California 2023-2024 Regular Session Status: Passed Assembly

AB 1537 — Skilled nursing facilities: direct care spending requirement.

Last action — Ordered to inactive file at the request of Senator Stern.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2023-2024 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Existing law provides for the licensure and regulation of health facilities, including skilled nursing facilities, by the State Department of Public Health. A violation of those provisions is a crime. Existing law requires health facilities to submit specified financial reports to the Department of Health Care Access and Information. Existing law establishes the Medi-Cal program, which is administered by the State Department of Health Care Services and under which qualified low-income individuals receive health care services. This bill would require, no later than July 1, 2024, the establishment of a direct patient-related services spending, reporting, and rebate requirement for skilled nursing facilities, with exceptions. Under the direct patient-related services spending requirement, the bill would require that a minimum of 85% of a facility's total non-Medicare health revenues from all payer sources in each fiscal year be expended on residents' direct patient-related services, as defined. The bill would require a facility to report total revenues collected from all revenue sources, along with the portion of revenues that are expended on all direct patient-related services and nondirect patient-related services, to the State Department of Health Care Services by June 30 of each calendar year, with certification signed by a duly authorized official, as specified. The bill would require the State Department of Health Care Services to conduct an audit of the financial information reported by the facilities, to ensure its accuracy and to identify and recover any payments that exceed the allowed limit, as specified. The bill would require the department to conduct the audit every 3 years, at the same time as the facility's Medi-Cal audit. If a skilled nursing facility fails to comply with the direct patient-related services spending requirement, the bill would require the facility to issue a pro rata dividend or credit to the state and to all individuals and entities making non-Medicare payments to the facility for resident services, as specified. The bill would require the State Department of Health Care Services to ensure that those payments are made and to impose sanctions, as specified. The bill would also authorize the department to withhold certain payments from a skilled nursing facility licensee for failure to fully disclose information, as specified. Because a violation of these requirements 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.

Bill Text

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Action History

  1. Ordered to inactive file at the request of Senator Stern.

  2. Read second time. Ordered to third reading.

  3. Ordered to second reading.

  4. From inactive file.

  5. Ordered to inactive file at the request of Senator Stern.

  6. Read second time. Ordered to third reading.

  7. From committee: Do pass. (Ayes 6. Noes 1.) (September 1).

  8. In committee: Referred to APPR suspense file.

  9. From committee: Do pass and re-refer to Com. on APPR. (Ayes 10. Noes 0.) (July 12). Re-referred to Com. on APPR.

  10. Referred to Com. on HEALTH.

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

  12. Read third time. Passed. Ordered to the Senate. (Ayes 64. Noes 2. Page 2046.)

  13. Read second time. Ordered to third reading.

  14. From committee: Do pass. (Ayes 11. Noes 1.) (May 18).

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

  16. In committee: Hearing postponed by committee.

  17. From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 0.) (April 18). Re-referred to Com. on APPR.

  18. Referred to Com. on HEALTH.

  19. From printer. May be heard in committee March 20.

  20. Read first time. To print.

Sponsors

  • Wood · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on · 4 voted No

Sponsors (1)

  • Wood

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

Do pass, but first be re-referred to the Committee on [Appropriations]

Passed 10 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Democratic 7001
Unaffiliated 3000
Republican 0001
Total 10002
% of votes cast 83%0%0%17%
How each member voted (12)
Member Party Vote
Roth — Yea
Eggman — Yea
Glazer — Yea
Gonzalez, Lena A. Democratic Yea
Hurtado, Melissa Democratic Yea
Limón, Monique Democratic Yea
Menjivar, Caroline Democratic Yea
Nguyen, Stephanie Democratic Not Voting
Rubio, Susan Democratic Yea
Wahab, Aisha Democratic Yea
Wiener, Scott D. Democratic Yea
Grove, Shannon Republican Not Voting

