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 ----------------------------------------------------------------- |Policy |Local Government |Vote:|9 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- 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 Page 2 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." SB 957 Page 3 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 Page 4 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