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


Bill Title: Health facilities: seismic standards.

Spectrum: Slight Partisan Bill (Democrat 6-3)

Status: (Introduced) 2024-05-06 - May 6 hearing: Placed on APPR suspense file. [SB1432 Detail]

Download: California-2023-SB1432-Amended.html

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


Introduced by Senators Caballero, Alvarado-Gil, Dodd, Eggman, and Newman
(Coauthors: Senators Becker and Grove) Becker, Dahle, Grove, and Ochoa Bogh)

February 16, 2024


An act to amend Sections 130060, 130063, 130065, 130066, and 130066.5 of, and to add Sections 130065.1, 130065.2, 130065.3, 130065.4, 130065.5, 130065.6, and 130065.7 to, the Health and Safety Code, relating to health facilities.


LEGISLATIVE COUNSEL'S DIGEST


SB 1432, as amended, Caballero. Health facilities: seismic standards.
(1) 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. standards, unless subject to an abeyance.
This bill would revise the compliance deadline for these requirements from January 1, 2030, to January 1, 2038. additionally authorize additional extensions to the compliance deadline if specified requirements are met. The bill would also create an abeyance by which a rural hospital or critical access hospital, or both, will not be required to meet these requirements until adequate funding is made available to the hospital for purposes of attaining substantial compliance. The bill would impose specified requirements for a rural hospital or critical access hospital subject to an abeyance, including that a rural hospital or critical access hospital provide specified information to the State Department of Public Health no later than July 1, 2027, and would require the department to post and maintain on its internet website a list of rural hospitals and critical access hospitals that are subject to an abeyance. The bill would include definitions pertaining to these requirements. The bill would authorize the department to grant an extension of the deadline for substantial compliance with seismic safety regulations or standards to January 1, 2033, for any hospital building for which the hospital owner submits specified items to the department by specified dates. The bill would authorize a hospital to propose a final compliance date that extends up to five years beyond January 1, 2033, but no later than January 1, 2038. The bill would additionally authorize the department to grant a different extension to the deadline for substantial compliance with seismic safety regulations or standards for up to an additional five years if the owner has demonstrated one or more specified requirements to the department. The bill would require the department to take additional actions prior to granting an extension beyond January 1, 2033. The bill would require the department to determine, by no later than January 1, 2028, whether to grant an abeyance.
The 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.
The bill would require an owner of an acute care inpatient hospital that does not substantially comply with the seismic safety regulations or standards to submit a seismic compliance master plan, as specified, to the department by no later than January 1, 2027. 2026. The bill would require, among other things, the owner to annually update the department with any changes or adjustments to its seismic compliance master plan, and the department to post each seismic compliance master plan submitted on its internet website within 90 calendar days of receipt.
The bill would require an acute care inpatient hospital with one or more specified hospital buildings to submit a Patient Alternate Care Sites and Transfer Plan to the department, as specified, by no later than January 1, 2026, to address continued care for the hospital’s patients following a seismic event through alternate care sites on the hospital campus and other health care facilities. The bill would require the hospital to submit updates to the plan, if any, on an annual basis to the department, and would remove the requirement to submit annual updates as of the date the hospital no longer has one or more specified buildings.

The bill would require, on or before July 1, 2028, the Office of Statewide Health Planning and Development to submit to the director an analysis of each cost estimate submitted by an owner of specified hospital buildings. The bill would require the department to provide a report to the Legislature on or before January 1, 2029, with specified information.

