BILL NUMBER: AB 81	CHAPTERED
	BILL TEXT

	CHAPTER  63
	FILED WITH SECRETARY OF STATE  JULY 13, 2015
	APPROVED BY GOVERNOR  JULY 13, 2015
	PASSED THE SENATE  JUNE 25, 2015
	PASSED THE ASSEMBLY  APRIL 23, 2015

INTRODUCED BY   Assembly Member Wood
   (Principal coauthor: Senator McGuire)

                        JANUARY 5, 2015

   An act to amend Section 130060 of the Health and Safety Code,
relating to health facilities, and declaring the urgency thereof, to
take effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 81, Wood. Hospitals: seismic safety.
   Existing law, the Alfred E. Alquist Hospital Facilities Seismic
Safety Act of 1983, establishes, under the jurisdiction of the Office
of Statewide Health Planning and Development, a program of seismic
safety building standards for certain hospitals constructed on and
after March 7, 1973.
   Existing law provides that, after January 1, 2008, a general acute
care hospital building that is determined to be a potential risk of
collapse or to pose significant loss of life in the event of seismic
activity be used only for nonacute care hospital purposes, except
that the office may grant a 5-year extension under prescribed
circumstances. Existing law also allows the office to grant an
additional 2-year extension in specified circumstances.
   This bill would authorize a hospital located in the City of
Willits that has received the additional 2-year extension to the
January 2008 deadline pursuant to specified provisions to request an
additional extension until September 1, 2015, to obtain either a
certificate of occupancy for a replacement building or a construction
final for a building on which a retrofit has been performed.
   This bill would make legislative findings and declarations as to
the necessity of a special statute for the City of Willits.
   This bill would declare that it is to take effect immediately as
an urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 130060 of the Health and Safety Code is amended
to read:
   130060.  (a) (1) After January 1, 2008, any general acute care
hospital building that is determined to be a potential risk of
collapse or pose significant loss of life shall only be used for
nonacute care hospital purposes, unless an extension of this deadline
has been granted and either of the following occurs before the end
of the extension:
   (A) A replacement building has been constructed and a certificate
of occupancy has been granted by the office for the replacement
building.
   (B) A retrofit has been performed on the building and a
construction final has been obtained by the office.
   (2) An extension of the deadline may be granted by the office upon
a demonstration by the owner that compliance will result in a loss
of health care capacity that may not be provided by other general
acute care hospitals within a reasonable proximity. In its request
for an extension of the deadline, a hospital shall state why the
hospital is unable to comply with the January 1, 2008, deadline
requirement.
   (3) Prior to granting an extension of the January 1, 2008,
deadline pursuant to this section, the office shall do all of the
following:
   (A) Provide public notice of a hospital's request for an extension
of the deadline. The notice, at a minimum, shall be posted on the
office's Internet Web site, and shall include the facility's name and
identification number, the status of the request, and the beginning
and ending dates of the comment period, and shall advise the public
of the opportunity to submit public comments pursuant to subparagraph
(C). The office shall also provide notice of all requests for the
deadline extension directly to interested parties upon request of the
interested parties.
   (B) Provide copies of extension requests to interested parties
within 10 working days to allow interested parties to review and
provide comment within the 45-day comment period. The copies shall
include those records that are available to the public pursuant to
the California Public Records Act (Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1 of the Government Code).
   (C) Allow the public to submit written comments on the extension
proposal for a period of not less than 45 days from the date of the
public notice.
   (b) (1) It is the intent of the Legislature, in enacting this
subdivision, to facilitate the process of having more hospital
buildings in substantial compliance with this chapter and to take
nonconforming general acute care hospital inpatient buildings out of
service more quickly.
   (2) The functional contiguous grouping of hospital buildings of a
general acute care hospital, each of which provides, as the primary
source, one or more of the hospital's eight basic services as
specified in subdivision (a) of Section 1250, may receive a five-year
extension of the January 1, 2008, deadline specified in subdivision
(a) of this section pursuant to this subdivision for both structural
and nonstructural requirements. A functional contiguous grouping
refers to buildings containing one or more basic hospital services
that are either attached or connected in a way that is acceptable to
the State Department of Health Care Services. These buildings may be
either on the existing site or a new site.
   (3) To receive the five-year extension, a single building
containing all of the basic services or at least one building within
the contiguous grouping of hospital buildings shall have obtained a
building permit prior to 1973 and this building shall be evaluated
and classified as a nonconforming, Structural Performance Category-1
(SPC-1) building. The classification shall be submitted to and
accepted by the Office of Statewide Health Planning and Development.
The identified hospital building shall be exempt from the requirement
in subdivision (a) until January 1, 2013, if the hospital agrees
that the basic service or services that were provided in that
building shall be provided, on or before January 1, 2013, as follows:

