California 2025-2026 Regular Session

California Assembly Bill AB356 Latest Draft

Bill / Amended Version Filed 04/09/2025

                            Amended IN  Assembly  April 09, 2025 Amended IN  Assembly  March 17, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 356Introduced by Assembly Member PatelJanuary 30, 2025An act to add Section 1272.2 to the Health and Safety Code, relating to health facilities. and repeal Chapter 3 (commencing with Section 127575) to Part 2 of Division 107 of the Health and Safety Code, relating to health care.LEGISLATIVE COUNSEL'S DIGESTAB 356, as amended, Patel. Facility fees. Health care districts: County of San Diego.Existing law, The Local Health Care District Law, authorizes the organization, incorporation, and management of local health care districts. Existing law establishes the Department of Health Care Access and Information to oversee and administer various health programs related to health care infrastructure, such as health policy and planning, health professions development, and facilities design review and construction, among others.This bill would require the department to convene a working group to study and make recommendations regarding the provision of health care services in the northern San Diego region. The bill would require that the working group include representatives of certain health care districts and that it issue a report to the Legislature, on or before June 1, 2026, with its findings and recommendations. The bill would repeal these provisions on June 1, 2030.This bill would make legislative findings and declarations as to the necessity of a special statute for the northern region of the County of San Diego.Existing law provides for the licensure and regulation of health facilities, including general acute care hospitals, by the State Department of Public Health. Under existing law, a violation of those provisions is a misdemeanor.This bill would require the department to conduct a study on the practice of general acute care hospitals, health systems, and licensed health care providers that are billing or seeking payment from patients for a facility fee that is not covered by the patients health insurance carrier. The bill would require the department to prepare a report with the findings of the study and to submit that report to the Legislature.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Chapter 3 (commencing with Section 127575) is added to Part 2 of Division 107 of the Health and Safety Code, to read: CHAPTER 3. Health Care Districts: County of San Diego 127575. This act shall be known, and may be cited, as the Health Care Districts: County of San Diego Act.127576. (a) The Department of Health Care Access and Information shall convene a working group to study and make recommendations regarding the provision of health care services in health care districts in the northern region of the County of San Diego.(b) The working group shall include representatives of each of the following areas:(1) The Palomar Health Care District.(2) The Fallbrook Health Care District.(3) The Tri-City Health Care District.(4) The San Diego Delegation of the California Legislature.(5) The University of California hospitals.(6) Trade associations representing health care districts.(7) Trade associations representing hospitals.(8) Trade associations representing special districts.(9) Any other relevant stakeholder interests, as determined by the department.(c) This chapter does not affect or limit any other statutory, regulatory, or contractual obligations of public health care providers or health care districts operating in the San Diego region.127577. The working group established pursuant to Section 127576 shall do both of the following:(a) Review and discuss the statutory or other responsibilities of each health care district to provide health care services to the communities they serve and evaluate their capacity to meet those responsibilities.(b) Examine whether current resources, funding, and organizational structures in the northern region of the County of San Diego can fulfill the goal of providing adequate health care access to all residents, including underserved and vulnerable communities.127578. (a) The working group shall convene as soon as practicable following the operative date of this chapter.(b) On or before June 1, 2026, the working group shall submit its findings and recommendations to the California Legislature, and shall make these findings available to any relevant county or state agencies upon request.(c) (1) A report to be submitted pursuant to subdivision (b) shall be submitted in compliance with Section 9795 of the Government Code.(2) Pursuant to Section 10231.5 of the Government Code, this chapter is repealed on June 1, 2030.SEC. 2. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the uniquely integrated services provided by the local health districts of the northern region of the County of San Diego.SECTION 1.Section 1272.2 is added to the Health and Safety Code, to read:1272.2.(a)The department shall conduct a study on the practice of general acute care hospitals, health systems, and licensed health care providers that are billing or seeking payment from patients for a facility fee that is not covered by the patients health insurance carrier.(b)The department shall prepare a report with the findings of the study conducted pursuant to subdivision (a), and shall submit that report to the Legislature, in accordance with Section 9795 of the Government Code.