The bill would require the department, in consultation with the California Health Facilities Financing Authority, to submit a report to the Legislature on or before January 1, 2026, 2028, as specified.
The bill would require the Office of Statewide Health Planning and Development department to convene a stakeholder workgroup on or before January 1, 2026, 2028, to facilitate input, as specified. The bill would require the Office of Statewide Health Planning and Development department to provide a report to the Legislature by July 1, 2026, 2028, detailing any findings and recommendations from the stakeholder workgroup.
(2) Existing law requires the owner of specified hospital facilities whose building does not substantially comply with seismic safety regulations or standards to submit to the department an attestation that the board of directors of that hospital is aware the hospital building is required to meet the January 1, 2030, deadline for substantial compliance. 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. Existing law requires, by July 1 2, 1, 2023, the department to develop the notice required to be posted to clearly convey to patients and the public that the hospital building does not meet seismic safety standards intended to ensure the hospital will be capable of continued operation following an earthquake.
The bill would instead require, before January 1, 2026, the owner of specified hospital facilities whose building does not substantially comply with seismic safety regulations or standards to submit to the department an attestation that the board of directors of that hospital is aware the building is required to meet either the January 1, 2038, 2030 deadline, the January 1, 2033 deadline, or a subsequent date that is applicable to a hospital subject to an additional extension, as specified, or a rural hospital or critical access hospital subject to an abeyance. The
The bill would require, before January 1, 2026, 2025, the owner 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 a specified notice. The bill would require the department to develop the notice before July 1, 2025. The bill would also require, on or before January 1, 2026, 2025, and annually thereafter, the owner to provide an annual status update, as specified.
(3) The bill would specify that the provisions of this act are severable.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

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 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 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 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 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 and that is not subject to an abeyance or one or more additional extensions pursuant to Section 130065.1, shall meet the January 1, 2038, 2030, nonstructural and structural deadline requirements if the building is to be used for general acute care inpatient services after January 1, 2038. 2030.
(2) A hospital building of a rural hospital or critical access hospital that is subject to an abeyance pursuant to subdivision (b) of Section 130065.1 shall not be required to meet the nonstructural and structural requirements referenced in paragraph (1) until such time that adequate funding is made available to the hospital for such purposes.
(3) A hospital building that is subject to an additional extension pursuant to subdivision (c) or (d) of Section 130065.1 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 (c) or (d) of Section 130065.1, as applicable.
(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 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, 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 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 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 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 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 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 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 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 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 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 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 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 shall notify the department as soon as practicable, but in no event later than six months after the hospital owner 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 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 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 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 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 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 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 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. 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 Non-Structural 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 and that is not subject to an abeyance or one or more additional extensions pursuant to Section 130065.1, shall meet the January 1, 2038, 2030, nonstructural requirement deadline if the building is to be used for general acute care inpatient services after January 1, 2038. 2030.
(2) A hospital building of a rural hospital or critical access hospital that is subject to an abeyance pursuant to subdivision (b) of Section 130065.1 shall not be required to meet the nonstructural requirements referenced in paragraph (1) until such time that adequate funding is made available to the hospital for such purposes.
(3) A hospital building that is subjection to an additional extension pursuant to subdivision (c) or subdivision (d) of Section 130065.1, or both, 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 (c) or (d) of Section 130065.1, as applicable.
(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, department in a hospital’s seismic compliance plan pursuant to subdivision (c) or (d) of Section 130065.1, as applicable, but in any case no later than January 1, 2038, or a subsequent date applicable to a rural hospital or critical access hospital subject to an abeyance pursuant to Section 130065.1, owners 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) 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 that fail to comply with this section.

SEC. 4.

 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:
(1) “Critical access hospital” means a hospital designated by the State Department of Public Health as a critical access hospital, and certified as such by the Secretary of the United States Department of Health and Human Services under the federal Medicare Rural Hospital Flexibility Program, as described in section Section 1250.7.
(2) “Rural hospital” has the same meaning as “rural general acute care hospital” as set forth in subdivision (a) of section Section 1250.
(b) A general acute care hospital that is a rural hospital or critical access hospital, or both, shall not be required to comply with the requirements of Section 130065 130065, if granted an abeyance pursuant to this subdivision, until such time that adequate funding is made available to the hospital for purposes of attaining substantial compliance with Section 130065.
(c) (1) In a form and manner as specified by the department, a rural hospital or critical access hospital subject to may apply for an abeyance from the requirements of Section 130065 as described in this subdivision (b) shall provide by providing the following to the department, no later than July 1, 2027:

(1)

(A) The hospital’s most recent cost estimate for meeting the requirements of Section 130065, as described in subparagraph (D) of paragraph (2) of subdivision (b) of Section 130065.3.

