2023-24 Legislation
2024 Legislation
AB 815 – Provider Credentialing. Health plans and provider credentialing pose many administrative challenges as health care providers and plans share different information depending upon the different credentialing requirements and contractual relationships.
AB 815 addresses the administrative challenges of health plan and provider credentialing by requiring the California Health and Human Services Agency to create and maintain a physician credentialing board and require the board, on or before July 1, 2027, to develop a standardized credentialing form to be used by all health care service plans and health insurers, not including specified Medi-Cal managed care contracts with the State Department of Health Care Services.
This bill was held in Senate Appropriations.
AB 869 – Small Rural and District Hospital Seismic. Current law requires that all hospitals be rebuilt or retrofitted to be capable of withstanding an earthquake by January 1, 2030; however, many rural hospitals are struggling financially and since 2010, 121 have closed across the country.
AB 869 would require the department to expand eligibility for grants for single- and 2-story general acute care hospitals located in remote or rural areas with less than 80 general acute care beds and general acute care hospital revenue of $75 million or less. It would delay the requirement to meet those and other building standards for specified general acute care hospitals until January 1, 2035, and would exempt a general acute care hospital with an SPC-4D assessment and with a certain estimated cost from those seismic safety standards if the department determines that the cost of design and construction for compliance results in a financial hardship for the hospital and certain funds are not available to assist with the cost of compliance.
The bill would also authorize a health care district that meets certain criteria to submit financial information to the department, on a form required by the department, to allow the department to determine if the health care district is financially distressed and if so, would allow the health care district to apply for a grant for the purpose of meeting those seismic safety standards.
This bill was signed by the Governor.
AB 1272 – Drought Preparedness. The increasing severity and frequency of droughts and extreme weather events in California, highlights the need for climate resiliency measures. This acknowledges the vulnerability of coastal watersheds and protects water resources while meeting the state's water needs.
AB 1272 addresses drought planning and water use in coastal watersheds in California by requiring the state board, in consultation with the Department of Fish and Wildlife, to adopt principles and guidelines for diversion and use of water in coastal watersheds during times of water shortage for drought preparedness and climate resiliency and would require that the principles and guidelines allow for the development of locally generated watershed-level plans to support public trust uses, public health and safety and the human right to water in times of water shortage.
This bill would authorize the state board to issue a cease and desist order when a diversion or use violates or threatens to violate an applicable principle or guideline adopted by the state board for the diversion and use of water in specified coastal watersheds during times of water shortage, and would authorize up to a $500-per-day civil liability for a person or entity who violates one of those principles or guidelines.
This bill was vetoed by the Governor. The veto message can be found here.
AB 1331 – Health Information Exchange. California’s Health and Human Services Data Exchange Framework is a statewide data sharing agreement that will accelerate and expand the exchange of health information among health care entities, government agencies, and social service programs.
AB 1331 moves the responsibility of the California Health and Human Services Data Exchange Framework to the Center for Data Insights and Innovation. Specifically, AB 1331 creates a board to review data sharing rules and designates Qualified Health Information Organizations based on criteria, including nonprofit status.
This bill was held in Senate Appropriations.
AB 1537 – Skilled Nursing Facilities. Almost 60 percent of skilled nursing facilities (SNFs) are owned or leased by multi-facility organizations that have developed increasingly complex corporate ownership structures. Most have separate property companies and as many as seven to eight layers of companies, holding companies and subsidiaries in control of each SNF. The complexity of interlocking corporations makes regulatory oversight more difficult and can be used to the benefit of the owners by protecting them from litigation and allows them to hide profits.
AB 1537 requires that a minimum of 85 percent of a facility’s total non-Medicare health and non-health revenues each fiscal year be expended on residents’ direct patient-related services, such as essential staffing, and increases transparency and service quality for those receiving care in skilled nursing facilities.
This bill was moved to the Senate Inactive File.
AB 1797 – California Official State Crustacean. Existing law establishes the state flag and the state’s emblems, including, the golden poppy as the official state flower, the California redwood as the official state tree, and the California gray whale as the official state marine mammal.
This bill would establish the Dungeness crab (Metacarcinus magister) as the official state crustacean. The Dungeness crab is the most abundant crab in California and is an essential part of California’s ecosystem and a significant part of the coastal economy. The Dungeness crab has long supported commercial fishing at ports up and down northern and central California and recreational crab fishing also bolsters local hospitality businesses, bringing patrons to local coastal restaurants and inns.
This bill was signed by the Governor. This was his press release:
"Today, Governor Gavin Newsom signed legislation establishing three new state symbols: the Dungeness crab as the state crustacean, the banana slug as the state slug, and the black abalone as the state seashell.
