, subsidiary, or affiliate. of the.Applicant thatis involved in the management, operation, or development of the project.

2. Disclose any civil, criminal, or regulatory action in which the Applicant, or anycurrent board members, partners, limited liability corporation members, seniorofficers, or senior management personnel has been named a defendant in suchaction in the past ten years involving .fraud or corruption, or matters. involvinghealth and safety. where there are allegations of serious harm to employees, thepublic, or the environment.

Disclosures should include civil or criminal cases filed in state ar federal court; civil orcriminal investigations by .local, state, or federal law enforcement authorities.; andenforcement proceedings or investigations by local, state or federal regulatory..agencies.

The information provided must include relevant dates, the nature of the allegation{s),~~s char es, complaint or filing, and the outcome.

10

Attachment B

AGREEMENT AND CERTIFICATION

The Chief. Executive Officer, Chief Financial Officer or other authorized officer of theApplicant on behalf of the Applicant shall agree and certify to the following terms andconditions:

1. The information contained in the Application Form and attachmentsis true and correct to the best. of its knowledge and belief andunderstands that any misrepresentation may result in thecancellation of a .Grant and other actions permitted by law .and theGrant Agreement.

2. Applicant .may be required to return all or a portion of the Grant,including any unused investment earnings if the Applicant fails tocomplete the. Project. as approved.. In cases. where the Grant ..will.fund. architect, design, or engineering fees or land acquisition. costs.as part of an ..approved Project, the Applicant :may be required toreturn all. Grant funds .and any unused investment. earnings if theAuthority cannot determine. that the associated larger Project .hasbeen completed, basedon timelines provided within the ApplicationForm.

3. Grant..funds.. will ..only be used for the Project described. in theApplication Form unless. a change. in the Project is .approved in.writing by the Authority.

4. The Project and financial records of the Applicant's Project aresubject to audit .and inspection. by the Authority and the Bureau ofState Audits.

5. Applicant has disclosed all information requested by the legal statusquestionnaire.

5. tlpplicant will notify the Authority in writing at the time of Projectcompletion with evidence of completion, included.

7. Applicant will provide all documents and information .required bylaw and will meet all .necessary requirements. prior to the release ofthe .Grant.

$y (Print Name) Signature

Tine Date

- 11

FINDING OF EMERGENCY

The California Health Facilities Financing Authority (the."Authority") intends toimplement these regulations on an emergency basis for the immediate preservation ofthe public peace, health, safety, or general. welfare, within the meaning of GovernmentCode Section 11346.1.

Government Code. Section 11346.1(a)(2) requires that at least. five working days :prior tosubmission of the .proposed emergency action to the .Office of Administrative Law, theadopting agency provide a notice of the proposed emergency action to every personwho has filed a request for notice of regulatory action with the agency. To this end., the.Authority posted the.. proposed emergency regulations on its website and simultaneouslydisseminates notice of the proposed. emergency action to all persons who have filed arequest for notice

After submission of the .proposed emergency regulations. to the Office of AdministrativeLaw, the Office of Administrative Law shall allow interested .persons five .calendar days#o submit comments on the proposed emergency regulations as set forth in GovernmentCode Section .11349.6. To determine the Office of Administrative Law. five -.daycomment period, please check http://ww.oaLca.gov/ often..

DESGRIPTiON OF SPECIFIC FACTS WHICH CONSTITUTE THE EMERGENCY

The Legislature has deemed the adoption of these regulations to be an emergency,Health and Safety. Code .Section 1179.54 .provides

"The purpose of the Children's Hospital Program. is to improve the heaath andwelfare of California's critically, ill children, by providing a stable and ready source offunds for capital improvement projects fior children's hospitals. The program providedfor. in this part ~s in the public interest, serves a public purpose, and will. promote thehealth, welfare, and safety of the citizens of the ,state."

These regulations will directly benefit 13 children's hospitals that operate throughoutCalifornia. These hospitals provide comprehensive pediatric. services to a high volumeafi children eligible for governmental programs and to children with special health careneeds eligible for the California Children's ..Services program. These. regulations providethe mechanism for an additional funding round in order to disburse. these remainingfunds for the purchase of additional equipment for use in the treatment of these childrenor #a fund other capital projects to either expand .bed .capacity or upgrade the facility asneeded to better serve these .children and their families.

Health and Safety Code sections 1179.57, subdivisions (c) and {d) provide that the FirstFunding Round is to end. on June 30, 2018,.at which. time .any funding remaining shallbe available for any children's hospital identified. in paragraph (1) or (2), as applicable,of subdivision (b) of Section 1179.51. Currently, three of the eligible Children's

Hospitals have not accessed all of the funds available to them. As the second fundinground will be a competitive round, first come, first served, the Authority postponed theinitiation of a second funding round to allow time for these. Children's Hospitals toaccess their available funds.

