(a) “Act” -- means the Cedillo-Alarcón Community Clinic Investment Act of 2000, as set forth in Section 15438.6 of the Government Code, as amended by Stats. 2005, ch. 493.

(b) “Applicant” -- means a Clinic applying for Grant funds under the Community Clinic Grant Program of 2005.

(c) “Application Form” -- means the written request by an Applicant to the Authority for a Grant under the Community Clinic Grant Program of 2005, which includes pages 1-15, Attachments A-D and all materials submitted with Form # CHFFA 6 Rev. 10-2005. If necessary, the Application Form for the Second (2nd) Funding Round shall be developed at a future date.

(d) “Audited Financial Statements” -- means an examination and report of the financial activities of an eligible Applicant for fiscal year 2004 (or a more recent audit for the Second (2nd) Funding Round, if necessary), performed by an independent accounting firm under generally accepted accounting principles.

(e) “Authority” -- means the California Health Facilities Financing Authority.

(f) “Authority Staff” -- means employees of the Authority.

(g) “Broad Geographic Distribution” -- means that approximately eight million dollars ($8 million) in Grant funds will be allocated to each of the following four geographic regions for Projects in that region:

(h) “Clinic” -- means a “Community Clinic” or “Free Clinic”, as defined by Section 1204(a) of the Health and Safety Code that has been licensed by the State Department of Health Services as of January 1, 2004. “Clinic” also includes a Clinic, as described in Section 1206(c) of the Health and Safety Code, that is exempt from licensure and conducted, maintained or operated by a federally recognized Indian tribe or tribal organization, as defined in Section 450 or 1601 of Title 25 of the United States Code, and which is located on land recognized as tribal land by the federal government.

(i) “Community Clinic Grant Program of 2005” or “program” -- means the program resulting from the Act.

(j) “Commissioner” -- means the California Insurance Commissioner.

(k) “Completed Project” -- means an eligible Project that is completed (in place and fully operational).

(l) “Executive Director” -- means the Executive Director of the Authority.

(m) “Expansion of Services” -- Adding a new service or expanding capacity to an existing service.

(n) “Final Allocation” -- means the amount of funds awarded to an Applicant by the Authority based on an Initial Allocation that has been adjusted according to the total amount of funds available for distribution, Broad Geographic Distribution and any appeals approved by the Authority.

(o) “First (1st) Funding Round” -- means the Funding Round (1st) for which an application is due on the final filing date noticed in the Application Form. Funding available for the First (1st) Funding Round is equal to $35 million ($35,000,000), plus interest earnings on these funds, plus any remaining funds from the Grant program previously authorized and funded by Section 15438.6 of the Government Code, as enacted by Stats. 2000, ch. 99.

(p) “Going Concern Qualification” -- means a finding by an independent accounting firm that the carrying value of an entity's assets will be realized and its liabilities will be liquidated in the ordinary course of continuing business activity.

(q) “Grant” -- means a Final Allocation approved by the Authority.

(r) “Grant Agreement” -- means a separate agreement between the Authority and Grantee which specifies the terms and conditions of the grant as specified in Section 7092

(s) “Grantee” -- means an Applicant that has received Grant approval by the Authority.

(t) “Health Professional Shortage Areas (HPSAs)” -- means those areas or facilities designated as having a shortage of health professionals by the Secretary of the U.S. Department of Health and Human Services in accordance with Section 254e of Title 42 of the United States Code. (Federal law also recognizes facility HPSAs.)

(u) “Improvement of Services” means an improvement in the quality of care provided to existing patients.

(v) “Indigent Care” -- means a ratio calculated by Authority Staff between the number of Indigent patients and the number of total patients that are reported by each Applicant in its 2004 annual report on file with the Office of Statewide Health Planning and Development pursuant to Section 1216 of the Health and Safety Code.

(w) “Initial Allocation” -- means an Authority Staff-level decision granting an allocation to an Applicant based on score and rank, adjusted according to the total amount of funds available for distribution and for Broad Geographic Distribution.

(x) “Medically Underserved Areas (MUAs)” -- means those areas designated as medically underserved by the Secretary of the U.S. Department of Health and Human Services as published in the Federal Register from time to time in accordance with Section 51c.102 of Title 42 of the Code of Federal Regulations.

(y) “Medically Underserved Populations (MUPs)” -- means the population of an urban or rural area designated as medically underserved by the Secretary of the U.S. Department of Health and Human Services in accordance with Section 254b of Title 42 of the United States Code.

(z) “Memorandum of Understanding (MOU)” -- means the agreement entered between the California Insurance Commissioner and the Authority authorizing the Authority to administer this program and providing the basic parameters for the program.

(aa) “Project” -- means the construction, expansion, remodeling, renovating, acquiring, furnishing, or equipping of a Clinic, and includes the removal, installation, and maintenance of electronic and non-electronic equipment, as well as the reasonable costs associated with training personnel on the use of the new equipment. Project does not include normal operating expenditures, non-capital equipment, refinancing, or reimbursement of expenditures prior to the Final Allocation date. No pre-construction costs are allowed, except for eligible permit and planning fees.

(bb) “Project Period” means a defined beginning and end date approved by the Authority for implementation of the Project.

(cc) “Second (2nd) Funding Round” -- means funding of grants after the First Round Funding, subject to funds being available.

(dd) “Special Needs Populations” -- means a population of patients with serious chronic or acute conditions that require an extraordinary level of experience and care to provide health care services that result in extraordinary costs to a Clinic.

(ee) “Total Grant Funds” means $35 million, plus interest earnings on these funds, plus any forfeited funds returned from Grantee's back to the Authority, plus remaining funds from the grant program previously authorized and funded by Section 15438.6 of the Government Code, as enacted by Stats. 2000, ch. 99.

(ff) “Total Net Assets” -- means the total equity of a non-profit organization, representing the difference between its total assets and its total liabilities, as shown on the Applicant's final Audited Financial Statement for 2004, or if not available Federal Income Tax Form 990 for 2004.

(gg) “Uncompensated Care” -- means a population of patients measured as a ratio calculated by Authority Staff comparing self-pay and non-pay patient encounters with total patient encounters, as reported by primary care and specialty clinics with the Office of Statewide Health Planning and Development in accordance with Section 1216 of the Health and Safety Code, as shown in the annual report for 2003.

(hh) “Underinsured Population” -- means the number of patients having partial health insurance coverage and required to self-pay or pay on a sliding scale for all or part of their health care services not provided by their health insurance program or plan.

(ii) “Uninsured Population” -- means a population of patients measured as a ratio calculated by Authority Staff comparing patient encounters from the Child Health and Disability Prevention Program (CHDP), the Medically Indigent Services Program (MISP), the County Medical Services Program (CMSP), the Expanded Access to Primary Care Program (EAPC), other county programs, other state programs, self-pay and non-pay encounters with total patient encounters filed by primary care and specialty clinics with the Office of Statewide Health Planning and Development in accordance with Section 1216 of the Health and Safety Code, as shown in the annual report for 2004.

(jj) “Waiting List -- means a list of Applicants who are waiting for Grant funds, if Grant funds are available after the funding of the First (1st) Funding Round.

(kk) “Working Capital” -- means the excess of current assets over current liabilities, as shown on the Applicant's 2004 Audited Financial Statements or Federal Tax Form 990.