California has some of the most biodiverse environments in the world – with over 5,500 plants, animals, and other life forms. From the majestic California redwood down to the delicate California quail, every organism matters here – and it’s time we celebrated our less cuddly friends before they get too crabby. The Dungeness crab, the banana slug, and the black abalone each bring much to our state and are well deserving of this recognition.
AB 1797 by Assemblymember Jim Wood (D-Healdsburg) establishes the Dungeness crab (Metacarcinus magister) as the official state crustacean. Dungeness crab is one of the state’s oldest commercial fisheries, regulated by the Legislature since 1895, and remains a pillar of the state’s coastal economy."
AB 1918 – Trinity Public Utility District (TPUD) Exemption. The sole source of electricity produced by TPUD is water (hydroelectric). This bill would exempt a building that is constructed in the service territory of a public utility district, and that receives all of its electricity carbon free, from the building standards adopted by the Energy Commission and the California Building Standards Commission.
This bill was vetoed by the Governor.
AB 2276 – Timber Harvest Plan Exemption. Wildfires have had a catastrophic effect on our state’s residents and landscape and one way to mitigate further damage is by conducting fuel treatment on 500,000 acres every year and California is well behind that goal.
Required timber harvest plans can be costly to develop and see through the approval process. Important exemptions to these plans that further the state’s policy goal of reducing wildfire risk are set to expire. Since 2019, less than 25,000 acres have been treated through these exemptions. These exemptions need to be renewed and their use expanded in order to meet the annual goal of treating 500,000 acres.
This bill combines the existing Forest Fire Prevention and Small Timberland Owner exemptions into a single Forest Resiliency exemption, increases the size of projects from 300 acres to 500 acres, and updates environmental protections to ensure species diversity within the forests. The bill will also extend the sunset date for the Forest Resiliency exemption and structure protection exemption, to 2031.
This bill was signed by the Governor.
AB 2643 – Cannabis Cultivation-Environmental Restoration. Existing law requires the Department of Fish and Wildlife to establish the watershed enforcement program to facilitate the investigation, enforcement and prosecution of offenses relating to unlawful water diversions and other violations of the Fish and Game Code associated with cannabis cultivation. It also requires the department, in coordination with specified state agencies, to establish a permanent multiagency task force to address the environmental impacts of cannabis cultivation.
Illicit cannabis cultivation poses an immense threat to the California ecosystem and natural resources, particularly those with large-scale habitat destruction, spring and stream degradation, and the construction of unauthorized reservoirs. Additional habitat restoration is necessary to return full ecosystem benefits. AB 2643 will establish a framework for restoration projects, foster greater collaboration between state and federal agencies, and optimize the efficiency of eradication, reclamation, and restoration initiatives.
This bill was signed by the Governor.
AB 2749 – Covered California-Coverage for Striking Workers. Existing law requires Covered California to administer a program of financial assistance beginning July 1, 2023, to help Californians obtain and maintain health benefits if they lose employer-provided health care coverage as a result of a labor dispute.
To improve the process established in 2023, this bill revises various provisions of the financial assistance program, including deleting the exclusion of financial assistance received under the program from gross income, and specifying the criteria required for an individual to be qualified to receive coverage under the program. The bill would also require an employer or labor organization to notify the Exchange before employer-provided coverage is affected by a strike, lockout or labor dispute, and would authorize the Exchange to contact the employer, labor organization or other appropriate representative to identify information necessary to determine eligibility for the financial assistance program.
This bill was signed by the Governor.
AB 2902 – Organic Waste Exemptions. Previous legislation, SB 1383, established a statewide framework focused on redirecting organic waste sent to landfills, which reduces the amount of methane released into the atmosphere. While this framework can be readily adapted to dense, urban communities, more flexibility is needed for rural communities to address implementation challenges, increase local benefits and avoid costly rate increases for rural residents.
AB 2902 extends the rural exemption for organic waste collection and procurement by counties with a population under 70,000 people for an additional 10 years, but maintains the requirement for those counties to participate in the edible food recovery program. This bill also provides an organic waste compliance pathway for 12 smaller counties that contain more than 70,000 residents, and generate less than 200,000 tons of solid waste annually by allowing those counties to submit alternative organic waste management plans to CalRecycle for approval.
California is not a one-size-fits-all state with many regional differences to consider. This bill provides our rural communities with the flexibility needed to contribute to our climate goals and achieve SB 1383’s organic waste diversion objectives.
This bill was signed by the Governor.
