Thursday, 09 May 2024

Aguiar-Curry bill to require statewide health care district oversight/transparency signed by governor

SACRAMENTO – More information about California's health care districts will soon be one mouse-click away under AB 2019, authored by Assemblymember Cecilia Aguiar-Curry (D-Winters) and signed into law yesterday by Gov. Jerry Brown.

The bill strengthens legislation last year that first established basic website postings and other requirements for these special districts that had sometimes fallen under the radar.

"As the chair of the Assembly Local Government Committee, one of my goals has been to ensure that health care districts are providing the essential health services they were created to deliver and to enable constituents to access information about them," stated Aguiar-Curry. "My Committee held an oversight hearing in 2017 that highlighted some areas where health care districts could be communicating better – especially using the internet – and we wrote a measure last year that put into action some very modest website requirements. AB 2019 advances our efforts to ensure the public can easily access information about these important public agencies."

Created near the end of World War II to address California's severe shortage of hospital beds, health care districts evolved over the years as they adapted to changing demographics and the delivery of health care services outside hospital settings.

More than one-third of California's 79 health care districts closed or sold their hospitals, moving away from their original purpose and towards services such as clinics, ambulances, preventive care, and health education.

Approximately one-fifth of health care districts no longer provide direct health care services, instead awarding grants as their sole activity.

“In a world of limited resources, the public has every right to know how their money is being spent. The vast majority of health care districts are providing valuable programs to address wellness and healthy lives from cradle to advanced age. But, we can always do better,” argued Aguiar-Curry. “Not only will transparency make funding opportunities more accessible to a larger health services community, but in the rare instances when money is not being used to its most productive purpose, the public will have the information to demand better performance.”

AB 2019 requires health care district websites to include information about the district's budget, current board members, public meetings, and specified audits and financial reports. The bill also requires health care districts to include additional components in their grant policies and to post these policies online.

The measure also requires health care districts to make available online any reviews by Local Agency Formation Commissions (LAFCO) – public agencies that provide an oversight function for health care districts – and to notify their LAFCO when filing for bankruptcy.

"At least 14 health care districts have filed for bankruptcy since 1994, and a small handful have filed more than once," Aguiar-Curry explained. "This requirement is designed to ensure appropriate oversight and accountability by local government agencies when a health care district initiates bankruptcy proceedings."

AB 2019 additionally requires health care districts that use the design-build procurement process when constructing housing to set aside at least 20% of the units for low income households, consistent with the state's affordable housing policies and goals.

"Last year, two of the state's health care districts gained a broader authority than any other local agency to use design-build – including the use of design-build for the construction of market-rate housing," Aguiar-Curry noted. "AB 2019 ensures that these districts, and any other health care districts that gain this authority in the future, must dedicate a reasonable percentage to affordable housing when exercising this relatively broad power."

The majority of AB 2019 becomes effective Jan. 1, 2019, with a delayed implementation date of January 1, 2020, for some of the grant policy requirements in order to allow health care districts adequate time to revise their policies.

Aguiar-Curry represents the Fourth Assembly District, which includes all of Lake and Napa Counties, parts of Colusa, Solano and Sonoma counties, and all of Yolo County except West Sacramento.

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