Hearings

Assembly Standing Committee on Health

April 21, 2026
  • Mia Bonta

    Legislator

    Good afternoon, and welcome to the Assembly Health Committee's hearing on Tuesday, April 21. Before we begin, I wanna make sure everyone understands our committee procedures to ensure we maintain order and run a fair and efficient hearing with the goal of hearing as much from the public within the limits of our time. We seek to protect the right of all who participate in the legislative process so that we can have effective deliberation on the critical issues facing California.

  • Mia Bonta

    Legislator

    Rules of conduct by members of the public include no engaging in conduct that disrupts, disturbs, or otherwise impedes the orderly conduct of this hearing, engaging in personal attacks of members of this committee, authors, staff, or other witnesses, talking or loud noises from the audience. Please be aware that violations of these rules may subject you to removal or other enforcement processes.

  • Mia Bonta

    Legislator

    If you are providing witness testimony at this hearing, all witnesses will be testifying in person. Main support and opposition will be allowed two main witnesses for a maximum of two minutes each. As a reminder, primary witnesses and support must be those accompanying the author or who otherwise have registered a support position with the committee. And the primary witnesses in opposition must have their opposition registered with the committee per the instructions on our website.

  • Mia Bonta

    Legislator

    All other support and opposition can be stated at the standing mic when we call upon to simp you to simply state your name, affiliation, and position.

  • Mia Bonta

    Legislator

    All testimony comments are limited to the bill at hand. For special order of business today, we have in today's hearing, we'll begin with a special order of business to allow members of the committee to consider and for members of the public to express their opinions about AB 1973 by Agi or Curry. We realize that many people have traveled to Sacramento to voice their opinions and we want to hear from you. But, unfortunately, our time to hear this matter is not unlimited.

  • Mia Bonta

    Legislator

    We will dispense with the special order at 02:00 as the committee has 31 other bills to hear on the regular agenda.

  • Mia Bonta

    Legislator

    For additional housekeeping housekeeping, I would like to note item number 19 AB 2029 has been pulled from today's hearing agenda and will not be heard. I would also like to note the speaker has appointed assembly member Rogers to be a substitute for assembly member Celeste Rodriguez for today's hearing. The following bills are proposed for consent for today's hearing. Any members of the committee may remove a bill from the consent agenda.

  • Mia Bonta

    Legislator

    We have item number four, AB 1670 by Arambula with a motion of do pass as amended to appropriations.

  • Mia Bonta

    Legislator

    Item number seven, AB 1717 by Castillo with a motion of do pass as amended to appropriations. Item number eight, AB 1779 by Davies with a motion of do pass as amended to appropriations. Item nine, AB 1811 by Rogers with a motion of do pass to appropriations. Item 12, AB 1882 by Ellis with a motion of do pass to appropriations. Item 17, AB 1988 by Pellerin with a motion of do pass to appropriations.

  • Mia Bonta

    Legislator

    Item 18, AB 2,009 by Chen with a motion of do pass as amended to appropriations. Item twenty two forty by Stephanie with a motion of do pass to appropriations. Item twenty three eighty two by Patterson with a motion of do pass as amended to appropriations. Item 28, AB 2527 by Hoover with a motion of do pass to appropriations. Item number 29, AB 2538 by Macedo with a motion of do pass to appropriations.

  • Mia Bonta

    Legislator

    Item 30, AB 2565 by Wallis with a motion of do pass as amended to appropriations. And item 31, AB 2594 by Lowenthal with a motion of do pass as amended to appropriations. That confirms the consent calendar as proposed, and we will now move on to our special order of business, AB 1973 by Agi R. Curry. With abortion regarding abortion and authorized procedures, we will start as a subcommittee until we have quorum. Thank you, majority leader, whenever you're ready.

  • Cecilia Aguiar-Curry

    Legislator

    Thank you, Madam Chair and members. In the years since the Dobbs decision, California has led the nation in protecting reproductive freedom. But even with those protections, gaps in act, in access to care still remain. The reality is simple. We already have a workforce that is trained, qualified, and ready to provide this care, but they are restricted in their ability to do so.

  • Cecilia Aguiar-Curry

    Legislator

    Nurse practitioners, certified nurse midwives, and physician assistants, also known as advanced practice clinicians or APCs, receive extensive education and training. They are already safely providing a range of reproductive health services in California today. They've demonstrated their competency and training, but state law has not kept up. Current law puts outdated limits on what these providers can do regardless of their training or their patients' needs. These restrictions mean patients are turned away or forced to wait for longer care.

  • Cecilia Aguiar-Curry

    Legislator

    And for patients, delays have real consequences. Longer travel, more time off from work, higher cost, and even missing the window to receive the care altogether. AB 1973 is about fixing these issues. It updates state law to allow APCs to practice to the full extent of their training and proven competency. This bill is a common sense update, one that allows the state to fully use a skilled workforce that patients trust.

  • Cecilia Aguiar-Curry

    Legislator

    At a time when access to health care is under pressure nationwide, we should be removing barriers, not maintaining outdated ones. AB 1973 ensures patients get timely care from providers who are already trained, competent, and serving their communities. With me today, I have Dr. Tania Basu, an OB-GYN, and Asmara Gebre, excuse me, a certified nurse midwife. Welcome.

  • Mia Bonta

    Legislator

    Thank you. Go ahead. You'll have two minutes. Great.

  • Tania Basu

    Person

    Good afternoon, Chair and members of the committee. My name is Dr. Taina Basu, I'm a board-certified obstetrician-gynecologist and complex family planning specialist with over fifteen years of clinical experience, and I train and work alongside nurse practitioners, certified nurse-midwives, and PAs to provide high-quality evidence-based abortion care. I am here today in strong support of AB 1973.

  • Tania Basu

    Person

    This bill modernizes California law by explicitly including certified nurse midwives and PAs as advanced practice clinicians and by removing outdated restrictions that prevent trained APCs from providing procedural abortion care.

  • Tania Basu

    Person

    The evidence is clear. Abortion care is safe, and appropriately trained advanced practice Clinicians provide this care with the same safety, quality, and patient satisfaction outcomes as physicians. Our Clinicians at Planned Parenthood Northern California participated in the landmark research that established this fact, and APCs have safely provided abortion care in our clinics for many years. Advanced Practice Clinicians are essential to our state's reproductive health care system, especially as California faces widespread shortages of OB-GYNs and primary care physicians.

  • Tania Basu

    Person

    These shortages are most severe in rural and low income communities where people already face significant barriers to care.

  • Tania Basu

    Person

    Limiting APCs based on outdated, nonscientific rules only worsen these disparities and delays time sensitive care. We know well that in many areas of the state, there are physician shortages or fewer health care providers who are trained or willing to provide abortion care. I have personally seen patients travel two to three hours for procedural abortion care, which includes miscarriage management due to the widening maternity and abortion care deserts in our state.

  • Tania Basu

    Person

    AB 1973 removes artificial barriers, expands the capacity of California's existing trained workforce, and ensures patients receive timely evidence based care no matter where they live. I respectfully urge your support for this bill.

  • Tania Basu

    Person

    Thank you.

  • Asmara Gebre

    Person

    Good morning, Chair, members. My name is Asmara Gebre, and I'm a certified nurse-midwife with eight years of experience practicing at San Francisco General Hospital. I'm an Associate Clinical Professor at UCSF, and I'm the founder of Black Centering Group Prenatal Care in San Francisco and the founder of the Black Middletree Fellowship in California, named in tribute to black midwives who provide full scope reproductive health care, including abortion care, in this country long before it was criminalized.

  • Asmara Gebre

    Person

    The fellowship received 3,500,000 from the state to train midwives in abortion care. I am here in strong support of AB 1973. Physicians have trained me, and I have consulted with physicians throughout my entire career. That consultation is how midwifery works, and it's how AB 1973 will work.

  • Asmara Gebre

    Person

    The bill preserves consultation, referrals, and transfer protocols for care beyond the first trimester. Through the Black Midway Free Fellowship, I have provided care up to thirteen weeks and six days. I have the knowledge and the clinical foundation to be trained beyond that, but current law prohibits it. So I step back and my physician colleagues take over. The training pathway exists.

  • Asmara Gebre

    Person

    The physicians willing to train me exist. The statue is what where it stops. I'm about to launch the a midwifery led clinic, including abortion care, the first in our institution. Patients come to midwifery care for continuity, cultural concordance, for relationships that span pregnancies. If I have a patient that I need to care for and their procedure is at fourteen weeks or beyond, current law forces me to hand them off to a stranger.

  • Asmara Gebre

    Person

    Many of our patients do not need a different provider. They need continuity. The law says otherwise. AB 1973 updates outdated language, allows trained CNMs, NPs, and PAs to provide procedural abortion beyond the first trimester with physician consultation, protocols, and preserves rigorous hand on clinical training with no online shortcuts. The evidence shows that APCs provide abortions with safety and patient satisfaction equivalent to physicians.

  • Asmara Gebre

    Person

    AB 1973 aligns the law with our training. I respectfully, request that you also support this bill. Thank you.

  • Mia Bonta

    Legislator

    Thank you. We will now move to any in the hearing room who would like to offer and support. Please go ahead.

  • Angela Pontes

    Person

    Angela Pontus, on behalf of Planned Parenthood Affiliates of California, cosponsor and in support.

  • Sosan Madanat

    Person

    Good afternoon, Chair and members, Sosan Madanat, at W Strategies, here on behalf of the California Nurse Midwives Association, a proud cosponsor in support. Thank you.

  • Kasha Hunt

    Person

    Kasha Hunt with Political Solutions here on behalf of the Physicians Academy. Actually, I'm sorry. The California Academy of Physician Associates. Sorry.

  • Bethany Golden

    Person

    Bethany Golden, the Co-director of Reproductive Health Service Corps and Midwife at Teach. We are also cosponsors, and we strongly support this bill.

  • Kimberly Robinson

    Person

    Kimberly Robinson, I am with Black Women for Wellness Action Project and we are also a cosponsor and strongly support this bill.

  • Dylan Elliott

    Person

    Thank you. Dylan Elliott on behalf of the city and county of San Francisco in support.

  • Keshav Kumar

    Person

    Good afternoon, Chair and members. Keshav Kumar with Lighthouse Public Affairs on behalf of Reproductive Freedom for All, in strong support and appreciation of the author's work.

  • Kathleen Mossburg

    Person

    Chair members, Kathy Mossburg, on behalf of Essential Access Health, cosponsor, in strong support.

  • Symphoni Barbee

    Person

    Good afternoon. Symphoni Barbee on behalf of the ACLU Cal Action in support.

  • Jessica Moran

    Person

    Good afternoon. Jessica Moran, on behalf of the California Association for Nurse Practitioners, in support.

  • Jeanette Stephenson

    Person

    Jeanette Stephenson, an individual citizen of California. I support this bill and CalCare. Thank you.

  • Mia Bonta

    Legislator

    Thank you. We will move on now to any primary witnesses who are opposed to this bill. Please come forward. Thank you so much. You'll have two months, two minutes each.

  • Mia Bonta

    Legislator

    You'll have to press the button so we can hear you.

  • Mindy Hertzel

    Person

    Good afternoon, Chair and members. My name is Mindy Hertzel with Sierra Pregnancy and Health. I'm a registered nurse with a certification in inpatient obstetrics, and I'm here today to oppose AB 1973. This bill would allow mid level providers who do not have formal surgical training to perform second and third trimester abortions, procedures that carry significant medical risk and require advanced clinical judgment and experience.

  • Mindy Hertzel

    Person

    I've spent my career caring for women, many in high risk situations, and I've seen how quickly complications can arise, especially later in pregnancy.

  • Mindy Hertzel

    Person

    Second and third trimester abortions are not simple procedures. Risks include hemorrhage, infection, uterine perforation, cervical laceration, amniotic embolism, and more, all of which are life threatening. When complications occur, they escalate quickly and require immediate experienced interdisciplinary intervention. I'll never forget experiencing what it looks like to call a code on a patient experiencing an amniotic embolism.

  • Mindy Hertzel

    Person

    It took our entire unit of nurses, anesthesiologists, the hospital rapid response team, and multiple physicians experienced in labor and delivery to perform the c section, stabilize her, and transport her to critical care.

  • Mindy Hertzel

    Person

    The response was immediate and extensive. Had she not been in a facility equipped with teams of people prepared to respond to such emergencies, I hate to think of what the outcome would have been. Expanding these abortion services into a setting less prepared than that would be catastrophic. That's why this bill is so concerning. It expands who can perform higher risk procedures by lowering standards.

  • Mindy Hertzel

    Person

    When something goes wrong, it's not theoretical. It's someone's daughter, someone's partner, someone's whole future. Access should never come at the expense of safety and should never be just one option. Vulnerable patients should not receive a lower standard of care. They deserve the highest level of medical expertise, not increased exposure to risk.

  • Mindy Hertzel

    Person

    Women deserve honesty, dignity, and safe medical care, especially when the stakes are this high. Expanding these procedures to less experienced providers moves us in the wrong direction. For these reasons, I respectfully urge you to oppose AB1973. Thank you for your time.

  • Mia Bonta

    Legislator

    Thank you. Please go ahead. You'll have two minutes.

  • Greg Burt

    Person

    Chair members, my name is Greg Burt, Vice President of the California Family Council, and we are opposed to a AB 1973. Every other area of medicine holds firm on surgical training requirements. No one in this building would propose letting nurse practitioners perform cancer surgery to expand access to underserved communities. The legislature would reject that immediately. So why does abortion get special exemption?

  • Greg Burt

    Person

    What is it about this procedure that causes otherwise careful legislators to set aside their thinking and that they apply everywhere else in medicine? That brings me to another question. Why aren't we demanding that underserved women receive care at a same standard as wealthier communities? Expanding access by lowering standard is not compassion. It is telling vulnerable women they deserve less.

  • Greg Burt

    Person

    And what procedures are we expanding? Second and third trimester abortions. Public opposition to abortion sharply grows worse as pregnancy advances because the humanity of the child is harder to deny. Organ systems are formed. Many of these babies can survive outside the womb.

  • Greg Burt

    Person

    These are developed children and the methods are brutal. Expanding who performs them does not make it less troubling. It simply sears our consciences by normalizing what should normally horrify us. And finally, why is the preoccupation always with expanding abortion and not with supporting mothers who might choose differently with real help? There are more families wanting to adopt than children available.

  • Greg Burt

    Person

    Where are the bills promoting adoption? The lopsidedness of this legislature attention should trouble all of us, and that's why we observe ask for a no vote on AB 1973. Thank you.

  • Mia Bonta

    Legislator

    Thank you. We'll move now to anyone in the room who would like to register opposition to the bill. Please come forward. You'll have to indicate your name, affiliation, and your position on the bill.

  • Matt Newton

    Person

    Good afternoon. Matt Newton with, Pastor at River City Christian Church, and I strongly oppose this bill.

  • Mia Bonta

    Legislator

    Thank you. Seeing no other opposition, we will bring it back to me and you, majority leader, to be able to discuss this bill. I did want to have you address some of the concerns raised by the opposition, particularly around the training or the specific training that needs to be offered or required to actually be conducted for people, nurse midwives and qualified nurse practitioners who are seeking the ability to do these, and physician assistants who are seeking the ability to perform these abortions.

  • Mia Bonta

    Legislator

    And then if you could also and find if you want it to be in your closing, speak to the need to have NPs and CNMs actually engage in establishing consultation, collaborations, and referrals for procedures that are beyond the scope of their education, training, and experience consistent with the existing law.

  • Cecilia Aguiar-Curry

    Legislator

    Great. Thanks.

  • Tania Basu

    Person

    I can speak directly to the training since I train APCs myself. There is a really rigorous curriculum that we, that we follow, one that is published by Teach, and it is very hands-on. There's a didactics proportion, and we also review what is appropriate to the setting in which abortion care is provided and when it is appropriate to refer for higher level of care, specifically around complex cases, and when it's appropriate to consult. So all of that is very rigorous.

  • Tania Basu

    Person

    It's a lot of hands on training, a lot of proctoring, a lot of going through drills for emergency procedures and handling that.

  • Tania Basu

    Person

    So I feel very confident that the training that is provided for APC level providers. Much that surpasses, to be honest, other OB-GYNs and residency programs throughout our state. So this is a very specific type of training and a very well established curriculum that is available nationwide.

  • Cecilia Aguiar-Curry

    Legislator

    And just to jump on to that too is that just wanna remember that the bill ensures that there are protocols that are in place for the transfer of care and collaboration on it with the other medical professionals for the cases that go beyond the clinical scope, training, and experience, including any complications or situations that require high levels of care.

  • Mia Bonta

    Legislator

    Thank you. I think that it fully addresses the questions that were raised by the opposition. And I thank you, majority leader, for always bringing forward an opportunity for us to make sure that we're providing health care to all.

  • Mia Bonta

    Legislator

    And at a time when we have a reduction in health care access and an attack on our ability to offer women's health care and reproductive care to so many in the state of California, I'm very thankful that you are continuing to find opportunities for people to be able to get the care that they fully deserve. With that, would you like to close?

  • Cecilia Aguiar-Curry

    Legislator

    I would. I wanna thank, thank you very much and thank you for your team that have reviewed this bill and for the thoughtful discussion. We absolutely all share the goal of ensuring patient safety and strong coordination of care, and I'm committed to continuing conversations with stakeholders to address any remaining concerns. At its core, let's face it, this bill is about aligning our laws with reality. APCs are already trained, they're competent, and delivering this care safely.