AB 3129 – Private Equity Transactions in Health Care. AB 3129 is a bill to protect against the potentially negative impacts of private equity acquisitions in health care.
This bill does not prevent these transactions, but allows the Attorney General (AG) to review them for the potential of creating an uncompetitive marketplace that would not be in the public interest. Studies show that private equity ownership was most consistently associated with increased costs to patients or payers and mixed to harmful impacts on quality.
Private equity’s interest is in making a profit and their timeline for reselling is short – often 3 to 7 years. These transactions often use up to 80 percent debt to make the purchase and, in turn, laden the entity with that debt. And in order for them to make it profitable and attractive to buyers, they lower costs often by reducing staffing levels and limiting resources and services, such as labor and delivery and reproductive care. Consolidation of physician groups, for example, results in increased leverage with health plans where they are able to negotiate higher fees, and in turn, increasing the cost of health care.
The review process established by this bill will allow the AG to consider the impact of these transactions before providing a waiver or consent to, conditional consent to, or not consent to these transactions.
This bill was vetoed by the Governor. The veto message can be found here.
AB 3218 – Flavored Tobacco Products. State law prohibits flavored tobacco products in California, but they remain readily available throughout the state because retailers find it difficult to ensure the products they are selling are legal and approved, unflavored products.
The high rate of flavored tobacco use among youth is especially concerning. A 2023 study by the CDC indicates that among middle and high school students who use tobacco, nearly 90 percent use flavored products.
AB 3218 creates a pathway to ensuring flavored tobacco products are no longer available on the shelves of retailers and in our communities by creating an affirmative listing of unflavored tobacco products legal in California. This approach will help retailers easily determine whether a product delivered to their stores is legal or not.
Additionally, the bill authorizes the Attorney General to penalize distributors that sell illegal tobacco products and manufacturers that falsely certify their products are unflavored and authorizes law enforcement to seize illegal tobacco products.
This bill was signed by the Governor.
2023 Legislation & Actions
AB 50 – Energy Deployment & Planning. This bill was signed by the Governor. AB 50 addresses a monumental challenge customers face on the North Coast and across the state. Waiting months or even years to power homes and businesses has become the everyday reality of utility customers in California. This is disrupting development of new housing, local businesses, and even construction of critical facilities like hospitals, police departments, and schools.
To promote utility accountability and ensure Californians are not left waiting months or even years for power, AB 50 does three things. First, it establishes improvement requirements for underperforming utilities with severe backlogs of customers waiting for power. Second, it requires utilities to communicate with local governments about the location and severity of their delays. Lastly, it requires the California Public Utilities Commission to establish long-term expectations and guidelines for utilities regarding timeliness of powering up customers.
AB 242 – Critical Access Hospitals. This bill was signed by the Governor. Congress created the Critical Access Hospital (CAH) designation through the Balanced Budget Act of 1997 in response to the closures of more than 400 rural hospital during the 1980s and early 1990s. The CAH designation aimed to improve access to health care and keep essential services in rural communities by providing CAHs financial support such as cost-based reimbursement for Medicare services.
To ensure the continuation of rural hospital support, AB 242 eliminates the program's sunset, granting CAHs a permanent exemption from the ban on the corporate practice of medicine, enabling them to hire physicians. This successful exemption has been piloted twice. AB 242 is an essential step for ensuring healthcare access in rural communities.
AB 286 – Broadband Mapping. This bill was signed by the Governor. More than 80 percent of Americans agree on the need for increased transparency, wider availability, and greater equity. To increase digital access and reduce the digital divide, I have authored two bills since 2021 to improve and modernize California’s Interactive Broadband Map.
AB 286 expands upon previous legislation by directing broadband providers to submit subscriber data to the California Public Utilities Commission. This data will be utilized to create a comprehensive statewide map, which will be publicly accessible and interactive, showcasing areas with and without broadband service in California. Specifically, AB 286 proposes that the map should include details for each address in the state, such as the broadband service providers available at the address and the maximum broadband speeds they offer.
By implementing these measures, we can take significant strides towards bridging the digital divide and ensuring equal access to essential digital services for all Californians.
AB 344 – Offshore Wind. This bill was held in the Assembly Appropriations Committee and cannot move forward. In July 2022, President Biden announced an executive action to support the development of offshore wind farms. He set a bold nationwide target of procuring 30 gigawatts (GW) of offshore wind energy by 2030 and 15 GW by 2035. Shortly after, Governor Gavin Newsom fleshed out California’s role in reaching these goals by tasking the California Energy Commission with a statewide goal of developing 10 GW by 2045. Recently, several offshore wind leases were procured by various companies to build offshore wind off the coast of Northern California in Humboldt County and the Central Coast.
