AB 1392 — Hospitals: procurement contracts.

Summary

Existing law requires a licensed hospital with operating expenses of $50,000,000 or more, and a licensed hospital with operating expenses of $25,000,000 or more that is part of a hospital system, to submit an annual report to the Department of Health Care Access and Information, formerly structured as the Office of Statewide Health Planning and Development, on the hospital's minority, women, LGBT, and disabled veteran business enterprise procurement efforts, as specified. Existing law imposes certain civil penalties for failure to file a report. This bill would require those hospitals to annually submit, beginning July 1, 2025, and annually by July 1 thereafter, a plan, instead of the above-described report, for increasing procurement from minority, women, LGBT, and disabled veteran business tier 1 and tier 2 enterprises. In addition to the existing required contents within the report, the bill would require the plan to include short- and long-term goals and timetables, but not quotas, for increasing procurement from those business enterprises, the methods in which the hospital resolves any issues that may limit or impede an enterprise from becoming a supplier, and planned and past implementation of relevant recommendations made by the hospital diversity commission described below, among other changes. The bill would authorize the department to review the plans for completeness. The bill would require the department to establish guidelines for hospitals to voluntarily utilize when pursuing procurement efforts, activities, or programs in accordance with these provisions. The bill would make legislative findings that each licensed hospital and hospital that is part of a hospital system that is not required to submit a plan is encouraged to voluntarily adopt one for increasing procurement from the above-described business enterprises. Existing law requires the department to convene a hospital diversity commission comprised of the public and health care, diversity, and procurement stakeholders, and sets forth the composition of the commission, including, among others, representatives of minority, women, LGBT, and disabled veteran business enterprises. Existing law prohibits the commissioners from receiving compensation for their services, but authorizes the department to reimburse them for their actual and necessary expenses, as specified. This bill would add, to the list of commissioners, a representative of a group purchasing organization, as defined, manufacturer, or vendor of goods and services for hospitals who, at the time of appointment, is a practitioner or expert in the field of supplier diversity. The bill would make other changes to the commission's structure and functions. The bill would authorize the department, upon appropriation for this purpose, to provide compensation to the commissioners for their services. The bill would require the department to undertake outreach and provide assistance, based on the commission's recommendations, to hospitals, manufacturers, vendors, or group purchasing organizations of hospital goods and services, and to minority, women, LGBT, and disabled veteran business enterprises, as specified. The bill would authorize the department, upon appropriation for this purpose, to establish and operate a clearinghouse to maintain a database, and verify the statuses, of minority, women, LGBT, and disabled veteran businesses enterprises that are prime suppliers or subcontract suppliers to hospitals or other entities in the procurement ecosystem of hospital goods and services, as specified. The bill would also make conforming changes to related provisions containing references to the above-described report and to the predecessor of the department.

Bill Text

• Chaptered 10/13/23 - Chaptered Current pdf October 13, 2023
• Enrolled 09/18/23 - Enrolled pdf September 18, 2023
• Amended 09/08/23 - Amended Senate pdf September 08, 2023
• Amended 09/01/23 - Amended Senate pdf September 01, 2023
• Amended 03/30/23 - Amended Assembly pdf March 30, 2023
• Introduced 02/17/23 - Introduced pdf February 17, 2023
• AB1392 View text html

Action History

1. October 13, 2023

   Chaptered by Secretary of State - Chapter 840, Statutes of 2023.

2. October 13, 2023

   Approved by the Governor.

3. September 21, 2023

   Enrolled and presented to the Governor at 3:30 p.m.

4. September 13, 2023

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 64. Noes 11. Page 3434.).

5. September 12, 2023

   In Assembly. Concurrence in Senate amendments pending.

6. September 12, 2023

   Read third time. Passed. Ordered to the Assembly. (Ayes 29. Noes 7. Page 2664.).

7. September 11, 2023

   Read second time. Ordered to third reading.

8. September 08, 2023

   Read third time and amended. Ordered to second reading.

9. September 05, 2023

   Read second time. Ordered to third reading.

10. September 01, 2023

    Read second time and amended. Ordered returned to second reading.

11. September 01, 2023

    From committee: Amend, and do pass as amended. (Ayes 5. Noes 2.) (September 1).

12. August 14, 2023

    In committee: Referred to APPR suspense file.

13. July 06, 2023

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 2.) (July 5). Re-referred to Com. on APPR.

14. June 07, 2023

    Referred to Com. on HEALTH.

15. May 26, 2023

    In Senate. Read first time. To Com. on RLS. for assignment.

16. May 25, 2023

    Read third time. Passed. Ordered to the Senate. (Ayes 60. Noes 10. Page 1771.)

17. May 18, 2023

    Read second time. Ordered to third reading.

18. May 18, 2023

    From committee: Do pass. (Ayes 12. Noes 3.) (May 18).

19. April 26, 2023

    In committee: Set, first hearing. Referred to APPR. suspense file.

20. April 12, 2023

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 1.) (April 11). Re-referred to Com. on APPR.

21. April 03, 2023

    Re-referred to Com. on HEALTH.

22. March 30, 2023

    From committee chair, with author's amendments: Amend, and re-refer to Com. on HEALTH. Read second time and amended.

23. March 15, 2023

    In committee: Set, first hearing. Hearing canceled at the request of author.

24. March 02, 2023

    Referred to Com. on HEALTH.

25. February 18, 2023

    From printer. May be heard in committee March 20.

26. February 17, 2023

    Read first time. To print.

Sponsors

• Rodriguez · Primary

Votes

Subjects