Bill Text: CA SB1432 | 2023-2024 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Health facilities: seismic standards.

Spectrum: Slight Partisan Bill (Democrat 21-9)

Status: (Vetoed) 2024-09-12 - In Senate. Consideration of Governor's veto pending. [SB1432 Detail]

Download: California-2023-SB1432-Amended.html

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Amended  IN  Assembly  August 23, 2024

Amended  IN  Assembly  August 19, 2024

Amended  IN  Assembly  June 27, 2024

Amended  IN  Assembly  June 18, 2024

Amended  IN  Senate  May 16, 2024

Amended  IN  Senate  April 29, 2024

Amended  IN  Senate  April 18, 2024

Amended  IN  Senate  March 18, 2024

CALIFORNIA LEGISLATURE— 2023–2024 REGULAR SESSION

Senate Bill

No. 1432

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Introduced by Senators Caballero, Alvarado-Gil, Dodd, Eggman, and Newman
(Coauthors: Senators Becker, Dahle, Grove, Ochoa Bogh, Portantino, and Wilk)
(Coauthors: Assembly Members Alanis, Bains, Juan Carrillo, Megan Dahle, Flora, Garcia, Gipson, Jackson, Lackey, Stephanie Nguyen, Pacheco, Pellerin, Ramos, Reyes, Blanca Rubio, Soria, Villapudua, Wallis, and Weber)

February 16, 2024

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An act to amend Sections 130060, 130063, 130065, and 130066.5 of, and to add Sections 130065.1, 130065.2, 130065.3, 130065.35, and 130065.5 to, and 130065.35 to, the Health and Safety Code, relating to health facilities.

LEGISLATIVE COUNSEL'S DIGEST

SB 1432, as amended, Caballero. Health facilities: seismic standards.

Existing law, the Alfred E. Alquist Hospital Facilities Seismic Safety Act of 1983, establishes, under the jurisdiction of the Office of Health Care Access and Information, a program of seismic safety building standards for certain hospitals constructed on and after March 7, 1973.Existing law requires that, by January 1, 2030, owners of these hospitals must either demolish, replace, or change to nonacute care use all hospital buildings that are not in compliance with these standards or seismically retrofit all acute care inpatient hospital buildings so they are in substantial compliance with these standards, unless subject to an abeyance.

This bill would authorize a hospital owner or operator to submit an application, by specified dates, to the department for additional extensions to the compliance deadline if specified requirements are met. deadline. The bill would require the department to grant or deny an extension of the deadline for substantial compliance with seismic safety regulations or standards up to January 1, 2035, for any hospital building for which the hospital owner submits, by specified dates, 2035. The bill would require the application to contain a seismic compliance plan, a specified evaluation report, a financial plan, and an attestation to the department that the appropriate governing board of that hospital is aware that the hospital building is required to be in substantial compliance with the seismic safety regulations or standards. By imposing the above-described attestation, this bill would expand the crime of perjury and impose a state-mandated local program.

This bill would require the hospital and the department to identify specified milestones that are used for determining whether the hospital is making progress towards meeting the hospital’s seismic compliance deadline. The bill would require the hospital to demonstrate efforts to comply with the seismic compliance deadline by providing the department with a plan outlining how seismic construction costs and other financial responsibilities will be met and what funding sources will be used if the hospital fails to meet an agreed-upon milestone due to circumstances that were within the hospital owner’s or operator’s control. The bill would require the owner or operator of that hospital to submit to the department an attestation that the appropriate governing board of that hospital is aware of its responsibilities the hospital’s responsibility to comply with the associated construction costs to meet the seismic compliance deadlines. By requiring the owner or operator of a hospital to submit to the department an attestation, this bill would expand the crime of perjury and impose a state-mandated local program.

This bill would require the department to submit to the Legislature specified reports that include, among other things, specified cost estimates relating to seismic safety compliance. The bill would require the department, before granting an extension past January 1, 2030, to provide public notice of a hospital’s request for an extension, provide copies, upon request, of any publicly available material submitted by the hospital in support of their extension to interested parties, and allow the public to submit written comments on the extension proposal, as specified. The bill would require the department, beginning January 1, 2027, to post on the department’s internet website specified information, including, among other things, its decision to grant or deny any extension. The bill would require the department to notify the county board of supervisors, the city council, and the Assembly and Senate representative in writing and electronically if a hospital within their district has been granted or denied an extension.

This bill would require the department, on or before January 1, 2026, to adopt regulations and standards or revise regulations and standards, or both, to extend the deadlines for meeting the structural performance and nonstructural performance requirements. The bill would specify that regulatory submissions made by the department to the California Building Standards Commission are deemed to be emergency regulations and that the adoption of these regulations are to be deemed an emergency and necessary for the immediate preservation of the public peace, health and safety, and general welfare.

