The Joint Exercise of Powers Act authorizes two or more public agencies to enter into an agreement to form a Joint Powers Authority (JPA), that will exercise any power common to the contracting parties.
Assembly Bill 2293 (AB 2293) authorizes one or more private, nonprofit mutual benefit corporations formed for purposes of providing health care services to join a JPA or enter into a joint powers agreement with one or more public entities (Healthcare JPA). A Healthcare JPA formed under AB 2293 shall be deemed a public entity, and must be formed to provide health care services. A Healthcare JPA formed under AB 2293 is prohibited from incurring debt or employing physicians and surgeons, charge for professional services rendered by physicians and surgeons, or otherwise engage in the practice of medicine.
A Healthcare JPA must be governed by a board of directors. The participating public agency or agencies must determine the composition of the board of directors. The private, nonprofit mutual benefit corporation’s representation on the board of directors cannot exceed 50% of the total directors.
There are also numerous requirements that must be met when a Healthcare JPA is undertaking certain health care and refurbishment projects, and SB 2293 should be carefully reviewed. For example, a Healthcare JPA, must obtain an enforceable commitment that any entity undertaking a construction or refurbishment of health facilities project will use a skilled and trained workforce, unless Healthcare JPA has entered into a project labor agreement that will bind all contractors and subcontractors performing work on the project to use a skilled and trained workforce or the bidder, contractor, or other entity has entered into a project labor agreement that will bind all contractors and subcontractors at every tier performing work on the project to use a skilled and trained workforce. Other requirements, may apply depending on the nature of the work.
AB 2293 requires a private entity performing the work on a project for the Healthcare JPA to certify, in writing and under penalty of perjury, that prevailing wages will be paid to workers on the project, as provided, and that a skilled and trained workforce will be used to perform all construction work on the project.
SB 2293 will remain in effect until January 1, 2034.
(AB 2293 adds and repeals section 6538.6 of the Government Code)