Official roll call →

AB 1537 Wood Assembly Third Reading

Passed 64 Yea · 2 Nay · 14 Other
Party YeaNayPresentNot Voting
Democratic 47000
Unaffiliated 16004
Republican 12010
Total 642014
% of votes cast 80%3%0%18%
How each member voted (80)
Member Party Vote
Holden — Yea
Maienschein — Yea
Rodriguez — Yea
Villapudua — Yea
Ting — Yea
Jones-Sawyer — Yea
McCarty — Yea
Rendon — Yea
Friedman — Yea
Low — Yea
Wood — Yea
Waldron — Yea
Santiago — Yea
Essayli — Not Voting
Mathis — Not Voting
Eduardo Garcia — Yea
Jim Patterson — Not Voting
Luz Rivas — Yea
Vince Fong — Not Voting
Wendy Carrillo — Yea
Addis, Dawn Democratic Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Alvarez, David Democratic Yea
Arambula, Joaquin Democratic Yea
Bains, Jasmeet Democratic Yea
Bauer-Kahan, Rebecca Democratic Yea
Bennett, Steve Democratic Yea
Berman, Marc Democratic Yea
Boerner, Tasha Democratic Yea
Bonta, Mia Democratic Yea
Bryan, Isaac G. Democratic Yea
Calderon, Lisa Democratic Yea
Carrillo, Juan Democratic Yea
Cervantes, Sabrina Democratic Yea
Connolly, Damon Democratic Yea
Fong, Mike Democratic Yea
Gabriel, Jesse Democratic Yea
Gipson, Mike A. Democratic Yea
Grayson, Timothy S. Democratic Yea
Haney, Matt Democratic Yea
Hart, Gregg Democratic Yea
Irwin, Jacqui Democratic Yea
Jackson, Corey A. Democratic Yea
Kalra, Ash Democratic Yea
Lee, Alex Democratic Yea
Lowenthal, Josh Democratic Yea
McKinnor, Tina Democratic Yea
Muratsuchi, Al Democratic Yea
Nguyen, Stephanie Democratic Yea
Ortega, Liz Democratic Yea
Pacheco, Blanca Democratic Yea
Papan, Diane Democratic Yea
Pellerin, Gail Democratic Yea
Petrie-Norris, Cottie Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Ramos, James C. Democratic Yea
Reyes, Eloise Gómez Democratic Yea
Rivas, Robert Democratic Yea
Rubio, Blanca E. Democratic Yea
Schiavo, Pilar Democratic Yea
Soria, Esmeralda Democratic Yea
Valencia, Avelino Democratic Yea
Ward, Christopher M. Democratic Yea
Weber Pierson, M.D., Akilah Democratic Yea
Wicks, Buffy Democratic Yea
Wilson, Lori D. Democratic Yea
Zbur, Rick Chavez Democratic Yea
Alanis, Juan Republican Not Voting
Chen, Phillip Republican Not Voting
Dahle, Megan Republican Not Voting
Davies, Laurie Republican Nay
Dixon, Diane Republican Not Voting
Flora, Heath Republican Not Voting
Gallagher, James Republican Nay
Hoover, Josh Republican Not Voting
Lackey, Tom Republican Not Voting
Patterson, Joe Republican Yea
Sanchez, Kate Republican Not Voting
Ta, Tri Republican Not Voting
Wallis, Greg Republican Not Voting

Official roll call →

Do pass.

Passed 11 Yea · 1 Nay · 4 Other
Party YeaNayPresentNot Voting
Democratic 9001
Unaffiliated 2001
Republican 0102
Total 11104
% of votes cast 69%6%0%25%
How each member voted (16)
Member Party Vote
Holden — Yea
Mathis — Not Voting
Wendy Carrillo — Yea
Bryan, Isaac G. Democratic Yea
Calderon, Lisa Democratic Yea
Fong, Mike Democratic Yea
Hart, Gregg Democratic Yea
Lowenthal, Josh Democratic Yea
Ortega, Liz Democratic Yea
Papan, Diane Democratic Yea
Pellerin, Gail Democratic Yea
Rivas, Robert Democratic Not Voting
Weber Pierson, M.D., Akilah Democratic Yea
Dahle, Megan Republican Nay
Dixon, Diane Republican Not Voting
Sanchez, Kate Republican Not Voting

Official roll call →

Do pass and be re-referred to the Committee on [Appropriations]

Passed 13 Yea · 0 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 9001
Democratic 3000
Republican 1001
Total 13002
% of votes cast 87%0%0%13%
How each member voted (15)
Member Party Vote
McCarty — Yea
Wood — Yea
Villapudua — Yea
Santiago — Yea
Maienschein — Yea
Waldron — Yea
Rodriguez — Yea
Boerner Horvath — Yea
Vince Fong — Not Voting
Wendy Carrillo — Yea
Aguiar-Curry, Cecilia M. Democratic Yea
Arambula, Joaquin Democratic Yea
Weber Pierson, M.D., Akilah Democratic Yea
Flora, Heath Republican Not Voting
Patterson, Joe Republican Yea

Official roll call →

Subjects

healthcare health-insurance
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Frequently asked questions

What does AB 1537 do?
Existing law provides for the licensure and regulation of health facilities, including skilled nursing facilities, by the State Department of Public Health. A violation of those provisions is a crime. Existing law requires health facilities to submit specified financial reports to the Department of Health Care Access and Information. Existing law establishes the Medi-Cal program, which is administered by the State Department of Health Care Services and under which qualified low-income individuals receive health care services. This bill would require, no later than July 1, 2024, the establishment of a direct patient-related services spending, reporting, and rebate requirement for skilled nursing facilities, with exceptions. Under the direct patient-related services spending requirement, the bill would require that a minimum of 85% of a facility's total non-Medicare health revenues from all payer sources in each fiscal year be expended on residents' direct patient-related services, as defined. The bill would require a facility to report total revenues collected from all revenue sources, along with the portion of revenues that are expended on all direct patient-related services and nondirect patient-related services, to the State Department of Health Care Services by June 30 of each calendar year, with certification signed by a duly authorized official, as specified. The bill would require the State Department of Health Care Services to conduct an audit of the financial information reported by the facilities, to ensure its accuracy and to identify and recover any payments that exceed the allowed limit, as specified. The bill would require the department to conduct the audit every 3 years, at the same time as the facility's Medi-Cal audit. If a skilled nursing facility fails to comply with the direct patient-related services spending requirement, the bill would require the facility to issue a pro rata dividend or credit to the state and to all individuals and entities making non-Medicare payments to the facility for resident services, as specified. The bill would require the State Department of Health Care Services to ensure that those payments are made and to impose sanctions, as specified. The bill would also authorize the department to withhold certain payments from a skilled nursing facility licensee for failure to fully disclose information, as specified. Because a violation of these requirements 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.
Who sponsors AB 1537?
AB 1537 is sponsored by Wood.
What is the current status of AB 1537?
This bill died with 2023-2024 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 1537?
Track AB 1537 free on One Click Politics — get push/email alerts when it moves.

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