Existing law requires, before January 1, 2024, the owner of an acute care inpatient hospital that includes a building that does not substantially comply with seismic safety regulations or standards to post in a lobby or waiting area generally accessible to patients or the public a notice provided by the department that the hospital is not in compliance with the seismic safety requirements the hospital is required to meet by January 1, 2030. Existing law requires, on or before January 1, 2024, and annually thereafter, the owner of an acute care inpatient hospital that includes a building that does not substantially comply with seismic safety regulations or standards to provide an annual status update on the Structural Performance Category ratings of the buildings and the services provided in each hospital building on the hospital campus to specified entities until each of the hospital buildings owned by that hospital building owner is compliant.

This bill would require, before January 1, 2025, the owner or operator of an acute care inpatient hospital that includes a building that does not substantially comply with the seismic safety regulations or standards to post in any lobby or waiting area generally accessible to patients or the public the notice mentioned above. The bill would also require, on or before January 1, 2025, and annually thereafter, the owner or operator to provide an annual status update, as specified.

This bill would specify that the provisions of this act are severable.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.

Digest Key

Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YES  

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Bill Text

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, a 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 department for the replacement building.

(B) A retrofit has been performed on the building and a construction final has been obtained by the department.

(2) An extension of the deadline may be granted by the department upon a demonstration by the owner or operator 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 department 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 department’s internet website, 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 department 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 (Division 10 (commencing with Section 7920.000) 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 Department of Health Care Access and Information. 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 Nonstructural Performance Category-4 (NPC-4) or Nonstructural 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 an 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 or operator informs the Department of Health Care Access and Information 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 an 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 an 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 department 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) (1) 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.

(2) A hospital building that is subject to an additional extension pursuant to subdivision (a) of Section 130065.1 130065.2 shall meet the nonstructural and structural requirements referenced in paragraph (1) by the date approved in the hospital’s seismic compliance plan described in subdivision (a) or (b) of Section 130065.1, as applicable. Section 130065.1 130065.2. Section 130065.2 shall not extend any deadlines for SPC-1 buildings to achieve the structural integrity to no longer pose a potential risk of collapse or pose a risk of significant loss of life.

(3) The department shall not extend any deadlines pursuant to Section 130065.1 130065.2 for SPC-1 buildings unless otherwise authorized in another statute.

(e) Upon compliance with subdivision (b), the hospital shall be issued a written notice of compliance by the department. The department shall send a written notice of violation to hospital owners or operators that fail to comply with this section. The department shall make copies of these notices available on its internet website.

(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 department 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 department pursuant to subdivision (a) or (b).

(B) The hospital building plans were submitted to the department and were deemed ready for review by the department 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 department 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, owner or operator, 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 department 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 department 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 department and were deemed ready for review by the department 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 department, 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 department may grant the additional extension if the hospital building subject to the extension meets all of the following criteria:

(A) The hospital owner or operator submitted to the department, prior to June 30, 2009, a request for review using current computer modeling utilized by the department 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 department and deemed ready for review by the department 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 department 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 department 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 or operator completes construction such that the hospital meets all criteria to enable the department 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 department for a replacement building, or a construction final from the department 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 department 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 department 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 or operator submits to the department, 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 or operator submits to the department, 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 or operator submits to the department, 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 or operator submits to the department, 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 or operator submits a financial report to the department at the time the plans are submitted pursuant to subparagraph (D). The report shall demonstrate the hospital owner’s or operator’s financial capacity to implement the construction plans submitted pursuant to subparagraph (D).

(F) The hospital owner or operator 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 department 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 or operator’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 or operator’s financial capacity submitted pursuant to subparagraph (E) of paragraph (2). The criteria contained in this paragraph shall be considered by the department 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 department pursuant to paragraph (2) change, the hospital owner or operator shall notify the department as soon as practicable, but in no event later than six months after the hospital owner or operator discovered the change of circumstances. The department 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 department 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 department 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 or operator that applies for an extension pursuant to this subdivision shall pay the office an additional fee, to be determined by the department, sufficient to cover the additional reasonable costs incurred by the department 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.

(h) A critical access hospital located in the City of Tehachapi may submit a seismic safety extension application pursuant to subdivision (g), notwithstanding deadlines in that subdivision that are earlier than the effective date of the act that added this subdivision. The submitted application shall include a timetable as required pursuant to subdivision (g).

(i) (1) A hospital located in the Tarzana neighborhood of the City of Los Angeles that has received extensions pursuant to subdivisions (b) and (g) may request an additional extension for a single building until October 1, 2022, in order to obtain a certificate of occupancy from the department for a replacement building.