The filing of these regulations as "emergency" will allow the regulations to becomeeffective in ample time for the Children's Hospitals. to review the Second Funding Roundrequirements .and .submit Applications for the available funds when the Second FundingRound opens on July 1, 207 8.

REQUEST FOR READOPTION

As permitted in the Governmenf Code, the Authority is readopting the emergencyregulations to allow additional time to complete the regulatory process.

The emergency regulations will. expire on September 26, 2018..- There is a necessity toreadopt the emergency regulations for an additional 90-day period in order to finalizethe regular rulemaking process and submit the Certificate of Compliance to the Office ofAdministrative Law.

AUTHORITY AND REFERENCE CITATIONS

The Authority;adopts these regulations. under the authority granted in Sections 7179.55,1179.57, and 1179.61 of the Health and Safety Code, and cites the followingreferences: Sections 1179.55, 1179.56, and 1179.57 of the Health and Safety Code.

INFORMATIVE DIGEST.

California voters passed Proposition 3 on November 4, 2008, enabling the State ofCalifornia to issue $980 in General Obligation bonds for the Children's HospitalProgram. The purpose of the program as outlined in Health and Safety Code Sections1179.50-1.179.72, is to improve the health and. welfare of California's critically ill childrenby providing a stable and. ready source of funds for capital improvement. projects forchildren's hospitals. The California Health Facilities Financing Authority (the "Authority")is responsible far administering the Program. Thirteen children's hospitals .are eligiblefor grants through the Program; eight nonprofit children's hospitals, and five Universityof California medical.centers.

The Authority administered a first funding round that will end on June 30, 201,8. Eight ofthe 3 3 hospitals have been awarded the maximum grants for which each is eligible ($98million for nonprofit hospitals and .$39,2 million for UC hospitals)... It is not expected thatthe remaining grant funds of approximately $147 million will be awarded by June 30,2018. in order for these grant funds to be awarded after the June 30, 2018, theAuthority must establish a new funding round..These proposed regulations will amendthe. regulations by establishing a new timeframe far the .second funding round .and .allow..the Authority to create a third funding round if needed.. The ability to create a thirdfunding round will ensure that all funds are awarded. The balance of grant funds will be

awarded consistent with .the. statute Section 1179.56; subdivisions (a) and (b) of the:Health and Safety Code): Twenty percent of the total funds to the five University ofCalifornia children's hospitals and 80 percent to the 8 nonprofit children's hospitals.)

The second funding round, which the proposed regulations provide for, will allow for, acompetitive round to commence on July 1, 201.8 to disseminate the remaining grant.funds in a competitive funding round on a first-came, first-served basis.

A new Application Form was developed for the Second Funding Round. The name ofthe Application acknowledges that it is specific. to .the. second funding round, Children'sHospital Program of 2008 Funding Round 2 Grant Application .Form #CHFFA 6, Rev.01-2018-3.

The only entities .impacted by #hese regulations are the children's .hospitals as specifiedin Health and Safety Code Section 1179.51, subdivision (b).

UPDATED INFORMATIVE DIGEST

As required, the emergency regulations for the Children's Hospital Program of 2008were posted on the CHFFA website, informing :the public of the intent to submit theaforementioned regulations to the Office of Administrative Law (OAL) for review and.approval of the emergency regulations. This notice of intent was also sent to anyindividuals an the listserve (the mechanism. by which individuals .request notification ofany proposed regulations and other information requiring public notification, such asAuthority board meeting dates and agendas.) The emergency regulations wereapproved by QAL with an effective date of March. 29, .2018, and expiring on September26, 2018.

The proposed regulations for the Children's Hospital Program of 2008 were publishedon June 15, 2018 and the public comment period was to be open from that date untilJuly 30, 2018, in order to meet the required 45-day comment period. The dates for thepublic comment period as shown on the listserve notice have an :end date for the .publiccomment period of July 3, 20.1.1.8 (33 days)..This discrepancy was discovered as the.request for Certificate of Compliance .was being prepared for submission to OAL. OALwas contacted and per their determination, a notice was sent on August C, 2018 to.those on the listserv, acknowledging theerror and extending the public comment perioda minimum of an additional 15 days to August 24, 201.8. The timing of discovery of theerror and the 15-day extension of the public comment period, has caused, .not only adelay in the delivery of the emergency regulations for the Certificate of Compliance toQAL, but has also caused a situation wherein the regulations will expire during the 30-working day OAL review.

In the event that the Certificate action is disapproved by OAL, the emergencyregulations will expire, The request and approval of-the readopt will ensure that theemergency regulations remain in effect far another 90 days, during which time anyissues with the Certificate action can be resolved.

