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The 2025-26 legislative session is in full swing. Today marks the start of the legislative Spring Recess. Lawmakers will return on May 2 to continue their work. For the next several days legislators will be in their districts. We encourage healthcare districts to take advantage of this recess by reaching out and connecting with your elected officials while they are back home. May 16 marks the final day for policy committees to meet and May 23 marks the last day for fiscal committees to meet. For reference, the legislative calendar is available, here. ACHD is tracking just over 300 measures. We will be adopting final positions on measures over the next week.
Bills of Note
SB 632 (Arreguín) – Workers’ Compensation Presumptions for Hospital Employees
Would establish a rebuttable presumption that specific injuries in an acute care hospital setting, including infectious diseases, PTSD, musculoskeletal injuries, and cancer, arose from work. The bill passed out of Senate Labor Committee on April 9, 2025 and will now move to the Appropriations Committee. ACHD is opposed to the bill.
SB 669 (McGuire) - Rural Perinatal Unit Pilot Program
Would allow rural hospitals, as specified, to pilot the operation of a standby perinatal unit to preserve access to labor and delivery services in their communities. The measure passed out of the Senate Health Committee on April 9, 2025. ACHD is in support of the bill.
AB 533 (Flora) – Design-Build Authority Revival
Would reinstate streamlined design-build contracting for healthcare districts’ construction projects, as specified. The bill was voted out of Assembly Local Government Committee unanimously and was moved out of Assembly Appropriations Committee on April 9, 2025, on consent. The measure will now head to the Assembly floor for its final vote of the first house. ACHD is sponsoring this measure.
AB 810 (Irwin) - Internet Domain Mandates
Would requires local agencies to adopt “.gov” or “. ca.gov” domains by 2031. The bill moved out of Assembly Local Government Committee on April 9, 2025, with a 7-1 vote. ACHD will be adopting an oppose unless amended position, requesting healthcare districts be wholly exempted from the measure.
Budget
As has been noted in several new publications, California missed the March 31 federal deadline to submit Medi-Cal rate increases under Prop 35, delaying promised payments to providers serving low-income patients and forfeiting federal matching funds for Q1 2025.
Further, the state borrowed $3.4 billion from its general fund to cover Medi-Cal’s cost overruns, driven by rising prescription drug prices, expanded enrollment (due to the expansion populations including undocumented immigrants and all income eligible adults) and federal funding uncertainty.
The State anticipates the need for additional short-term borrowing in the health and human services area, further exacerbating budget pressures.
As a reminder, the Governor will present his May Revision to the budget by May 14, 2025. ACHD will be providing an update to members following this announcement. June 15, 2025, marks the final day for the legislature to pass a balanced budget. With that said, there will be several “Budget Bill Juniors” and trailer bills following the enactment of the budget framework. We also anticipate a special session on the budget will be needed if federal cuts to the Medicaid program continue.
Seismic Update
The Department of Health Care Access and Information (HCAI) has been hosting webinars as it relates to 2030 seismic compliance, relevant reporting, and the extensions under AB 869. On March 4, they hosted a webinar which is available on demand, here. The slides can be viewed, here.
HCAI will be co-hosting a webinar and questions session with ACHD on May 8, 2025, from 10:00 – 12:00 pm. The first hour will focus on a general overview that is specific to healthcare districts, the second hour will be an open forum for question, answer and discussion with HCAI. To register for the webinar please complete this form.
As always, HCAI is available to meet with districts directly. We encourage districts with questions or who need to complete seismic work, to reach out to Ali Sumer, Supervisor of Seismic Compliance Unit, at ali.sumer@hcai.ca.gov.
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