  • Cecilia Aguiar-Curry

    Legislator

    AB 1973 simply allows these providers to do their jobs to the full extent of their training, so patients can get care when they need it. With that, I respectfully ask for your aye vote.

  • Mia Bonta

    Legislator

    Thank you. And the bill will be considered when we have a quorum.

  • Cecilia Aguiar-Curry

    Legislator

    Great.

  • Mia Bonta

    Legislator

    And for the sake of you being the only other committee member in the room, I'm gonna ask that you come back and join us on the dais Okay. If that's okay.

  • Cecilia Aguiar-Curry

    Legislator

    Sure. I can wait.

  • Mia Bonta

    Legislator

    Okay. Thank you. And in the meantime, we will hear assembly member, item number three, assembly member Arambula AB 1558. Whenever you're ready, please go ahead and start, Assemblymember.

  • Joaquin Arambula

    Legislator

    Thank you, madam chair and members. I'd like to begin by thanking the chair and the committee staff for their work on this bill. Historically, emergency responses during natural disasters and public health crises have faced challenges in efficiently integrating volunteer health professionals. Currently, the Emergency Medical Services Act, EMSA, manages emergency medicine medical planning and the state's disaster health care volunteers system.

  • Joaquin Arambula

    Legislator

    Although the state allowed a temporary work around during the Los Angeles wildfires, officials made it clear that this work around would need to be requested and approved separately for each future disaster.

  • Joaquin Arambula

    Legislator

    This case by case approach creates uncertainty and slows emergency response. This is harmful because the need for medical care is often the greatest at the very beginning of a disaster when first responders, hospitals, and local health systems are also stretched thinner. People who are injured, displaced, elderly, or living in disaster impacted areas face higher risks without care in this critical window.

  • Joaquin Arambula

    Legislator

    AB 1558 addresses this issue and enhances California's emergency response system by reducing administrative delays that prevents licensed out of state health professionals from helping in the aftermath of a disaster. Here with me to testify in support of Assembly Bill fifteen fifty eight is Sarah Cannon, the legislative counsel for Uniform Law Commission, and Deborah Harper, an RN, and the American Red Cross Regional Disaster Health Services Program Lead.

  • Mia Bonta

    Legislator

    Thank you. You'll each have two minutes.

  • Sarah Cannon

    Person

    Thank you, madam chair and members of the committee. My name is Sarah Cannon, and I am legislative counsel for the Uniform Law Commission. The Uniform Law Commission is in strong support of AB 1558 to enact the Uniform Emergency Volunteer Health Practitioners Act. This act enables the swift deployment and use of qualified volunteer health practitioners, veterinary providers, and morticians during a declared emergency while under the supervision of the Emergency Medical Services Authority.

  • Sarah Cannon

    Person

    The act was drafted by the Uniform Law Commission in response to the legal and operational failures that were exposed by Hurricanes Katrina and Rita.

  • Sarah Cannon

    Person

    During those emergencies, licensed professionals from other states were willing and able to help, but many were delayed or denied because states lacked a clear system for recognizing out of state licenses and integrating volunteers into emergency response operations. AB 1558 is best understood as a natural extension of existing state and federal law. I like to think of it as a fail safe. It does not replace the Emergency Management Assistant Compact or EMAC, and it does not displace California's current emergency authorities.

  • Sarah Cannon

    Person

    Instead, it fills a gap that EMAC does not adequately address the rapid deployment of volunteer health practitioners serving through nongovernmental organizations and relief entities, including the Red Cross, which play a vital role in emergency response.

  • Sarah Cannon

    Person

    It ensures that when California faces extraordinary demand or a catastrophic breakdown communication, qualified volunteers can be brought in quickly under clear legal rules. The act extends to volunteers who are not formally a part of a deploying state's forces the same core benefits and protection that EMAC grants those forces. So long as the volunteers are registered to recognize systems, verified as licensed and in good standing, deployed through host entities coordinating with emergency management authorities, and acting within the limits imposed by the state.

  • Sarah Cannon

    Person

    The act has been endorsed by a broad range of health care, public health, and disaster relief organizations. And to date, it has been enacted in 19 jurisdictions, including Washington and Nevada.

  • Sarah Cannon

    Person

    We request your support of AB 1558, and I welcome any questions you may have.

  • Mia Bonta

    Legislator

    Thank you so much.

  • Deborah Harper

    Person

    To the chair excuse me.

  • Deborah Harper

    Person

    To the chair and member of the committees, my name is Deborah Harper. I'm a registered nurse licensed in the state of California, and I've had the honor of serving as a volunteer with the American Red Cross for thirteen years. I am here today in strong support of AB 1558. I wanna speak to you though not just as a Red Cross volunteer, but as a California licensed health practitioner who has worked alongside colleagues from across the country in this field.

  • Deborah Harper

    Person

    I have deployed with the Red Cross to disaster responses where the scale of need far surpassed California's local capacity to respond.

  • Deborah Harper

    Person

    During those deployments, I worked alongside nurses, physicians, other licensed health practitioners from across states, all whom were skilled, credentialed professionals who showed up ready to help. What I witnessed firsthand is that in a disaster, a person in crisis does not ask which state authorized your license. They want to know that you are there to help and that you are there to care. I myself have responded to disaster events deploying more than 30 times in my volunteer role, most of those events right here in California.

  • Deborah Harper

    Person

    Whether it's been for wildfires, for atmospheric river flooding, extreme heat, or blizzards, as someone who arrives at the shelters, who has boots on the ground and sees the immediate needs of our community, of our citizens firsthand, it is very clear to me, California cannot and should not expect to face its next major emergency alone.

  • Deborah Harper

    Person

    We need to be able to quickly ramp up to have additional licensed healthcare practitioners who are disaster emergency trained who can step in quickly to aid our citizens. We need a legal structure that matches the operational reality of disaster response. Right now, California lacks a consistent streamline mechanism for authorizing qualified out of state volunteer health practitioners to provide care during declared emergencies. While well intentioned, this creates uncertainty and unneeded delays exactly when speed and decisiveness matters most.

  • Deborah Harper

    Person

    Volunteer health organizations like Red Cross already conduct rigorous primary source credentialing.

  • Deborah Harper

    Person

    We verify licenses, maintain up to date rosters, provide emergency specific training, and carry appropriate liability protections. Our volunteers don't arrive unvetted. They arrive prepared. They arrive ready to hit the ground, ready to help. However, without a clear legal framework like that provided in AB 1558, even thoroughly credentialed out of state practitioners can face ambiguity about their legal authority to act.

  • Deborah Harper

    Person

    Thank you.

  • Mia Bonta

    Legislator

    Thank you.

  • Mia Bonta

    Legislator

    We will now hear from any, in the hearing room who would like to offer support for the bill. Please come forward with your name, affiliation, and position. Seeing none, we can move to any primary opposition. Witnesses, seeing none. Any of those in the hearing room who would like to offer a me too?

  • Mia Bonta

    Legislator

    Seeing none, I will bring it back to committee for any comments or questions. I also do not have any questions. I wanna thank the author for working with our committee staff to be able to make sure that we have this bill. And I appreciate, Assemblymember, your efforts to make sure that we have the resources that we need in times of crisis, which we know California is just crossing all fingers, toes, and saying all the kinds of prayers to make sure that that doesn't happen.

  • Mia Bonta

    Legislator

    But I think when it does, it's important that we have the right structure to be able to support us.

  • Mia Bonta

    Legislator

    With that, would you like to close?

  • Joaquin Arambula

    Legislator

    Thank you, madam chair. Ultimately, this bill is about expediting access of out of state licensees to assist us during the next natural disaster to make sure that we have care after the next climate crisis that faces our state. I respectfully ask for an aye vote when it's appropriate.

  • Mia Bonta

    Legislator

    Thank you so much. And that will be considered. We are going to move on now to item number 23, AB 2282 by Alanis.

  • Mia Bonta

    Legislator

    Thank you so much. And that will be considered. We are going to move on now to item number 23, AB 2282 by Alanis.

  • Mia Bonta

    Legislator

    Afternoon, assembly member, whenever you're ready.

  • Juan Alanis

    Legislator

    Thank you, Madam Chair. First off, I'd like to thank you and your committee for the work on AB 2282. I would gladly accept committee amendments to require Del Puerto Health Care District to report to the Department of Health Care Access and Information. AB 2282 addresses the lack of access to emergency health care services in the city of Paterson and the surrounding communities in my district.

  • Juan Alanis

    Legislator

    This bill would require the Department of Public Health to issue a special permit to Del Puerto Healthcare District to operate a rural emergency stabilization center in Paterson while the permanent hospital is being built.

  • Juan Alanis

    Legislator

    This would temporarily waive, licensure's requirements for general acute care hospitals if specific conditions are met. And one of one of those conditions is that the Del Puerto HCD must maintain written transport and transfer agreements agreements with all licensed general acute care hospitals within a 30 mile radius that maintain a licensed emergency department.

  • Juan Alanis

    Legislator

    My office has worked with committee staff and stakeholders on amendments to clarify that Del Puerto HCD would be the operator of this emergency stabilization center and that the stabilization center would be a temporary and alternative solution for residents in Western San Jose County to access emergency health care services. To clarify, this bill as written does not create a freestanding emergency department.

  • Juan Alanis

    Legislator

    Right now, residents of Patterson and surrounding areas must travel over 20 miles to reach the nearest full service hospital or trauma center, which has created significant barriers to accessing health care.

  • Juan Alanis

    Legislator

    AB 2282 is a temporary solution that would allow patients to be treated for emergency health care conditions until a permanent hospital is constructed. The permit authorized by this bill cannot exceed a combined total of ten years unless the new hospital is being constructed. This bill is sponsored by the Del Puerto Health Care District. And with me today to testify in support is Jim Whitworth with the Patterson District Ambulance.

  • Juan Alanis

    Legislator

    And also with me today is Sarah Bridge with the Associate Association of Health Care Districts for technical assistance.

  • Juan Alanis

    Legislator

    Thank you.

  • Mia Bonta

    Legislator

    Thank you.

  • Jim Whitworth

    Person

    Madam chair

  • Mia Bonta

    Legislator

    Please press the button.

  • Jim Whitworth

    Person

    Madam Chair, members of the committee, my name is Jim Whitworth, clinical education manager for Patterson District Ambulance Del Porto Healthcare's, district. I've worked in Stanislaus County for twenty five years across the spectrum of emergency transport and ambulance, fire, and air transport, and the, EMS regulatory agency now in management overseeing clinical operations. Patterson District Ambulance serves as a community where AB 2282 would make the most difference.

  • Jim Whitworth

    Person

    I want to give this committee a clear picture of what emergency response looks like from our side. The nearest acute care hospital is a minimum of twenty five to thirty minutes from Patterson under normal conditions.

  • Jim Whitworth

    Person

    That is a long time in a medical emergency. But transport time is only part of one of the equation. When we transport a patient from Patterson to a hospital, the ambulance is out of service for a minimum of one to two hours, and oftentimes much longer due to APOD, ambulance patient offload times that you're familiar with. While we're waiting for our patients to be admitted, community is sometimes without an ambulance, without mutual aid agreements, which we have, and other emergency calls come in.

  • Jim Whitworth

    Person

    That person who is also having an emergency has to wait.

  • Jim Whitworth

    Person

    Statewide, eighty five percent of our emergency department visits do not result in hospital admission, meaning a significant share of patients we transport could be appropriately evaluated and stabilized closer to home. I could give you countless examples of times when a facility like the one envisioned in AB 2282 would have made a real difference for people we serve in Patterson. Ambulance and EMS teams can only do so much with the equipment medications we carry on board, and that includes the critical care aspects as well.

  • Jim Whitworth

    Person

    We provide clinical care in the field, but better outcomes often depend on how quickly a patient can reach the next level of treatment. I've helped stabilize hundreds of heart attack, stroke patients heart attack and stroke patients, but there are life saving medications interventions we simply cannot provide in the back of an ambulance.

  • Jim Whitworth

    Person

    A local stabilization center would allow patients to begin treatment much sooner right here in Paterson. In cardiac and stroke care

  • Mia Bonta

    Legislator

    Thank you so much. We're at time.

  • Sarah Bridge

    Person

    Thank you, Madam Chair, member of Sarah Bridge on behalf of the Association of California Health Care Districts here in support of AB 2282. For the sake of time in the hearing, I'll yield my time back to the committee, but happy to answer any technical questions related to health care districts or the bill. Thank you.

  • Mia Bonta

    Legislator

    Thank you. Are there any others in the hearing room who would like to offer support? Seeing none, we will move on any to any primary witnesses in opposition. Seeing none, if there are any in the hearing room who would like to offer an additional position, please come forward.

  • Tim Madden

    Person

    Thank you, madam chair. Tim Madden representing the California chapter of the American College of Emergency Physicians. We apologize for our late middle of our opposed letter, but we are opposed. We appreciate the conversations we've had, with the sponsors on the bill and look forward to continue those conversations.

  • Mia Bonta

    Legislator

    Thank you. Any others in opposition? Seeing none, I will bring it back to the committee for any comments or questions. I will comment and say, Assemblymember Alanis, I wanna thank you for bringing forward this this bill.

  • Mia Bonta

    Legislator

    I spent the interim going up and down the state of California really trying to figure out how we might be able to stabilize our health care infrastructure at a time when we so critically needed it and got to spend some time in rural counties like yours, Stanislaus, that had challenges going into the changes that were made to HR 1 in terms of whether or not they would be able to provide service and care.

  • Mia Bonta

    Legislator

    And I wanna thank your witness, mister Wentworth, who captain? Captain manager went went went went Wentworth who really outlined the critical need to be able to set up something. I also just wanna say that you have offered a very creative solution to a vexatious problem, making sure that we have emergency services while also balancing the need to ensure that we are not waiting indefinitely for our hospitals to be built because that ultimately is the kind of infrastructure that we need.

  • Mia Bonta

    Legislator

    So with that, I would like to ask to be a co author on your bill. And if you will have me and know that this type of bill, which is very specific to your community, will certainly go a long way in terms of providing some stability at a critical time for emergency services.

  • Mia Bonta

    Legislator

    I wanna thank you for your testimony coming forward. With that, would you like to close?

  • Juan Alanis

    Legislator

    Yes, madam chair. Thank you. And I appreciate those words. And as my witnesses has presented that it it is a big problem. And I'm sure it's not just in my district, but others as well.

  • Juan Alanis

    Legislator

    And I hope maybe this will be a great model for them also to help until they can get their hospitals for their areas as well. So with that, I ask for your aye vote or your vote when it's time. Thank you.

  • Mia Bonta

    Legislator

    Thank you. And we can list a motion in a second now. Motion by Johnson, seconded by Agara Curry. Thank you.

  • Juan Alanis

    Legislator

    Thank you.

  • Mia Bonta

    Legislator

    We will consider it when we have quorum. Thank you. Gonna move on in file item order to a b item number 10AB1843 by El Hawari. Please go ahead whenever you're ready, assembly member. And for those who are watching, we are going to be taking assembly member Krell's bill after this.

  • Sade Elhawary

    Legislator

    Good afternoon, madam chair and members. I am proud to present AB 1843, a bill that removes unnecessary administrative barriers and ensures Californians can access life saving hepatitis c treatment without delay. Hepatitis c is a serious but curable disease. We're seeing nearly fifteen hundred deaths each year in California even though treatment today cures over ninety five percent of cases in as little as eight to twelve weeks. The problem is not just the treatment.

  • Sade Elhawary

    Legislator

    It's the access. Right now, too many people face delays because of prior authorization, unnecessary testing, and insurance requirements that don't improve care, but just slow it down. AB 1843 aligns health plans with current medical guidelines and removes those barriers so patients can get treated when they need it. When treatment is delayed, people get sicker and something that could have been cured becomes harder to treat. According to the CHBURP analysis, the bill's impact on monthly premiums is negligible at most between 0.02 excuse me.

  • Sade Elhawary

    Legislator

    Between 0.2¢and, a little over 1¢per member. This bill also builds on the progress we have already made. Medi Cal eliminated prior authorization for hepatitis c treatment in 2024. AB 1843 extends that approach more broadly so more Californians can benefit. And this matters most for the community disproportionately impacted including people of color, folks experiencing homelessness, LGBTQ plus individuals, and people who struggle with substance abuse who already face barriers to care.

  • Sade Elhawary

    Legislator

    Expanding access not only saves lives, but it also reduces long term health care costs by preventing more serious and expensive conditions down the line. No one should suffer from a disease that's curable. Testifying with me today is Heather Lopez, lead caseworker at project HCV Connect, and Jonathan Foxweig, director of health justice policy with SF AIDS Foundation.

  • Mia Bonta

    Legislator

    Thank you. I'll have two minutes.

  • Jonathan Froxwike

    Person

    Thank you, Chair Bonta, committee members. Again, my name is Jonathan Froxwike. I'm the director of health justice policy with San Francisco AIDS Foundation, which is a cosponsor of this legislation. As providers of hepatitis c treatment, we at SF AIDS Foundation see firsthand the transformative impact that accessing a hep c cure can have on a person's life. Unfortunately, many insurance companies in California prevent people living with hepatitis c from getting cured by requiring prior authorization for these drugs.

  • Jonathan Froxwike

    Person

    Requiring prior authorization or PA for hep c treatment conflicts with the definitive medical guidelines on hepatitis c in The US, which recommend timely treatment for almost all people living with the disease. Many insurers also request information or procedures that are not recommended, but are costly and dangerous, like liver biopsies. These insurance company hoops often result in people living with hep c not getting cured. About two thirds of people who have private insurance and are diagnosed with hepatitis c don't start treatment within about a year. PA is one reason why.