(2)

(B) An analysis and supporting documentation demonstrating the hospital’s inability to finance or otherwise fund the costs to comply with the requirements of Section 130065. This shall include, but is not limited to, a description of the hospital’s efforts to secure financing from other relevant sources, such as state funds, federal grants, or private foundation funds.

(3)

(C) An analysis and supporting documentation demonstrating the risk of hospital closure, or reduction or suspension of health care services provided at the hospital, or both, and the impact to health care access as a result of the costs to comply with Section 130065.
(2) After reviewing the material submitted pursuant to this subdivision, the department shall determine, by no later than January 1, 2028, whether to grant an abeyance from the requirements of Section 130065.

(d)

(3) A hospital subject to an abeyance pursuant to this section shall update the department of any changes to its information described in this subdivision (c) on an annual basis, in a form and manner as specified by the department.

(e)

(4) The department shall post and maintain on its internet website a list of rural hospitals and critical access hospitals that are subject to an abeyance from the requirements of Section 130065 as described in subdivision (b). this subdivision.
(c) (1) Notwithstanding any other law, the department shall grant an extension of the deadline for substantial compliance with the seismic safety regulations or standards described in Section 130065 to January 1, 2033, with respect to any hospital building for which the hospital owner submits the following items to the department by the dates specified below:
(A) The hospital’s seismic compliance plan as described in Section 130065.3, no later than January 1, 2026.
(B) The hospital’s Nonstructural Performance Category-5 Evaluation Report no later than July 1, 2025.
(2) For purposes of subparagraph (A) of paragraph (1), a hospital may propose a final compliance date that extends up to five years beyond January 1, 2033, but no later than January 1, 2038. However, any seismic compliance plan that extends past January 1, 2033, is subject to the department’s approval pursuant to paragraph (1) of subdivision (d). If the department does not grant approval for the extended seismic compliance plan or approves a final seismic compliance date that is sooner than the seismic compliance plan submitted by the hospital, the hospital shall submit a revised seismic compliance plan.
(d) (1) Notwithstanding any other law, and in addition to the extension provided pursuant to subdivision (c), the department may grant an additional extension of the deadline for substantial compliance with seismic safety regulations or standards described in Section 130065 of up to five years in accordance with this subdivision.
(2) An extension of up to five years may be granted by the department upon a demonstration by the owner of one or more of the following:
(A) 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.
(B) Demonstration 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.
(C) Hospital owner demonstrates lack of financial capacity to substantially comply with the seismic safety regulations or standards described in Section 130065 by the January 1, 2033 deadline, as described in subdivision (c).
(D) The department determines, by means of a health impact assessment, that removal of the building or buildings from service may diminish significantly the availability or accessibility of health care services in the community.
(3) As a condition of approval of any extension pursuant to this subdivision, a hospital owner shall, as applicable, submit to the department:
(A) The hospital building plans and extension schedule that includes building permitting, construction commencement and completion.
(B) 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. Using the projected construction start and completion date, the subject hospital and the department shall identify at least two major milestones relating to 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. The department may grant an adjustment to the extensions of time approved pursuant to this subdivision or the milestones agreed upon pursuant to subparagraph (B) of paragraph (3), 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, 2038. If one or more adjustments is granted, the hospital shall submit a revised seismic compliance plan, including but need not be limited to, a revised construction schedule.
(e) Prior to granting an extension past January 1, 2033, pursuant to subdivision (d), 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 subparagraph (C).
(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 (d).

SEC. 5.

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

130065.2.
 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 Section 130065, as amended by the Act act which added this section, and Section 130065.1. 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.

SEC. 6.