 Amended IN  Assembly  April 09, 2025 Amended IN  Assembly  March 17, 2025 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION Assembly Bill No. 356Introduced by Assembly Member PatelJanuary 30, 2025An act to add Section 1272.2 to the Health and Safety Code, relating to health facilities. and repeal Chapter 3 (commencing with Section 127575) to Part 2 of Division 107 of the Health and Safety Code, relating to health care.LEGISLATIVE COUNSEL'S DIGESTAB 356, as amended, Patel. Facility fees. Health care districts: County of San Diego.Existing law, The Local Health Care District Law, authorizes the organization, incorporation, and management of local health care districts. Existing law establishes the Department of Health Care Access and Information to oversee and administer various health programs related to health care infrastructure, such as health policy and planning, health professions development, and facilities design review and construction, among others.This bill would require the department to convene a working group to study and make recommendations regarding the provision of health care services in the northern San Diego region. The bill would require that the working group include representatives of certain health care districts and that it issue a report to the Legislature, on or before June 1, 2026, with its findings and recommendations. The bill would repeal these provisions on June 1, 2030.This bill would make legislative findings and declarations as to the necessity of a special statute for the northern region of the County of San Diego.Existing law provides for the licensure and regulation of health facilities, including general acute care hospitals, by the State Department of Public Health. Under existing law, a violation of those provisions is a misdemeanor.This bill would require the department to conduct a study on the practice of general acute care hospitals, health systems, and licensed health care providers that are billing or seeking payment from patients for a facility fee that is not covered by the patients health insurance carrier. The bill would require the department to prepare a report with the findings of the study and to submit that report to the Legislature.Digest Key Vote: MAJORITY  Appropriation: NO  Fiscal Committee: YES  Local Program: NO 

 Amended IN  Assembly  April 09, 2025 Amended IN  Assembly  March 17, 2025

Amended IN  Assembly  April 09, 2025
Amended IN  Assembly  March 17, 2025

 CALIFORNIA LEGISLATURE 20252026 REGULAR SESSION

 Assembly Bill 

No. 356

Introduced by Assembly Member PatelJanuary 30, 2025

Introduced by Assembly Member Patel
January 30, 2025

An act to add Section 1272.2 to the Health and Safety Code, relating to health facilities. and repeal Chapter 3 (commencing with Section 127575) to Part 2 of Division 107 of the Health and Safety Code, relating to health care.

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 356, as amended, Patel. Facility fees. Health care districts: County of San Diego.

Existing law, The Local Health Care District Law, authorizes the organization, incorporation, and management of local health care districts. Existing law establishes the Department of Health Care Access and Information to oversee and administer various health programs related to health care infrastructure, such as health policy and planning, health professions development, and facilities design review and construction, among others.This bill would require the department to convene a working group to study and make recommendations regarding the provision of health care services in the northern San Diego region. The bill would require that the working group include representatives of certain health care districts and that it issue a report to the Legislature, on or before June 1, 2026, with its findings and recommendations. The bill would repeal these provisions on June 1, 2030.This bill would make legislative findings and declarations as to the necessity of a special statute for the northern region of the County of San Diego.Existing law provides for the licensure and regulation of health facilities, including general acute care hospitals, by the State Department of Public Health. Under existing law, a violation of those provisions is a misdemeanor.This bill would require the department to conduct a study on the practice of general acute care hospitals, health systems, and licensed health care providers that are billing or seeking payment from patients for a facility fee that is not covered by the patients health insurance carrier. The bill would require the department to prepare a report with the findings of the study and to submit that report to the Legislature.

Existing law, The Local Health Care District Law, authorizes the organization, incorporation, and management of local health care districts. Existing law establishes the Department of Health Care Access and Information to oversee and administer various health programs related to health care infrastructure, such as health policy and planning, health professions development, and facilities design review and construction, among others.

This bill would require the department to convene a working group to study and make recommendations regarding the provision of health care services in the northern San Diego region. The bill would require that the working group include representatives of certain health care districts and that it issue a report to the Legislature, on or before June 1, 2026, with its findings and recommendations. The bill would repeal these provisions on June 1, 2030.

This bill would make legislative findings and declarations as to the necessity of a special statute for the northern region of the County of San Diego.