(2) The hospital owner or operator seeking the extension shall submit a written request that includes a timeline specifying how the hospital intends to meet the new deadline, including the construction document submission dates. The following timeline shall be met for construction document submissions:

(A) No later than January 1, 2018, the hospital owner or operator shall submit construction documents, deemed ready for review, related to the first final review of the second increment with information including the building core and shell of the hospital. Failure to submit the construction documents by January 1, 2018, shall result in the assessment of a fine of five thousand dollars ($5,000) per calendar day until the documents are submitted.

(B) No later than March 1, 2018, the hospital owner or operator shall submit construction documents, deemed ready for review, related to the first final review of the first increment with information including the structural foundation, frame, and underslab utilities of the hospital. Failure to submit the construction documents by March 1, 2018, shall result in the assessment of a fine of five thousand dollars ($5,000) per calendar day until the documents are submitted.

(C) No later than September 1, 2018, the hospital owner or operator shall submit construction documents, deemed ready for review, related to the first final review of the third increment with information on the build-out of the hospital. Failure to submit the construction documents by September 1, 2018, shall result in the assessment of a fine of five thousand dollars ($5,000) per calendar day until the documents are submitted.

(D) No later than November 1, 2018, the hospital owner or operator shall submit construction documents, deemed ready for review, related to the first final review of the fourth increment with information on the seismic support and anchorage of the hospital. Failure to submit the construction documents by November 1, 2018, shall result in the assessment of a fine of five thousand dollars ($5,000) per calendar day until the documents are submitted.

(E) The hospital owner or operator may submit a written request to the department seeking an extension of the deadlines set forth in subparagraphs (A), (B), (C), and (D). The written request shall state with specificity the reason for the request and how the reason preventing compliance with the deadlines was outside of the control of the hospital owner. owner or operator. After review of the request for extension, the department may grant the request for a period of time not to exceed 30 calendar days. If the department grants the request for an extension, no fine shall accrue or be imposed during the extension period.

(3) Notwithstanding any other law, any fines assessed pursuant to paragraph (2) shall be deposited into the General Fund following a determination on appeal, if any. A hospital assessed a fine pursuant to this subdivision may appeal the assessment to the Hospital Building Safety Board, provided the hospital posts the funds for any fines to be held by the department pending the resolution of the appeal.

(4) The department shall not issue a certificate of occupancy for the single replacement building until all assessed fines accrued pursuant to paragraph (2) have been paid in full, or, if an appeal is pending, have been posted subject to resolution of an appeal. Fines deposited by the hospital pursuant to paragraph (3) shall be considered paid in full for purposes of issuing a certificate of occupancy pursuant to this paragraph. This paragraph is in addition to, and is not intended to supersede, any other requirements that must be met by the hospital for issuance by the department of a certificate of occupancy.

SEC. 2.

 Section 130063 of the Health and Safety Code is amended to read:

130063.

 (a) With regard to a general acute care hospital building located in Seismic Zone 3 as indicated in the 1995 edition of the California Building Standards Code, any hospital may request an exemption from Nonstructural Performance Category-3 requirements in Title 24 of the California Code of Regulations if the hospital building complies with the year 2002 nonstructural requirements.

(b) The department shall determine the maximum allowable level of earthquake ground shaking potential for purposes of this section.

(c) To qualify for an exemption under this section, a hospital shall provide a site-specific engineering geologic report that demonstrates an earthquake ground shaking potential below the maximum allowable level of earthquake ground shaking potential determined by the department pursuant to subdivision (b).

(d) (1)  To demonstrate an earthquake ground shaking potential as provided in subdivision (c), a hospital shall submit a site-specific engineering geologic report to the department.

(2) The department shall forward the report received from a hospital to the Division of Mines and Geology in the Department of Conservation for purposes of a review.

(3) If, after review of the analysis, the Division of Mines and Geology concurs with the findings of the report, it shall return the report with a statement of concurrence to the office. Upon the receipt of the statement, if the ground shaking potential is below that established pursuant to subdivision (b), the department shall grant the exemption requested.

(e) (1) A hospital building that is eligible for an exemption under this section shall meet the January 1, 2030, nonstructural requirement deadline if the building is to be used for general acute care inpatient services after January 1, 2030.

(2) A hospital building that is subject to an additional extension pursuant to subdivision (a) of Section 130065.1 130065.2 shall meet the nonstructural and structural requirements referenced in paragraph (1) by the date approved in the hospital’s seismic compliance plan described in subdivision (a) of Section 130065.1 130065.2 and in Section 130065.3. The hospital’s seismic compliance plan used to determine the date approved in subdivision (b) (a) of Section 130065.1 130065.2 shall have approval from the department.

