AB 1882

AB1882:v98#DOCUMENT

Bill Start

CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION

Assembly Bill

No. 1882

An act to amend Section 11834.23 of the Health and Safety Code, relating to alcohol and other drug treatment facilities. add and repeal Chapter 6.3 (commencing with Section 127650) of Part 2 of Division 107 of the Health and Safety Code, relating to hospitals.

LEGISLATIVE COUNSEL'S DIGEST

AB 1882, as amended, Ellis. Alcohol and other drug treatment facilities. Safe Delivery Fund Pilot Program.

Existing law establishes the Department of Health Care Access and Information to oversee and administer various health programs, including, among others, the California Reproductive Health Equity Program. Under existing law, this program provides grant funding to safety net providers of abortion and contraception services to offset the costs of providing uncompensated care to patients with low incomes who would otherwise lack access to care. Existing law establishes the California Reproductive Health Equity Fund, and, within the limits of funds available, authorizes the department to award grants that, in the department’s judgment, best promote the purposes of the program.This bill would establish the Safe Delivery Fund Pilot Program, until January 1, 2030, which would be administered by the department to provide funding to hospitals to offset uncompensated standby costs associated with maintaining specialty physician coverage, advanced practice provider coverage, and hospital staffing necessary to safely provide deliveries and related inpatient specialty services. The bill would require a hospital to meet specified requirements to qualify for the program, including, among other things, that the hospital can demonstrate that the hospital serves a geographically isolated population and that loss of obstetric services would significantly impact access to maternity care.This bill would establish the Safe Delivery Fund, and would require moneys in the fund to be available, upon appropriation by the Legislature, to the department for the purposes of the program. The bill would require the hospital to use the funds from the program for salaries, benefits, insurance, contracted physician compensation, contracted advanced practice provider compensation, or other expenses attributable to maintaining standby clinical capacity. The bill would require the program to reimburse a hospital quarterly based on the number of deliveries performed per day using a specified schedule. The bill would prohibit the department from awarding a hospital more than $5,000,000 per year.This bill would require a participating hospital, by April 1, 2027, and quarterly thereafter, to submit to the department specified data, including, among other things, maintenance of specialty staffing and service availability. The bill would authorize the department to conduct annual audits or program reviews, as specified. The bill would require a hospital to meet all of the program requirements for continued participation in the program.

Existing law declares that it is the policy of the state that each county and city permit and encourage the development of sufficient numbers and types of alcohol or other drug abuse recovery or treatment facilities as are commensurate with local need. Existing law requires an alcohol or other drug abuse recovery or treatment facility that serves 6 or fewer persons to be considered a residential use of property for the purposes of local regulation, regardless of whether or not unrelated persons are living together.

This bill would make a technical, nonsubstantive change to these provisions.

Digest Key

Vote: MAJORITY Appropriation: NO Fiscal Committee: NOYES Local Program: NO

Bill Text

The people of the State of California do enact as follows:

SECTION 1.

Chapter 6.3 (commencing with Section 127650) is added to Part 2 of Division 107 of the Health and Safety Code, to read:

