Bill Text: CA AB2271 | 2023-2024 | Regular Session | Enrolled

California Assembly Bill 2271

Bill Title: St. Rose Hospital.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Vetoed) 2024-09-22 - Vetoed by Governor. [AB2271 Detail]

Download: California-2023-AB2271-Enrolled.html

Enrolled September 03, 2024

Passed IN Senate August 28, 2024

Passed IN Assembly August 29, 2024

Amended IN Senate June 24, 2024

Amended IN Assembly May 16, 2024

Amended IN Assembly April 18, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Assembly Bill

No. 2271

Introduced by Assembly Member Ortega
(Coauthor: Senator Wahab)

February 08, 2024

An act relating to the St. Rose Hospital, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL'S DIGEST

AB 2271, Ortega. St. Rose Hospital.

Existing law creates the Distressed Hospital Loan Program, until January 1, 2032, for the purpose of providing loans to not-for-profit hospitals and public hospitals, as defined, in significant financial distress or to governmental entities representing a closed hospital to prevent the closure or facilitate the reopening of a closed hospital. Existing law requires the Department of Health Care Access and Information (HCAI) to administer this loan program.

Existing law authorizes the Board of Supervisors of the County of Alameda to establish the Alameda Health System Hospital Authority for the management, administration, and control of the medical center in that county. Existing law authorizes the hospital authority to acquire and possess real or personal property and to dispose of real or personal property other than that owned by the county, as may be necessary for the performance of its functions.

This bill would require HCAI, subject to review and approval by the Department of Finance, as specified, to approve the forgiveness of any loans under the Distressed Hospital Loan Program for the St. Rose Hospital in the City of Hayward if the hospital is acquired by the Alameda Health System Hospital Authority. The bill would require HCAI to forgive the full amounts of the principal, interests, fees, and any other outstanding balances of the loan.

This bill would make legislative findings and declarations as to the necessity of a special statute for the City of Hayward.

This bill would declare that it is to take effect immediately as an urgency statute.

Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

(a) Notwithstanding any other law, and subject to review and approval by the Department of Finance, the department shall approve the forgiveness of any department loans pursuant to the Distressed Hospital Loan Program established by Chapter 4 (commencing with Section 129380) of Part 6 of Division 107 of the Health and Safety Code for the St. Rose Hospital in the City of Hayward if the St. Rose Hospital is acquired by the Alameda Health System Hospital Authority established pursuant to Section 101850 of the Health and Safety Code.

(b) The department shall forgive the full amounts of the principal, interests, fees, and any other outstanding balances of the loan.

(c) The Department of Finance shall consider in its determination to review and approve the loan forgiveness pursuant to subdivision (a) whether the forgiveness will contribute to the financial and fiscal health of the St. Rose Hospital and make it possible for the Alameda Health System Hospital Authority to acquire the hospital, thereby avoiding the closure of the hospital.

SEC. 2.

The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances facing the City of Hayward and the surrounding areas of the County of Alameda with regard to the availability of a patient safety net hospital whose patients are overwhelmingly Medi-Cal beneficiaries. St. Rose Hospital is a licensed 171-bed hospital potentially facing imminent closure in the next several months if an adequate acquirer is not secured. The entire City of Hayward and safety net patients from the surrounding area would be left without an emergency room, acute care, and specialty care.

SEC. 3.

This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:

To make it feasible for the Alameda Health System Hospital Authority to acquire the St. Rose Hospital and prevent the possible closure of the hospital in the next six months, to ensure the continuity of critical safety net patient care for those underserved communities in the city of Hayward and surrounding communities, and to help prevent the disruption of patient services that the community relies on.