(f) A hospital requesting an exemption pursuant to this section shall pay the actual expenses incurred by the department and the Division of Mines and Geology.

(g) All regulatory submissions to the California Building Standards Commission made by the department for purposes of this section shall be deemed to be emergency regulations and shall be adopted as emergency regulations. This emergency regulation authority shall remain in effect until January 1, 2004.

SEC. 3.

 Section 130065 of the Health and Safety Code is amended to read:

130065.

 (a) In accordance with the compliance schedule approved by the department in a hospital’s seismic compliance plan pursuant to subdivision (a) of Section 130065.1, as applicable, department but in any case no later than January 1, 2035, owners 2030, owners or operators of all acute care inpatient hospitals shall either:

(1) Demolish, replace, or change to nonacute care use all hospital buildings not in substantial compliance with the regulations and standards developed by the department pursuant to the Alfred E. Alquist Hospital Facilities Seismic Safety Act and this act.

(2) Seismically retrofit all acute care inpatient hospital buildings so that they are in substantial compliance with the regulations and standards developed by the department pursuant to the Alfred E. Alquist Hospital Facilities Seismic Safety Act and this act.

(b) Notwithstanding subdivision (a), if the hospital’s seismic compliance plan, developed pursuant to subdivision (a) of Section 130065.2 and approved by the department, substantiates the need for a delay of up to five years beyond January 1, 2030, owners of general acute care hospitals shall by the deadline authorized in the approved extension either:

(1) Demolish, replace, or change to nonacute care use all hospital buildings not in substantial compliance with the regulations and standards developed by the department pursuant to the Alfred E. Alquist Hospital Facilities Seismic Safety Act and this act.

(2) Seismically retrofit all acute care inpatient hospital buildings so that they are in substantial compliance with the regulations and standards developed by the department pursuant to the Alfred E. Alquist Hospital Facilities Seismic Safety Act and this act.

(b)

(c) Upon compliance with this section, the hospital shall be issued a written notice of compliance by the department. The department shall send a written notice of violation to hospital owners or operators that fail to comply with this section.

SEC. 4.Section 130065.1 is added to the Health and Safety Code, to read:

130065.1.

SEC. 4.

 Section 130065.2 is added to the Health and Safety Code, to read:

130065.2.

 (a) (1) A hospital owner or operator may submit an application to the department with respect to any hospital building for an extension of the deadline for substantial compliance with the seismic safety regulations or standards described in Section 130065. The application shall contain the following items by the dates specified below. Before acting on the application, the department may require the hospital owner or operator to meet and confer regarding any item in the application for the purpose of providing technical assistance, after which the hospital owner or operator may revise any of the items in the application. Notwithstanding any other law, the department shall grant or deny an extension of the deadline for substantial compliance with the seismic safety regulations or standards described in Section 130065 up to January 1, 2035, with respect to any hospital building for which the hospital owner submits the following items to the department by the dates specified below: 2035. This subdivision shall not be interpreted to require the department to grant a longer extension than the department determines is necessary to complete the seismic compliance plan. In no case, shall an extension be approved beyond January 1, 2035.

(A) (i) The hospital’s seismic compliance plan as described in Section 130065.3, no later than January 1, 2026.

(ii)For purposes of this subparagraph, a hospital seeking an extension of time for a project already in progress pursuant to a previously approved seismic compliance plan may resubmit the same compliance plan for the department’s approval. The department’s approval shall be limited to the extension of time requested and the proposed revised compliance schedule.

(ii) (I) A health care system, in addition to a seismic compliance plan for each hospital, may submit a systemwide plan for the sole purpose of providing the department with an explanation of the health care system’s approach for seismic compliance and the need to sequence the extension request submitted by the individual hospitals.

(II) For purposes of this subdivision, “health care system” means a parent entity that owns, controls, or operates two or more separately licensed hospitals.

(B) (i) The hospital’s Nonstructural Performance Category-5 evaluation report no later than July 1, 2025.

(ii) For purposes of this subparagraph, if a hospital’s seismic compliance plan includes replacing an SPC-2 building with an SPC-5 building, the hospital shall not be required to include an NPC-5 evaluation for the SPC-2 building provided the hospital owner or operator informs the department that the building will be closed to general acute inpatient services by the extension granted and the acute care services in the SPC-2 building are relocated into the NPC-5 building.

(C) A financial plan demonstrating how the hospital or health care system will address seismic compliance using available funds and other funding sources and provide a description of the sources of capital funding, including any necessary taxes, bonds, or both, or other indebtedness, to comply with the seismic requirements, no later than January 1, 2026.