  • Jonathan Froxwike

    Person

    AB 1843 addresses this issue by, first, prohibiting insurers from requiring PA for most hep c treatment drugs, and second, requiring that insurers PA processes align with medical guidelines. Treating hepatitis c saves the health care system money. This is just common sense. The cost of a single eight to twelve week course of medication is much lower than the cost of treating a lifetime of complications like cirrhosis and liver failure.

  • Jonathan Froxwike

    Person

    The CHURRP analysis of AB 1843 found that for every person cured of Hep C, the healthcare system saves $7,650 every year.

  • Jonathan Froxwike

    Person

    The analysis also found that the bill would have a negligible impact on health insurance premiums. Given this cost effectiveness, we strongly encourage you to advance AB 1843. Thank you for your consideration, and I'm happy to answer any questions you may have.

  • Mia Bonta

    Legislator

    Thank you. You'll have two minutes.

  • Heather Lopez

    Person

    Good afternoon.

  • Heather Lopez

    Person

    My name is Heather Lopez, and I'm a recent master of public health graduate from USC. I currently serve as a lead caseworker for Project HCV Connect, a Los Angeles based program that links residents' security of hepatitis c treatment. Hepatitis c is a significant public health communicable disease problem. It currently affects four hundred thousand Californians. And in our program, we see that two thirds of our residents remain untreated.

  • Heather Lopez

    Person

    And a major barrier to treatment that we see is proauthorization. I spend hours talking to our untreated California residents. I sit on the phone with them and hear their stories of how some have lived with the virus for over twenty years, putting off getting treatment due to financial constraints, constant appointments for the next and next test, and who are overwhelmed by the system and the requirements they know they will inevitably face. I know how thankful they are for our help. Our residents want to be treated.

  • Heather Lopez

    Person

    As a caseworker, I can get them to their appointment and in the door to the doctor's office, and the physician I work with wants to and is ready to treat them immediately. However, it is the inevitable next pro authorization step that gets in all of our way. In our work, we've seen that these insurance imposed requirements can mandate dangerous and unnecessary procedures.

  • Heather Lopez

    Person

    These include liver biopsies, where one in ten patients might be at risk for life threatening bleeding, and costly genotype testing, which can run patients hundreds of dollars out of pocket. Even though leading medications are Pan Genotypic, it can work regardless of the genotype.

  • Heather Lopez

    Person

    Beyond the patient burden already, prior authorizations exhaust our medical teams. My colleagues spend up to thirteen hours per case chasing faxes, labs, providers, and patients fighting for a prior authorization approval. With your support, and I vote on this bill, we can align with evidence based care, ensure health equity, and get hundreds of thousands of Californians secure. Thank you.

  • Mia Bonta

    Legislator

    Thank you. Are there any others in the room who would like to offer support? Please come forward with your name, affiliation, and position on the bill.

  • Kathleen Mossburg

    Person

    Chair and members, Kathy Mossberg with APLA Health and Support.

  • Clara McDade-Ting

    Person

    Chair and members, Clara McDade-Ting on behalf of the County Health Executives Association of California in support.

  • Zach Flowers

    Person

    Hi there. Zach Flowers with the Health Officer Association in support.

  • Karen Chiu

    Person

    Hi. I'm Karen Chiu. We tar RN, and I support.

  • Aracely Ramirez

    Person

    With California Life Sciences in support.

  • Bindu Mukhamala

    Person

    Good afternoon. Bindu Mukhamala, policy manager with the National Association of Social Workers, California chapter in support.

  • Mia Bonta

    Legislator

    Thank you. We will now move on to any primary witnesses in opposition. Please come forward.

  • Cassidy Heckman

    Person

    Thank you. Cassidy Heckman on behalf of the California Association of Health Plans. I wanna start by thanking the author, her staff, and the sponsor for their early engagement with us on this issue. However, we must respectfully oppose it today. First, we are opposed opposed to the provision of the bill that impacts a health plan's ability to conduct prior authorization.

  • Cassidy Heckman

    Person

    The legislator just passed SB 306, which institutes a regulatory process for prior authorization. We urge the legislator to pause any legislation on this issue and let the law and the regulatory process play out as intended. We are also concerned with codifying clinical criteria into law. While guidelines can help establish the efficacy and safety of diagnostic testing or therapeutic interventions, codifying them into law is problematic because populations may differ and treatment evidence may evolve.

  • Cassidy Heckman

    Person

    Additionally, our organizations continue to remain concerned with the high cost of prescription drugs.

  • Cassidy Heckman

    Person

    CHBURP notes that the average cost of these drugs, which are one time treatment, can be as high as $33,000. When the legislator considers prescription drug mandates that affect the health plan's ability to manage the cost associated with prescription drugs, we respectfully urge careful consideration of the price and any impact on health care premiums. For these reasons, we are opposed. Thank you.

  • Matt Akin

    Person

    Good afternoon, chair and members. Matt Aiken on behalf of the Association of California Life and Health Insurance Companies, also respectfully in opposition to assembly bill 1843. I would like to align my comments with my colleague at Cap and reiterate our concerns with the impacts that these mandate bills have on premiums at a time when health care affordability is already a major concern for Californians.

  • Matt Akin

    Person

    This bill was one of 11 health, excuse me, health benefit mandates introduced this year that cumulative cumulatively would increase premiums by more than half $1,000,000,000. Rising health care costs are already placing immense pressure on millions of Californians, and many are being pushed to the point of dropping coverage altogether.

  • Matt Akin

    Person

    An issue this committee has examined in multiple informational hearings this year. Finally, selectively mandating special coverage rules for certain conditions creates a discriminatory system where some conditions and services are favored over others, raising real equity concerns across the health care system. For these reasons, we are respectfully opposed to the bill. Thank you.

  • Mia Bonta

    Legislator

    Any in the hearing room who would like to offer an opposition? Seeing none, I will bring it back to the committee for any comments or questions. I did have one come question for the opposition. What is the per member per month impact to premiums that is outlined in CHBURP on this bill?

  • Cassidy Heckman

    Person

    I'll have to take a moment to look at my CHBURP analysis. But, you know, we do hear the arguments that were being made. However, you know, this is gonna be a hearing where

  • Mia Bonta

    Legislator

    I'd like you to respond to my question

  • Cassidy Heckman

    Person

    Okay, I'm gonna need a a second to find the

  • Mia Bonta

    Legislator

    Take your time.

  • Cassidy Heckman

    Person

    I believe if I'm looking at the right table, it says and correct me if I'm wrong, chair and committee, on page 15, .0020 to .0134. Is that correct?

  • Mia Bonta

    Legislator

    So that's .0020 to .0134 of a cent. Right?

  • Cassidy Heckman

    Person

    Correct.

  • Mia Bonta

    Legislator

    Yeah. So is there any world in which the health plans will have a different position on these mandate bills?

  • Mia Bonta

    Legislator

    .0010.

  • Cassidy Heckman

    Person

    I appreciate do you wanna?

  • Matt Akin

    Person

    And I completely understand, Chair. I think our issue with a lot of these mandates is that we're we're seeing them year after year, and I think there was, I don't wanna misquote the numbers that were presented in an informational hearing, but some people are seeing in the last decade over $500 a month that their premiums have gone up. And I know that, you know, when we're looking at something as minuscule was a cent, it's hard. I get that.

  • Matt Akin

    Person

    But I think our point is we wanna be looking at ways to lower these premiums, not just slow the growth.

  • Matt Akin

    Person

    And I know that Oka is looking at a spending target. We support that. We've been very supportive. But I think the overall over many years, just limiting the growth, we're seeing people really really struggle with this. And I think, you know, again, the cumulative impact is is small as this one may be.

  • Matt Akin

    Person

    It's just a real concern and and, you know, our point, there are 11 that were over over half $1,000,000,000 this year.

  • Mia Bonta

    Legislator

    On this one, if you were to actually even consider the cumulative effect of bills that had a range of point .001% to whatever that other thing is, if you had five bills over the course of the years that had that range of impact, you still wouldn't even be getting to 1¢.

  • Mia Bonta

    Legislator

    So at some point, I appreciate the conversation around the aggregates costs and certainly, other members of this committee and in the legislature will know how hard we are being to ensure that we are limiting the cost of premiums at a time when we need to make sure that we are doing so to be able to ensure that everybody has the ability to pay for the health care that we deserve.

  • Mia Bonta

    Legislator

    On the other hand, at some point, your cumulative arguments starts to lose all sense of anything that makes sense when you are talking about legislation that would provide an opportunity for people to have critical care when we are talking about .001 cent.

  • Mia Bonta

    Legislator

    So I would encourage you all to perhaps refresh your talking points and consider whether or not there might be some ability for us to have a manageable conversation around the cost of health care that includes the ability to consider these kinds of mandate bills.

  • Mia Bonta

    Legislator

    With that, seeing no other comment, assembly member, would you like to close? Please press the button.

  • Sade Elhawary

    Legislator

    Thank you so much, madam chair. This was really important for us to really double down on this just the negligible impact on premiums and really appreciate you helping with that given that it really does cure ninety five percent of cases. And we respectfully ask your Ibook.

  • Mia Bonta

    Legislator

    Moved by Aguiar-Curry. I will second the bill for now. With that, thank you. We will be able to conserve the vote when we have a quorum. We're gonna move on now to item number 20.

  • Mia Bonta

    Legislator

    Oh, apologies, Elhawary. Yes. Go ahead. Which is item number 22 AB 2247 by El Hawari. And I think you need to press the button.

  • Sade Elhawary

    Legislator

    I was like, I'm just loud, but not that loud. Interesting. Good afternoon again. First, I wanna start by saying that I accept the committee amendments. Today, I'm presenting AB 2247, the trauma healing and resilience investment for victimized and exposed youth act or thrive act.

  • Sade Elhawary

    Legislator

    This bill creates a state program that funds mental health services for people 25 and under impacted by gun violence, including victims and witnesses. When trauma goes untreated, it can lead to long term harm and cycles of continued violence. But when young people have access to care early, it can change the trajectory of their lives. AB 2247 is about making sure you don't have to fight the system to get help.

  • Sade Elhawary

    Legislator

    It connects them directly to mental health providers or peer support in their communities and ensures that they are not required to pay out of pocket or wait for reinvest reimbursement to get care.

  • Sade Elhawary

    Legislator

    This bill is about meeting our young people in the moment they need help and making sure the system responds. With me here today is Gabriel Garcia, who's the policy and advocacy director of Youth Alive, and Raya Corson Higgs, who is a mental health counselor with them as well.

  • Gabriel Garcia

    Person

    Thank you, Assemblymember. Good afternoon, chair members. My name is Gabriel Garcia. I'm the policy and advocacy director for Youth Alive. We're a community based organization in Oakland that focuses on addressing gun violence in three different ways, prevention, intervention, and healing.

  • Gabriel Garcia

    Person

    Now that prevention work is working with young people. It's upstream youth leadership development. The intervention work is focused on active conflicts, the people that are most likely to be shot or pull a trigger in the next couple months. The healing work is what I wanna talk about today, and that is serving victims, survivors of gun violence, specifically many mothers who lose their children to gun violence in our city as well as providing mental health counseling to any individual for free.

  • Gabriel Garcia

    Person

    Now AB 2247, as we talked about, provides California much needed direction on how we can better serve victims and survivors, especially young people who are impacted by gun violence.

  • Gabriel Garcia

    Person

    What is so critical, about this work is that it helps alleviate the barriers that many folks already experience, which are many. Individuals may not even know that these services exist, that lack of awareness. There may be bureaucracy and paperwork that young people are expected to navigate just to receive basic care, or it may be that the, mental health services that are available to them that are in network are not adequately designed for the specific experiences of folks who have survived a gunshot.

  • Gabriel Garcia

    Person

    And that is why AB 2247 is critical because it removes one of the barriers that we have control over, which is cost. So today, grateful to be joined by my colleague, Rhea, who is a mental health counselor who can talk about why this work is so critical, especially for the young people that we serve, but young people all around California that are impacted by gun violence.

  • Gabriel Garcia

    Person

    Thank you.

  • Rea Higgs

    Person

    Thanks so much, Gabe. Good afternoon. My name is Rea Corson Higgs, and I serve as a mental health counselor at Youth Alive. I work with young people and adults who are impacted by community violence. Everyone impacted by violence should have access to free and effective care. But young people whose brains are still developing are particularly vulnerable to long term negative consequences. Studies show how, for children and adolescents, trauma exposure alters brain development, emotional regulation, social functioning, and physical health.

  • Rea Higgs

    Person

    That's why effective therapy and healing can make a huge difference in young people's life outcomes. For my youth clients, therapy with me is often the very first time they're vulnerable about the toll that violence and trauma have on their lives. It's a space where they do not feel ashamed or alone in what they've been through. Traditional mental health care is often inaccessible and ineffective due to the realities that young people impacted by violence are often facing. They do not feel safe leaving home.

  • Rea Higgs

    Person

    They do not have support to travel to an office setting, and they do not have a safe and confidential space to access telehealth services. Youth Alive's counseling accounts for all of this. I meet young people where they feel most safe, comfortable, and supported, whether that's at their home, school, or elsewhere in the community. Beyond talk therapy, I bring clients into nature. I get them meals.

  • Rea Higgs

    Person

    I help them connect to other services so that their basic needs are met. This work is all about minimizing barriers to healing. I served a young man who had been shot in the leg shortly after his eighteenth birthday. He was unable to walk and was suffering from severe PTSD and anxiety, making him scared to leave his home and felt like he would need to carry a gun himself anytime he did.

  • Rea Higgs

    Person

    I met with this young man in his home for as long as he needed until he felt safe and ready both physically and mentally to be back outside and in the community.

  • Rea Higgs

    Person

    I brought him to get food, to take short short walks, and he began to heal not only his physical wounds, but the deep impacts of trauma on his body, mind, and spirit. Thank you.

  • Mia Bonta

    Legislator

    We're gonna move on now to, those in the hearing room who would like to offer a position of support.

  • Capri Walker

    Person

    Good afternoon. Capri Walker with California for Safety and Justice, proud cosponsor and support, also on behalf of Drug Policy Alliance and support.

  • Rebecca Marcus

    Person

    Good afternoon, chair and members. Rebecca Marcus representing the Brady campaign and the California Public Defender's Association in support. Thank you.

  • Jasmine Smith

    Person

    Good afternoon, chair and members. I'm doctor Jasmine Smith. I'm the director of capacity building for the California chapter of the National Association of Social Workers in full support.

  • Unidentified Speaker

    Person

    Good afternoon. My name is Sofia Coburn. And in honor of my nephew, Nicholas Joshua Martinez, who was murdered in a home invasion, with gun violence in front of his two little brothers, I strongly support this. Thank you.

  • Unidentified Speaker

    Person

    Good afternoon. My name is Nithya Avari and founder of seven Euro, and I'm strongly in support. Thank you.

  • Mia Bonta

    Legislator

    We're gonna move now into any primary witnesses in opposition to this measure or those in the hearing room who would like to offer a me too in opposition? Seeing none, I will bring it back to the committee for any comments or questions. Thank you, Assemblymember Elhawary. I wanna thank you for bringing my hometown amazing organization, Youth Alive, that does phenomenal work for our youth in particular within the context of growing gun violence in our city or I should say, persistent gun violence in our city.

  • Mia Bonta

    Legislator

    And, know that, we've had opportunity to try to declare gun violence a public health crisis in the past in this legislature to be able to ensure that we are proactively providing all of the resources necessary to be able to support our communities.

  • Mia Bonta

    Legislator

    I've been the biggest advocate and supporter of that and taking the leadership of organizations like Youth Alive to be able to do that.

  • Mia Bonta

    Legislator

    Would love to be considered as a co author on this measure and and really appreciate your personal leadership in this space to ensure that we are not only addressing gun violence from you know, a public safety perspective, but also recognizing that shared safety includes making sure that we have the ability to have our survivors and our communities recover from level of gun violence that they shouldn't have to. So thank you for your leadership.

  • Cecilia Aguiar-Curry

    Legislator

    Through the chair. I would also like to be added on as a coauthor.

  • Mia Bonta

    Legislator

    Thank you. Would you like to close?

  • Sade Elhawary

    Legislator

    Thank you both so much. We welcome, the addition of both of you as co authors and really appreciate the work that you all do every day and respectfully ask for your aye vote.

  • Mia Bonta

    Legislator

    Thank you. Does not move moved by Aguiar Curry, and we will consider that when we have the quorum. Thank you. We're gonna move on now to Maggie Krell. Item number 20AB2138.

  • Capri Walker

    Person

    Good afternoon, chair and members. Thanks for having me today. I'm presenting Assembly Bill two one three eight. I wanna begin by, thanking committee staff for their work on this bill. I'll be accepting the amendments, and I think that also removes, the concerns, not opposition, opposition, but concerns.

  • Capri Walker

    Person

    So appreciate everyone's work on this. AB 2138 strengthens Californians California's behavioral health workforce by expanding access to peer support specialists for those who need them most. Certified peer support specialists have lived experience with mental illness or substance use disorders, and it makes them uniquely positioned to really help other people navigate their own recovery. Peers improve engagement in treatment, help people nav navigate the complex systems they need to navigate, and also it just supports their long term stability.

  • Capri Walker

    Person

    Access still to peer support still remains uneven.

