BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 957  


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          Date of Hearing:  August 3, 2016


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                               Lorena Gonzalez, Chair


          SB 957  
          (Hueso) - As Amended April 14, 2016


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          Urgency:  No  State Mandated Local Program:  YesReimbursable:   
          No


          SUMMARY:  This bill expands current law to allow specified  
          health care districts to use design-build contracting for the  
          construction of a hospital or health facility buildings.   
          Specifically, this bill:  










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          1)Allows, until January 1, 2025, a health care district that  
            owns or operates a hospital or clinic to use the design-build  
            procedure to construct a building or improvements directly  
            related to the construction of a hospital or health facility  
            building.



          2)Provides that a health care district must use the design-build  
            procedure that current law establishes for local agencies, as  
            specified.



          3)Requires a hospital building project using the design-build  
            process authorized by this bill to be reviewed and inspected  
            in accordance with the standards and requirements of the  
            Alfred E. Alquist Hospital Facilities Seismic Safety Act  
            (Hospital Seismic Safety Act) of 1983.



          FISCAL EFFECT:


          Negligible state fiscal impact.


          COMMENTS:


          1)Purpose. According to the author, "The Legislature has already  
            granted the design build utilization method to four healthcare  
            districts.  This bill will ensure that there is uniformity  
            among healthcare districts across all of California rather  
            than utilizing a piece-meal approach. Moreover, this will  
            effectively provide another tool for our healthcare districts  
            to utilize for project deliveries."









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          2)Background. California currently has 80 health care districts.  
             Health care districts are formed to "establish, maintain, and  
            operate health care facilities," including, but not limited to  
            hospitals.  Health care districts throughout the state need to  
            retrofit existing buildings or build new facilities in order  
            to comply with the Hospital Seismic Safety Act and are looking  
            for the most cost-effective ways to meet seismic standards. 



            The Legislature has authorized four health care districts to  
            use design-build (Sonoma Valley Health Care District, the Last  
            Frontier Health Care District, the Marin Healthcare District,  
            and the Mayers Memorial Hospital District) and has restricted  
            that authority to the construction of a building and  
            improvements directly related to a hospital or health facility  
            building.  The provisions of this bill are consistent with the  
            limitations and requirements of these prior authorizations.





          3)Previous Legislation.  



             a)   AB 1290 (Dahle), Chapter 34, Statutes of 2015, allowed  
               the Mayers Memorial Hospital District to use the  
               design-build contracting method for the construction of a  
               building or improvements directly related to construction  
               of a hospital or health facility building at the District.



             b)   SB 268 (Gaines), Chapter 18, Statutes of 2014, allowed  
               the Last Frontier Health Care District to use the  








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               design-build process when contracting for the construction  
               of a building and improvements directly related to a  
               hospital or health facility building at the Modoc Medical  
               Center.



             c)   SB 785 (Wolk), Chapter 931, Statutes of 2014, repealed  
               existing law authorizing the Department of General Services  
               (DGS), the Department of Corrections and Rehabilitation  
               (CDCR), and local agencies to use the design-build  
               procurement process, and enacted uniform provisions  
               authorizing DGS, CDCR, and most local agencies to utilize  
               the design-build procurement process for specified public  
               works projects.  SB 785 did not allow the use of  
               design-build for health care districts generally, but did  
               include a provision allowing the Marin Healthcare District  
               to use the design-build method established for local  
               agencies under SB 785 and required the Sonoma Valley Health  
               Care District to use the design-build procedure outlined in  
               SB 785, instead of its prior design-build authority.
          


          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081