The Certificate action has been prepared and is ready for OAL review. However, as thereadopt. action is .necessary, CNFFA is withholding submission of the Certificate ofCompliance package until the readopt request is approved by OAL.

DESCRIPTION OF THE BENEFITS OF THE PROPQSED RCTI4N, WHICHINCLUDES NONMONETARY BENEFITS SUCH AS PROTECTION OF THE .PUBLICHEALTH AND SAFETY, WORKER SAFETY, THE ENVIRONMENT; ETC.

These regulations will directly benefit 13 children's. hospitals (eight non-profit children'shospitals and five University of California Children's Hospitals) that operate throughout.California. These hospitals provide .comprehensive pediatric services. to a .high volume.of .children eligible .for governmental programsand to children with special health careneeds eligible far the California Children's. Services program. These regulations providethe mechanism for. additional funding .rounds. to be held. in order to disburse remainingfunds to the designated children's hospitals in order to purchase additional. equipment.for use in the treatment of these children or to fund .other capital projects to eitherexpand bed capacity or updated the facility as needed to better serve these childrenand their families.

EVALUATION OF WHETHER OR NOT THE PROPOSED REGULATIONS AREINCONSISTENT QR INCOMPATIBLE WITH EXISTING STATE REGULATIONS.

The Authority evaluated whether or not there were any other regulations. concerning the.awarding of grants to the Children's Hospitals to implement Proposition 3 {the .Children'sHospital Program of 2008) and has found that these .are the .only regulations ire .thisarea. Therefore, the proposed regulatory amendments are neither.. inconsistent norincompatible with existing state regulations.

DQCUMENTS INCORPORATED BYREFERENC

The Children's Hospital Program of 2008 Funding Round 2 Grant Application Form#CHFFA 6, .Rev. 01-2018-3.

COST ESTIMATE

1. Cost or Savings to State Agencies: No impact.2. .Cost to Local Agencies or School Districts Which Must Be Reimbursed in

Accordance with Government Code Sections 17500-17630: None3. Nondiscretionary Costs or Savings to Local Agencies No impact4. Federal Funding. to State Agencies: No impact.

LOCAL MANDATE STATEMENT

These regulations do not impose a mandate upon local agencies or school districts.There are no "state-mandated local costs" in these regulations which require .statereimbursement under Section 17500 et seq. of the Government Code.

FISCAL IMPACT

These regulations do not. impose any costs to any .local agency ar school. districtrequiring reimbursement pursuant to section .17500 et seq. of the Govemment,Code,nor do these. regulations identify any costs or savings to any state agency, othernondiscretionary costs or savings to be imposed upon local agencies, or costs orsavings. in federal funding to the state.

SIGNIFICANT STATEWIDE ADVERSE ECONOMIC IMPACT DIRECTLY AFFECTING.BUSINESS, INCLUDING ABILITY TO COMPETE

The California Health Facilities Financing Authority has not identified any significant,statewide adverse .economic impact directly affecting business, including the ability ofCalifornia businesses to compete with businesses in other states..

RESULTS OF THE ECONOMIC IMPACT ASSESSMENT

:The adoption of these regulations will not have an impact on the creation or eliminationof jobs within the state. As a result of the adoption of these regulations, newbusinesses will not be created and current businesses will not be eliminated within thestate. The adoption of these regulations will not provide for the expansion ofbusinesses currently doing business within .the state. Additionally, neither benefits. nordetriments are expected to worker safety or the state's. environment due to the adoptionof these regulations.

These regulations will directly impact the health and. welfare of California residents,specifically children in need of acute care. The monies awarded to the~children'shospitals through this Grant Program will benefit the quality of children's health carethrough the purchase of additional needed and updated equipment, fund other capitalprojects to either expand bed capacity or updated the facility as needed to better servethese children and their families.

COST IMPACTS ON REPRESENTATIVE PERSON OR.BUSINESS

The California Health Facilities- Financing Authority is not aware of any cost impacts thata representative private person or business would necessarily incur in reasonablecompliance with the proposed action.

BUSINESS REPORTS

The proposed..regulations do .not .require any reporks to be made. by any business orother entity.

SMALLBUSINESS

The proposed regulations will not affect small businesses because these regulations are.specific to and. affect only the 13children's hospitals in California as identified in theChildren's Hospital Program of 2008 .(Health and Safety Code Sections 1179:50 through1179.72.

ALTERNATIVES INFORMATION

1n developing this regulatory .action, CHFFA did not consider any alternatives becauseno reasonable alternatives were presented for review.

CHFFA must determine that. no reasonable alternative considered or that has otherwisebeen identified and brought to the attention of CHFFA would be .more effective incarrying out the purpose for which the emergency regulations are proposed or would beaseffective as and less. burdensome to the affected entities than the proposed action,or would be more cost-effective to potentially affected private persons and equallyeffective in implementing the statutory policy or other provision of law.