  • Capri Walker

    Person

    Oftentimes, peers are not part of the enhanced care management teams serving the behavioral health patients who would benefit from them the most. And so this bill takes two steps that would help with that. One is it requires enhanced care management providers who meet certain criteria to take specific steps to ensure that patients with serious mental illness or substance use disorder have access to a peer to support them.

  • Capri Walker

    Person

    And then it also ends the automatic employment disqualifications based solely on criminal background checks while still maintaining federal requirements and exclusions when it comes to, you know, serious and and and child related offenses. With me here to testify are Rachelle Chambers, the executive director of Painted Brain, and also Alan Richards, the vice president of Enhanced Care Management for the Amity Foundation.

  • Capri Walker

    Person

    And at the appropriate time, I'll respectfully ask for your aye vote.

  • Mia Bonta

    Legislator

    Thank you. Please go ahead. You'll have two minutes.

  • Rayshell Chambers

    Person

    Good afternoon, chair and members. I am Rachelle Chambers, the founder and executive director of Pain It Brain. I am a person living with lived experience of a serious mental health condition, and I'm a peer support specialist and have trained over 900 individuals in California in the peer support specialist training. We provide enhanced care management services in Los Angeles and Alameda County and other counties across the state. And I am here in strong support of AB 2138.

  • Rayshell Chambers

    Person

    ECM not only only works if people are engaged. And engagement is not just offering services. It's building trust and relationships over time. And that is where the peer support is essential. Peers are not add ons.

  • Rayshell Chambers

    Person

    They are central to how ECM work. They reach individuals not responding to traditional care. They build trust with people who who the system has failed. We help members navigate appointments and services, and we show up along to ensure them that there's follow through in their appointments. These services are core to ECM.

  • Rayshell Chambers

    Person

    Peers are trained to use our lived experience as structured engagement tools, especially for individuals who are distrustful and ambivalent to care. This is not anything new. Peer support is is a evidence based practice, Medicaid reimbursable, and recognized in California through SB 803. From our experience, peers are often the diff the difference between engagement and disconnection. AB 2138 reflects what's already working and ensures that ECM reaches the peoples it's designed to serve.

  • Rayshell Chambers

    Person

    We respectfully urge your yes vote on this.

  • Mia Bonta

    Legislator

    Thank you. Go ahead.

  • Alan Richards

    Person

    Good afternoon, chair and members. My name is Alan Richards. I'm the vice president of Enhanced Care Management Services for Amity Foundation here in support of AB 2138. Amity Foundation is a teaching and therapeutic community that focuses on creating successful reentry pathways for citizens returning to our communities. Amity has been at the forefront of developing, implementing, and enhancing approaches to provide holistic services that foster community building, healing, and sustainability.

  • Alan Richards

    Person

    Amity's modality includes peer to peer support, coaching, mentoring, concepts, and designs, which contribute to the successful reintegration reintegration of many individuals who have come through our doors. Having been a direct recipient of these individualized services, and in my current role at Amity, I continue to pay it forward by teaching and demonstrating to others how to do the same. Thus, paving additional pathways for them to follow. This is exactly what Amity does. Each one teach one.

  • Alan Richards

    Person

    I fully support AB 2138 and the reasoning behind its importance. Peer support specialists continue to be utilized in many programmatic areas today, providing a beneficial and supportive landscape for men and women returning to our communities from various institutional settings. This plays a vital role in individuals being willing to accept help from people they deem trustworthy. Connecting men and women to services such as housing, health and behavioral care, employment, and educational services is essential to successful reintegration.

  • Alan Richards

    Person

    Who better to help these individuals navigate these sometimes complex areas than those who have already trodden the path.

  • Alan Richards

    Person

    The link that binds these supportive relationships together is the underlining factor that credible messengers possess

  • Mia Bonta

    Legislator

    Thank you.

  • Alan Richards

    Person

    An effective way of building community.

  • Mia Bonta

    Legislator

    Thank you so much. We're gonna move now in to those who are in support of this measure, who are in the hearing room. Please come forward to state your name, affiliation, and position on the bill.

  • Grace Gallagher

    Person

    Grace Gallagher, advocacy manager with Painted Brain, and I strongly support this bill.

  • Claudia Gonzalez

    Person

    Claudia Gonzalez on behalf of Vera California, proud cosponsor of AB 1231 by Assemblymember Corral, and strong support.

  • Marona Goneifer

    Person

    Marona Goneifer with Call Voices, also on behalf of Mental Health America of California and strong support.

  • Karen Chiu

    Person

    Hi. Karen Chiu, The National Alliance for Mental Health or Mental Illness, be strong support.

  • Nithira Virey

    Person

    Hi, Nithira Virey, also on behalf of National Alliance Mental Illness, and I'm strongly in support.

  • Bindu Mukhamala

    Person

    Bindu Akamala with the National Association of Social Workers, California chapter in strong support.

  • Dylan Elliott

    Person

    You're Dylan Elliot on behalf of the California State Association of Psychiatrists in support.

  • Tara Eastman

    Person

    Can I give one from up here? Tara Gimbo-Eastman with the Steinberg Institute in support.

  • Mia Bonta

    Legislator

    Thank you. Are there any primary witnesses in opposition who would like to offer testimony? Seeing none, I are there any who would like to offer me twos in the hearing room?

  • Trent Murphy

    Person

    Good afternoon. Trent Murray with the California Association of Alcohol and Drug Program Executives. We support the bill and concept. We've been working with the sponsor and the author's office related to our concerns with the bill, which we submitted to committee.

  • Mia Bonta

    Legislator

    Thank you, sir. That's so we've had two support witnesses, and we are at the point where we're offering me too's, which is name, affiliation, and position on the bill.

  • Trent Murphy

    Person

    Okay. We had submitted concerns and we are working with the author's office and they the first look at the

  • Mia Bonta

    Legislator

    Thank you so much.

  • Claudia Gonzalez

    Person

    Just wanted to record on the record, me too in support by the Steinberg Institute which is a sponsor of this bill.

  • Mia Bonta

    Legislator

    Thank you. Alright. We will bring it back to the committee for any questions or comments. Moved by Johnson, seconded by Agi or Curry. Thank you.

  • Mia Bonta

    Legislator

    Assembly member, I wanted to thank you for working with our committee to address some of the concerns that we had.

  • Mia Bonta

    Legislator

    I I fully recognize the critical nature of our of our peers to be able to support enhanced care management and know that even in this legislative cycle, you've have a a package of legislation that is really focused on being able to provide care, baby health care in particular, on the street closest to those people who need it by people who are able to provide that care and really wanna appreciate your leadership in that in that space as well. With that, would you like to close?

  • Capri Walker

    Person

    Thank you so much, madam chair. I wanna thank my witnesses for their work and for their testimony today and respectfully ask for your aye vote.

  • Mia Bonta

    Legislator

    Thank you. And we have a motion and a second. And when we have full quorum, we will be able to consider that. We're gonna move on now to item number 11 oh, sorry. Item number six by Hart AB 1682.

  • Gregg Hart

    Legislator

    Thank you, Madam Chair and members. I'm pleased to present AB 1682, a bill to ensure patients undergoing chemotherapy have access to scalp cooling, a treatment that helps reduce chemotherapy-induced hair loss. California Cancer Registry reports each year that nearly two hundred thousand Californians are diagnosed with cancer, with breast cancer being among the most common, accounting for over thirty thousand new cases annually. Chemotherapy is a critical tool in fighting cancer because it targets rapidly dividing cancer cells.

  • Gregg Hart

    Legislator

    However, it also affects other fast-growing healthy cells in the body, including hair follicles, which often leads to significant hair loss during treatment.

  • Gregg Hart

    Legislator

    Hair loss is one of the most visible and emotionally distressing side effects of chemotherapy. It can impact a patient's mental health, confidence, and sense of privacy. This removes the patient's control over when and how they share their diagnosis. Scalp cooling is an evidence-based treatment that helps address hair loss by cooling the scalp before, during, and after chemotherapy to reduce the amount of medication that reaches hair follicles. Despite its effectiveness, access to scalp cooling depends largely on whether a patient can afford it.

  • Gregg Hart

    Legislator

    Coverage remains inconsistent across private insurance and Medi-Cal. Patients are often required to pay out of pocket, with cost ranging from $4,000 to $5,000 for a full course of treatment, putting it out of the reach of many. This year, Medicare began covering scalp cooling, recognized its importance as part of a comprehensive cancer care. However, that same level of access is not guaranteed for many Californians.

  • Gregg Hart

    Legislator

    AB 1682 addresses this gap by requiring health plans and insurers to cover FDA-cleared scalp cooling devices when prescribed by a provider.

  • Gregg Hart

    Legislator

    This bill ensures that cost sharing is no more restrictive than other oncology supportive services and expands access to an evidence based treatment that can reduce one of the most challenging side effects of cancer care. Speaking in support today are Dr. Frederick Kass, Assistant Clinical Professor of Medicine at UCLA Health, and Dr. Susan Salcido, Santa Barbara County Superintendent of Schools.

  • Mia Bonta

    Legislator

    Thank you so much.

  • Frederick Kass

    Person

    Thank you, Madam Chair and members of the committee. It's a privilege to speak here today. I'm an Assistant Clinical Professor of Medicine at UCLA, but I speak on behalf of my colleagues at Santa Barbara, and I don't represent the university. This is my fortieth year in cancer medicine. Eight years ago, I led a team that brought scalp cooling to our practices in Santa Barbara.

  • Frederick Kass

    Person

    That changed dramatically a toxicity of therapy that we had all learned to accept and live with. For patients, needless to say, hair loss is not minor. It's the most visible and emotionally distressing of the side effects that our treatments cause. I've seen the impact of scalp cooling in so many of my patients who are now empowered to maintain some degree of normalcy in their professional lives, in their personal lives, in their caring for their children.

  • Frederick Kass

    Person

    As Assemblymember Hart emphasized, the coverage is inconsistent.

  • Frederick Kass

    Person

    Without insurance coverage, the cost puts this intervention out of reach for most of our patients. Some of our patients have coverage. Some of them don't. In oncology, we routinely cover interventions to ameliorate the toxicities of treatment, nausea, vomiting, allergic reactions, seizures. These interventions are essential, not optional.

  • Frederick Kass

    Person

    Scalp cooling, in our view, is no different. Three states, New York, Maryland, and Louisiana, have already enacted coverage laws similar to this legislation. The legislation under consideration.

  • Mia Bonta

    Legislator

    Thank you.

  • Frederick Kass

    Person

    It is pending in 9 states, as well as California.

  • Mia Bonta

    Legislator

    Thank you so much.

  • Frederick Kass

    Person

    Thank you.

  • Mia Bonta

    Legislator

    Go ahead.

  • Susan Salcido

    Person

    Good afternoon, Chair and members. I'm Susan Salcido, and I serve as the elected Santa Barbara County Superintendent of Schools. Just about 2-years ago, this summer, while dropping off our daughter to the University of Hawaii for her freshman year, I got an unfortunate, fortunate sunburn. I found myself scratching at the peeling skin, and I found a lump. What followed was a rapid education about breast cancer, and learned that there are many types of breast cancer and many types of treatments.

  • Susan Salcido

    Person

    Mine required chemotherapy, surgery, and radiation. I began chemotherapy in December of that year, and on Christmas Eve, I lost all of my hair. I had prepared to lose my hair. I had a wig. I had scarves.

  • Susan Salcido

    Person

    I had a beanie. What I wasn't prepared for was how emotional and painful it felt to have it all fall out strand by strand and then handful by handful and then clump by clump. Everything else about cancer felt private, but losing a full head of long hair in about two weeks while continuing to work full-time in the public felt quite public, visible, and vulnerable.

  • Susan Salcido

    Person

    During my chemo treatment, I had access to a Paxman cold cap through my clinic at no cost to me due to an anonymous donation for all women who wanted to use it. Therefore, the decision I had was not whether or not I could afford the cold cap.

  • Susan Salcido

    Person

    It was simply whether I wanted to use it, and I did. I am now cancer-free. My hair is growing back at a surprisingly rapid pace. I'm grateful for my health, and I'm very grateful to be here to support this bill so that others might have access to the same care without a financial barrier. Thank you.

  • Cecilia Aguiar-Curry

    Legislator

    I move the bill.

  • Mia Bonta

    Legislator

    Moved by Aguiar-Curry, seconded by Schiavo. We will now take any positions of me too, that would like to offer support. Please come forward.

  • Annika Manley

    Person

    Hello. My name is Annika Manley from Oakland. I am a cancer survivor. I cold-capped last year, and I'm here also on behalf of hundreds of other survivors who are not able to be here, but whose signatures you have.

  • Mia Bonta

    Legislator

    Thank you.

  • Inez Manley

    Person

    Hi. I'm Inez Manley, and I'm the daughter of a cancer survivor. I strongly support this bill.

  • Etienne Manley

    Person

    Hi. My name is Etienne Manley, and I'm the son of a cancer survivor, and I also support this bill

  • Sophia Monroy-Kobrin

    Person

    My name is Sofia Cobrin. I'm a cancer survivor, and I strongly support this bill.

  • Cyndi Wheeler

    Person

    My name is Cyndi Wheeler. I am a cancer patient in treatment and a former cold-cap user, and I strongly support this bill.

  • Amy Morgan

    Person

    My name is Amy Morgan. I'm a former cancer survivor, and I also cold-capped, and I'm in strong support of this bill. Thank you.

  • Linda Lichtenberger

    Person

    My name is Linda Lichtenberger, and I am a cancer survivor, and I strongly support this bill.

  • Obed Franco

    Person

    Good afternoon, Madam Chair and members. I'm Obed Franco here on behalf of CenCal Health, in support.

  • Christine Smith

    Person

    Christine Smith, Health Access California, in support.

  • Christina Perryman

    Person

    Christina Perriman, Folsom, California. Cancer survivor, successfully cold-capped, and I am strongly in support of this bill.

  • Unidentified Speaker

    Person

    Chair and committee members, [inaudible] here on behalf of Biocom, in support.

  • Melissa Bourestom

    Person

    Hi. Melissa Bourestom with Paxman. We're the manufacturer of the technology used at 55 locations in California, and strongly in support of the bill. Thank you.

  • Rebecca Pearson

    Person

    Rebecca Pearson, State Employee, cancer survivor, 3 years cancer-free from using the DigniCap, and hair is back fuller and thicker than ever. My insurance was denied from the state.

  • Mia Bonta

    Legislator

    Thank you.

  • Kevin Guzman

    Person

    Kevin Guzman with the California Medical Association, in support.

  • Jasmine Smith

    Person

    Good afternoon, Chair and members. My name is Dr. Jasmine Smith. I am the Director of Capacity Building with the National Association of Social Workers California Chapter, and I am the daughter of a cancer survivor who didn't have the opportunity to cold cap. So we both shaved our heads off, and I fully support this bill.

  • Cher Gonzalez

    Person

    Cher Gonzalez, representing the Association of Northern California Oncologists and the Medical Oncology Association of Southern California. Our apologies to the author and to the committee for not getting our support in on time; that will be forthcoming. Thank you.

  • Mia Bonta

    Legislator

    Thank you. We're gonna move now to any primary witnesses in opposition.

  • Kassidy M. Heckmann

    Person

    Thank you, Chair. We're not gonna sit on every mandate bill today, but we are opposed to this one. Respect the author's intent, and the intent behind the legislation. But due to the impact on premiums, 4 million for this and over 500 million total, we have to oppose it. Thank you.

  • Matt Akin

    Person

    Good afternoon, Chair and members. Matt Akin, on behalf of the Association of California Life and Health Insurance Companies. Also respectfully in opposition to the bill, I would just like to align my comments with my colleague. Thank you.

  • Mia Bonta

    Legislator

    Thank you. Any others in opposition in the hearing room who would like to offer a me too? Seeing none, I will bring you back to the committee for any comments or questions. Assemblymember Schiavo.

  • Pilar Schiavo

    Legislator

    As the daughter of someone who is just starting treatment for breast cancer, I am very happy you're bringing this forward. Thank you.

  • Gregg Hart

    Legislator

    Thank you.

  • Mia Bonta

    Legislator

    Thank you, Assemblymember, for bringing forward this measure. And I wanna just thank Inez and Etienne, especially for bringing their voices into the room and supporting their mother in this moment. And, Assemblymember, you have been working on this for quite a while. I know that this is an area of great concern and passion for you. I wanna thank you for bringing forward this very thoughtful measure. With that, would you like to close?

  • Gregg Hart

    Legislator

    Yes. Thank you. I just wanna say that, really, no patient should have to endure unnecessary emotional distress on top of what is already a very difficult diagnosis. This bill helps preserve not just physical health, but also mental well-being and dignity at a very modest 1.5-2.7 cents per patient cost. Thank you.

  • Mia Bonta

    Legislator

    And I just wanna acknowledge and thank the witnesses for testifying. Superintendent for bringing your personal story into the room as well.

  • Susan Salcido

    Person

    Thank you.

  • Mia Bonta

    Legislator

    Thank you. With that, we have a motion and a second. We don't have quorum yet, so we will consider this bill when we do.

  • Mia Bonta

    Legislator

    Thank you so much. We're gonna move on now to Item Number 11, AB1879 by Dixon.

  • Diane Dixon

    Legislator

    Good afternoon. Thank you, madam chair, chair, and colleagues. I want to thank the chair and their staff for working with myself and my team on amendments to refine and improve this bill. I am pleased to accept the committee's amendments. AB 1879 is a straightforward bill that provides consistency on how alcohol or other drug recovery or treatment licensed facilities and certified programs report data to the California Department of Healthcare Services, DHCS.

