Amended in Senate April 14, 2016

Senate BillNo. 957


Introduced by Senator Hueso

(Coauthors: Senators Hill and Wolk)

February 4, 2016


An act to amend Section 32132.5 of the Health and Safety Code, relating to health care districts.

LEGISLATIVE COUNSEL’S DIGEST

SB 957, as amended, Hueso. Health care districts: design-build process.

Existing law authorizes the Sonoma Valley Health Care District and, until January 1, 2025, the Marin Healthcare District, to use the design-build process when contracting for the construction of a building or improvements directly related to a hospital or health facility building at the Sonoma Valley Hospital or the Marin General Hospital. Existing law sets forth the procurement process for design-build projects, as specified, and requires specified information by submitted design-build entities to be verified under penalty of perjury.

This bill would instead authorize, until January 1, 2025, any health care district to use the design-build process when contracting for the construction of a hospital or health facility building. Because the bill would expand the application of the procurement process to additional design-build entities, the bill would expand the crime of perjury, thereby imposing 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:

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SECTION 1.  

The Legislature finds and declares all of the
2following:

3(a) Utilizing a design-build contract requires a clear
4understanding of the roles and responsibilities of each participant
5in the process.

6(b) Cost benefits for health care districts are achieved by shifting
7liability and risk for cost containment and project completion to
8the design-build entity.

9(c) It is the intent of the Legislature that the design-build process
10be used by health care districts solely for buildings associated with
11hospitals and health care facilities, including clinics and skilled
12nursing facilities, and not for other infrastructure, including, but
13not limited to, streets, highways, public rail transit, roads, bridges,
14other water resources facilities, and related infrastructure.

15

SEC. 2.  

Section 32132.5 of the Health and Safety Code, as
16amended by Section 4 of Chapter 931 of the Statutes of 2014, is
17amended to read:

18

32132.5.  

(a) Notwithstanding Section 32132 or any other law,
19upon approval by its board of directors, a health care district may
20use the design-build procedure described in Chapter 4
21(commencing with Section 22160) of Part 3 of Division 2 of the
22Public Contract Code to assign contracts for the construction of a
23building or improvements directly related to construction of a
24hospital or health facility building.

25(b) For purposes of this section, except where the context
26otherwise requires, all references in Chapter 4 (commencing with
27Section 22160) of Part 3 of Division 2 of the Public Contract Code
28to “local agency” shall meanbegin delete theend deletebegin insert aend insert health care districtbegin insert that owns
29or operates a hospital or clinicend insert
and its board of directors.

30(c) A hospital building project utilizing the design-build process
31authorized by subdivision (a) shall be reviewed and inspected in
32accordance with the standards and requirements of the Alfred E.
P3    1Alquist Hospital Facilities Seismic Safety Act of 1983 (Chapter 1
2(commencing with Section 129675) of Part 7 of Division 107).

3(d) Except as provided in this section, this section shall not be
4construed to affect the application of any other law.

5(e) This section shall remain in effect only until January 1, 2025,
6and as of that date is repealed.

7

SEC. 3.  

No reimbursement is required by this act pursuant to
8Section 6 of Article XIII B of the California Constitution because
9the only costs that may be incurred by a local agency or school
10district will be incurred because this act creates a new crime or
11infraction, eliminates a crime or infraction, or changes the penalty
12for a crime or infraction, within the meaning of Section 17556 of
13the Government Code, or changes the definition of a crime within
14the meaning of Section 6 of Article XIII B of the California
15Constitution.



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