California Health Facilities Financing Authority Act.

Assembly Member Stefani's legislation modifies working capital loan provisions under the California Health Facilities Financing Authority Act, removing both the two-year cap on loan interest and the 24-month mandatory repayment period for private nonprofit health institutions. The bill aims to provide participating health facilities with greater flexibility in managing their operational finances.

The measure establishes new financial eligibility standards specifically for working capital loans, requiring the Authority to evaluate an institution's creditworthiness, pledged revenues, debt service coverage, and basic security. Notably, health institutions determined to be in financial distress would be ineligible for these loans. The Authority retains its existing requirements to assess project creditworthiness and earning capacity when establishing general financial eligibility standards.

Through these changes, the bill expands the permitted uses of the continuously appropriated California Health Facilities Financing Authority Fund. The legislation's findings indicate these modifications are intended to ensure creditworthy nonprofit health institutions have access to cost-effective financing tools for future needs.