This bill establishes a dedicated nonlapsing fund called the Public Hospital Capital Fund, which will collect and manage funds generated from assessments related to the reorganization of a health service corporation into a mutual holding company, as outlined in P.L.2020, c.145. The primary purpose of this fund is to finance capital projects at public hospitals in New Jersey. The bill stipulates that the revenue from this fund must be utilized according to legislative recommendations, with a cap that no more than 25 percent of the initial assessment can be spent in any single fiscal year.

Additionally, the bill clarifies that the funds paid by Horizon Blue Cross Blue Shield of New Jersey, resulting from its reorganization, will specifically be allocated for these capital projects. This legislative measure aims to ensure that the revenue generated from the assessments is directed towards improving public hospital infrastructure, addressing a gap in current law that does not specify the use of such funds. The act will take effect immediately and will remain in force until the funds in the Public Hospital Capital Fund are fully exhausted.