Existing law provides for the licensure and regulation of health facilities, including general acute care hospitals, by the State Department of Public Health. Under existing law, a violation of those provisions is a misdemeanor.



This bill would require the department to conduct a study on the practice of general acute care hospitals, health systems, and licensed health care providers that are billing or seeking payment from patients for a facility fee that is not covered by the patients health insurance carrier. The bill would require the department to prepare a report with the findings of the study and to submit that report to the Legislature.



## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. Chapter 3 (commencing with Section 127575) is added to Part 2 of Division 107 of the Health and Safety Code, to read: CHAPTER 3. Health Care Districts: County of San Diego 127575. This act shall be known, and may be cited, as the Health Care Districts: County of San Diego Act.127576. (a) The Department of Health Care Access and Information shall convene a working group to study and make recommendations regarding the provision of health care services in health care districts in the northern region of the County of San Diego.(b) The working group shall include representatives of each of the following areas:(1) The Palomar Health Care District.(2) The Fallbrook Health Care District.(3) The Tri-City Health Care District.(4) The San Diego Delegation of the California Legislature.(5) The University of California hospitals.(6) Trade associations representing health care districts.(7) Trade associations representing hospitals.(8) Trade associations representing special districts.(9) Any other relevant stakeholder interests, as determined by the department.(c) This chapter does not affect or limit any other statutory, regulatory, or contractual obligations of public health care providers or health care districts operating in the San Diego region.127577. The working group established pursuant to Section 127576 shall do both of the following:(a) Review and discuss the statutory or other responsibilities of each health care district to provide health care services to the communities they serve and evaluate their capacity to meet those responsibilities.(b) Examine whether current resources, funding, and organizational structures in the northern region of the County of San Diego can fulfill the goal of providing adequate health care access to all residents, including underserved and vulnerable communities.127578. (a) The working group shall convene as soon as practicable following the operative date of this chapter.(b) On or before June 1, 2026, the working group shall submit its findings and recommendations to the California Legislature, and shall make these findings available to any relevant county or state agencies upon request.(c) (1) A report to be submitted pursuant to subdivision (b) shall be submitted in compliance with Section 9795 of the Government Code.(2) Pursuant to Section 10231.5 of the Government Code, this chapter is repealed on June 1, 2030.SEC. 2. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the uniquely integrated services provided by the local health districts of the northern region of the County of San Diego.SECTION 1.Section 1272.2 is added to the Health and Safety Code, to read:1272.2.(a)The department shall conduct a study on the practice of general acute care hospitals, health systems, and licensed health care providers that are billing or seeking payment from patients for a facility fee that is not covered by the patients health insurance carrier.(b)The department shall prepare a report with the findings of the study conducted pursuant to subdivision (a), and shall submit that report to the Legislature, in accordance with Section 9795 of the Government Code.

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

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

SECTION 1. Chapter 3 (commencing with Section 127575) is added to Part 2 of Division 107 of the Health and Safety Code, to read: CHAPTER 3. Health Care Districts: County of San Diego 127575. This act shall be known, and may be cited, as the Health Care Districts: County of San Diego Act.127576. (a) The Department of Health Care Access and Information shall convene a working group to study and make recommendations regarding the provision of health care services in health care districts in the northern region of the County of San Diego.(b) The working group shall include representatives of each of the following areas:(1) The Palomar Health Care District.(2) The Fallbrook Health Care District.(3) The Tri-City Health Care District.(4) The San Diego Delegation of the California Legislature.(5) The University of California hospitals.(6) Trade associations representing health care districts.(7) Trade associations representing hospitals.(8) Trade associations representing special districts.(9) Any other relevant stakeholder interests, as determined by the department.(c) This chapter does not affect or limit any other statutory, regulatory, or contractual obligations of public health care providers or health care districts operating in the San Diego region.127577. The working group established pursuant to Section 127576 shall do both of the following:(a) Review and discuss the statutory or other responsibilities of each health care district to provide health care services to the communities they serve and evaluate their capacity to meet those responsibilities.(b) Examine whether current resources, funding, and organizational structures in the northern region of the County of San Diego can fulfill the goal of providing adequate health care access to all residents, including underserved and vulnerable communities.127578. (a) The working group shall convene as soon as practicable following the operative date of this chapter.(b) On or before June 1, 2026, the working group shall submit its findings and recommendations to the California Legislature, and shall make these findings available to any relevant county or state agencies upon request.(c) (1) A report to be submitted pursuant to subdivision (b) shall be submitted in compliance with Section 9795 of the Government Code.(2) Pursuant to Section 10231.5 of the Government Code, this chapter is repealed on June 1, 2030.

