BILL ANALYSIS Ó 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