  • Diane Dixon

    Legislator

    Under current law, treatment programs and facilities receiving public funds and narcotic treatment programs, regardless of funding source, must report to the county data on clients, outcomes, and treatment availability through two existing systems, the California Outcomes Measurement System treatment and the Drug and Alcohol Treatment Access Report. However, if a facility or program does not receive public funds, it is not required to report this data except for, previously mentioned narcotic treatment programs. This inconsistency is report in reporting creates a significant gap in data.

  • Diane Dixon

    Legislator

    Every year, we pass laws regulating alcohol or drug recovery and treatment. However, we lack the necessary data to see if what we are doing in Sacramento is actually helping people.

  • Diane Dixon

    Legislator

    I want people to get better and receive the treatment they need in a safe environment. Therefore, AB 1879 would apply the same reporting standards of those programs and facilities that receive public funds to those that do not. This bill builds upon existing precedent and regulations and will provide us with the necessary data to ensure that the decisions we make in Sacramento are actually working. With me today, I have Devin Waite on behalf of the California Alliance for Behavioral Health and Addiction Treatment, CBAT.

  • Diane Dixon

    Legislator

    CBAT?

  • Devin Waite

    Person

    CBAT.

  • Diane Dixon

    Legislator

    CBAT. And oh, not the other one. Here here here. Once again, I want I want to thank the chair for your help, and I'll request an aye vote. But thank you very much for working this bill through.

  • Diane Dixon

    Legislator

    Thank you.

  • Devin Waite

    Person

    Thank you. Chair Mia bonta, members of the committee. My name is Devin Waite, and I am a person in long term recovery, a behavioral health advocate for over twenty three years in the field. And I'm here today with the California as the chair of the California Alliance for Behavioral Health and Addiction Treatment. We strongly support AB 1879.

  • Devin Waite

    Person

    California has thousands of licensed and certified substance use disorder treatment providers. Right now, we have no consistent statewide picture of what's working, what's available, and who's being served. That's a serious problem when we're trying to invest public dollars wisely, close gaps in access, and actually move the needle in recovery outcomes. AB 1879 changes that.

  • Devin Waite

    Person

    It brings non Medi Cal, Non County contracted providers into a unified data reporting structure using a framework that already exists, using the two data platform systems, otherwise known as Cal OMS and Datar.

  • Devin Waite

    Person

    This is not new bureaucracy. It's smart, long overdue alignment. But I want to say something broader because this bill points to something in the field that is needed to be reckoned with for a long time. Private treatment providers have long operated under different sets of expectations for their public as opposed to their public counterparts, And that gap has real consequences. Public programs are required to contribute data that informs treatment efficacy, need, adequacy, and funding decisions.

  • Devin Waite

    Person

    Private providers largely are not. This means the statewide picture we're building is incomplete. And the analysis we rely on to understand what treatment is work what treatment is working, where the gaps exist, and where future resources should flow is built on partial information. AB 1879 begins to close that gap. When private providers contribute to the same data infrastructure, policymakers get a fuller picture of treatment effectiveness across the entire continuum, not just the public funded side.

  • Devin Waite

    Person

    That matters for needed adequacy need adequacy assessments. It matters for funding monitoring, and it matters for every Californian trained to find care.

  • Mia Bonta

    Legislator

    We can Thank you. Thank

  • Devin Waite

    Person

    you.

  • Mia Bonta

    Legislator

    Are there any others in the hearing room who would like to offer support for this measure? AB 1879. Please come forward with your name, affiliation, and position on the bill.

  • Pete Nielsen

    Person

    My name is Pete Nielsen with the California Consortium of Addiction Programs Professionals and strong support.

  • Brandy Jordan

    Person

    I'm doctor Brandy Jordan with the California Coalition of Addiction Recovery Advocates in strong support.

  • Nelson Kay

    Person

    Nelson Case, Central Valley Recovery Services, and I support this.

  • Michelle Pina

    Person

    Michelle Pinos, Central Valley Recovery Services in strong support.

  • Lori Newman

    Person

    Lori Newman, executive director to Community Social Model Advocates Inc in strong support.

  • Anthony Fry

    Person

    Anthony Fry, the Ranch Recovery Center's Desert Hot Springs, we support.

  • Cecilia Aguiar-Curry

    Legislator

    Certified counselor for CCAP for sixteen years, Kelly Couch, strong support.

  • Elena Wolf

    Person

    Elena Wolf. I am a Delance Street graduate, four year, eighteen year, SUD counselor in a jail. I'm not gonna say which one. And I strongly support. Thank you.

  • Graham Sargent

    Person

    Graham Sargent, CEO of American River Wellness, and strong support.

  • Donald Rivers

    Person

    Hello. My name is Donald Rivers. Humboldt Recovery Center, strongly support.

  • Stacy Smith

    Person

    Stacy Smith with Waterfront Recovery Services and I strongly support.

  • Shirley Pardo

    Person

    Shirley Pardo with the with the California Consortium of Addiction Professionals and Programs, and I'm in strong support of this.

  • Jamaica Barts

    Person

    Jamaica Barts, executive director of Waterfront Recovery Services, am strongly support.

  • Nisha Watts

    Person

    Nisha Watts, Humboldt Recovery Center substance use counselor, also CCAP member, strong support.

  • Luis Herrera

    Person

    Luis Lererra, SUD Counselor, Madera County, strong support.

  • Mia Bonta

    Legislator

    Thank you. We will move on now to any primary witnesses in opposition.

  • Trent Murphy

    Person

    Good afternoon. Trent Murphy

  • Mia Bonta

    Legislator

    You'll have two minutes.

  • Trent Murphy

    Person

    Trent Murphy with the California Association of Alcohol and Drug Program Executives. We had submitted an opposition letter alongside comp, to a previous version of the bill. This new version of the bill looks like it alleviates our concerns related to duplicative data reporting. So appreciate the author's office for the new version. Thank you.

  • Mia Bonta

    Legislator

    Thank you.

  • Jennifer Alley

    Person

    Good afternoon. I'm Jennifer Alley with the California Opioid Maintenance Providers. We appreciate the hard work of the author's office and the committee staff, and we are removing our opposition. Thank you.

  • Mia Bonta

    Legislator

    Thank you. Any others in the hearing room who would like to offer a Me Too in opposition? Seeing none, I will bring it back to the committee for any comments or questions. Seeing none, Assemblymember Dixon, I know that this is an area of of incredible, leadership and interest on on your behalf. And I know that you are incredibly passionate to make sure that we have a robust set of of data.

  • Mia Bonta

    Legislator

    And I really appreciate you taking the time to be able to make sure that it's, that our policies can be data informed. And I think, with the committee's amendments and support, you've identified a potential reporting gap that, we will, be able to close as a result of this legislation.

  • Mia Bonta

    Legislator

    I do wanna just note that, it seems like there will need to be some further technical assistance, from DHCS, the Department of Healthcare Services, in order to be able to make sure that we are adequately closing that reporting gap. So I encourage you to continue working with the department to be able to make sure that we can strengthen this bill as is. With that, would you like to close?

  • Diane Dixon

    Legislator

    Well, I just wanna thank you. It was both of our staffs that really brought this together with your support. I'm very grateful. And I think we can help a lot of people when we have the facts and the data to do it right. So thank you, and I respectfully ask for your support.

  • Diane Dixon

    Legislator

    Thank you.

  • Mia Bonta

    Legislator

    Thank you. Can we have a motion and a second? Moved by Rogers, seconded by Johnson. The chair's recommendation is an eye, and when we have a full quorum, we will be able to move forward with this bill. Thank you.

  • Mia Bonta

    Legislator

    And now we are going to yeah. We are going to move to members of the committee, and we will hear Assemblymember Aguiar Curry's second bill, item number 14 AB 1906.

  • Cecilia Aguiar-Curry

    Legislator

    Good afternoon. Thank you, madam chair and members. I'm pleased to present AB 1906, a bill to ensure all Californians have access to at home cervical cancer screening kits. AB 1906 requires coverage of these tests for private health plans and Medi Cal patients without cost sharing. Cervical cancer is one of the most preventable cancers when detected early, but screening for it can be invasive and inconvenient.

  • Cecilia Aguiar-Curry

    Legislator

    Research shows that rural women are more likely to die from cervical cancer, and black and native American women experience far higher mortality rates. Allowing patients to test in their home expands access for rural and working Californians, increasing preventative screening levels and reduces strain on our health care system. Research from the CDC shows that increased screening has reduced cervical cancer incidence and deaths by seventy percent since the nineteen fifties.

  • Cecilia Aguiar-Curry

    Legislator

    AB 1906 promotes early detection and works to reduce health disparities and strengthen preventative care across the state. With me today, I have Angela Pontes on behalf of Planned Parenthood and Christine Smith on behalf of Health Access.

  • Angela Pontes

    Person

    Thank you, chair and members. Angela Pontes on behalf of Planned Parenthood Affiliates of California in support of AB 1906. The 109 Planned Parenthood health centers collectively provide one point three million patient visits each year. This includes nearly 100,000 cancer screenings and two point six million STI tests. HPV is the most common STI in The United States with an estimated thirteen million new cases each year, and it is responsible for nearly all cervical cancers.

  • Angela Pontes

    Person

    Up to ninety percent of HPV infections are asymptomatic. Routine cervical cancer screenings can detect high risk HPV and precancers, which has proven to be a critical preventive measure against cervical cancer. Unfortunately, timely screenings remain a challenge with studies suggesting that approximately twenty five percent of US women are under screened. AB 1906 would require coverage without cost sharing for at home cervical cancer screening kits, which were recently FDA approved.

  • Angela Pontes

    Person

    This change will expand access to critical preventive care, especially for rural and working Californians that face barriers to in person screening. We ask for your aye vote.

  • Mia Bonta

    Legislator

    Thank you.

  • Christine Smith

    Person

    Good afternoon, chair and members. My name is Christine Smith with Health Access, the statewide health care consumer advocacy coalition, and here in strong support of AP nineteen o six. At Health Access, we work to ensure all Californians can get the care they need when they need it at a price they can afford. This is this bill is a strong step toward that goal. Cervical cancer is one of the most prevent preventable cancers when detected early.

  • Christine Smith

    Person

    When caught early, the survival rate is about ninety one percent, but that drops to about twenty percent when diagnosed at a later stage. The difference is access to screening. Yet too many Californians face barriers to in clinic screening, including cost, lack of time off work, transportation challenges, and provider shortages, especially as named in rural communities. At home screening tests can help remove those barriers and make it easier for people to get screened on their own time and in their own homes.

  • Christine Smith

    Person

    This is especially important for low income Californians and medical enrollees who are more likely to face obstacles to in person care.

  • Christine Smith

    Person

    From a consumer perspective, no one should miss out on life saving preventive care because it is not covered or is this inaccessible. This bill ensures that both privately insured Californians and medical enrollees can access these tests without out of pocket costs. It also promotes a smarter health care system by investing in prevention, helping avoid more serious and costly health issues down the line. This bill and expanded access to screening will improve early detection, reduce disparities, and save lives.

  • Christine Smith

    Person

    Ultimately, this bill is about making our health system more equitable, more affordable, and more responsive to patients' needs. We urge your aye vote.

  • Mia Bonta

    Legislator

    Thank you. Are there any others in the hearing room who would like to offer support of this measure? Please come forward with your name, affiliation, and position on the bill.

  • Sandra Poole

    Person

    Sandra Poole, Western Center on Law and Poverty in support.

  • Unidentified Speaker

    Person

    Good afternoon, chair and members. .... CPAN, the California Pan Ethnic Health Network here in support.

  • Unidentified Speaker

    Person

    With California Life Sciences in support.

  • Unidentified Speaker

    Person

    With California Commission on Status of Women and Girls in support.

  • Kevin Guzman

    Person

    Kevin Guzman with the California Medical Association in support.

  • Jasmine Smith

    Person

    Doctor Jasmine Smith with the California chapter of the National Association of Social Workers in support.

  • Gilbert Lara

    Person

    Gilbert Lara here on behalf of Biocom in support.

  • Mia Bonta

    Legislator

    Thank you. We are going to establish quorum, majority leader.

  • Committee Secretary

    Person

    [Roll Call]

  • Mia Bonta

    Legislator

    We have a quorum. With that, are there any primary witnesses in opposition who would like to offer testimony?

  • Olga Shilo

    Person

    Madam chair and members, Olga Shiloh here on behalf of the California Association of Health Plans. In the interest of time, I would like to align my comments with our, previous testimony on mandates and their impact to health care affordability. For these reasons, we are in opposition to AB 196. Thank you.

  • Matt Akin

    Person

    Good afternoon. Matt Akin on behalf of the Association of California Life and Health Insurance Companies, also respectfully in opposition to Assembly Bill 1906, and we just like to align our comments with our colleague at Kat. Thank you.

  • Mia Bonta

    Legislator

    Thank you. Are there any others in the hearing room who would like to offer opposition? Me too. Hearing none, I will bring it back to the committee for any comments or questions. Assembly member, I just also wanna note that, the Federal Government has already moved to ensure that the the mandate to coverage of self collected HPV testing without cost sharing is in place.

  • Mia Bonta

    Legislator

    And the reason why you are bringing for this measure is because it is it is currently unclear, that the state of California will take, a similar position. I wanna thank you for bringing for this bill. My 20 year old self who experienced cervical cancer very much appreciates this measure as well.

  • Mia Bonta

    Legislator

    And I'm glad that with this, many people will be able to get self screen at home and get the care that they deceive early die receive, deserve, and the early diagnosis that they will keep them healthy. So thank you for bringing forward this measure. With that, would you like to close?

  • Cecilia Aguiar-Curry

    Legislator

    Right now, we are fighting for Californians to keep access to health care. AB 1906 gives us an opportunity to not only stabilize health care access for Californians, but to expect it. Making sure Californians can screen for highly preventable cancer helps us reduce strain on our health care system and tailors health care solutions to working in rural Californians. My bill makes sure that the federal guidance that requires coverage of cervical cancer screens is adopted by California. With that, I respectfully ask for your aye vote.

  • Mia Bonta

    Legislator

    Like to move the bill. Moved by Patel, seconded by Johnson. We have a quorum. So secretary, please call the roll.

  • Committee Secretary

    Person

    [Roll Call]

  • Mia Bonta

    Legislator

    That bill is out. Thank you so much, majority leader. We're gonna move on now to item number 2, AB 1556 by Haney.

  • Matt Haney

    Legislator

    Thank you, Madam Chair and members. I'm proud to present AB 1556, which will strengthen and clarify California's approach to drug-free recovery housing. This is my fourth year in a row in front of this committee on this particular issue, and we're hoping that four times is the charm here to make sure that we can have access to recovery housing for those who need it in our state.

  • Matt Haney

    Legislator

    Recovery housing is an evidence-based model that provides stable, supportive environments for individuals working to maintain sobriety and rebuild their lives. But under current law, recovery housing providers are navigating conflicting guidance between California's Housing First policy and administrative rules on maintaining drug-free environments.

  • Matt Haney

    Legislator

    That lack of clarity makes it difficult for providers to protect the safety and stability of their residents while remaining compliant with state requirements. For residents, this gap has real consequences. Not every person's recovery journey looks the same, and for many, a drug-free living environment is essential to maintaining stability. But today, individuals seeking sober living environments often face limited options and may instead end up in housing that does not support their recovery needs. AB 1556 will provide a balanced, common-sense solution.

  • Matt Haney

    Legislator

    It will create a clear statutory framework that allows for recovery housing and also allows recovery housing providers to maintain drug-free environments while ensuring that individuals who return to use aren't pushed back into homelessness. It will require recovery residences to adopt a written return-to-use policy ensuring transparency, consistency, and support for residents, and these policies must include access to treatment providers, recovery support, and non-punitive approaches that prioritize connection to services.

  • Matt Haney

    Legislator

    Importantly, AB 1556 will ensure that individuals are offered a warm handoff to alternative housing or services before any discharge related to substance use. Here with me today to testify are Emily Cohen from the office of San Francisco Mayor Daniel Lurie, and Amber Richmond, a San Francisco resident and individual with lived experience battling homelessness and addiction.

  • Mia Bonta

    Legislator

    Thanks so much. You'll each have two minutes. Make sure to press the button so that we can hear you.

  • Amber Richmond

    Person

    Thanks. Good afternoon, honorable chair and members of the committee. My name is Amber Richmond, and I am from San Francisco. I started using drugs my junior year of high school. It began with OxyContin, then whatever pills I could find.

  • Amber Richmond

    Person

    I swore I would never touch heroin. My father died from it when I was 12, but that's exactly what happened. I could list everything heroin cost me, but we don't have the time for that. I will say this: few people survive two open-heart surgeries from injecting drugs.

  • Amber Richmond

    Person

    I did. After those surgeries, I went right back to using because I was homeless. Later, I spent six months in a San Francisco navigation center before receiving Section 8 housing in 2020. I have not only lived in the system, I have worked in it as an assistant supportive housing manager in multiple HSH-funded buildings. I have seen what works and what does not.

  • Amber Richmond

    Person

    I have seen buildings where very few people were using, and the difference was clear. People were more stable, safer, and more hopeful. And I have seen the opposite. I have watched people who are not struggling with addiction barricade themselves in their rooms out of fear. I have watched people trying to get clean lose that battle, not because they lacked the desire to recover, but because the environment they were placed in did not support recovery and instead normalized chaos and drug use.