   (A) Moved into an existing conforming Structural Performance
Category-3 (SPC-3), Structural Performance Category-4 (SPC-4), or
Structural Performance Category-5 (SPC-5) and Non-Structural
Performance Category-4 (NPC-4) or Non-Structural Performance
Category-5 (NPC-5) building.
   (B) Relocated to a newly built compliant SPC-5 and NPC-4 or NPC-5
building.
   (C) Continued in the building if the building is retrofitted to a
SPC-5 and NPC-4 or NPC-5 building.
   (4) A five-year extension is also provided to a post-1973 building
if the hospital owner informs the Office of Statewide Health
Planning and Development that the building is classified as SPC-1,
SPC-3, or SPC-4 and will be closed to general acute care inpatient
service use by January 1, 2013. The basic services in the building
shall be relocated into a SPC-5 and NPC-4 or NPC-5 building by
January 1, 2013.
   (5) SPC-1 buildings, other than the building identified in
paragraph (3) or (4), in the contiguous grouping of hospital
buildings shall also be exempt from the requirement in subdivision
(a) until January 1, 2013. However, on or before January 1, 2013, at
a minimum, each of these buildings shall be retrofitted to a SPC-2
and NPC-3 building, or no longer be used for general acute care
hospital inpatient services.
   (c) On or before March 1, 2001, the office shall establish a
schedule of interim work progress deadlines that hospitals shall be
required to meet to be eligible for the extension specified in
subdivision (b). To receive this extension, the hospital building or
buildings shall meet the year 2002 nonstructural requirements.
   (d) A hospital building that is eligible for an extension pursuant
to this section shall meet the January 1, 2030, nonstructural and
structural deadline requirements if the building is to be used for
general acute care inpatient services after January 1, 2030.
   (e) Upon compliance with subdivision (b), the hospital shall be
issued a written notice of compliance by the office. The office shall
send a written notice of violation to hospital owners that fail to
comply with this section. The office shall make copies of these
notices available on its Internet Web site.
   (f) (1) A hospital that has received an extension of the January
1, 2008, deadline pursuant to subdivision (a) or (b) may request an
additional extension of up to two years for a hospital building that
it owns or operates and that meets the criteria specified in
paragraph (2), (3), or (5).
   (2) The office may grant the additional extension if the hospital
building subject to the extension meets all of the following
criteria:
   (A) The hospital building is under construction at the time of the
request for extension under this subdivision and the purpose of the
construction is to meet the requirements of subdivision (a) to allow
the use of the building as a general acute care hospital building
after the extension deadline granted by the office pursuant to
subdivision (a) or (b).
   (B) The hospital building plans were submitted to the office and
were deemed ready for review by the office at least four years prior
to the applicable deadline for the building. The hospital shall
indicate, upon submission of its plans, the SPC-1 building or
buildings that will be retrofitted or replaced to meet the
requirements of this section as a result of the project.
   (C) The hospital received a building permit for the construction
described in subparagraph (A) at least two years prior to the
applicable deadline for the building.
   (D) The hospital submitted a construction timeline at least two
years prior to the applicable deadline for the building demonstrating
the hospital's intent to meet the applicable deadline. The timeline
shall include all of the following:
   (i) The projected construction start date.
   (ii) The projected construction completion date.
   (iii) Identification of the contractor.
   (E) The hospital is making reasonable progress toward meeting the
timeline set forth in subparagraph (D), but factors beyond the
hospital's control make it impossible for the hospital to meet the
deadline.
   (3) The office may grant the additional extension if the hospital
building subject to the extension meets all of the following
criteria:
   (A) The hospital building is owned by a health care district that
has, as owner, received the extension of the January 1, 2008,
deadline, but where the hospital is operated by an unaffiliated
third-party lessee pursuant to a facility lease that extends at least
through December 31, 2009. The district shall file a declaration
with the office with a request for an extension stating that, as of
the date of the filing, the district has lacked, and continues to
lack, unrestricted access to the subject hospital building for
seismic planning purposes during the term of the lease, and that the
district is under contract with the county to maintain hospital
services when the hospital comes under district control. The office
shall not grant the extension if an unaffiliated third-party lessee
will operate the hospital beyond December 31, 2010.
   (B) The hospital building plans were submitted to the office and
were deemed ready for review by the office at least four years prior
to the applicable deadline for the building. The hospital shall
indicate, upon submission of its plans, the SPC-1 building or
buildings that will be retrofitted or replaced to meet the
requirements of this section as a result of the project.
   (C) The hospital received a building permit for the construction
described in subparagraph (B) by December 31, 2011.
   (D) The hospital submitted, by December 31, 2011, a construction
timeline for the building demonstrating the hospital's intent and
ability to meet the deadline of December 31, 2014. The timeline shall
include all of the following:
   (i) The projected construction start date.
   (ii) The projected construction completion date.
   (iii) Identification of the contractor.
   (E) The hospital building is under construction at the time of the
request for the extension, the purpose of the construction is to
meet the requirements of subdivision (a) to allow the use of the
building as a general acute care hospital building after the
extension deadline granted by the office pursuant to subdivision (a)
or (b), and the hospital is making reasonable progress toward meeting
the timeline set forth in subparagraph (D).
   (F) The hospital granted an extension pursuant to this paragraph
shall submit an additional status report to the office, equivalent to
that required by subdivision (c) of Section 130061, no later than
June 30, 2013.
   (4) An extension granted pursuant to paragraph (3) shall be
applicable only to the health care district applicant and its
affiliated hospital while the hospital is operated by the district or
an entity under the control of the district.
   (5) The office may grant the additional extension if the hospital
building subject to the extension meets all of the following
criteria:
   (A) The hospital owner submitted to the office, prior to June 30,
2009, a request for review using current computer modeling utilized
by the office and based upon software developed by the Federal
Emergency Management Agency (FEMA), referred to as Hazards US, and
the building was deemed SPC-1 after that review.
   (B) The hospital building plans for the building are submitted to
the office and deemed ready for review by the office prior to July 1,
2010. The hospital shall indicate, upon submission of its plans, the
SPC-1 building or buildings that shall be retrofitted or replaced to
meet the requirements of this section as a result of the project.
   (C) The hospital receives a building permit from the office for
the construction described in subparagraph (B) prior to January 1,
2012.
   (D) The hospital submits, prior to January 1, 2012, a construction
timeline for the building demonstrating the hospital's intent and
ability to meet the applicable deadline. The timeline shall include
all of the following:
   (i) The projected construction start date.
   (ii) The projected construction completion date.
   (iii) Identification of the contractor.
   (E) The hospital building is under construction at the time of the
request for the extension, the purpose of the construction is to
meet the requirements of subdivision (a) to allow the use of the
building as a general acute care hospital building after the
extension deadline granted by the office pursuant to subdivision (a)
or (b), and the hospital is making reasonable progress toward meeting
the timeline set forth in subparagraph (D).
   (F) The hospital owner completes construction such that the
hospital meets all criteria to enable the office to issue a
certificate of occupancy by the applicable deadline for the building.

