AB448 - California Health Facilities Financing Authority Act: nondesignated hospitals: loan repayment.

Amended IN Assembly April 21, 2025 CALIFORNIA LEGISLATURE— 2025–2026 REGULAR SESSION Assembly Bill No. 448 Introduced by Assembly Member Patel (Coauthor: Assembly Member Jeff Gonzalez) (Coauthors: Senators Jones, Padilla, and Weber Pierson) February 06, 2025 An act to add Section 1562.015 to the Health and Safety Code, relating to public social services. An act to add Chapter 5 (commencing with Section 129400) to Part 6 of Division 107 of the Health and Safety Code, relating to health facilities financing, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGEST AB 448, as amended, Patel. Short-term residential therapeutic program: requirements. California Health Facilities Financing Authority Act: nondesignated hospitals: loan repayment. Under existing law, the California Health Facilities Financing Authority Act (act) authorizes the California Health Facilities Financing Authority to, among other things, make loans from the continuously appropriated California Health Facilities Financing Authority Fund to participating health institutions, as defined, for financing or refinancing the acquisition, construction, or remodeling of health facilities. Under the act, the authority is authorized to issue revenue bonds to provide the funds for achieving these purposes. Existing law appropriates $40,000,000 to provide cashflow loans to nondesignated public hospitals, as needed, due to the financial impacts of the COVID-19 public health emergency. Existing law requires the nondesignated public hospitals participating in this loan program to repay and discharge the loan within 24 months of the date of the loan. This bill would extend the repayment requirements for nondesignated public hospitals participating in the loan program that had received a loan approval from, and entered into a loan and security agreement with, the authority by requiring those hospitals to begin monthly repayments on the loan 32 months after the date of the loan, and discharge the loan within 60 months of the date of the loan, as prescribed. The bill would require the monthly payments to be amortized over the term of the loan, at 0% interest. By removing restrictions limiting the expenditure of moneys appropriated for purposes of these loans, the bill would make an appropriation. Existing law, the California Community Care Facilities Act, provides for the licensure and regulation of community care and residential facilities, including short-term residential therapeutic programs, by the State Department of Social Services. A violation of the act is a misdemeanor. Existing law defines “short-term residential therapeutic program” as a residential facility licensed by the department and operated by any public agency or private organization that provides an integrated program of specialized and intensive care and supervision, services and supports, treatment, and short-term, 24-hour care and supervision to children, including foster children. Existing law requires a short-term residential therapeutic program to follow the requirements applicable to group homes, and to have national accreditation from an entity identified by the department pursuant to a specified process. Existing law requires a short-term residential therapeutic program to prepare and maintain a current, written plan of operation including, among other things, a statement of purposes and goals and a detailed program statement. This bill additionally would require a short-term residential therapeutic program to ensure that at least one parent, or a legal guardian, will be residing at single, physical address within the state for the duration of the child’s or youth’s treatment. The bill also would require the short-term residential therapeutic program to ensure that a child or youth residing in the program facility is at all times able to make confidential telephone calls to their parent or legal guardian, as specified, and has access at all times to appropriate footwear that is suitable to be worn outdoors. The bill would require the short-term residential therapeutic program to post these requirements on its internet website. The bill would subject the short-term residential therapeutic program to civil penalties for violating those requirements, or license suspension or revocation if the violation causes harm to a child’s or youth’s health or safety. The bill would require the department to adopt regulations to implement, interpret, or make specific the bill’s requirements. Because a violation of the bill’s requirements by a short-term residential therapeutic program would be a crime, the bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. Digest Key Vote: MAJORITY 2/3 Appropriation: NO YES Fiscal Committee: YES Local Program: YES NO Bill Text The people of the State of California do enact as follows: SECTION 1. Chapter 5 (commencing with Section 129400) is added to Part 6 of Division 107 of the Health and Safety Code, to read: CHAPTER 5. Health Facility Grants and Loans 129400. The following definitions apply for purposes of this section: (a) “Authority” means the California Health Facilities Financing Authority. (b) “Nondesignated public hospital” means a public hospital as that term is defined in subdivision (l) of Section 14165.55 of the Welfare and Institutions Code, excluding those affiliated with county health systems. 129401. (a) The authority shall extend the repayment period as described in subdivision (b) for nondesignated public hospitals participating in the loan program authorized under Provision (1) of Item 0977-101-0001 of Section 2.00 of the Budget Act of 2022 (Chapter 45 of the Statutes of 2022) that had received a loan approval from, and entered into a loan and security agreement with, the authority, and that the authority has determined were unable to repay their loan by the time required under the loan and security agreement. (b) Notwithstanding Provision (1)(e) of Item 0977-101-0001 of Section 2.00 of the Budget Act of 2022 (Chapter 45 of the Statutes of 2022) and any other law to the contrary, a nondesignated public hospital participating in the loan program described in subdivision (a) that had received a loan approval from, and entered into a loan and security agreement with, the authority shall be required to begin monthly repayments on the loan 36 months after the date of that loan, and shall discharge the loan within 60 months of the date of that loan. The monthly payments shall be amortized over the term of the loan, at 0 percent interest. There shall be no prepayment penalty. (c) Except as provided in subdivision (b), this section shall not be construed to amend or otherwise affect the requirements of, or the authorities conferred to implement, the loan program pursuant to Provision (1) of Item 0977-101-0001 of Section 2.00 of the Budget Act of 2022 (Chapter 45 of the Statutes of 2022). SECTION 1. Section 1562.015 is added to the Health and Safety Code , to read: 1562.015. (a) In addition to the requirements of Section 1562.01, a short-term residential therapeutic program shall do all of the following: (1) Prior to accepting a child or youth for treatment, ensure that at least one parent, or a legal guardian, will be residing at single, physical address within the state for the duration of the child’s or youth’s treatment. (2) Ensure that a child or youth residing in the program facility is at all times able to make confidential telephone calls to their parent or legal guardian. This requirement is subject to waiver by the department, the short-term residential therapeutic program, or the parent or guardian. (3) Ensure that a child or youth residing in the program facility has access at all times to appropriate footwear that is suitable to be worn outdoors. (b) The short-term residential therapeutic program shall prominently post the requirements described in subdivision (a) on its internet website. (c) A short-term residential therapeutic program that violates the requirements described in subdivision (a) shall be subject to civil penalties in an amount not to exceed ____ dollars ($____) per violation per day. The total civil penalty shall not exceed ____ dollars ($____). If a violation causes harm to a child’s or youth’s health or safety, the department may also suspend or revoke the short-term residential therapeutic program’s license. (d) The department shall adopt regulations necessary to implement, interpret, or make specific the requirements of this section. SEC. 2. No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.