  • Amber Richmond

    Person

    I have lost far too many people in those buildings. Just as I was preparing to move into an SRO in supportive housing, I reached the top of the Section 8 wait list. That changed everything. I had the privilege of living in a sober, stable environment surrounded by everyday working people, and it pushed me to want more for myself. But that was not something I earned, and it was not something most people receive.

  • Amber Richmond

    Person

    It was luck. I still ask myself, if I had moved into that SRO, would I be here today? Not everyone gets lucky like I did. That is why this bill matters. This bill creates the kind of environment I needed, but it makes it intentional, not accidental.

  • Amber Richmond

    Person

    It supports sober, drug-free housing with services, including medication-assisted treatment. Because of Sublocade, I was able to stop using heroin after fifteen years. AB 1556 helps local governments create and expand more sober living environments where recovery is possible for those who choose it.

  • Mia Bonta

    Legislator

    Thank you. Thank you so much. Yeah.

  • Emily Cohen

    Person

    Good afternoon, chair and members of the committee. Thank you very much for the opportunity to speak in support of AB 1556. My name is Emily Cohen, and I'm the deputy director of the San Francisco Department of Homelessness and Supportive Housing. I'm happy to be here to talk about the choices and the options that we need to infuse into our homelessness response system so that people can get the type of housing that will best support them in their goals.

  • Emily Cohen

    Person

    Over the past decade, our state has faced a devastating addiction crisis that has taken thousands of lives and deeply impacted communities across the state.

  • Emily Cohen

    Person

    In San Francisco, we are seeing more people experiencing homelessness who also struggle with substance use disorder and are seeking recovery-oriented services. We need a full continuum of options to meet people where they are, including recovery-focused housing for folks actively seeking sobriety and recovery. AB 1556 is important because it would clarify that local governments can use state funding to support recovery residences, and that flexibility matters. We know that this model can make a difference, and we know that it is already showing promise.

  • Emily Cohen

    Person

    In San Francisco, we recently opened two new recovery-focused transitional housing sites, and both filled very quickly, demonstrating a real demand for this type of housing.

  • Emily Cohen

    Person

    And the ability to move that into a long-term housing setting is incredibly important, and we need the funding in order to achieve that. AB 1556 is a practical step that would help us save lives, support recovery, and give local governments another important tool to respond to the overlapping crises of homelessness and substance use disorder. Thank you very much for your consideration.

  • Mia Bonta

    Legislator

    Thank you. Are there any others in the hearing room who would like to offer support on AB 1556?

  • Adrian Covert

    Person

    Yes. Good afternoon, chair. Adrian Covert with the Bay Area Council, proud cosponsor of AB 1556. Thank you.

  • Devin Waite

    Person

    Devin Waite with the California Alliance for Behavioral Health and Addiction Treatment, and strongly support.

  • Brandi Jordan

    Person

    Dr. Brandi Jordan with Addiction Recovery Communities of California and strong support.

  • Pete Nielsen

    Person

    Pete Nielsen with the California Consortium of Addiction Programs and Professionals, in strong support.

  • Eileen Mariano

    Person

    Eileen Mariano on behalf of bill sponsor Mayor Daniel Lurie, in support.

  • Isela Bravo

    Person

    Isela Bravo with Cruz Strategies on behalf of the City of San Jose, in support.

  • Mia Bonta

    Legislator

    Are there any primary witnesses in opposition? Please come forward.

  • Mia Bonta

    Legislator

    You'll each have two minutes.

  • Lewis Brown

    Person

    Good afternoon, Chair Bonta and members of the committee. My name is Lewis Brown. I represent the Corporation for Supportive Housing. We are taking an oppose unless amended position on this bill. We very much appreciate AB 1556's goal of ensuring abstinence-based housing is available to unhoused individuals.

  • Lewis Brown

    Person

    However, we are concerned this bill would allow recovery residences to evict formerly homeless individuals back into the streets solely because of relapse, even though relapse is a normal part of recovery. We are also concerned that the bill fails to include sufficient protections that would ensure individuals who are placed into the eviction process aren't forced back into homelessness, which would only worsen their physical and mental health conditions and increase the likelihood of substance use.

  • Lewis Brown

    Person

    Under AB 1556, recovery residences would be required to adopt a return-to-use policy that would permit evictions when tenants relapse and reject the warm handoff to supportive housing or shelter. Unfortunately, the bill does not establish a clear, detailed process that will facilitate a tenant's transition to more suitable housing or ensure that this tenant can remain safely housed until a transition can take place.

  • Lewis Brown

    Person

    The bill does state that recovery residences would be required to provide a warm handoff, but it does not define what warm handoff means.

  • Lewis Brown

    Person

    And so it's not possible, as the bill is drafted, to understand what would be required of recovery residences. The bill's issues could be fixed by reincorporating elements of AB 255, which was a bill that was introduced last year by Assemblymember Haney and passed by the legislature. That bill included specific protections to ensure that people who relapsed were provided support and also to ensure that those individuals weren't returned to homelessness.

  • Lewis Brown

    Person

    We've had very productive and open conversations with the member's office, and I look forward to continued conversations. Thank you for your consideration.

  • Mia Bonta

    Legislator

    Thank you. You have two minutes.

  • Purva Bhattacharjee

    Person

    Good afternoon, chair and members. Purva Bhattacharjee with Housing California. Similar to my colleague, Housing California is opposed unless amended on this bill as well. We believe AB 1556 can offer choice in past recovery while embracing proven Housing First principles. However, the current version of this bill is inconsistent with Housing First laws and guidance in multiple ways.

  • Purva Bhattacharjee

    Person

    Firstly, the current bill language allows for state funding for temporary housing for these recovery residences, which can include transitional housing options. This is inconsistent with Housing First, which promotes permanent housing. HUD's Family Options Study has shown that transitional housing that evicted people for failure to follow abstinence or a program prescribed to them resulted in high returns to homelessness. People placed in this model of housing were just as likely to end up homeless as a control group receiving no intervention.

  • Purva Bhattacharjee

    Person

    This bill also requires that all prospective residents agree to the residence's return-to-use policy as a condition of residency.

  • Purva Bhattacharjee

    Person

    This is not consistent with Housing First either. Under Housing First, tenants may only be evicted for noncompliance with the lease, such as for nonpayment of rent, disruption of other tenants' abilities to peacefully enjoy the premises, or damage to the apartment. Evictions for reasons unrelated to compliance with typical lease terms result in people returning to homelessness.

  • Purva Bhattacharjee

    Person

    We look forward to continued conversations to address our concerns with Assemblymember Haney's staff. And we greatly appreciate the author's work to champion affordable housing and defend homelessness funding in the budget as well. Thank you.

  • Mia Bonta

    Legislator

    Thank you. Are there any others in the room who would like to offer a position of opposition? Seeing none, I will bring it back to the committee for any comments or questions. Assemblymember Schiavo.

  • Pilar Schiavo

    Legislator

    Can you talk a little bit more, responding to the opposition's concerns that are being raised and how those conversations are going to address those concerns? Because I'm a huge believer in Housing First. I cofounded an organization doing homeless outreach in my community that reached 500 people every weekend. But I've also helped some of those folks that I've met through that outreach get into housing, and I've seen people who are sober struggle when there are folks in their housing who are using.

  • Pilar Schiavo

    Legislator

    And it's I can't imagine how hard it is for them.

  • Pilar Schiavo

    Legislator

    And I think it's so important that we have spaces where you can have clean housing where people have that supportive environment. And so I think it's really important that we figure out striking this balance, and I appreciate the author's diligence in trying to work this out. I don't want to undermine Housing First, but I think that it's really, really important that people who are working so hard to stay clean are supported in doing that and not kind of dragged down by people around them.

  • Pilar Schiavo

    Legislator

    And that those folks have options too, that they get support, that they get housing. But I do think it's reasonable that there needs to be housing where people know that folks are being clean, want to be clean, and are working on being clean, and they're going to respect that.

  • Pilar Schiavo

    Legislator

    And so, you know, I'm just curious how all of this is playing out in the discussions that you're having to address the technical concerns.

  • Matt Haney

    Legislator

    I appreciate that. I appreciate the comments and your sentiment and your work in this area. You know, I could not agree more with what you said. I do believe that the goal always has to be to get people into housing, to get them to a place of stability, to get them the support that they need, and to keep them in housing.

  • Matt Haney

    Legislator

    And for people who are seeking an environment where they need to recover and are wanting a community of accountability and support for recovery, we should be providing that option to them.

  • Matt Haney

    Legislator

    And for many folks, that is actually a barrier to housing. If they don't have access to one of those environments, they know if they went into an environment where drug use may be open and allowed, or they're not supported in that, that may be a very dangerous place for them.

  • Matt Haney

    Legislator

    So this is about ensuring that for people who want to go on that path of drug-free recovery, they have those options and that we're supporting it. And right now, there's a real lack of clarity in the law as to whether we can fund those types of environments and what the rules are within them. So we try to strike that balance here.

  • Matt Haney

    Legislator

    The federal government under President Obama already said that these types of recovery residences can meet the definition of Housing First, and we want to clarify that, first of all. The guidance that the Newsom administration put out is largely what is reflected in our bill, but there needed to be further clarification in order to ensure that these recovery residences can actually be a community of accountability and support.

  • Matt Haney

    Legislator

    If you have an individual who is no longer committed to that journey of sobriety and it's not working and is becoming disruptive to the other folks there, we have to be able to have another placement for them. And so this bill is very clear. The policy must first include access to treatment providers, recovery support, and a non-punitive approach.

  • Matt Haney

    Legislator

    Nobody believes that this is a straight line for folks. There will be people who relapse and should stay in their housing and should continue on that journey. But if it does reach a point that that individual is disrupting the recovery journey of others, they have to be offered a warm handoff to alternative housing or services before any discharge can happen. And we're committed to continuing to work with the administration and the opposition to refine those definitions.

  • Matt Haney

    Legislator

    The goal is to help people on their journey, not to evict them even if they relapse.

  • Matt Haney

    Legislator

    But at the same time, this is a community of accountability and mutual support where everyone has to be committed to that for it to work.

  • Pilar Schiavo

    Legislator

    I appreciate that and really appreciate what you're doing with the bill. I'm going to support it, and I hope that the conversations lead to some resolution. The only concern that I have really is that I don't want this to turn into a revolving door of transitional housing. And I think that's the point that the opposition is talking about, and I don't think anyone wants that.

  • Pilar Schiavo

    Legislator

    And at the same time, the reality is we don't have enough permanent housing.

  • Pilar Schiavo

    Legislator

    And so, you know, sometimes we don't have the options that we want or need. But I think if there's a way to kind of orient it towards a permanent housing situation, that should be kind of first choice, something to help prioritize permanent housing even if people are having to be exited from their current housing. And I appreciate you being here and sharing your story today. Thank you.

  • Mia Bonta

    Legislator

    Thank you. Assemblymember Ahrens, did you want to make a comment? No. All right.

  • Mia Bonta

    Legislator

    Thank you so much, Assemblymember Ahrens. And fourth time, hopefully, will be what makes a difference. And it sounds clearly that there is some work that needs to be done with the administration so that this bill is consistent with the guidance that's been provided by the California Interagency Council on Homelessness. And I know that you will continue to work with the opposition to make sure that there's alignment with the Housing First model as well.

  • Mia Bonta

    Legislator

    With that, because I know that you want this signed this time, I'm sure that you will continue to work with the opposition to make sure that this bill hits the governor's desk fully formed. Yes.

  • Mia Bonta

    Legislator

    With that, do we have a motion and a second? Moved by Aguiar-Curry, seconded by Johnson. Assemblymember, do you accept the amendments that the committee has offered?

  • Matt Haney

    Legislator

    Yes. We accept the amendments and appreciate the work on the bill.

  • Mia Bonta

    Legislator

    And any other close

  • Matt Haney

    Legislator

    No. Again, we will continue to work with opposition. We are working very closely with the administration. A lot of what is in this bill reflects that guidance, and it will be further refined to address all of the issues that have been raised. And I appreciate the engagement on it for a fourth year in a row and respectfully ask for an aye vote.

  • Mia Bonta

    Legislator

    Thank you. We have a motion and a second. Please call the roll.

  • Committee Secretary

    Person

    [Roll Call]

  • Mia Bonta

    Legislator

    That measure is out. You're on a roll. Thank you so much. We are going to move now to item number 32, AB 2613 by Sharp-Collins. Thank you, assembly member, whenever you are ready.

  • Lashae Sharp-Collins

    Legislator

    Good afternoon, chair and members. I would like to begin by thanking the committee for working with my staff on this bill, and I will be accepting the committee amendments. Today, I'm here to present Assembly Bill 2613, a bill that requires health plans to provide consumer notification through electronic and telephonic communication. Under current law, health plans are required to notify consumers of these changes, but in practice, these notifications are often sent by paper mail alone.

  • Lashae Sharp-Collins

    Legislator

    We all know what what that means. Right? I mean, a lot of us do it. It's either, we don't open up the mail, or the letters arrive late, you know, or they get lost or whichever. And so patients are left too often

  • Lashae Sharp-Collins

    Legislator

    in the dark. The consequences of that action is actually real. People show up for appointments only to be turned away. They face unexpected out-of-network charges. Ongoing treatment plans are also disrupted.

  • Lashae Sharp-Collins

    Legislator

    And in some cases, care is actually delayed when timing matters the most. At the same time, nearly every other part of our health care system has gone digital. Patients schedule appointments online. They receive test results through their portals, and also communicate with providers by phone and email. But when it comes to critical coverage changes, we are still relying on a system that has too often failed to reach people. Assembly Bill 2613 brings our notification practices into the present time.

  • Lashae Sharp-Collins

    Legislator

    This bill allows health plans to to contact patients through email, phone, or other modern communication methods when when appropriate, rather than relying exclusively on paper mail. It ensures that patients receive timely, accessible information about changes that could directly impact their care. This is about preventing avoidable, I mean, yeah, avoidable disruptions. It is also about giving patients a fair chance to understand their actual coverage and make informed decisions before they are standing at the door of a doctor's office and have either been turned away.

  • Lashae Sharp-Collins

    Legislator

    Assembly Bill 2613 does not create new burdens to our patients.

  • Lashae Sharp-Collins

    Legislator

    It simply ensures that the information we already require plans to send is actually received. With me to testify, this is amazing, in support of of of my bill is my chief of staff, Mister Michael Lucien.

  • Mia Bonta

    Legislator

    Thank you, sir. You will have two minutes.

  • Darryl Lucien

    Person

    Thank you, chair and members. Before I begin, I'd like to thank the assembly member who definitely kept her commitment to her constituents that everyone has a seat at the table under her leadership. To that end, when I approached the member with an issue that I personally experienced, she's more than willing to listen, and now we have the bill that's before you today.

  • Darryl Lucien

    Person

    I, like many staff throughout the building, experienced an upheaval in my health care coverage last year when a provider and a health plan were struggling to renew their contract with each other. I hope that none of you find yourselves in that position, but if you do, be prepared for a mountain of letters to head your way.

  • Darryl Lucien

    Person

    The Department of Managed Health Care and the Department of Insurance govern communication between health providers, health plans, and their respective clients. Existing law requires that those communications must be in writing, specifically postal mail delivered to the client. You can imagine the volume of mail coming your way when you're getting frequent updates about the status of the contract negotiations and information about your continued coverage.

  • Darryl Lucien

    Person

    I personally felt that I was under a mountain of mail, much of which I ended up not opening after I found the early mail to be very repetitive. What I did not realize was that letters that looked identical would contain very important information, including information about me being transferred out of my provider group and losing my primary care physician.

  • Darryl Lucien

    Person

    I didn't understand this until I tried to schedule another appointment and was informed that I was no longer a member of my provider group. AB 2613 asks a simple question: how should health care information be delivered in 2026? This bill requires additional electronic communication, either by email or text message.

  • Darryl Lucien

    Person

    In my case, I most certainly should have read my mail regardless of how tedious a task. But for many others, the existing law is simply dangerous. How does a person with housing insecurity stay up to date with their medical information when everything's coming via mail? What about a person with disabilities for whom a trip to the mailbox is a much more involved process? And all of this is to say nothing about any of the complications from federal cuts to the United States Postal Service.

  • Darryl Lucien

    Person

    So I respectfully ask that you join Assemblymember Sharp-Collins in stepping into the 21st century and allowing for modern communication of health care updates. Thank you.

  • Mia Bonta

    Legislator

    Thank you. Are there any others in the hearing room that would like to offer a position of support? Please come forward to state your name, affiliation, and position on the bill.

  • Kevin Guzman

    Person

    Kevin Guzman with the California Medical Association in support.

  • Christine Smith

    Person

    Christine Smith, Health Access California, in support.

  • Bindumadhavi Mukkamala

    Person

    Bindu Makamala with the National Association of Social Workers, California Chapter, in strong support.

  • Mia Bonta

    Legislator

    Thank you. Are there any primary witnesses in opposition?

  • Steffanie Watkins

    Person

    Madam chair and members, Steffanie Watkins on behalf of the Association of California Life and Health Insurance Companies. First and foremost, we'd like to thank the author as well as the committee and their staff for the leadership in this on this issue. We appreciate the amendments that were taken today. We're reviewing those with our membership and look forward to continued engagement on the bill. That said, for today, unfortunately, we are currently opposed to the bill on print.

  • Cassidy Heckman

    Person

    Thank you. Cassidy Heckman on behalf of the California Association of Health Plans. Again, wanna echo the comments of my colleague. We appreciate the communication, the committee amendments, and we look forward to reviewing them with our membership.

