BILL ANALYSIS Ó
SB 957
Page 1
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:
SB 957
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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
SB 957
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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