   (6) A hospital located in the County of Sacramento, San Mateo, or
Santa Barbara or the City of San Jose or the City of Willits that has
received an additional extension pursuant to paragraph (2) or (5)
may request an additional extension until September 1, 2015, to
obtain either a certificate of occupancy from the office for a
replacement building, or a construction final from the office for a
building on which a retrofit has been performed.
   (7) A hospital denied an extension pursuant to this subdivision
may appeal the denial to the Hospital Building Safety Board.
   (8) The office may revoke an extension granted pursuant to this
subdivision for any hospital building where the work of construction
is abandoned or suspended for a period of at least one year, unless
the hospital demonstrates in a public document that the abandonment
or suspension was caused by factors beyond its control.
   (g) (1) Notwithstanding subdivisions (a), (b), (c), and (f), and
Sections 130061.5 and 130064, a hospital that has received an
extension of the January 1, 2008, deadline pursuant to subdivision
(a) or (b) also may request an additional extension of up to seven
years for a hospital building that it owns or operates. The office
may grant the extension subject to the hospital meeting the
milestones set forth in paragraph (2).
   (2) The hospital building subject to the extension shall meet all
of the following milestones, unless the hospital building is
reclassified as SPC-2 or higher as a result of its Hazards US score:
   (A) The hospital owner submits to the office, no later than
September 30, 2012, a letter of intent stating whether it intends to
rebuild, replace, or retrofit the building, or remove all general
acute care beds and services from the building, and the amount of
time necessary to complete the construction.
   (B) The hospital owner submits to the office, no later than
September 30, 2012, a schedule detailing why the requested extension
is necessary, and specifically how the hospital intends to meet the
requested deadline.
   (C) The hospital owner submits to the office, no later than
September 30, 2012, an application ready for review seeking
structural reassessment of each of its SPC-1 buildings using current
computer modeling based upon software developed by FEMA, referred to
as Hazards US.
   (D) The hospital owner submits to the office, no later than
January 1, 2015, plans ready for review consistent with the letter of
intent submitted pursuant to subparagraph (A) and the schedule
submitted pursuant to subparagraph (B).
   (E) The hospital owner submits a financial report to the office at
the time the plans are submitted pursuant to subparagraph (D). The
report shall demonstrate the hospital owner's financial capacity to
implement the construction plans submitted pursuant to subparagraph
(D).
   (F) The hospital owner receives a building permit consistent with
the letter of intent submitted pursuant to subparagraph (A) and the
schedule submitted pursuant to subparagraph (B), no later than July
1, 2018.
   (3) To evaluate public safety and determine whether to grant an
extension of the deadline, the office shall consider the structural
integrity of the hospital's SPC-1 buildings based on its Hazards US
scores, community access to essential hospital services, and the
hospital owner's financial capacity to meet the deadline as
determined by either a bond rating of BBB or below or the financial
report on the hospital owner's financial capacity submitted pursuant
to subparagraph (E) of paragraph (2). The criteria contained in this
paragraph shall be considered by the office in its determination of
the length of an extension or whether an extension should be granted.

