Bill Text: CA AB869 | 2023-2024 | Regular Session | Amended
Bill Title: Hospitals: seismic safety compliance.
Spectrum: Slight Partisan Bill (Democrat 7-4)
Status: (Enrolled) 2024-08-29 - Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 0.). [AB869 Detail]
Download: California-2023-AB869-Amended.html
Amended
IN
Senate
August 23, 2024 |
Amended
IN
Senate
August 15, 2024 |
Amended
IN
Senate
June 27, 2024 |
Amended
IN
Senate
June 18, 2024 |
Amended
IN
Senate
June 20, 2023 |
Amended
IN
Assembly
March 07, 2023 |
Introduced by Assembly Members Wood and Garcia (Coauthors: Assembly Members Aguiar-Curry, Bennett, Juan Carrillo, Megan Dahle, Mathis, Wallis, and Weber) (Coauthors: Senators Caballero and Grove) |
February 14, 2023 |
LEGISLATIVE COUNSEL'S DIGEST
The bill would require all rural, district, and distressed acute care hospitals to provide the department with a seismic safety compliance plan by no later than July 1, 2026, that describes how the hospital intends to meet the seismic safety requirements described above.
(2)Existing law establishes the Distressed Hospital Loan Program to provide interest-free cashflow loans to not-for-profit hospitals and public hospitals in significant financial distress or to governmental entities representing a closed hospital, except as otherwise provided, to prevent the closure of, or facilitate the reopening of, those hospitals.
This bill would qualify a general acute care hospital that received a distressed hospital loan for an extension of the seismic safety standards described above until January 1, 2032. If the department determines that the cost of design and construction for compliance with these seismic safety standards will result in a financial hardship for a distressed hospital that may result in hospital closure, and state funds, federal grants, or private funds are not available to assist with the cost of compliance, the bill would authorize the distressed hospital to
delay compliance until January 1, 2035. The bill would require the department to confirm a distressed hospital’s lack of ability to comply and that the cost of compliance may result in hospital closure, or would substantially impact the accessibility to health care in communities surrounding the distressed hospital. The bill would authorize the department to implement these provisions through emergency regulations.
(3)
The bill would delay the requirement to meet those and other building standards for specified general acute care hospitals until
January 1, 2035, and would exempt a general acute care hospital with an SPC-4D assessment and with a certain estimated cost from those seismic safety standards if the department determines that the cost of design and construction for compliance results in a financial hardship for the hospital and certain funds are not available to assist with the cost of compliance.
(4)Existing law provides for the formation and administration of health care districts.
The bill would also authorize a health care district that meets certain criteria to submit financial information to the department, on a form required by the department, to allow the department to determine if the health care district is financially distressed and if so, would allow the health care district to apply for a grant for the purpose of meeting those seismic safety standards. The bill would delay the requirement to meet the seismic safety
standards until January 1, 2032, for a health care district that qualifies for those grants. The bill would exempt a health care district hospital from those requirements until January 1, 2035, if the department determines that the cost of design and construction for compliance with those requirements results in a financial hardship that may result in hospital closure. The bill would authorize the department to implement these provisions through emergency regulations.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
(a)A general acute care hospital that received a distressed hospital loan pursuant to Chapter 4 (commencing with Section 129380) of Part 6 of shall qualify for an extension of the requirements of Section 130065 no later than January 1, 2032.
(b)If the department determines that the cost of design and construction for compliance with Section 130065 will result in a financial hardship for a distressed hospital that may result in hospital closure, and state funds, federal grants, or private funds are not available to assist with the cost of compliance, the distressed hospital shall not be required to comply with Section 130065 until January 1, 2035.
(c)The department shall confirm a distressed hospital’s lack of ability to comply with Section 130065 and that the cost of compliance may result in hospital closure, or would substantially impact the accessibility to health care in communities surrounding the distressed hospital.
(d)The department shall have the authority to implement the provisions of this section through emergency regulations.
All rural, district, and distressed acute care hospitals shall provide the department with a seismic safety compliance plan by no later than July 1, 2026. The seismic safety compliance plan shall provide information, as requested by the department, describing how the hospital intends to meet the requirements of Section 130065.
SECTION 1.
Section 130065 of the Health and Safety Code is amended to read:130065.
(a) In accordance with the compliance schedule approved by the department, but in any case no later than January 1, 2030, owners of all acute care inpatient hospitals shall either:(a)
(b)
Upon
SEC. 2.
Section 130065.1 is added to the Health and Safety Code, to read:130065.1.
(a) For purposes of this article, the following definitions shall apply:SEC. 3.
Section 130065.15 is added to the Health and Safety Code, to read:130065.15.
The department shall annually post a list of hospitals that have been granted a delay of the January 1, 2030, deadline described in Section 130065 pursuant to Section 130065.1 on its internet website. The list shall include the name and location of each hospital and the projected final compliance date approved by the department.SEC. 3.SEC. 4.