(C)

(D) On or before January 1, 2026, the hospital shall submit to the department an attestation that the appropriate governing board of that hospital is aware that the hospital building is required to be in substantial compliance with the seismic safety regulations or standards described in Section 130065 by January 1, 2030, and is seeking an extension of the deadline.

(2) The duration of the extension granted by the department pursuant to this section shall not exceed the maximum amount of time permitted by this section.

(3) (A) To secure an extension, seismic compliance plans and Nonstructural Performance Category-5 evaluation reports shall be approved by the department. The department shall approve or deny a seismic compliance plan and Nonstructural Performance Category-5 evaluation report within 90 120 days of receipt.

(B) Notwithstanding paragraph (2), in the event the department does not approve or deny a hospital’s seismic compliance plan and Nonstructural Performance Category-5 evaluation report within 90 120 days of receipt, then the extension of time the department grants pursuant to subdivision (a) shall be extended by an amount of time that is equal to the amount of time the department used beyond the 90 120 days to approve or deny the documents described in this paragraph.

(4) If the department denies or modifies a hospital’s request for an extension, including a reduction in the extended time requested, the hospital may submit a revised seismic compliance plan as follows:

(A) The department shall provide a notice of determination that identifies with specificity the reasons for the department’s denial, including reference to the specific provisions of subdivision (b) of this section and Section 130065.3 that supports the department’s determination.

(B) Within 90 days of receiving the notice of denial, the hospital may resubmit the hospital’s seismic compliance plan to the department for reconsideration.

(C) Within 90 days of receipt of the compliance plan, if the hospital addresses the department’s concerns identified in the notice, then the department may grant the extension requested.

(5) A hospital that is demonstrating compliance with the seismic safety regulations or standards described in Section 130065 and has a seismic construction project in progress or is working to complete items identified by the department as needed for final approval, may seek an extension of time to complete the project up to a maximum of January 1, 2035. The department may waive the requirements of subparagraph (A) and (B) of paragraph (1) or require the hospital to resubmit the seismic compliance plan and NPC-5 evaluation report previously submitted by the hospital. The department’s approval shall be limited to the extension of time requested and the corresponding compliance schedule submitted by the hospital when requesting an extension of time.

(5)

(6) (A) (i) Using the projected construction start and completion date, the subject hospital and the department shall identify at least two major milestones relating to milestones, and the hospital shall identify the corresponding financing sources, supporting the seismic compliance plan that will be used as the basis for determining whether the hospital is making adequate progress towards meeting the subject hospital’s seismic compliance deadline. Failure to meet any milestone agreed to pursuant to this paragraph may result in the assessment of a fine of up to five thousand dollars ($5,000) per calendar day per hospital until the requirements or milestones are met. The department has the discretion to waive the fine if it is determined that the hospital is acting in good faith and the delay is due to circumstances beyond the hospital’s control.

(ii) A hospital assessed a fine pursuant to this subparagraph may appeal the assessment to the Hospital Building Safety Board, provided the hospital posts the funds for any fines to be held by the department pending the resolution of the appeal.

(B) Owners or operators of SPC-2 buildings that indicate in their compliance plan their intent to retrofit the nonconforming building shall submit an SPC-4D evaluation report no later than two years prior to their construction start date as indicated in their compliance plan. The SPC-4D evaluation report shall be considered a milestone for measuring adequate progress toward meeting the subject hospital’s seismic compliance deadline.

(C) Owners or operators of SPC-2 buildings that indicate in their compliance plan their intent to rebuild shall provide evidence of local land use entitlements no later than one year prior to their indicated permit date as outlined in their compliance plan. This evidence shall be considered a milestone for measuring adequate progress toward meeting the subject hospital’s seismic compliance deadline.

(D) The department may determine, on a case-by-case basis, if a building permit for projects unrelated to seismic compliance may be issued for a hospital that fails to meet any milestone or the seismic compliance deadline approved pursuant to this section. Such a hospital shall demonstrate, and the department shall consider, whether the requested building permit is related to a project for which the intended purpose is to maintain or improve access to safe patient care and services.

(6)

(7) A hospital denied an extension pursuant to this subdivision may appeal the denial to the Hospital Building Safety Board.

(b) In addition to the seismic compliance plan submitted pursuant to subdivision (a), when evaluating an extension of up to five years, the department shall take into account any of the following:

(1) The complexity of the hospital’s seismic compliance plan detailing why the requested extension is necessary, and specifically how the hospital intends to meet the requested deadline.

