(b) The Legislature finds and declares all of the following:

1. (1) Primary care clinics require capital improvements in order to continuously perform their vital role. Many primary care clinics are currently at capacity and in order to increase access to their services and allow them to expand to cover the growing need for health care for the vulnerable populations in California, these capital funds are necessary.
2. (2) Primary care clinics are the health care safety net for the most vulnerable populations in California: uninsured, underinsured, indigent, and those in shortage designation areas. Primary care clinics provide health care regardless of the ability to pay for services.
3. (3) Approximately 6.6 million Californians lack health insurance, a number that increases by 50,000 per month.
4. (4) Primary care clinics have been historically and woefully underfunded.
5. (5) Primary care clinics are the most cost-effective means of serving California’s vulnerable populations.
6. (6) The failure to adequately fund primary care clinics has resulted in significant costs to the state in the form of unnecessary emergency room visits. Also, the lack of preventive care results in significant costs when patients become severely ill.

(d) The authority, in consultation with representatives of primary care clinics and other appropriate parties, shall develop selection criteria and a process for awarding grants under this section. The authority may take into account at least the following factors when selecting recipients and determining amount of grants:

1. (1) The percentage of total expenditures attributable to uncompensated care provided by an applicant.
2. (2) The extent to which the grant will contribute toward expansion of health care access by indigent, underserved, and uninsured populations.
3. (3) The need for the grant based on an applicant’s total net assets, relative to net assets of other applicants. For purposes of this section, “total net assets” means the amount of total assets minus total liabilities, as disclosed in an audited financial statement prepared according to United States Generally Accepted Accounting Principles, and shall include unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets.
4. (4) The geographic location of the applicant, in order to maximize broad geographic distribution of funding.
5. (5) Demonstration by the applicant of project readiness and feasibility to the authority’s satisfaction.
6. (6) The total amount of funds appropriated and available for purposes of this section.