CHAPTER 6.3. Safe Delivery Fund Pilot Program127650. (a) The Safe Delivery Fund Pilot Program is hereby established within the Department of Health Care Access and Information. The department shall administer the program.(b) The purpose of the program is to provide funding to hospitals that support standby capacity in a hospital for all of the following specialty services:(1) Inpatient general surgery.(2) A licensed labor and delivery inpatient unit with nursery beds.(3) Inpatient pediatrics capability.(c) To qualify for the program, a hospital shall meet all of the following:(1) Maintain 24-hours-per-day, 7-days-per-week, 365-days-per-year clinical readiness to provide the services described in subdivision (b) consistent with state and federal licensing and certification requirements.(2) Be a critical access hospital that provides obstetric services.(3) Be located at least 75 miles from the nearest tertiary hospital.(4) Perform no more than 225 inpatient surgeries annually.(5) Maintain active licensure with the State Department of Public Health and certification with the federal Centers for Medicare and Medicaid Services.(6) Maintain a valid Medi-Cal contract, including participation with the county-designated Medi-Cal managed care plans, as applicable.(7) Demonstrate that the hospital serves a geographically isolated population and that loss of obstetric services would significantly impact access to maternity care.(d) A hospital shall use the funds from the program for salaries, benefits, insurance, contracted physician compensation, contracted advanced practice provider compensation, or other expenses attributable to maintaining standby clinical capacity.127651. (a) The Safe Delivery Fund is hereby established.(b) The primary purpose of the fund is to offset uncompensated standby costs associated with maintaining specialty physician coverage, advanced practice provider coverage, and hospital staffing necessary to safely provide deliveries and related inpatient specialty services.(c) (1) Moneys in the fund shall be available, upon appropriation by the Legislature, to the department for the purposes of this chapter.(2) The department shall not award a hospital more than five million dollars ($5,000,000) per year.127652. (a) On an annual basis, the department shall calculate standby costs, in consultation with providers, using the hospital’s prior-year Medicare or Medi-Cal cost report, and shall be composed of all of the following:(1) Medicare cost-based reimbursement.(2) Reimbursement from any other cost-based payer.(3) Federal disproportionate share hospital payments attributable to the covered specialty services, as specified by the department.(b) The department may calculate standby costs per delivery using a time-study methodology and relative value units, or another allocation methodology established by the department.(c) The program shall reimburse a hospital quarterly based on the number of deliveries performed per day, using the following schedule:(1) Twenty five thousand dollars ($25,000) for zero deliveries.(2) Eighteen thousand five hundred dollars ($18,500) for one delivery.(3) Twelve thousand dollars ($12,000) for two deliveries.(4) Five thousand five hundred dollars ($5,500) for three deliveries.(5) Zero dollars ($0) for four or more deliveries.(d) The department may conduct audits of a participating hospital’s cost reports.127653. (a) By April 1, 2027, and quarterly thereafter, a participating hospital shall submit to the department all of the following data:(1) Number of deliveries performed per day.(2) Maintenance of specialty staffing and service availability.(3) Quality metrics, including at minimum three maternal and infant quality indicators to be specified by the department.(4) Verification of costs using annual Medicare or Medi-Cal cost reports.(b) The department may conduct annual audits or program reviews to ensure both of the following:(1) Funds are used to maintain standby specialty service capacity.(2) Hospitals continue to meet eligibility criteria and quality requirements.(c) A hospital shall meet all of the program requirements for continued participation in the program.127654. This chapter shall remain in effect only until January 1, 2030, and as of that date is repealed.

SECTION 1.Section 11834.23 of the Health and Safety Code is amended to read:

11834.23.

(a)Whether or not unrelated persons are living together, an alcohol or other drug recovery or treatment facility that serves six or fewer persons shall be considered a residential use of property for the purposes of this article. In addition, the residents and operators of the facility shall be considered a family for the purposes of any law or zoning ordinance that relates to the residential use of property pursuant to this article.

(b)For the purpose of all local ordinances, an alcohol or other drug recovery or treatment facility that serves six or fewer persons shall not be included within the definition of a boarding house, rooming house, institution or home for the care of minors, the aged, or persons with mental health disorders, foster care home, guest home, rest home, community residence, or other similar term that implies that the alcohol or other drug recovery or treatment home is a business run for profit or differs in any other way from a single-family residence.

(c)This section does not forbid a city, county, or other local public entity from placing restrictions on building heights, setback, lot dimensions, or placement of signs of an alcohol or other drug recovery or treatment facility that serves six or fewer persons as long as the restrictions are identical to those applied to other single-family residences.

(d)This section does not forbid the application to an alcohol or other drug recovery or treatment facility of a local ordinance that deals with health and safety, building standards, environmental impact standards, or any other matter within the jurisdiction of a local public entity. However, the ordinance shall not distinguish alcohol or other drug recovery or treatment facilities that serve six or fewer persons from other single-family dwellings or distinguish residents of alcohol or other drug recovery or treatment facilities from persons who reside in other single-family dwellings.

(e)A conditional use permit, zoning variance, or other zoning clearance shall not be required of an alcohol or other drug recovery or treatment facility that serves six or fewer persons that is not required of a single-family residence in the same zone.

(f)Use of a single-family dwelling for purposes of an alcohol or other drug recovery facility serving six or fewer persons shall not constitute a change of occupancy for purposes of Part 1.5 (commencing with Section 17910) of Division 13 or local building codes. However, this section does not supersede Section 13143 or 13143.6, to the extent those sections are applicable to alcohol or other drug recovery or treatment facilities serving six or fewer residents.