  • Mia Bonta

    Legislator

    Are there any others in the hearing room that would like to offer a me too in opposition? Seeing none, I will bring it back to the committee for comment or question. Assemblymember Addis.

  • Dawn Addis

    Legislator

    Thank you so much, Madam Chair. And thank you, assembly member, and to your staff for bringing this bill forward. I'd be happy to move the bill, and I would love to be added as a coauthor. And, just wanna uplift an issue that I've talked about quite a bit in this committee and elsewhere, which is, I know my communities have really suffered when there's been a transition in health plans.

  • Dawn Addis

    Legislator

    And what a number of my constituents have gone gone through is that they had a provider under one health plan. The health plan then changed. They didn't have choice in that. And then all of a sudden, they didn't have that provider anymore. That provider wasn't taking that insurance anymore, and so they got caught up in this situation. And so I just wanna appreciate your work in this area and the network transitions that are happening. And I think anything we can do to make movement when there's a transition is gonna be helpful for all of our constituents.

  • Mia Bonta

    Legislator

    Thank you so much. Assemblymember Johnson.

  • Natasha Johnson

    Legislator

    Thank you. I also wanna thank the author for her work. I think you reverse engineered this, and I I'm really pleased that, and the problem of communication, which is literally the root cause of all our problems, that you have evolved. And so I just wanna say thank you, and I will happily be your second.

  • Mia Bonta

    Legislator

    That is that is the truest statement ever shared, Assemblymember Johnson. We have a motion and a second. Assemblymember, would you like to close?

  • Lashae Sharp-Collins

    Legislator

    Yes. Thank you. Assembly Bill 2613, once again, simply ensures that that these notices are delivered in ways that people actually receive them and that they're able to respond to. And it it's just my goal just to make sure that we get an actual modern fix that puts patients first and then help, you know, obviously prevent some things that that could be, obviously, avoidable, meaning avoidable harm.

  • Lashae Sharp-Collins

    Legislator

    So with that, I would like to thank you, chair and members, and I respectfully ask for your aye vote.

  • Mia Bonta

    Legislator

    Thank you. Motion by Addis, seconded by Johnson. Please call the roll.

  • Committee Secretary

    Person

    [Roll Call]

  • Mia Bonta

    Legislator

    That bill's out. Thank you so much, assembly member. We're gonna move now to item number 13, AB 1887 by Zbur. Whenever you're ready, assembly member.

  • Rick Chavez Zbur

    Legislator

    Thank you, madam chair and members. I just wanna thank the chair and the committee for working with us, especially over the course of yesterday evening and this morning. We will be accepting amendments, which I will describe in part. We just—we got some language of just a few minutes ago.

  • Rick Chavez Zbur

    Legislator

    We haven't been able to look at it because it was fairly technical, but I will actually go through in the presentation what I think the chair and I agreed to today, and we will be accepting, those in accordance with the agreement that we made.

  • Rick Chavez Zbur

    Legislator

    So, I just wanna thank you and thank, thank your staff. I'm proud today to present AB 1887, a targeted bill to remove unnecessary insurance barriers that delay or interrupt access to life saving and life altering treatments for Californians living with rare diseases. I'm very proud to chair the California Rare Disease Caucus, and this bill is a direct result of a rare disease patient roundtable that we convened in December so—that several of you attended.

  • Rick Chavez Zbur

    Legislator

    When we asked patients what single change at the state level would be, would most improve their lives, the answer was strikingly consistent. After years of fighting for diagnosis, they face a second battle getting their health plan to authorize the medication that their specialist prescribes.

  • Rick Chavez Zbur

    Legislator

    A rare disease is defined in federal law as a condition affecting fewer than two hundred thousand people in The United States, not just in California, the whole country. There are roughly eight thousand to ten thousand recognized rare diseases, and only about five percent have any FDA approved treatment. Many rare diseases are genetic, progressive, and life threatening with early onset and rapid progression, which is why half of rare disease patients are children and so many do not reach adulthood.

  • Rick Chavez Zbur

    Legislator

    For these families, navigating the health system is not a straight line. It is a maze.

  • Rick Chavez Zbur

    Legislator

    Studies show the average time to receive an accurate rare disease diagnosis is around four to six years, often involving 10 to to 17 different providers, multiple misdiagnoses, and inappropriate treatments before anyone even considers a rare condition. During that diagnostic odyssey, families are draining savings, taking second jobs, and choosing between a rent payment and a child's test or travel to a distant specialty center.

  • Rick Chavez Zbur

    Legislator

    And even after all of that, when a patient is finally diagnosed and there's an FDA approved treatment, they too often run into prior authorization and step therapy fail-first protocols that delay or deny the only medication that has been shown to work for their disease. Prior authorization and step therapy were designed as cost control tools in areas where there are multiple adequate alternatives. This is not the reality in rare disease.

  • Rick Chavez Zbur

    Legislator

    For 95% of rare diseases, there's no FDA approved treatment at all. And when the treatment does exist, there's, there's very often only one option. That data—the data shows that the, these utilization management tools do not function as a meaningful gatekeeping at, at, in this space. They function as a delay tactic. A national physician survey found that over 90% of providers report prior authorization delays care, over 90% say it harms clinical outcomes, and over 80% of denials are then appealed or eventually overturned.

  • Rick Chavez Zbur

    Legislator

    Research shows that when prior authorization is required, treatment can be delayed by a month or more, and when it is initially denied and later approved, delays can reach fifty days or longer. For rare disease patients, especially children with rapidly progressive conditions, those weeks and months are not benign.

  • Rick Chavez Zbur

    Legislator

    They mean avoidable ER—they mean avoidable ER visits and hospitalizations, irreversible disease progression, and in some cases, whether a child can walk, can breathe independently, or survive to school age. We also know from national economic studies that nearly half of the direct medical costs in rare diseases come from inpatient and outpatient care, hospitalizations, surgeries, emergency visits, while prescription drugs account for less than one fifth of the direct cost.

  • Rick Chavez Zbur

    Legislator

    One landmark analysis of 379 rare diseases found a total annual economic burden of about 1 trillion with hospital care as the main driver and prescription medications representing roughly 18% of the direct medical cost share. The everyday life foundation and other analyses show that avoidable costs from delayed diagnosis and treatment interruptions can range from roughly $86,000 to over half $1,000,000 per patient over the years of delay, and that lack of treatment is associated with more than 20—with a more than 20% increase in annual cost per patient.

  • Rick Chavez Zbur

    Legislator

    If we save money by denying or delaying the one FDA approved treatment, but then drive patients into hospital beds, operating rooms, and intensive care units, we've not reduced cost. We have shifted them onto families and onto the rest of the system. The CHBRP analysis estimates that AB 1887 would increase total premiums by about 148 million per year, which they equate to roughly point 0.08% premium impact, less than $1 per member per month across all markets.

  • Rick Chavez Zbur

    Legislator

    What CHBRP does not fully quantify are the offsetting savings from reduced hospitalizations, emergency visits, catastrophic progression, and administrative burden, factors that data indicate will offset the majority of the drug spending increases when treatment delays are removed. 18—AB 1887 is deliberately narrow and targeted. First, it eliminates prior authorization, and we're gonna be amending this in a minute. I'll go through this in just a second.

  • Rick Chavez Zbur

    Legislator

    The initial bill eliminates prior authorization, step therapy, and similar utilization review only for FDA approved drugs used to treat rare diseases and only when prescribed by an appropriate specialist based on medical necessity.

  • Rick Chavez Zbur

    Legislator

    Second, it applies only where there's no generic biosimilar or interchangeable biological alternative, preserving the use of biosimilars and generics and leaving utilization management fully in place where true therapeutic alternatives exist. Third, it leaves intact other safeguards. Plans can still enforce medical necessity standards, formulary rules, dose limits, and coverage policies for non-rare disease uses. What they cannot do is hold up the FDA approval of the FDA approved rare disease treatment behind redundant paperwork.

  • Rick Chavez Zbur

    Legislator

    So, let me be clear about what AB 1887 does not do.

  • Rick Chavez Zbur

    Legislator

    We are not mandating coverage of new drugs. We are not second guessing the FDA scientific review of the physician's clinical judgment. We are not touching situations where there is a generic or biosimilar and real therapeutic choice. All we are doing is removing insurance driven delays for rare disease patients to receive treatments that they're already entitled to under their existing benefit, treatments that their plans ultimately approve in nearly every case, often after weeks or months of avoidable delay.

  • Rick Chavez Zbur

    Legislator

    This bill will simply put medical decision making back where it belongs in the hands of doctors and their patients, especially when there's only one FDA-approved option on the table.

  • Rick Chavez Zbur

    Legislator

    You will hear the argument that 1887 will significantly increase premiums because it reduces these barriers. I struggle with that argument for two reasons. First, as I've noted, the bill does not expand coverage. These are treatments the patient's plan already covers once the family survives the appeals process. Essentially, opponents are saying that the delay itself, the months in which a patient goes without treatment, financial—financially benefits the insurance company even though the patient has been paying premiums for that coverage for the entire time.

  • Rick Chavez Zbur

    Legislator

    I don't believe that this is a defensible financing strategy for such a small and fragile population. Second, the premium impact that CHBRP identifies, which is under $1 per member per month, must be weighed against what we know about the downstream cost and human outcomes.

  • Rick Chavez Zbur

    Legislator

    The best available evidence including works cited by the every—Every Life Foundation and the Aspire for Rare policy report indicates that avoiding treatment interruptions and delays for rare disease can prevent tens of thousands to hundreds of thousands of dollars per patient in avoidable cost and reduces overall expenditures when hospital and ER utilization are taken into account. Even the most innovative and effective rare disease treatments are only as valuable as they are accessible.

  • Rick Chavez Zbur

    Legislator

    And, and for rare disease patients who are fortunate enough to have an FDA approved treatment for their condition, our policy responsibility is simple.

  • Rick Chavez Zbur

    Legislator

    Do not let insurance bureaucracy stand between them and the treatment their specialist has determined that they need. I intend to work closely with the committee and the chair between now and the Appropriations Committee to amend this bill. These amendments, in concept, include, one, moving away from the pre, through from the—moving away and requiring pre, a new preauthorization process that cannot take more than thirty days and that if it exceeds thirty days, the medication is automatically approved.

  • Rick Chavez Zbur

    Legislator

    Agreeing upon language of what triggers the thirty day time frame and that it must be simple and specific and essentially starts when the prescription is written, and it needs to strengthen, rather than weaken, current law. We also talked about making sure that the language does not weak current—weaken current protections for rare disease patients.

  • Rick Chavez Zbur

    Legislator

    We wanna make sure that, you know, there's a forty eight and seventy two hour requirements now. We wanna make sure that what we're doing now with this thirty day does not weaken any of the other protections there, and I, and I am confident that that the committee chair and the, and the committee will help us make sure that we do that.

  • Rick Chavez Zbur

    Legislator

    And then finally, we wanted to make sure that the language, as we're, as we're talking about this trigger that there's a patient voice and that we're checking with them. And I just wanna thank the chair for really agreeing to all of this. Madam chair and members, AB 1887 is modest in fiscal terms but profound in human terms.

  • Rick Chavez Zbur

    Legislator

    It protects a small, medically complex population that has already waited years for diagnosis by ensuring that they do not have to wait months more for the only treatment that's available. It aligns with California's values, our leadership in health care equity, and our growing commitment to children and the rare disease community. I ask for your aye vote at the appropriate time. And with me today, we have Rebecca Sponberg, a pediatric rare disease clinician, and Isabel Bueno, a patient living with MPS.

  • Rick Chavez Zbur

    Legislator

    And we also have to, the sponsor of the bill, Alex Khan from the California Chronic Care Coalition to answer technical questions.

  • Rick Chavez Zbur

    Legislator

    So, let's start with Rebecca.

  • Rebecca Sponberg

    Person

    Hi. My name is Rebecca Sponberg, and I’m a Pediatric Nurse Practitioner and Director of the Newborn Screening Program for Rare Metabolic Conditions at a Southern California Children’s Hospital. I’m also employed by BioMarin Pharmaceuticals PKU Speaker Bureau, but I’m speaking on behalf of myself today and not my employers. Thank you to Chair Bonta for supporting California children with the Children’s Caucus and thank you to Assemblymember Zbur for sponsoring this bill on behalf of the Rare Disease Caucus.

  • Rebecca Sponberg

    Person

    Most of my patients will need lifelong therapy until a cure is found, and some patients are at high risk for hospitalization from life threatening decompensation if they miss a single medication dose.

  • Rebecca Sponberg

    Person

    When a newborn case is referred to our center, I urgently confirm their diagnosis with testing and then prescribe FDA-approved treatments within the first few days of life to ensure good outcomes and prevent death and disability. Due to barriers or prior authorizations, I've had a prolonged hospitalization stays until these medications are approved.

  • Rebecca Sponberg

    Person

    I then see these patients in clinic very frequently for accurate weight checks and to adjust their medication dose due to the rapid growth of infancy. Usually, prior authorizations are required for each dose adjustment, which occurs several times each year throughout childhood and adolescence. This causes a large administrative burden for myself and my team to ensure my patients have access to their needed therapy at the appropriate dosage that will prevent hospitalization.

  • Rebecca Sponberg

    Person

    In summary, these newborns can't wait thirty days for a prior auth approval as it would increase the risk of death and undermine the goal of newborn screening, which is to save their lives. A national rare disease provider survey shows that 93% of Clinicians see prior authorization delaying care.

  • Rebecca Sponberg

    Person

    And most troubling, one third have seen a serious adverse event including hospitalization in about one quarter of cases and permanent disability or death in nearly one in ten is incredibly frustrating as a provider to see my pediatric patients go weeks without their enzyme replacement infusions due to delayed prior authorization, especially when the child has already been on this therapy for years. These delays occur most often with my patients who have commercial insurance.

  • Rebecca Sponberg

    Person

    AB 1887 follows the lead of New Mexico, which implemented a far broader law. Please support AB 1887. Thank you so much for your time.

  • Mia Bonta

    Legislator

    Thank you.

  • Isabel Bueno

    Person

    Madam chair and member of assembly, Health Committee, thank you for the opportunity to speak today. My name is Isabel Bueno. I'm here as a...type six. I want to begin by thanking assembly member Zbur for authoring AB 1887, and his leadership as chair of the Rare Disease Caucus. Also wanna thank the members of this committee who are part of the caucus for your ongoing commitment to this community.

  • Isabel Bueno

    Person

    Chair Bonta, thank you for your leadership and for being such a strong advocate for children through the Children Caucus. I know we all share the deep commitment to improving lives of children facing serious health challenges, including the estimated three million children in California living with rare diseases. As someone who was one of those children, I'm especially grateful for your work to help ensure they have better future. Today, I received weekly treatment at UCSF...Children's Hospital in Oakland. The fusion slowed the progression of my disease.

  • Isabel Bueno

    Person

    I will continue to receive this fusion for the rest of my life. I was diagnosed when I was nearly two years old, but did not begin treatment until I was seven years old. But then my body had already experienced damage that could not be reversed. This is the reality of rare diseases. They're progressive.

  • Isabel Bueno

    Person

    They do not wait, and every delay matter. Unfortunately, even when FDA approved treatment exists, patient often face a single delay due to insurance failure that has nothing to do with patient care, such as prioritization and self therapy. And we can see that already takes the average of five to seven years to receive the actual rare disease diagnosis. This added delay are time that patients deeply do not have. No patient with a rare disease should be forced to wait for care while their health declined.

  • Isabel Bueno

    Person

    AB 1887 opt to offer a clear and a compassionate solution by removing unnecessary barriers and allowing patients to access the care their doctor have already determined they need. I respectfully ask for aye end vote. Thank you so much.

  • Mia Bonta

    Legislator

    Thank you. Are there others in the hearing room who would like to offer a "me too" in support? Please come forward with your name, affiliation, and position on the bill.

  • Bob Drew

    Person

    Madam chair and members, my name is Bob Drew, and I'm here on behalf of my partner, Joe Lang, and everyone, every child, six hundred of them around the world with Jordan syndrome. We went through a long process.

  • Mia Bonta

    Legislator

    Thank you. Your position on the bill. Thank you.

  • Tim Madden

    Person

    Tim Madden representing the California Rheumatology Alliance, in support.

  • Chris Khan

    Person

    Chris Khan, representing the ALS Network, in support.

  • Salvador Lopez

    Person

    Salvador Lopez on behalf...California, in support.

  • Julio Ramirez

    Person

    Good afternoon, madam chair and members. Julia Mateo Ramirez on behalf of the seventy percent of kids within the patient population living with the rare disease. Please help children like me get access to the life saving treatments we need. Thank you.

  • Araceli Camparamides

    Person

    Araceli Camparamides, on behalf of California Life Sciences, in strong support of this measure.

  • Kasha Hunt

    Person

    Kasha Hunt with Political Solutions, here on behalf of Children's Specialty Care Coalition.

  • Lynn Kinst

    Person

    Lynn Kinst, Executive Director of the Bleeding Disorders Council of California and the Founder of the California Rare Disease Coalition, in strong support.

  • Kevin Guzman

    Person

    Kevin Guzman with California Medical Association, in support.

  • Unidentified Speaker

    Person

    Gabriel...here on behalf of Biocom in support.

  • Alfredo Medina

    Person

    Alfredo Medina, here on behalf of Cedars Sinai, in support.

  • Alex Khan

    Person

    Alex Khan, on behalf of the sponsor of the California Chronic Care Coalition, in support.