Section 130078.5 is added to the Health and Safety Code, to read:130078.5.
(a) The department shall expand eligibility for grants for single- and two-story general acute care hospitals located in rural areas with(a)If state funds are appropriated to the Small and Rural Hospital Relief Fund in the future for the purpose of complying with Section 130065, before being awarded state funds, a hospital that qualified for assessment grants under this chapter shall provide the department with financial information on a form as required by the department for the following purposes:
(1)Demonstrating whether the hospital has attempted to secure other methods of funding for SPC-4D compliance, including federal funding, and if not, the reason why.
(2)Confirming the accuracy of the SPC-4D cost estimate and that estimated costs are only for the purpose of SPC-4D compliance.
(3)Demonstrating the hospital’s need for assistance due to financial hardship and lack of ability to finance the required improvements, in order to access state funds.
(b)In awarding grants, the department shall have the authority to deny costs from the assessment completed pursuant to this chapter that the department determines are not necessary to comply with SPC-4D requirements.
(c)General acute care hospitals as described in subdivision (a) of Section 130078.5 that apply and qualify for grants pursuant to subdivision (c) of Section 130078.5 shall be required to comply with Section 130065 by January 1, 2032.
(d)A general acute care hospital as described in subdivision (a) of Section 130078.5 with a completed assessment pursuant to subdivision (b) of Section 130078.5, with an estimated cost over one million dollars ($1,000,000), or 2 percent of the hospital’s revenue, whichever is greater, shall not be required to comply with Section 130065 until January 1, 2035, if the department determines that the cost of design and construction for SPC-4D compliance results in a financial hardship for the hospital and state funds, federal grants, or private foundation funds are not available to assist with the cost of compliance.
(e)The department shall have the authority to implement the provisions of this section through emergency regulations.
(a)(1)A health care district hospital authorized pursuant to Division 23 (commencing with Section 32000) that meets the criteria described in subdivision (b), may submit financial information to the Department of Health Care Access and Information to allow the department to determine if the health care district hospital is financially distressed, including, but not limited to, the health care district hospital’s percentage of patients on Medi-Cal. The health care district hospital shall provide the department with financial information on a form required by the department for the following purposes:
(A)Demonstrating whether or not the hospital has attempted to secure other methods of funding for coming into compliance with Section 130065, including federal funding, and if not, why.
(B)Demonstrating the hospital’s need for assistance due to financial hardship and lack of ability to finance the required improvements, in order to access state funds.
(2)If the department determines the hospital is financially distressed according to the information submitted pursuant to this subdivision, the health care district hospital may apply to the department for a grant for the purpose of complying with Section 130065. When applying for a grant, the health care district hospital shall provide the department with an estimate of the cost for the hospital to comply with Section 130065.
(b)A health care district hospital may submit information to the department pursuant to subdivision (a) if it meets any of the following requirements:
(1)The health care district meets the requirements for rural hospitals pursuant to subdivision (a) of Section 130078.5.
(2)The health care district has placed a bond measure on the ballot within the last five years regarding compliance with Section 130065 and the measure did not pass.
(3)The Medi-Cal revenue for the health care district exceeds the statewide average percentage of Medi-Cal revenue for hospitals.
(4)The health care district hospital is more than 30 minutes or 30 miles from the nearest hospital.
(c)(1)If state funds are made available for the purpose of complying with Section 130065, prior to awarding state funds, the department shall confirm the accuracy of the health care district’s seismic cost estimate, and that estimated costs are only for the purpose of compliance with Section 130065.
(2)In awarding grants, the department shall have the authority to deny costs that the department determines are not necessary to comply with Section 130065.
(d)(1)Health care district hospitals that qualify for grants as described in subdivision (a) shall be required to comply with Section 130065 no later than January 1, 2032. If the department determines that the cost
of design and construction for compliance with Section 130065 results in a financial hardship that may result in hospital closure and state funds, federal grants, or private foundation funds are not available to assist with the cost of compliance, the health care district hospital shall not be required to comply with Section 130065 until January 1, 2035.
(2)The department shall confirm a health care district hospital’s lack of ability to comply with Section 130065 and that the cost of compliance may result in hospital closure, or would substantially impact the accessibility to health care in communities surrounding the health care district hospital.
(3)A health care district hospital in a contractual agreement with a health system that imposes upon the health system any financial responsibility for the health care district hospital’s infrastructure costs shall not be eligible for funds or a delay of compliance with Section 130065 pursuant to this chapter. This paragraph does not apply to a health care district hospital that has a management agreement with a health system that does not impose upon the health system any responsibility for the health care district hospital’s infrastructure costs.
(e)The department shall have the authority to implement the provisions of this section through emergency regulations.