   (4) The extension or subsequent adjustments granted pursuant to
this subdivision may not exceed the amount of time that is reasonably
necessary to complete the construction specified in paragraph (2).
   (5) If the circumstances underlying the request for extension
submitted to the office pursuant to paragraph (2) change, the
hospital owner shall notify the office as soon as practicable, but in
no event later than six months after the hospital owner discovered
the change of circumstances. The office may adjust the length of the
extension granted pursuant to paragraphs (2) and (3) as necessary,
but in no event longer than the period specified in paragraph (1).
   (6) A hospital denied an extension pursuant to this subdivision
may appeal the denial to the Hospital Building Safety Board.
   (7) The office may revoke an extension granted pursuant to this
subdivision for any hospital building when it is determined that any
information submitted pursuant to this section was falsified, or if
the hospital failed to meet a milestone set forth in paragraph (2),
or where the work of construction is abandoned or suspended for a
period of at least six months, unless the hospital demonstrates in a
publicly available document that the abandonment or suspension was
caused by factors beyond its control.
   (8) Regulatory submissions made by the office to the California
Building Standards Commission to implement this section shall be
deemed to be emergency regulations and shall be adopted as emergency
regulations.
   (9) The hospital owner that applies for an extension pursuant to
this subdivision shall pay the office an additional fee, to be
determined by the office, sufficient to cover the additional
reasonable costs incurred by the office for maintaining the
additional reporting requirements established under this section,
including, but not limited to, the costs of reviewing and verifying
the extension documentation submitted pursuant to this subdivision.
This additional fee shall not include any cost for review of the
plans or other duties related to receiving a building or occupancy
permit.
   (10) This subdivision shall become operative on the date that the
State Department of Health Care Services receives all necessary
federal approvals for a 2011-12 fiscal year hospital quality
assurance fee program that includes three hundred twenty million
dollars ($320,000,000) in fee revenue to pay for health care coverage
for children, which is made available as a result of the legislative
enactment of a 2011-12 fiscal year hospital quality assurance fee
program.
  SEC. 2.  The Legislature finds and declares that a special law is
necessary and that a general law cannot be made applicable within the
meaning of Section 16 of Article IV of the California Constitution
because of the unique circumstances facing hospitals in the City of
Willits that are working on meeting seismic safety and building
standards.
  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 Constitution and shall go into immediate
effect. The facts constituting the necessity are:
   To prevent the loss of hospital licensure, Medicaid and Medicare
funding, and eligibility for Federal Emergency Management Agency
assistance following a disaster that would lead to hospital closures
and loss of access to health care in the City of Willits, it is
necessary for this act to take effect immediately.