SECTION 1. Chapter 3 (commencing with Section 127575) is added to Part 2 of Division 107 of the Health and Safety Code, to read:

### SECTION 1.

 CHAPTER 3. Health Care Districts: County of San Diego 127575. This act shall be known, and may be cited, as the Health Care Districts: County of San Diego Act.127576. (a) The Department of Health Care Access and Information shall convene a working group to study and make recommendations regarding the provision of health care services in health care districts in the northern region of the County of San Diego.(b) The working group shall include representatives of each of the following areas:(1) The Palomar Health Care District.(2) The Fallbrook Health Care District.(3) The Tri-City Health Care District.(4) The San Diego Delegation of the California Legislature.(5) The University of California hospitals.(6) Trade associations representing health care districts.(7) Trade associations representing hospitals.(8) Trade associations representing special districts.(9) Any other relevant stakeholder interests, as determined by the department.(c) This chapter does not affect or limit any other statutory, regulatory, or contractual obligations of public health care providers or health care districts operating in the San Diego region.127577. The working group established pursuant to Section 127576 shall do both of the following:(a) Review and discuss the statutory or other responsibilities of each health care district to provide health care services to the communities they serve and evaluate their capacity to meet those responsibilities.(b) Examine whether current resources, funding, and organizational structures in the northern region of the County of San Diego can fulfill the goal of providing adequate health care access to all residents, including underserved and vulnerable communities.127578. (a) The working group shall convene as soon as practicable following the operative date of this chapter.(b) On or before June 1, 2026, the working group shall submit its findings and recommendations to the California Legislature, and shall make these findings available to any relevant county or state agencies upon request.(c) (1) A report to be submitted pursuant to subdivision (b) shall be submitted in compliance with Section 9795 of the Government Code.(2) Pursuant to Section 10231.5 of the Government Code, this chapter is repealed on June 1, 2030.

 CHAPTER 3. Health Care Districts: County of San Diego 127575. This act shall be known, and may be cited, as the Health Care Districts: County of San Diego Act.127576. (a) The Department of Health Care Access and Information shall convene a working group to study and make recommendations regarding the provision of health care services in health care districts in the northern region of the County of San Diego.(b) The working group shall include representatives of each of the following areas:(1) The Palomar Health Care District.(2) The Fallbrook Health Care District.(3) The Tri-City Health Care District.(4) The San Diego Delegation of the California Legislature.(5) The University of California hospitals.(6) Trade associations representing health care districts.(7) Trade associations representing hospitals.(8) Trade associations representing special districts.(9) Any other relevant stakeholder interests, as determined by the department.(c) This chapter does not affect or limit any other statutory, regulatory, or contractual obligations of public health care providers or health care districts operating in the San Diego region.127577. The working group established pursuant to Section 127576 shall do both of the following:(a) Review and discuss the statutory or other responsibilities of each health care district to provide health care services to the communities they serve and evaluate their capacity to meet those responsibilities.(b) Examine whether current resources, funding, and organizational structures in the northern region of the County of San Diego can fulfill the goal of providing adequate health care access to all residents, including underserved and vulnerable communities.127578. (a) The working group shall convene as soon as practicable following the operative date of this chapter.(b) On or before June 1, 2026, the working group shall submit its findings and recommendations to the California Legislature, and shall make these findings available to any relevant county or state agencies upon request.(c) (1) A report to be submitted pursuant to subdivision (b) shall be submitted in compliance with Section 9795 of the Government Code.(2) Pursuant to Section 10231.5 of the Government Code, this chapter is repealed on June 1, 2030.