AB 344 would expressly authorize electrical corporations, electric service providers, and community choice aggregators to jointly enter into agreements to procure electricity generated from offshore wind facilities.
AB 541 – Post-Fire Benzene Testing. This bill was signed by the Governor. Wildfires in California have repeatedly compromised water infrastructure, causing loss of integrity, contamination, and even failure. After the 2017 Tubbs Fire, Santa Rosa determined that wildfire conditions led to its water system reaching conditions of pyrolysis, leading to benzene contamination of drinking water. In 2018, the town of Paradise also found widespread benzene contamination after the Camp Fire. However, California still does not have a common set of guidelines and expectations for testing water systems following major wildfire events. AB 541 would direct the Water Board, on or after January 1, 2024, to require a public water system, water corporation, or water district that has experienced a major wildfire event within its service territory to test its water source for the presence of benzene immediately following that major wildfire event.
AB 765 – Truth in Advertising. This bill was held in the Assembly Appropriations Committee and cannot move forward. As health care practices and various scopes of practice have evolved over the past decade, consumers options for seeking care has expanded. Due to this evolution, it is important that patients have a clear understanding of the education and training of their health care providers. Requiring health care providers to communicate and display their proper title, credentials and capabilities allows patients to make informed choices about their health care decisions protecting their safety.
AB 765 would further protect the public by ensuring health care consumers are not mislead or deceived into believing their health care provider is a physician and/or surgeon, and health care providers with advanced degrees do not confuse the public with the use of “-ologist" or "surgeon" or other similar combination of “physician-equivalent” titles.
AB 936 – Dental Students at Free Clinics. This bill was signed by the Governor. Assembly Bill 880 (Ridley-Thomas, Chapter 409, Statutes of 2015) allowed dental students in their final year at a California dental school to provide supervised care at sponsored free healthcare and dental clinics. However, this limited exemption prevented other dental students from participating in such events, hindering their ability to serve our underserved communities.
To address this issue, AB 936 aims to update AB 880 by expanding the exemption to include all dental students who have begun clinical training at a Dental Board of California-approved dental school. By doing so, more dental students will be eligible to volunteer and provide care at sponsored free health care and dental clinics.
AB 952 – Dental Insurance Plan Disclosure. This bill was signed by the Governor. In California, regulation and oversight of fully insured employee health benefit plans is split between two state departments, the Department of Managed Health Care and the California Department of Insurance.
AB 952 requires dental plans to disclose whether or not an enrollee or insured’s dental coverage is subject to regulation by the State of California. AB 952 also requires similar information on an enrollee or insured’s identification card, membership card, coverage card or other documentation of coverage.
AB 1091 – Hospital Mergers and Acquisitions. This bill is in the Assembly Health Committee. A California Health Care Foundation Issue Brief found that health care markets in the US have undergone waves of mergers and acquisitions, resulting in highly concentrated hospital markets in 95 percent of metropolitan areas by 2018. This consolidation has led to a fast growth of prices in California compared to the rest of the country.
To address this issue, AB 1091 grants the Attorney General expanded authority to approve or deny changes in ownership for nonprofit health facilities and also prohibits unfair contracting practices among health care providers, insurers, health plans and facilities.
AB 1092 – Health Plan Mergers and Acquisitions. This bill was held in the Senate Appropriations Committee and cannot move forward. The 2020 Kaiser Family Foundation brief on insurance provider consolidation found that when insurance markets consolidate, there are two main impacts. First, as insurance companies gain more market power through consolidation, they can negotiate lower prices from providers. Studies reveal that hospital prices in highly concentrated health plan markets were about 12 percent lower compared to more competitive markets. Similarly, this pattern applies to some specialists but doesn't always lead to lower premiums. The second impact is on quality and availability of services, which is often affected negatively due to the lack of market competition.
AB 1092 clarifies AB 595, which required a health care service plan that intends to merge or consolidate with, or enter into an agreement resulting in its purchase, acquisition, or control by, any entity to give notice to, and secure prior approval from, the Director of the Department of Managed Health Care. AB 1092 adds provisions to extend to health plan transactions, enabling the California Department of Managed Health Care Director to disapprove transactions that reduce competition in a health system or among specific healthcare providers, and share that information with the Attorney General.
AB 1256 – County of Humboldt Transactions and Use Taxes. This bill was signed by the Governor. Humboldt County’s Board of Supervisors voted to officially ask the state legislature to pass a bill allowing the County to put a proposed roads tax on the ballot. Humboldt County needs legislation due to parts of the city-county partnership having reached their limit with respect to how high certain taxes can go.
