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WHAT'S NEW IN OCTOBER

CEO MESSAGE


ACHD would like to congratulate all of the 2024 Annual Award Nominees. Their extraordinary dedication to serving their communities was apparent in each nomination submission. Fallbrook Regional Health District received the award for District of the Year.  JoDee Read, Plumas District Hospital, received the CEO of the Year award, and Carol Rogers, Desert Healthcare District and Foundation, took home the Trustee of the Year Award. 


On the legislative front, by now, hopefully, everyone is aware that the Governor signed ACHD's top priority support bill, AB 869. AB 869 provides up to a 5-year delay for small, rural, critical access, district hospitals, and distressed hospital loan recipients, to comply with the 2030 seismic mandate. ACHD will be working with HCAI to ensure that hospitals have the appropriate guidance needed to comply with the provisions of the bill as they seek extensions. In addition, ACHD will also be offering educational tools and webinars to help hospitals better understand the bill and how to comply. ACHD was the lead supporter of the bill. While we recognize continued work is needed in this space, we are pleased with the positive outcome resulting from the hard work of all stakeholders, the Legislature, the Administration, and HCAI, who came together to assist the state's most at-risk hospitals.


Also, as a reminder, SB 525, the health care minimum wage bill officially takes effect October 16th. We wanted to flag for you that the Labor Commissioner’s Health Care Minimum Wage Supplemental Wage Order must be posted no later than October 16, 2024. This should be posted anywhere you currently post Wage Order 4 or 5 and other employee notices and must be posted in the language you normally use to communicate employment-related information to workers. Should you have questions regarding this please contact Sarah Bridge at sarah.bridge@achd.org.


Our thanks to all who made the time to attend ACHD’s 72nd Annual Meeting. Please check out some of the great photos from this year’s event. And mark your calendars for ACHD’s 73rd (did I just type that?) Annual Meeting, September 24-26, 2025, in beautiful San Diego, at the Sheraton San Diego Hotel & Marina!

With gratitude,



Legislative Update

ACHD Advocate Leg Update:


The Legislature remains in a special session. As ACHD noted previously, the Assembly has been in a special session related to oil and gas prices since the final day of the regular legislative session. The Senate, originally declining to participate in the special session, returned to Sacramento last week to begin their work in this space.


As a reminder, the Legislature will return to swear in new members on December 2, 2024, and session will reconvene for the first year of a two year session, the first week of January.


For those who missed ACHD’s End of Session Legislative Update, A complete report regarding ACHD bills with positions can be found here. To assist in reading the report please note that "Chaptered" means that it was signed by the Governor.

 

Bills Of Note:

 

Below are some bills of note, including additional measures that ACHD did not position on, that may be of interest.


SB 399 (Wahab): Employer Communications - Signed

Prohibits an employer from subjecting, or threatening to subject, an employee to discharge, discrimination, retaliation, or any other adverse action because the employee declines to attend an employer-sponsored meeting or affirmatively declines to participate in, receive, or listen to any communications with the employer or its agents or representatives, the purpose of which is to communicate the employer’s opinion about religious or political matters and would require an employee who refuses to attend a meeting as described to continue to be paid, as specified. The bill would impose a civil penalty of $500 on an employer who violates these provisions. - ACHD Oppose

 

SB 1220 (Limon): Public benefits contracts: phone operator jobs - Vetoed

The bill would have significantly limited the ability of any public agency from utilizing AI or artificial decision making in their facilities. While specifically related to call centers surrounding enrollment in public benefit programs, the bill as drafted, was significantly expansive and would have applied to all health care district systems utilizing advanced technology. - ACHD Oppose

 

AB 3129 (Wood): Health care system consolidation - Vetoed

The bill would have subjected a wide range of health care transactions that involve private equity groups to review by the Attorney General (AG). - ACHD Neutral

 

AB 869 (Wood): Hospitals: seismic safety compliance - Signed

AB 869 provides up to a 5-year delay for small, rural, critical access, and district hospitals, as well as distressed hospital loan recipients, to comply with the 2030 seismic mandate. - ACHD High Priority Support


SB 1432 (Caballero): Health Facilities: seismic standards - Vetoed

SB 1432 would have offered all hospitals a 5-year extension to the 2030 Seismic Mandate. The bill was vetoed by the Governor who noted that a five-year extension was too significant and that extensions should be granted on a limited case-by-case basis. - ACHD Support


AB 2339 (Aguiar-Curry): Medi-Cal Telehealth- Vetoed

AB 2339 would have allowed certain Medi-Cal patients to be established asynchronously for certain reproductive services. In his veto message the Governor sited the work of the Telehealth Advisory Group and Department of Health Care Services in this space. - ACHD Support


SB 729 (Menjivar): Health care coverage: treatment for infertility and fertility services- Signed

SB 729 was signed by the Governor and requires health care service plans and disability insurance policies issued or amended after July 1, 2025, to provide coverage for the diagnosis and treatment of infertility and fertility services. Prior to this legislation, most commercial insurance companies refused to offer coverage for IVF or other fertility services. - ACHD Watch

 

A complete report regarding ACHD bills, with positions, can be found here. To assist in reading the report please note that "Chaptered" means that it was signed by the Governor.


Ballot Propositions:



As previously reported, ACHD has adopted a support position on two ballot Propositions. Details regarding these positions is below. As a reminder, healthcare districts are prohibited from adopting formal support or opposition positions on ballot measures.


Proposition 5: Lowering the Super Majority Requirements for Local Bonds

Would amend the California constitution by lowering the required threshold to 55% for any borrowing to fund affordable housing construction, down payment assistance programs and a host of “public infrastructure” projects, including those for water management, local hospitals and police stations, broadband networks, and parks.


Supporters include the California Democratic Party, California State Building and Construction Trades Council, AIDS Healthcare Foundation, California YIMBY, California Labor Federation, League of Women Voters.


Opponents of the bill include California Chamber of Commerce, California Taxpayers Association and National Federation of Independent Business.


According to a September 2024 PPIC Poll - Amongst likely voters 49% would vote yes; 50% would vote no and 1% are undecided. A total of $5 million has been raised in support and $29.7 million has been raised in opposition. This includes monetary and non-monetary contributions.

 

Proposition 35: Managed Care Organization Tax

Proposition 35 would require the state to spend the money from a tax on health care plans, on Medi-Cal, the public insurance program for low- income Californians, and people with disabilities. The revenue would go to primary and specialty care, emergency services, family planning, mental health and prescription drugs. It would also prevent legislators from using the tax revenue to replace existing state Medi-Cal spending. Over the next four years, it is projected to generate upwards of $35 billion.


Earlier this year, Gov. Gavin Newsom proposed using the tax revenue to cover other Medi-Cal program expenses, walking back a deal to support new investments. Supporters include California Medical Association, Planned Parenthood, California Hospital Association, California Dental Association, California Primary Care Association, California Democratic Party, California Republican Party.


Opponents include the league of Women Voters of California, California Pan-Ethnic Health Network, The Children’s Partnership, California Alliance for Retired Americans, Courage California


According to a September 2024 PPIC Poll - Amongst likely voters 63% would vote yes; 43% would vote no and 2% are undecided. A total of $80.9 million has been raised in support. This includes monetary and non-monetary contributions.

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