(2) (A) Demonstration that compliance will result in an extension is necessary to mitigate a loss of health care capacity that may not be provided by other general acute care hospitals within a reasonable proximity.

(B) For the purpose of this subparagraph, in determining the duration of the extension granted pursuant to this subdivision, the department department, in consultation with the State Department of Public Health, shall consider the impact on access to necessary medical care during seismic related construction, particularly for beneficiaries of the Medi-Cal program, and shall consider the availability of any of the following services in the community served by the hospital: program.

(i)Coronary care services.

(ii)Emergency medical services.

(iii)Intensive care services.

(iv)Pediatric services.

(v)Perinatal services.

(vi)Psychiatric services.

(vii)Complex respiratory and ventilator weaning services.

(viii)Any other specialized service that the department determines is necessary to maintain access to medically necessary care for the community.

(3)Demonstration of a lack of financial capacity, including the cost to borrow the funds to complete construction to substantially comply with the seismic safety regulations or standards described in Section 130065 by the January 1, 2030, deadline, as described in subdivision (a).

(4)The department determines, in consultation with the State Department of Public Health, by means of a health impact assessment, or other means available to the State Department of Public Health, that removal of the building or buildings from service may diminish significantly the availability or accessibility of health care services in the community.

(5)(A)A health care system may submit a systemwide plan for the sole purpose of providing the department with an explanation of the health care system’s approach for seismic compliance and the need to sequence the extension request submitted by the individual hospitals.

(B)For purposes of this paragraph, a “health care system” means a parent entity that owns, controls, or operates two or more separately licensed hospitals.

(3) The health care system plan provided pursuant to clause (ii) of subparagraph (A) of paragraph (1) of subdivision (a).

(c) As a condition of approval of any extension pursuant to subdivision (a), a hospital owner or operator shall, as applicable, submit to the department:

(1) The hospital building plans and extension schedule that includes building permitting, construction commencement and completion.

(2) A construction timeline for the building demonstrating the hospital’s intent and ability to meet the applicable deadline. The timeline shall include the projected construction start date, the projected construction completion date, and identification of the contractor. The department may grant an adjustment to the extensions of time approved pursuant to subdivision (a) or the milestones agreed upon pursuant to paragraph (5) (6) of subdivision (a), or both, as necessary to deal with contractor, labor, or material delays, or with acts of God, or with governmental entitlements, experienced by the hospital, up to the final compliance date of January 1, 2035. If one or more adjustments is granted, the hospital shall submit a revised seismic compliance plan, including, but not be limited to, a revised construction schedule and revised milestones that are subject to penalties pursuant to paragraph (5) (6) of subdivision (a).

(3) If a hospital fails to meet an agreed-upon milestone due to circumstances that were within the hospital owner’s or operator’s control, the hospital shall demonstrate efforts to comply with Section 130065 by providing the department with a plan outlining how seismic construction costs and other financial responsibilities will be met and what funding sources will be used. The owner or operator of that hospital shall submit to the department an attestation that the appropriate governing board of that hospital is aware of its responsibilities the hospital’s responsibility to comply with the associated construction costs to meet seismic compliance deadlines.

(d) As part of the approval process, the department may provide technical assistance related to the hospital’s seismic compliance plan and Nonstructural Performance Category-5 evaluation report.

(e) The department’s approval or denial of a hospital owner’s or operator’s request for an extension of the deadline shall be based upon whether the hospital complies with the requirements described in paragraph (1) of subdivision (a) and meets the criteria in subdivision (b). The department’s determination shall not be based upon the proposed manner in which the hospital owner or operator plans to meet the seismic requirements, inclusive of plans to modernize, improve, or accommodate the continuity of hospital services.

(f) Prior to granting an extension past January 1, 2030, pursuant to subdivision (a), the department shall do all of the following:

(1) Provide public notice of a hospital’s request for an extension of the deadline. The notice, at a minimum, shall be posted on the department’s internet website alongside the hospital’s seismic compliance plan submitted pursuant to subdivision (e) of Section 130065.3, and shall include the facility’s name and identification number, the length of the extension, 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 paragraph (3). The department shall also include, in plain language, the purpose of seismic safety requirements, the structural and nonstructural risk level for each building included in the compliance plan, and the hospital’s compliance history.

(2) Provide copies of any publicly available material submitted by the hospital in support of their extension, upon request, 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 (Division 10 (commencing with Section 7920.000) of Title 1 of the Government Code).

(3) 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 prior to the department approving, denying, or modifying any extension request submitted pursuant to subdivision (a).

