Hospital Districts which have "morphed" into Healthcare Districts 

 Justin, I was alerted by the ACHD that Assemblymember Connie Conway, on whose staff you serve, has been selected to become Assembly Republican Leader. 
 
    I was recently re-elected (see: http://smartvoter.org/2010/11/02/ca/sm/race/7068/ to the Sequoia Healthcare District Board of Directors on a platform seeking to act upon the findings of the SMC Civil Grand Jury.   I had hoped to elect the team of Hickey, Graham & Stogner (see: http://www.xshcd.com/) to the 5 member Board so we could get the job done.
The question of property tax revenue has been discussed in the context of dissolution of the District. (see: http://www.xshcd.com/HudakDissolutionMemorandum.pdf)  Excerpt below:

The effect on future property tax assessments is less clear. A dissolved district may not continue to levy and collect property taxes. Under one theory, the increment of property taxes that had been apportioned to the dissolved district would be redistributed among other public agencies within the tax rate area. A second theory holds that this increment would no longer be collected, so that each property’s assessment would be lowered by that amount. There is no definitive case law or Attorney General opinion on this point.

The question of distribution of District assets in the dissolution process needs to be addressed.  A credit to taxpayers would be my choice.
    There are many Districts in the state which have sold their hospital and are in a similar position to that of the Sequoia Healthcare District .  My hope is that the legislature might enable dissolution of such Districts with a resulting reduction in the 1% property tax.  Then, those seeking to create a Healthcare District could pursue the process set up in the Healthcare District Law.  Ideally, this could be done with one "up or down" election.  E.g.  "Shall the Sequoia Hospital District established by voters in 1946 for the purpose of building the Sequoia Hospital be dissolved,  and; shall the property tax  authorized by the San Mateo County Board of Supervisors in 1947 for operation of the hospital be discontinued with a resulting reduction in taxes for District property owners, and shall any remaining assets of the District be distributed as tax credits to property owners of the District.
 
Background:

In November of 1946 a ballot issue passed forming the Sequoia Hospital District generally comprising the area from the southern San Mateo County line to northern Belmont. It read:

FORMATION OF SEQUOIA HOSPITAL DISTRICT. Shall the proposed hospital district be formed as described by Resolution No. 2202 of the Board of Supervisors designated herein as "Sequoia Hospital District?"

The campaign literature* accompanying the ballot clearly stated the tax would support the operation of a hospital that would be built from funds generated by subsequent bond issues. The newspaper ads and editorials stated that the district would have a governing board to run the hospital and present a bond issue to build the hospital, and that the tax levies stemming from this ballot measure would be for the maintenance of the district of which the main asset would be the hospital. Since that time there have been multiple bond issues to construct and build additions to the hospital that opened in October 1950. The initial property tax levy in 1947 for the maintenance of the district including the soon to be built hospital was $46,578. Today, tax revenues exceed $4 million annually.

It would be helpful if you could provide me with a copy of the Hospital District Law as it existed at that time. 

Also, would you please request an Attorney General's Opinion on whether the entity known as the Sequoia Healthcare District was properly created with voter approval pursuant to the Healthcare District Law

Jack Hickey
Hickey Graham & Stogner for SHCD 2010
web www.XSHCD.com
243 Ferndale Way
Emerald Hills, CA 94062
650-368-5722
650-454-0290 cell