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

130065.3.
 (a) An As a condition of securing an additional extension of time pursuant to subdivision (c) or subdivision (d) of Section 130065.1, or both, an owner 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 master plan to the department no later than January 1, 2027, 2026, in a form and manner determined by the department, that includes the information described in subdivision (b).
(b) Each seismic compliance master plan shall include the following:
(1) An inventory of each acute care inpatient service that is provided in any hospital building that is rated Structural Performance Category-2 (SPC-2).
(2) 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 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, if available.
(D) The estimated costs to substantially comply with the Structural and Non-Structural Performance Category requirements of Section 130065.
(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.
(3) 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 inpatient services currently delivered in the building.
(C) The number of inpatient 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 inpatient 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.
(4) For each facility for which one or more hospital buildings are planned to be removed from inpatient 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 inpatient 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.
(5) 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 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 master plan submitted pursuant to this section.
(d) On or before January 1, 2026, July 1, 2025, the department shall issue guidance for calculating the estimated costs of compliance required pursuant to subparagraph (D) of paragraph (2) of subdivision (b). This guidance shall specify, at a minimum, the types of costs to be included in the estimate, such as hospital equipment and technology, or other costs not directly related to compliance with Section 130065.
(e) The department shall post each seismic compliance master plan submitted pursuant to this section on its internet website within 90 calendar days of receipt.

(f)For a hospital owner that fails to submit a seismic compliance master plan pursuant to this section by January 1, 2027, the department shall assess a fine of ten dollars ($10) per licensed acute care bed per day, but in no case to exceed one thousand dollars ($1,000) per day, for each SPC-2 building until the owner complies with the submission requirement. The proceeds of any fines assessed pursuant to this subdivision shall be deposited into the General Fund. A hospital owner who is assessed a fine pursuant to this subdivision may appeal the assessment to the Hospital Building Safety Board.

SEC. 7.

 Section 130065.4 is added to the Health and Safety Code, to read:

130065.4.
 (a) An acute care inpatient hospital with one or more hospital buildings classified as Structural Performance Category-2 (SPC-2) as of the effective date of this section shall submit a Patient Alternate Care Sites and Transfer Plan to the department, in a form and manner determined by the department, no later than January 1, 2026. The plan shall address continued care for the hospital’s patients following a seismic event through alternate care sites on the hospital campus and transfers to other health care facilities.
(b) The plan required by subdivision (a) shall include all of the following:
(1) The number of patients that could potentially be affected by SPC-2 buildings on the hospital campus.
(2) Locations on the hospital campus that could be utilized as alternate care sites for the hospital’s patients, including but not limited to, other inpatient or outpatient units, temporary structures, and areas not typically used for patient care.
(3) The capacity for transfers to other hospitals or other appropriate care settings in the subject hospital’s service area, and description of how the hospital would transfer and transport any patients to such sites.
(4) A description of the hospital’s process for communicating the following information to employees affected by the seismic event, and their bargaining representatives, if applicable:
(A) The request for waivers from law or normal operations from the State Department of Public Health and the Emergency Medical Services Authority (EMSA), if any.
(B) The timeline for the use of any requested or utilized State Department of Public Health and EMSA waivers, if applicable.
(C) A timeline for repairs and reopening of the SPC-2 building, if available.
(D) Updates and revisions to the timeline for repairs and reopening of the SPC-2 building, if available.
(E) The use of alternate care sites, if applicable.
(F) The availability of open or temporary positions within the hospital or hospital system.
(c) In developing its plan required by subdivision (a), the hospital shall consult with the medical health operational area coordinator, the local emergency medical services authority, and other county entities and other hospitals within the subject hospital’s service area, as appropriate.
(d) The hospital shall submit updates to the plan required by subdivision (a), if any, on an annual basis to the department, in a form and manner determined by the department. As of the date the hospital no longer has one or more buildings classified as SPC-2, the hospital shall no longer be required to submit annual updates pursuant to this subdivision.

SEC. 8.

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

(a)On or before July 1, 2028, the Office of Statewide Health Planning and Development shall submit to the director an analysis of each cost estimate submitted by an owner of an acute care inpatient hospital pursuant to subparagraph (D) of paragraph (2) of subdivision (b) of Section 130065.3.

(b)(1) On

130065.5.
 (a) On or before January 1, 2029, the department shall provide the Legislature with a report to include both of the following:

(A)Each cost

(1) An analysis of each cost estimate analysis submitted to the director as described in subdivision (a). by an owner of an acute care inpatient hospital pursuant to subparagraph (D) of paragraph (2) of subdivision (b) of Section 130065.3.

(B)

(2) An estimate of the total statewide cost to retrofit each Structural Performance Category-2 (SPC-2) building to SPC-4D and Non-Structural Performance Category-5 (NPC-5), or rebuild to SPC-5 and NPC-5, 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 (2) of subdivision (b) of Section 130065.3, and may consider other sources the department deems appropriate.