(g) Beginning on January 1, 2027, and annually thereafter, the department shall post on its internet website, along with the approved compliance plans, its decision to grant or deny any extensions pursuant to subdivision (a), of the deadlines for substantial compliance with the seismic safety regulations. This report shall include detailed data on the facilities that have been both granted and denied extensions, along with the reasoning behind each determination. The department shall also list the facilities that have missed the agreed-upon milestones pursuant to paragraph (5) (6) of subdivision (a).

(h) The department shall notify the county board of supervisors, the city council, and the Assembly and Senate representative in writing and electronically if a hospital within their district has been granted or denied an extension.

SEC. 5.

 Section 130065.3 is added to the Health and Safety Code, to read:

130065.3.

 (a) As a condition of securing an additional extension of time pursuant to subdivision (a) of Section 130065.1, 130065.2, an owner or operator of an acute care inpatient hospital building that does not substantially comply with the seismic safety regulations or standards described in Section 130065 as of the effective date of this section shall submit a seismic compliance plan to the department no later than January 1, 2026, in a form and manner determined by the department.

(b) In addition to complying with the requirement for a seismic compliance plan as outlined in Chapter 6 of Title 24 of the California Administrative Code, each seismic compliance plan shall include the following:

(1) An inventory of each acute care inpatient service that is provided in any hospital building that does not substantially comply with Section 130065 as of the effective date of this section.

(2) A schedule that sets dates for submitting construction plans to the department, anticipated plan approval, issuance of permit, and commencement and completion of construction.

(3) For each hospital building that does not substantially comply with Section 130065 as of the effective date of this section that is planned for retrofit or replacement, the plan shall identify:

(A) Whether the hospital owner or operator intends to retrofit the SPC-2 building to SPC-4D, or rebuild the building to SPC-5.

(B) The project number or numbers assigned by the department, if any, for retrofit or rebuilding.

(C) The projected construction start date or dates, and projected construction completion date or dates.

(D) The estimated costs to substantially comply with the Structural and Nonstructural Performance Category requirements of Section 130065. Costs shall be limited to those required for seismic safety compliance.

(E) The most recent project status and approvals.

(F) The number of inpatient beds and patient days, by type of unit and type of service provided in the building.

(4) For each hospital building that does not substantially comply with Section 130065 as of the effective date of this section that is planned to be removed from acute care inpatient service, the plan shall identify:

(A) The projected date or dates the building will be removed from inpatient service.

(B) The general acute care services currently delivered in the building.

(C) The number of general acute care beds and patient days, by type of unit and type of service provided in the building.

(D) The planned uses of the building to be removed from service.

(E) Whether the general acute care services and beds currently provided in the building will be relocated to a new or retrofitted building, and any corresponding building sites or project numbers associated with such planned relocation.

(5) For each facility for which one or more hospital buildings are planned to be removed from general acute care service, any net change in the number of inpatient beds, by type of unit and type of service, taking into account beds provided in buildings to be removed from general acute care service, beds provided in buildings to be retrofitted or replaced, and beds provided in any other buildings used for acute care inpatient services by the facility.

(6) The planned final configuration of all buildings on the hospital campus depicting how each building will comply with the requirements of Section 130065, whether by retrofit or rebuild, and the type of services that will be provided in each building.

(c) An owner or operator of a general acute care hospital shall annually update the department, in a form and manner determined by the department, with any changes or adjustments to its seismic compliance plan submitted pursuant to this section.

(d) On or before July 1, 2025, the department shall issue guidance for calculating the estimated costs of compliance required pursuant to subparagraph (D) of paragraph (3) of subdivision (b). To the extent possible, guidance shall be limited to calculating the estimated costs required for seismic safety compliance, including any construction related to maintaining service levels or related financing costs. This guidance shall specify, at a minimum, the types of costs to be included in the estimate.

(e) The department shall post seismic compliance plans submitted pursuant to this section on its internet website within 90 calendar days of receipt to facilitate the public comment period pursuant to subdivision (f) of Section 130065.1. 130065.2. Seismic compliance plans shall be removed after the comment period for review and approval by the department. Once approved, the seismic compliance plan shall be reposted as an approved plan, including any changes. Subsequent revisions to a hospital’s compliance plan shall be posted on the department’s internet website along with the approved compliance plan.

(f) Notwithstanding any other provision in this section or Section 130065.1, 130065.2, for a hospital owner or operator that fails to submit a seismic compliance plan by January 1, 2026, and a Nonstructural Performance Category-5 evaluation report by July 1, 2025, the hospital building or buildings they own shall be ineligible for an extension of time to meet the seismic safety requirements beyond January 1, 2030.

SEC. 6.

 Section 130065.35 is added to the Health and Safety Code, to read:

130065.35.

