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The California Legislature returned from Spring Recess on Monday April 6, 2026 and is now in the heart of the 2025-2026 legislative session's most significant stretch. With the April 24, 2026 deadline for policy committees to hear and report fiscal bills to their respective fiscal committees rapidly approaching, the pace in Sacramento has quickened significantly. Bills that do not clear their house of origin policy committee by that date will be held for the year. ACHD is closely monitoring a number of priority measures and has been actively engaged in hearings throughout the month. We continue to evaluate bills and anticipate engaging on several more issues in the coming months.
The full 2026 legislative calendar, including all upcoming deadlines, is available here.
Bills to note:
AB 2311 (Schiavo): ACHD Sponsored Legislation Passes Assembly Health Committee
ACHD is thrilled to report a major milestone: AB 2311 (Schiavo), ACHD's sponsored bill for the 2025-2026 session, successfully passed the Assembly Committee on Health this month. AB 2311 would authorize a district hospital to directly employ physicians and surgeons — creating an important and long-sought exemption to the general corporate practice of medicine prohibition.
The bill's passage out of Assembly Health was a meaningful step forward, and ACHD extends its sincere gratitude to Chris Bjornberg, Interim CEO of Imperial Valley Healthcare District, for providing compelling testimony in support of the bill at the hearing. His firsthand account of the operational and workforce challenges facing rural and underserved district hospitals made a clear and powerful case for why this legislation matters. ACHD is grateful for his leadership and willingness to speak on behalf of healthcare districts across California.
AB 2311 will next be heard in Assembly Business & Professions Committee on April 21, 2026.
AB 1811 (Rogers): Health Professional Shortage Area (HPSA) Designations ACHD CO-SPONSORED
Legislation focused on preserving HPSA designations and protecting the federal and state incentives that support clinician recruitment in underserved areas. The bill will be heard in Assembly Health Committee on April 21, 2026.
AB 1862 (Boerner) — Use of Taxpayer Funds Act:
ACHD UNDER REVIEW
AB 1862 would prohibit any public entity with a target on healthcare districts, from entering into a contract, lease, grant agreement, joint venture, partnership, or other arrangement with a private party that grants the private party the right to restrict or condition the use, allocation, or disbursement of taxpayer funds collected or received by the public entity.
Any contract provision that violates this prohibition and takes effect on or after January 1, 2027, would be void and unenforceable. The bill makes clear that private parties may still place conditions on the use of non-taxpayer funds in such arrangements, as long as that authority does not extend to public dollars. ACHD is in discussions with stakeholder and reviewing the provisions and impact closely.
SB 947 (McNerney) — Employment: Automated Decision Systems:
ACHD OPPOSE
SB 947 — also known as the "No Robo Bosses Act" — is a reintroduction of SB 7, which passed both chambers of the Legislature in 2025 but was vetoed by Governor Newsom. Sen. McNerney reintroduced the bill on February 2, 2026, addressing the Governor's stated concerns from his veto letter.
The bill would prohibit employers from using automated decision systems (ADS) to perform certain functions and would limit the purposes for, and manner in which, ADS may be used in employment settings. Employers would be prohibited from relying solely on an automated system for disciplinary or termination decisions and would be required to conduct a human independent investigation to corroborate any AI-generated output. See California Employment Law Report The bill also prohibits retaliation against workers who assert their rights under its provisions and authorizes the Labor Commissioner to enforce compliance.
On April 8, SB 947 passed out of the Senate Labor, Public Employment and Retirement Committee on a 3-1 vote, and was re-referred to the Senate Committee on Privacy, Data, Technology, and Consumer Protection where it will face its next hearing.
SB 1054 (Cabaldon) Better Data, Better Coverage, Better California Act:
ACHD UNDER REVIEW
Would streamline Medi-Cal eligibility verification by requiring additional employer reporting to the Employment Development Department, reducing red tape for members as work requirements are implemented.
2026-2027 California Budget:
The 2026-27 budget situation remains one of the most closely watched issues in Sacramento. As presented in January, the Governor's proposed budget carries a modest shortfall of approximately $2.9 billion in 2026-27, with projected out-year deficits growing to roughly $22 billion in 2027-28. The Legislative Analyst's Office (LAO) has characterized the underlying deficit as more significant. estimating the gap at closer to $18 billion and has urged the Legislature to begin deliberations now rather than waiting for the Governor's revised numbers.
The Governor's May Revise is expected to be released on or around May 14, 2026 and will present updated revenue projections and the Administration's proposed solutions to address the state's structural deficit. This revised budget is one of the most anticipated policy documents of the year and is expected to bring significant clarity and further difficulty on funding for healthcare, workforce programs, and rural health initiatives. ACHD will be monitoring the May Revise closely and will issue an update to members as soon as key details are available.
Helpful budget resources:
● Department of Finance: Governor's Budget Summary
● LAO 2026-27 Budget Analysis
● LAO Budget Series (ongoing)
HPSA Update — ACHD Engages with HCAI:
ACHD attended a Health Professional Shortage Area (HPSA) workshop hosted by the Department of Health Care Access and Information (HCAI) this month. The workshop provided an important opportunity to engage directly with state officials on the process, criteria, and implications of HPSA designations, which carry significant consequences for healthcare districts and the rural and underserved communities they serve. HPSA designations drive federal incentives for clinician recruitment and retention, and any changes to the designation process or criteria can have immediate workforce and financial impacts on member districts.
ACHD continues to actively work on this issue and AB 1811 (Rogers), which is specifically focused on preserving and strengthening HPSA designations in California. ACHD will keep members informed as this issue develops through both the legislative and regulatory processes.
As always, ACHD encourages member districts to stay engaged and reach out with questions. Full legislative reports and tracking information are available at achd.org.
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