 CHAPTER 3. Health Care Districts: County of San Diego 

 CHAPTER 3. Health Care Districts: County of San Diego 

127575. This act shall be known, and may be cited, as the Health Care Districts: County of San Diego Act.



127575. This act shall be known, and may be cited, as the Health Care Districts: County of San Diego Act.

127576. (a) The Department of Health Care Access and Information shall convene a working group to study and make recommendations regarding the provision of health care services in health care districts in the northern region of the County of San Diego.(b) The working group shall include representatives of each of the following areas:(1) The Palomar Health Care District.(2) The Fallbrook Health Care District.(3) The Tri-City Health Care District.(4) The San Diego Delegation of the California Legislature.(5) The University of California hospitals.(6) Trade associations representing health care districts.(7) Trade associations representing hospitals.(8) Trade associations representing special districts.(9) Any other relevant stakeholder interests, as determined by the department.(c) This chapter does not affect or limit any other statutory, regulatory, or contractual obligations of public health care providers or health care districts operating in the San Diego region.



127576. (a) The Department of Health Care Access and Information shall convene a working group to study and make recommendations regarding the provision of health care services in health care districts in the northern region of the County of San Diego.

(b) The working group shall include representatives of each of the following areas:

(1) The Palomar Health Care District.

(2) The Fallbrook Health Care District.

(3) The Tri-City Health Care District.

(4) The San Diego Delegation of the California Legislature.

(5) The University of California hospitals.

(6) Trade associations representing health care districts.

(7) Trade associations representing hospitals.

(8) Trade associations representing special districts.

(9) Any other relevant stakeholder interests, as determined by the department.

(c) This chapter does not affect or limit any other statutory, regulatory, or contractual obligations of public health care providers or health care districts operating in the San Diego region.

127577. The working group established pursuant to Section 127576 shall do both of the following:(a) Review and discuss the statutory or other responsibilities of each health care district to provide health care services to the communities they serve and evaluate their capacity to meet those responsibilities.(b) Examine whether current resources, funding, and organizational structures in the northern region of the County of San Diego can fulfill the goal of providing adequate health care access to all residents, including underserved and vulnerable communities.



127577. The working group established pursuant to Section 127576 shall do both of the following:

(a) Review and discuss the statutory or other responsibilities of each health care district to provide health care services to the communities they serve and evaluate their capacity to meet those responsibilities.

(b) Examine whether current resources, funding, and organizational structures in the northern region of the County of San Diego can fulfill the goal of providing adequate health care access to all residents, including underserved and vulnerable communities.

127578. (a) The working group shall convene as soon as practicable following the operative date of this chapter.(b) On or before June 1, 2026, the working group shall submit its findings and recommendations to the California Legislature, and shall make these findings available to any relevant county or state agencies upon request.(c) (1) A report to be submitted pursuant to subdivision (b) shall be submitted in compliance with Section 9795 of the Government Code.(2) Pursuant to Section 10231.5 of the Government Code, this chapter is repealed on June 1, 2030.



127578. (a) The working group shall convene as soon as practicable following the operative date of this chapter.

(b) On or before June 1, 2026, the working group shall submit its findings and recommendations to the California Legislature, and shall make these findings available to any relevant county or state agencies upon request.

(c) (1) A report to be submitted pursuant to subdivision (b) shall be submitted in compliance with Section 9795 of the Government Code.

(2) Pursuant to Section 10231.5 of the Government Code, this chapter is repealed on June 1, 2030.

SEC. 2. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the uniquely integrated services provided by the local health districts of the northern region of the County of San Diego.

SEC. 2. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the uniquely integrated services provided by the local health districts of the northern region of the County of San Diego.

SEC. 2. The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the uniquely integrated services provided by the local health districts of the northern region of the County of San Diego.

### SEC. 2.





(a)The department shall conduct a study on the practice of general acute care hospitals, health systems, and licensed health care providers that are billing or seeking payment from patients for a facility fee that is not covered by the patients health insurance carrier.



(b)The department shall prepare a report with the findings of the study conducted pursuant to subdivision (a), and shall submit that report to the Legislature, in accordance with Section 9795 of the Government Code.