 On or before January 1, 2026, the department shall adopt regulations and standards, or revise existing regulations and standards, or both, to extend the deadlines for meeting the structural performance and nonstructural performance requirements pursuant to Sections 130065, as amended by the act that added this section, 130065.1, 130065.2, and 130065.3. Regulatory submissions made by the department to the California Building Standards Commission pursuant to this section shall be deemed to be emergency regulations and shall be adopted as such. The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, and general welfare.

SEC. 7.Section 130065.5 is added to the Health and Safety Code, to read:

130065.5.

(a)On or before January 1, 2029, and annually thereafter, the department shall provide the Legislature with a report that includes an analysis of each cost estimate based on construction plans submitted by an owner of an acute care inpatient hospital pursuant to subparagraph (D) of paragraph (3) of subdivision (b) of Section 130065.3.

(b)(1)On or before January 1, 2027, the department shall provide the Legislature with a report that includes an estimate of the total statewide cost to retrofit each Structural Performance Category-2 (SPC-2) building to SPC-4D and Nonstructural Performance Category-5 (NPC-5), or rebuild to SPC-5 and NPC-5 for all hospitals the department has determined that the cost of compliance results in financial hardship, in order to comply with the requirements of Section 130065. In estimating the total statewide cost, the department shall consider the hospital-specific cost estimates submitted pursuant to subparagraph (D) of paragraph (3) of subdivision (b) of Section 130065.3, and may consider other sources the department deems appropriate.

(2)It is the intent of the Legislature to utilize the cost estimates to assist the Legislature in determining where additional funding and resources are most needed to ensure seismic safety.

(c)The reports required pursuant to subdivision (a) and (b) shall be submitted in compliance with Section 9795 of the Government Code.

SEC. 8.SEC. 7.

 Section 130066.5 of the Health and Safety Code is amended to read:

130066.5.

 (a) Before January 1, 2025, the owner or operator of an acute care inpatient hospital that includes a building that does not substantially comply with the seismic safety regulations or standards described in Section 130065 as of the effective date of this section shall post in any lobby or waiting area generally accessible to patients or the public a notice provided by the department that the hospital is not in compliance with the seismic safety requirements that the hospital is required to meet by either January 1, 2030, or January 1, 2035, pursuant to subdivision (a) of Section 130065.1. 130065.2. The notice shall be posted until the time the owner or operator receives notification from the department that it meets the requirements described in Section 130065.

(b) On or before January 1, 2025, and annually thereafter, the owner or operator of an acute care inpatient hospital that includes a building that does not substantially comply with the seismic safety regulations or standards described in Section 130065 as of the effective date of this section shall provide an annual status update on the Structural Performance Category ratings of the buildings and the services provided in each hospital building on the hospital campus, an annual status update on securing an additional extension of time pursuant to subdivision (a) of Section 130065.1, 130065.2, and a copy of the hospital’s seismic compliance plan for the hospital campus, as described in Section 130065.3 when submitted to the department, to all of the following entities until the owner or operator receives notification from the department that it meets the requirements described in Section 130065:

(1) The county board of supervisors in whose jurisdiction the hospital building is located.

(2) The city council in whose jurisdiction the hospital building is located, if applicable.

(3) Any labor union representing workers who work in a building that does not substantially comply with the seismic safety regulations or standards described in Section 130065.

(4) The board of directors of the special district or joint powers agency that provides fire and emergency medical services in the jurisdiction in which the hospital building is located, if applicable.

(5) The department.

(6) The board of directors of the hospital.

(7) The local office of emergency services or the equivalent agency.

(8) The Office of Emergency Services.

(9) The medical health operational area coordinator.

(c) Before July 1, 2023, the department shall develop the notice required in subdivision (a) with the intent that the notice will clearly convey to patients and the public that the hospital building does not meet seismic safety standards intended to ensure that the hospital will be capable of continued operation following an earthquake. For SPC-2 buildings, the notice shall clearly state, “The State of California has determined that this building does not significantly jeopardize life, but may not be repairable or functional following an earthquake.” For other buildings that are not compliant with the seismic safety regulations or standards described in Section 130065, the notice shall state, “The State of California has determined that the hospital building is at risk of not being functional to provide care to its patients or the community after an earthquake.” In its discretion, the department may develop multiple notices in order to provide a more detailed description of different hospital buildings’ failure to meet the seismic safety regulations or standards described in Section 130065.

SEC. 9.SEC. 8.

 The provisions of this act are severable. If any provision of this act or its application is held invalid for any reason by a decision of any court of competent jurisdiction, that decision shall not affect the validity of any other provisions or applications of this act that can be given effect without the invalid provision or application.

SEC. 10.SEC. 9.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.