BILL NUMBER: AB 2741	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JULY 2, 2008
	AMENDED IN ASSEMBLY  MAY 23, 2008
	AMENDED IN ASSEMBLY  APRIL 3, 2008

INTRODUCED BY   Assembly Member Torrico

                        FEBRUARY 22, 2008

   An act to amend Section 1265.3 of the Health and Safety Code,
relating to health facilities.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2741, as amended, Torrico. Hospitals: management requirements.
   Existing law provides for the licensure and regulation of health
facilities by the State Department of Public Health. A violation of
these provisions is a crime.
   Existing law requires that, with respect to any individual or
entity that seeks approval to operate or manage a health facility, as
defined, the department shall consider specific evidence in making
determinations regarding character and ability to comply with
applicable licensing and regulatory provisions and to consider
specified factors with respect to the applicant's character,
including the financial capacity to provide care in accordance with
existing state and federal requirements, and the ability to comply
with statutory provisions relating to regulation of the facility.
   This bill would provide that if the  transaction by which the
 applicant has  not met   acquired, or
plans to acquire, ownership or control of the health facility is not
subject to  certain statutory requirements regulating the sale,
transfer, lease, exchange, option, conveyance, or otherwise disposal
of the assets, or control thereof, of a nonprofit corporation that
operates or controls a facility that provides health care, the
department shall obtain a health impact analysis of the transaction
 in order to determine whether the transaction may create a
significant effect on the availability or accessibility of health
care services to the affected community and whether the transaction
is in the public interest   , as   specified
 . The bill would allow the department to contract with an
expert or consultant to review the proposed transaction and would
entitle the department to reimbursement for reasonable and necessary
costs of this review from the applicant.  The bill would require
the department to consult with the Attorney General regarding the
provisions of the bill. 
   By increasing the scope of the definition of a crime, this bill
would result in a state-mandated local program.
   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.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.


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

  SECTION 1.  Section 1265.3 of the Health and Safety Code is amended
to read:
   1265.3.  (a) For any individual or entity that seeks approval to
operate or manage a health facility licensed pursuant to subdivision
(a), (b), or (f) of Section 1250 and is subject to Section 1265, the
department shall consider the following:
   (1) To determine whether the applicant is of reputable and
responsible character, the department shall consider any available
information that the applicant has demonstrated a pattern and
practice of violations of state or federal laws and regulations. The
department shall give particular consideration to those violations
that affect the applicant's ability to deliver safe patient care.
   (2) To determine whether the applicant has the ability to comply
with this chapter and the rules and regulations adopted under this
chapter, the department shall consider evidence that shall include
all of the following:
   (A) If any, prior history of operating in this state any other
facility licensed pursuant to Section 1250, and the applicant's
history of substantial compliance with the requirements imposed under
that license, applicable federal laws and regulations, and
requirements governing the operators of those facilities.
   (B) If any, prior history of operating in any other state any
facility authorized to receive Medicare Program reimbursement or
Medicaid Program reimbursement, and the applicant's history of
substantial compliance with that state's requirements, and applicable
federal laws, regulations, and requirements.
   (C) If any, prior history of providing health services as a
licensed health professional or an individual or entity contracting
with a health care service plan or insurer, and the applicant's
history of substantial compliance with state requirements, and
applicable federal law, regulations, and requirements. 
   (b) If the applicant has not met the requirements of Section 5917

    (b)     If the transaction by which the
applicant has acquired, or plans to acquire, ownership or control of
the health facility is not subject to review under Section  
5917  or 5923 of the Corporations Code, the department shall
obtain a health impact analysis of the transaction in order to
determine whether the transaction may create a significant effect on
the availability or accessibility of health care services to the
affected community and whether the transaction is in the public
interest. The department may contract with experts or consultants to
assist in reviewing the proposed transaction and shall be entitled to
reimbursement from the applicant for reasonable and necessary costs
to the department arising from this subdivision.  The department
shall also consult with the Attorney General in implementing this
subdivision. 
   (c) The department may also require the entity described in
subdivision (a) to furnish other information or documents for the
proper administration and enforcement of the licensing laws.
  SEC. 2.  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.