BILL ANALYSIS AB 411 Page 1 Date of Hearing: May 28, 2009 ASSEMBLY COMMITTEE ON APPROPRIATIONS Kevin De Leon, Chair AB 411 (Garrick) - As Amended: May 6, 2009 Policy Committee: Health Vote:16-1 Urgency: No State Mandated Local Program: No Reimbursable: SUMMARY This bill requires Tri-City Medical Center in Oceanside (Tri-City) to report by March 1, 2010 to the Office of Statewide Health Planning and Development (OSHPD) about the health care district's efforts to comply with the statutory seismic safety requirements and deadlines, including the reassessment of the structural performance level of the hospital and efforts to secure passage of a local bond measure to fund seismic safety efforts. FISCAL EFFECT No direct fiscal impact for OSHPD to receive a report from a hospital authorized by current law. This bill requires one hospital to report to OSHPD on information already publicly available about the facility's struggle to get financial support to complete statutory timelines and requirements with regard to seismic safety. COMMENTS 1) Rationale . This bill addresses one hospital in southern California that has put three local measures on the ballot for bond financing to support seismic safety efforts. Each measure has failed to reach the requisite super-majority voting threshold for passage. In addition, the hospital has failed to meet requirements for timeline extensions available under current law. The author is sponsoring this bill to help the hospital meet deadlines. However, it is unclear how this bill helps the hospital meet seismic requirements. 2) Hospital Earthquake Risk . Structural Performance Category-1 (SPC-1) hospital buildings pose a significant risk of collapse and a danger to the public after a strong earthquake. Under current law, SPC-1 buildings must have been AB 411 Page 2 retrofitted, replaced, or removed from acute-care service by January 1, 2008, unless a hospital has been granted an extension to 2013. According to estimates, about half of the 2,000 hospital buildings statewide are classified in the SPC-1 category and about half of SPC-1 buildings have not met or are unable meet 2008/2013 statutory deadlines due to financial constraints. Hazards United States (HAZUS) is a standardized federal earthquake loss methodology that relies on mathematical modeling along with information about building stock, economic data, local geology and location and size of potential earthquakes to estimate losses due to seismic events. Significant conclusions about the impact of HAZUS reclassification will be available during the summer of 2009. Analysis Prepared by : Mary Ader / APPR. / (916) 319-2081