Laws and Regulations

The Program was authorized by an initiative in 1968. This initiative added Article XIII, Section 21.5 to the California State Constitution, which has been renumbered to Article XVI, Section 4. The California Legislature enacted the California Health Facility Construction Loan Insurance Law (Insurance Law), Chapter 1, Part 6, Division 107, commencing with Section 129000 of the Health and Safety Code. The Insurance Law became effective on November 10, 1969.

In 1971 the California Supreme Court ruled that the Constitutional amendment and the enabling legislation creating the Program were constitutional.

State Constitution Article XVI, Section 4 (PDF 11KB)

Cal-Mortgage Statutes Chapter 1, Part 6, Division 107, commencing with Section 129000 of the Health and Safety Code (PDF 199KB)

Validation Case Methodist Hospital of Sacramento v. Saylor (1971) 5 Cal.3d 689 (97 Cal.Rptr.1) (PDF 8K)