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 the 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 marks a significant change from current law, which does not designate how the revenue from these assessments should be utilized. The act is set to take effect immediately and will remain in force until the funds in the Public Hospital Capital Fund are fully exhausted.