(2)

(b) The director shall provide the Health Care Affordability Board, established pursuant to Section 127501.10, and the Health Care Affordability Advisory Committee, established pursuant to Section 127501.12, with the report required in this subdivision on the same date as it is provided to the Legislature pursuant to paragraph (1). subdivision (a). The director shall present the major findings of the report during at least one meeting of the Health Care Affordability Board and the Health Care Affordability Advisory Committee within six months of the submission of the report to the Legislature.

(3)

(c) The report required pursuant to paragraph (1) subdivision (a) shall be submitted in compliance with Section 9795 of the Government Code.

SEC. 9.

 Section 130065.6 is added to the Health and Safety Code, to read:

130065.6.
 (a) The department, in consultation with the California Health Facilities Financing Authority, shall submit to the Legislature by January 1, 2026, 2028, a Hospital Construction Financing Overview report.
(b) The report required pursuant to this section shall include the following, at a minimum:
(1) An inventory of current federal, state, and local financing programs and funding opportunities that are potentially available to an owner of an acute care inpatient hospital for purposes of funding construction costs associated with meeting the requirements of Section 130065. This shall include, but is not limited to, the amount of funding available, any costs associated with accessing associated financing, and the eligibility, application, and reporting requirements for each program or opportunity inventoried.
(2) Options and recommendations for new or expanded financing programs and funding opportunities that could be made available for hospital construction costs associated with meeting the requirements of Section 130065, including including, but not limited to, state infrastructure funds, grants, no-cost or low-cost loans, and general obligation bond financing. In making its recommendations, the department shall consider the impact of escalating construction costs and the ongoing ability of hospitals to pay debt service.
(c) The report required pursuant to this section shall be submitted in compliance with Section 9795 of the Government Code.

SEC. 10.

 Section 130065.7 is added to the Health and Safety Code, to read:

130065.7.
 (a) On or before January 1, 2026, 2028, the Office of Statewide Health Planning and Development department shall convene a stakeholder workgroup to facilitate input on how the requirements in Section 130065 impact ongoing access to health care services at the local and regional levels. This shall include, but is not limited to, consideration of potential changes to the inpatient services available as a result of the Section 130065 requirements, such as the reduction, suspension, and closure of inpatient service lines in the subject locality or region.
(b) The stakeholder convening required pursuant to this section shall include, at a minimum, representatives for hospitals, physicians, workers, consumers, and counties.
(c) (1) On or before July 1, 2026, 2028, the Office of Statewide Health Planning and Development department shall provide a report to the Legislature detailing any findings and recommendations arising out of the stakeholder convening conducted pursuant to this section.
(2) The report required pursuant to this subdivision shall be submitted in compliance with Section 9795 of the Government Code.

SEC. 11.

 Section 130066 of the Health and Safety Code is amended to read:

130066.
 Before January 1, 2026, the owner of an acute care inpatient hospital whose building 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 to the department an attestation that the board of directors of that hospital is aware that the hospital building is required to meet either the January 1, 2038, 2030 deadline, the January 1, 2033 deadline, or a subsequent date as applicable to a hospital subject to an additional extension pursuant to subdivision (d) of Section 130065.1, or a rural hospital or critical access hospital subject to an abeyance pursuant to subdivision (b) of Section 130065.1, for substantial compliance with those regulations and standards.

SEC. 12.

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

130066.5.
 (a) Before January 1, 2026, 2025, the owner 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, 2038, 2030, or January 1, 2033, pursuant to subdivision (c) of Section 130065.1, or a subsequent date as applicable to a hospital subject to an additional extension pursuant to subdivision (d) of Section 130065.1 or a rural hospital or critical access hospital subject to an abeyance pursuant to subdivision (b) of Section 130065.1. The notice shall be posted until the time the owner receives notification from the department that it meets the requirements described in Section 130065.
(b) On or before January 1, 2026, 2025, and annually thereafter, the owner 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 to all of the following entities until the owner 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, 2025, 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. 13.

 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 act that can be given effect without the invalid provision or application.
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