Specifically, the City of Eureka has reached its limit regarding additional local taxes that can be applied to sales tax. State law limits local taxes to 2 percent above the state base rate of 7.25 percent. Eureka represents more than 50 percent of sales tax revenue produced in Humboldt County, so any revenue measure would have to include them if the sales tax increase would produce significant revenue for roads.
AB 1256 would authorize the Humboldt County Board of Supervisors to impose a transactions and use tax for the support of countywide transportation programs at a rate of no more than 1 percent that would, in combination with other transactions and use taxes, exceed the above-described combined rate limit of 2 percent, if the ordinance proposing the tax is approved by the voters.
AB 1417 – Long-term care reporting process. This bill was signed by the Governor. Elder abuse is chronically underreported. For every incident reported, it’s estimated nearly 24 cases remain unreported. While there are many reasons why such abuse is not more widely reported, the current mandated reporting system in long-term care facilities undeniably adds to the problem.
AB 1417 eliminates logistical issues by creating a simple process for reporting abuse quickly. Reporters are asked to contact law enforcement (911 or a non-emergency number, if appropriate) immediately so that emergencies can be addressed urgently before submitting the written report to the same three agencies: law enforcement, the long-term care ombudsman and the state licensing agency.
AB 1489 –Compostable products. This bill was vetoed by the Governor. His veto message is shown below. For more than three decades, California law has required Cal Recycle to make efforts to reduce solid waste and promote recycling. Over time, plastic pollution has persisted, threatening wildlife, the environment, marine life, communities, and taxpayers. SB 54 (Chapter 75, Statutes of 2022), the Plastic Pollution Producer Responsibility Act, was a landmark piece of legislation advancing California towards a more sustainable future. Critically, SB 54 ensured that that covered material offered for sale, distributed, or imported in or into the state on or after January 1, 2032, is recyclable or compostable.
AB 1489 clarifies that that SB 54’s 25 percent source-reduction requirements do not apply to certified compostable products. Under AB 1489, products eligible for exemption must meet California’s carefully constructed compost standards. This clarification is needed as California transitions towards a more innovative, sustainable future.
To the Members of the California State Assembly:
I am returning Assembly Bill 1489 without my signature.
This bill would specify that compostable covered materials are not subject to the source reduction requirements of the Plastic Pollution Prevention and Packaging Producer Responsibility Act (SB 54), thereby exempting compostable plastics.
Last year, I signed SB 54 (Allen, Chapter 75, Statutes of 2022), which established a comprehensive regulatory framework and the nation's most ambitious goals to reduce single-use plastic in this state. It also set aggressive timelines for the Department of Resources Recycling and Recovery (CalRecycle) to implement a new and complex program.
While I appreciate the author's intent to support compostable materials, the changes proposed by this bill will interfere with CalRecycle's ability to meet its statutory obligations to adopt regulations by January 1, 2025, as set by the Legislature. I encourage the author and stakeholders to work with CalRecycle on the issue this bill seeks to address in the regulatory process.
For these reasons, I cannot sign this bill.
Sincerely,
Gavin Newsom
AB 1568 – Independent Living Support Rates. This bill was held in the Senate Appropriations Committee and cannot move forward. In 2019, the California Department of Developmental Services (DDS) released its Rate Study providing a roadmap to evaluate service provider rates. The study included an error when it assigned rates to instructors providing Independent Living Services (ILS).
AB 1568 would require DDS to revise and implement an equitable and cost-effective rate setting procedure for state payment of ILS. The rate will be according to specified requirements, including that ILS shall not be categorized as a community-based day program or adult day program and the rate setting procedure shall reflect the reasonable cost of ILS, as determined using the most up-to-date United States Bureau of Labor Statistics’ State Occupational Employment and Wage Estimates for California.
AB 1714 – Public utilities: broadband service providers. This bill is in the Assembly Communications & Conveyance Committee. This is the second of my two bills introduced this year with the aim of increasing digital access and reducing the digital divide. As highlighted during the COVID-19 pandemic, access to broadband has become an increasingly important in recent years. Yet, broadband providers are still failing to serve many rural and underserved urban communities. As broadband becomes more essential for Californians, providers remain under regulated.
AB 1714 would require all broadband companies to be regulated by the California Public Utilities Commission as utilities. Essential services, like electricity, natural gas and water, have long been regulated and we all know that broadband has developed into an essential service, allowing us to connect to the internet to bank, to work, to attend classes and receive health care. It is time that broadband companies be regulated similar to other essential services to ensure access, equity and competition in the market.