BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 852
                                                                  Page  1

          Date of Hearing:   May 1, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    AB 852 (Quirk) - As Amended:  April 16, 2013 

          Policy Committee:                              HealthVote:18-1

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill requires the Office of Statewide Health Planning and  
          Development (OSHPD) to meet reasonable timeframes for review and  
          approval of skilled nursing facility (SNF) construction,  
          alteration, or addition projects. Specifically this bill:

          1)Requires OSHPD to develop the timeframes in conjunction with  
            stakeholders.

          2)Increases the maximum filing fee OSHPD may assess SNFs for  
            construction projects, from 1.5% of total project cost, to 2%.  


          3)Increases the project cost threshold, for the purpose of  
            OSHPD's authority to exempt a SNF construction project from  
            the plan review process, from $50,000 to $100,000.   

           FISCAL EFFECT  

          1)Initial and ongoing fee-supported costs to OSHPD in the range  
            of $200,000 to $300,000 for increased staff to work with  
            stakeholders and design professionals on the OSHPD review  
            process, monitor submissions and publish design standards.

          2)This bill contains an appropriation because the filing fee  
            increase applies to fees continuously appropriated to the  
            Hospital Building Fund.

           COMMENTS  

           Rationale  . This bill's sponsor, the California Association of  
          Health Facilities (CAHF), asserts OSHPD's review of renovation  








                                                                  AB 852
                                                                  Page  2

          and compliance projects is a source of significant frustration  
          for the skilled nursing provider community. Repetitive reviews  
          at the local and state levels lengthen the review process.  In  
          addition, project cost thresholds for an exemption, currently  
          set at $50,000, are too low to cover small projects such as the  
          replacement of a generator or a kitchen oven, which can cost  
          more than $70,000. Removing some of the barriers for facilities  
          to make changes to physical plants efficiently will allow for  
          improvements in care delivery.

          Other supporters of this bill include construction industry  
          representatives and the Congress of California Seniors.


           Analysis Prepared by  :    Debra Roth / APPR. / (916) 319-2081