BILL NUMBER: AB 2271	CHAPTERED  09/21/02

	CHAPTER  752
	FILED WITH SECRETARY OF STATE  SEPTEMBER 21, 2002
	APPROVED BY GOVERNOR  SEPTEMBER 20, 2002
	PASSED THE ASSEMBLY  AUGUST 28, 2002
	PASSED THE SENATE  AUGUST 27, 2002
	AMENDED IN SENATE  AUGUST 22, 2002
	AMENDED IN ASSEMBLY  MAY 15, 2002
	AMENDED IN ASSEMBLY  MAY 1, 2002
	AMENDED IN ASSEMBLY  APRIL 25, 2002

INTRODUCED BY   Assembly Member Aanestad

                        FEBRUARY 20, 2002

   An act to add Section 1250.7 to the Health and Safety Code,
relating to health facilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2271, Aanestad.  Health facilities:  licensing and
certification requirements.
   Existing law provides for the licensure and regulation of health
facilities by the State Department of Health Services.  Existing law
makes each hospital designated by the department as a critical access
hospital under the federal Medicare Rural Hospital Flexibility
Program eligible for supplemental payments, as specified.
   This bill would provide that with respect to each hospital
designated by the department 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, the department may develop criteria to waive any
regulatory licensing and certification requirements that are in
conflict with the federal requirements for designation in the federal
program, if the department finds that it is in the public interest
to do so, and the department determines that the waiver would not
negatively affect the quality of patient care.
   The bill would provide that the criteria established by the
department shall not be considered regulations within the meaning of
specified law, and would also prohibit the criteria from being
adopted as regulations pursuant to that law.  The bill would state
that its provisions shall not be construed to mean that a critical
access hospital is not a general acute care hospital, even if
otherwise applicable regulatory requirements are waived pursuant to
the bill.


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


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The federal Medicare Rural Hospital Flexibility Program was
established by the Balanced Budget Act of 1997 to help rural
communities maintain access to primary care and emergency health care
services, to provide health care services that meet community needs,
and to help ensure the financial viability of program participants
through improved Medicare reimbursement and flexible operating
requirements.
   (b) California has established a state Medicare Rural Hospital
Flexibility Program pursuant to the federal program and enacted
Section 14105.17 of the Welfare and Institutions Code to make rural
"critical access hospitals" designated pursuant to the state and
federal programs eligible for supplemental payments for Medi-Cal
outpatient services.
   (c) It is essential to ensure the intent of the state to maintain
access to health care services by providing for improved Medicare and
Medi-Cal reimbursement and flexible operating requirements for
critical access hospitals by explicitly authorizing the State
Department of Health Services to waive state licensing regulations
that are in conflict with the requirements under the federal program.

  SEC. 2.  Section 1250.7 is added to the Health and Safety Code, to
read:
   1250.7.  (a) (1) With respect to each hospital designated by the
department 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, the department may develop criteria to waive any
requirements of Division 5 (commencing with Section 70001) of Title
22 of the California Code of Regulations that are in conflict with
the federal requirements for designation in the federal program, if
the department finds that it is in the public interest to do so, and
the department determines that the waiver would not negatively affect
the quality of patient care.
   (2) The criteria established pursuant to this subdivision shall
not be considered regulations within the meaning of Section 11342 of
the Government Code, and shall not be subject to adoption as
regulations pursuant to Chapter 3.5 (commencing with Section 11340)
of Part 1 of Division 3 of Title 2 of the Government Code.
   (b) Nothing in this section shall be construed to mean that a
critical access hospital is not a general acute care hospital.  Every
hospital designated by the department as a critical access hospital
and certified as such by the United States Department of Health and
Human Services shall be deemed to be a general acute care hospital,
as defined in subdivision (a) of Section 1250, even if the department
waives regulatory requirements otherwise applicable to general acute
care hospitals pursuant to this section.