  • Mia Bonta

    Legislator

    Thank you.

  • Mia Bonta

    Legislator

    Thank you. We'll now move to any primary witnesses in opposition. Please come forward.

  • Cassidy Heckman

    Person

    Thank you, chair and members. Cassidy Heckman on behalf of the California Association of Health Plans. I wanna note that we were strongly opposed to the bill in print, due to the impact on premiums, the removal of utilization management, and wanna remind the legislator that they just passed SB 306 on prior authorization, which is gonna institute regulations on that. However, we do appreciate the committee amendments. We look forward to reviewing them and communicating our position with the committee and the author's office.

  • Cassidy Heckman

    Person

    Thank you.

  • Matt Akin

    Person

    Good afternoon, chair and members. Matt Akin on behalf of the Association of California Life and Health Insurance Companies. Also in opposition to the bill in print, but would like to align my comments with my colleague at CAHP. Thank the committee and the author for the amendments, and we look forward to reviewing them with our members. Thank you.

  • Mia Bonta

    Legislator

    Thank you. Are there any others in the hearing room that would offer a "me too" in opposition? Seeing none. I will bring it back to committee for comments. Assemblymember Addis.

  • Dawn Addis

    Legislator

    Thank you so much, madam chair. And I wanna, thank you, chair. I know you put a lot of work into this, and I had a lot of conversations with me. A number of us had a lot of conversations and thanked the author. I would be happy to move the bill.

  • Dawn Addis

    Legislator

    I would love to join on as a coauthor of this bill. I think, I, I don't know, so, I, I don't have someone that I love in my life with a rare disease, but I do have someone in my life that I love dearly who has faced immense hurdles when it comes to preauthorization and has had—has experienced delayed treatment that caused emotional harm, financial harm, and actually lifelong physical damage because of the delayed treatment that had to do with pre auth.

  • Dawn Addis

    Legislator

    So, really deeply understand the impacts that this issue can have on people and wanna appreciate your fortitude and your flexibility. I know we had a lot of conversations late into the night last night and early this morning, and the fact that you're willing to work on this and be flexible and, and, and turn this into something that can gather such broad support, I really appreciate.

  • Mia Bonta

    Legislator

    Assemblymember Ahrens.

  • Patrick Ahrens

    Legislator

    Thank you. Thank you so much, madam chair, for working in the committee and, and everyone's due diligence in working on this. I appreciate the testimony. I appreciate the author and caring so much about this issue. I will just simply say that as someone who's very new to this committee and very new to the legislature, before getting here, my twin brother passed away from a rare disease. And there's a rage that is going on in our health care system right now, and it needs to be fixed.

  • Patrick Ahrens

    Legislator

    And it won't, won't—I don't think that very many people in my district certainly are going to accept the status quo for very much longer. And so, this is a, this is a plea to the stakeholders and health care watching that we need to work on a very hard pivot and change in the way in which we're delivering health care for our constituents, or you will expect to see more drastic decisions being made by the legislature.

  • Patrick Ahrens

    Legislator

    Because we cannot continue to allow people to die while waiting for bureaucratic messes that you all are fighting for and fighting over. And so, that's gonna change. You can be a part of the conversation, or you can witness us changing it for you.

  • Patrick Ahrens

    Legislator

    But don't stand in the way any longer because the status quo isn't working for our constituents, and we expect to change it. Thank you.

  • Mia Bonta

    Legislator

    Thank you. Assemblymember Caloza.

  • Jessica Caloza

    Legislator

    Hi. Thanks so much, Chair Bonta. I wanted to give my appreciation to my seatmate, and, and our chair of the Rare Disease Caucus. Also proud to, to be a member and a member that the first meeting that you hosted was actually in my district in Atwater Village at Takeda and hearing the patient stories from this beautiful community who has the courage to tell us some of the, the really traumatizing things that they have gone through, really breaks my heart.

  • Jessica Caloza

    Legislator

    And so, thank you for advancing this bill, and thank you to our chair, for her leadership on the Health Committee, in allowing us to, to make this, move forward, as well as to our Budget Health Chair as well.

  • Jessica Caloza

    Legislator

    And just happy to, to support this bill, and just thank you to the Rare Disease Caucus and, and to the entire community for your advocacy and for being here.

  • Mia Bonta

    Legislator

    Thank you. I want to thank the assembly member for his work and advocacy on this bill and wanna acknowledge Isabella and Dr. Sponberg for your continued advocacy for on behalf of people with rare diseases, which impacts about eighty four—well, this bill would impact about eighty four hundred people with rare diseases.

  • Mia Bonta

    Legislator

    And over the course of time, you know, Assemblymember, that we've spent a lot of time going up and down the state of California, understanding the complexity of our healthcare system and the need to be able to, in this moment in time, ensure that we were being sensitive to the increase in premium costs for Californians and appreciated the superb analysis that outlined the ways in which the legislation as proposed would cause some concern for us in that regard.

  • Mia Bonta

    Legislator

    And I will say I just want to confirm that the agreements for amendments that we will work on, as you stated, are my understanding as well, that we will focus on a thirty day deadline for prior authorization and then ensure auto approval beyond that time frame to be able to address the concerns related to any delays in provision of prescription medication, that we will be very pointed around the trigger language and conditions that will be put in place to be able to assess that the resolution around prior authorization associated with that, and that we will clarify that this bill, as proposed moving forward, does not conflict with any existing timelines for urgent requests and other protections.

  • Mia Bonta

    Legislator

    And finally, that in the, in the development of the trigger language, especially, we will ensure to make sure to engage patient advocates in so that we have that lived experience represented in the way that, that the implementation happens in that area. I wanna thank committee members for their engagement on this legislation as well.

  • Mia Bonta

    Legislator

    Had a lot of committee members reach out both understanding our need to support our healthcare infrastructure and keep costs as low as possible and also very heartfelt commitments and understanding around making sure to support our community members that have and suffer from rare diseases.

  • Mia Bonta

    Legislator

    So, I wanna thank you all for the work that we've been able to do, and I especially wanna thank our CHBRP partners who put together these very complex analysis in very short time periods, as well as our committee consultants, Rhianna King, especially in being able to move this bill forward and the work that you were able to do on this legislation. With that assembly member, would you like to close?

  • Rick Chavez Zbur

    Legislator

    Just wanna thank thank you, thank your staff, thank the other members of the committee who've engaged so—in such a focused way on this. I also wanna thank my sponsor and the witnesses today. It's been an honor to work with you, and I wanna thank my staff. And so, with that, I request an aye vote.

  • Mia Bonta

    Legislator

    We have a motion with Addis, seconded by Caloza, and we will call the roll. Thank you.

  • Committee Secretary

    Person

    [Roll Call]

  • Mia Bonta

    Legislator

    That bill is out. Thank you so much.

  • Phillip Chen

    Legislator

    The next bill that is up is AB 1970, Assemblymember Harabedian. At your pleasure, Assemblymember.

  • John Harabedian

    Legislator

    Thank you, Mr. Vice-Chair. Thank you to Madam Chair, who's just stepping out for all her work and the committee's work. And I know that the committee has put in a long day, and you're gonna be here for many more hours. So I'll be very brief and get to exactly why we're here. AB 1970 is a bill that addresses step therapy or fail-first when it comes to serious mental illness and substance use disorder.

  • John Harabedian

    Legislator

    I think everyone here has a personal story of a loved one or a family member or a friend that is dealing with serious mental illness or substance use disorder, and you know how hard it is to find the right medication for them.

  • John Harabedian

    Legislator

    And what fail-first and step therapy does is get in the way of a doctor and a patient in that situation, and a doctor will actually prescribe a certain medication, and a health insurance plan will require the patient to fail-first before they actually get the medication that the doctor prescribes.

  • John Harabedian

    Legislator

    This not only costs lives, it causes serious psychotic episodes that then harm the system, the health care system, where nearly 20% of patients who are required to fail-first in step therapy, end up in an ER and have to stay long term at a hospital visit. And that is something that our health care system should not tolerate, and we should not have it.

  • John Harabedian

    Legislator

    The State of Illinois just passed a law that does this, doesn't allow for step therapy for serious mental illness and substance use disorders anymore, and I think that California should be a leader in this as well.

  • John Harabedian

    Legislator

    Here with me today, I have two expert witnesses who will speak on this. Dr. Le Ondra Clark Harvey, CEO of the California Behavioral Health Association, who is the sponsor of this bill, and Dr. Adrian Jacques Ambrose, who's the Chief Medical Officer at Pacific Neuropsychiatric Specialists.

  • Le Clark Harvey

    Person

    Good afternoon. Chair and members, thank you for the opportunity to testify today in strong support of AB 1970. CBHA is a proud sponsor of this legislation, and we represent community-based organizations that serve over 2 million Californians with the most complex behavioral health needs across your districts. So let me start with the scale of what we're talking about.

  • Le Clark Harvey

    Person

    There are over 22.8 million Californians who are enrolled in health care coverage subject to this policy framework, and more than 1.5 million of those adults are living with serious mental illness.

  • Le Clark Harvey

    Person

    Yet under current practices, far too many of these individuals are forced into fail-first, step therapy protocols that delay access to the medications that their providers have already determined are clinically appropriate. The consequences aren't theoretical. They are measurable. 53% of patients experience delays of 4-15 weeks before receiving prescribed medications. Up to 40% discontinue treatment entirely when forced to fail-first.

  • Le Clark Harvey

    Person

    And patients with disrupted medication access have 3.6 times higher odds of hospitalization. So even if a fraction of California's 1.5 million individuals with serious mental illness are impacted, we're talking about hundreds of thousands of Californians who are experiencing delayed care, destabilization, or complete disengagement from treatment. Prior to my work in the legislative and policy arena, I provided clinical care as a psychologist in prison, crisis unit, outpatient settings with adults and older adults living with serious mental illness.

  • Le Clark Harvey

    Person

    I've treated clients who have deep paranoia. Even a small change in medication can feel threatening. I've seen what happens when someone is finally stable on a medication and then is forced to switch because of step therapy. They don't just try something else. They decompensate. They end up in crisis, and they lose trust in the system, and often, we lose them. So in behavioral health, medications are not interchangeable.

  • Le Clark Harvey

    Person

    Stability is fragile. And failing first is not a neutral step. It can mean hospitalization, incarceration, or worse.

  • Phillip Chen

    Legislator

    Thank you so much. If you could wrap it up. Thank you.

  • Le Clark Harvey

    Person

    Sure. Psychiatric medications work differently for each individual. So what's equivalent on paper is just not equivalent in practice. Thank you for hearing us today.

  • Adrian Ambrose

    Person

    Madam Chair and members of the committee, thank you for the privilege of testifying today. I'm a board-certified neurointerventional psychiatrist with subspecialty in treating severe mental illnesses in adults, children, and adolescents. Throughout my career, I've had the opportunity to work in many settings, in outpatient school-based programs, partial dual diagnosis, residential, emergency, crisis, inpatient, state hospital, as well as large tertiary academic medical centers, and in rural communities.

  • Adrian Ambrose

    Person

    Consequently, I speak with experience that fail-first step therapy is a ubiquitous barrier for vulnerable patients and families with SMI. I'm here to share the story of one of my patients, Gabby, who is a young college student with schizoaffective disorder, bipolar type.

  • Adrian Ambrose

    Person

    Due to the challenges of the fail-first approach, she was without her medication for two weeks. And within these two weeks, that led to a return of psychotic symptoms that had previously been controlled for three years. She ended up in the ED and admitted in the inpatient unit for almost three weeks. During the protracted recovery back to baseline, Gabby, who was previously an accomplished student athlete, started to miss assignments, dropped out of her collegiate volleyball career, and ultimately had to take a leave of absence.

  • Adrian Ambrose

    Person

    As Gabby's story demonstrates, the fail-first approach is associated with reduced access, increased risk of disruption and discontinuation of clinical care, and increased risk of hospitalization.

  • Adrian Ambrose

    Person

    Furthermore, I've seen firsthand psychiatric stability can be very fragile, hard-earned, and easily lost. I've witnessed firsthand in Gabby, where even a short two weeks of disruption ended up destroying a three-year stability and leading to subsequent months of painful recovery. Second, psychiatric medication is not interchangeable, and fail-first approach overrides the individualized care between a person.

  • Phillip Chen

    Legislator

    Thank you. Please finish your comments, my friend.

  • Adrian Ambrose

    Person

    And their physician. Of course. This is not evidence-based clinical care. This is an arbitrary, one-size-fits-all, administrative imposition and barrier for all patients. Thank you again for the opportunity to testify.

  • Phillip Chen

    Legislator

    Thank you for your testimony. Do we have any me too's in support? Please come to the microphone.

  • Dylan Elliott

    Person

    Thank you very much. Dylan Elliott, on behalf of the California State Association of Psychiatrists, in support.

  • Natalie Pita

    Person

    Natalie Pita, on behalf of the California Academy of Family Physicians, in support.

  • Kalyn Dean

    Person

    Kalyn Dean, on behalf of the California Hospital Association, in support.

  • Tara Gamboa-Eastman

    Person

    Tara Gambo-Eastman with the Steinberg Institute, in support.

  • Lauren Finke

    Person

    Lauren Finke at the Kennedy Forum, in support.

  • Sara Noceto

    Person

    Sara Noceto, on behalf of the California Chronic Care Coalition, in support.

  • Mari Lopez

    Person

    Mari Lopez, California Nurses Association, in support.

  • Sandra Poole

    Person

    Sandra Poole, on behalf of Western Center on Law and Poverty, in support.

  • George Cruz

    Person

    George Cruz, on behalf of the California Behavioral Health Association, proud co-sponsor, and the California Access Coalition, in strong support.

  • Benjamin Eichert

    Person

    Benjamin Eichert, National Union of Healthcare Workers, in support.

  • Jasmine Smith

    Person

    Dr. Jasmine Smith, with the National Association of Social Workers, California Chapter, in strong support.

  • Kevin Guzman

    Person

    Kevin Guzman, with the California Medical Association, in support.

  • Gilbert Lara

    Person

    Gilbert Lara, here on behalf of Biocom, in support.

  • Elmer Lizardi

    Person

    Lizardi, California Federation of Labor Unions in support. Thank you.

  • Lynne Kinst

    Person

    Lynne Kinst, Bleeding Disorders Council of California, in support.

  • Phillip Chen

    Legislator

    Thank you very much. Do we have any key witnesses in opposition? Please come to the table.

  • Matt Akin

    Person

    Good afternoon, Chair and members. Matt Akin, on behalf of the Association of California Life and Health Insurance Companies, in respectful opposition to Assembly Bill 1970. While we appreciate the author's goal of improving access to high-quality behavioral health care, this bill would undermine important patient safety protections and increase costs for consumers at a time when health care affordability remains a critical concern.

  • Matt Akin

    Person

    AB 1970 would remove utilization management practices, health plans, and insurers use to manage costs associated with prescription drugs, which between 2017 and 2024 increased by 72%. Step therapy is not a blanket barrier to care.

  • Matt Akin

    Person

    It is used narrowly and mainly when multiple clinically appropriate options exist. Many drugs used to treat serious mental illness and substance use disorders also carry serious safety risk. Step therapy helps patients try safer, evidence-based options first before moving to higher-risk treatments when needed. In mental health and substance use disorder treatment, utilization management is driven by safety and clinical appropriateness, not delay. Step therapy helps ensure treatments are introduced in a safe, evidence-based manner.

  • Matt Akin

    Person

    Finally, selectively mandating special coverage rules for certain conditions not only directly increases premiums, it also creates a discriminatory system where some conditions and services are favored over others, raising real equity concerns across the health care system. AB 1970 would severely limit the ability of plans and insurers to responsibly manage care and prioritize patient safety. For these reasons, we respectfully oppose the bill, but we look forward to future conversations with the author and sponsors if the bill moves forward today. Thank you.

  • Kassidy M. Heckmann

    Person

    Thank you, Kassidy Heckmann. On behalf of the California Association of Health Plans, I wanna echo the comments from my colleague, and I also wanna thank the author and his staff for their early engagement with us on this issue. However, we are regrettably opposed today. Utilization practices used for drugs that treat SMI and SUD are driven by safety considerations and cost control strategies. For example, there may be multiple therapeutically equivalent alternatives available for lower costs and with similar treatment outcomes.

  • Kassidy M. Heckmann

    Person

    Additionally, health plans may also reference the FDA label when establishing their utilization management practices. In some instances, the FDA label may require a patient to use an oral formulation of the same medication before starting a long-acting injectable to ensure medication compatibility and safety, and the step therapy is grounded in the drug's own labeling requirements.

  • Kassidy M. Heckmann

    Person

    Finally, I'd like to flag that CHBRP notes that the immediate impact of this bill is projected to be small, and there would be no net change in the number of enrollees using these drugs. However, the narrow subset of affected enrollees would shift from the generic to the brand-name drugs, which, as previously stated, does not necessarily offer any clinically significant advantages over the generics.

  • Kassidy M. Heckmann

    Person

    In closing, I would like to highlight the conversation so legislator has had this session to address the rising cost of health care. And as we remind the legislator every year, health care mandates do have a direct correlation to premium increases for Californians. For these reasons, we are respectfully opposed. Appreciate the conversations, and thank you.

  • Phillip Chen

    Legislator

    Thank you for your testimony. Do we have any me too's in opposition? Please come to the microphone. Seeing none, do we have any questions about the membership? Assemblymember Addis.

  • Dawn Addis

    Legislator

    Yeah. Thank you so much. I'm happy to move the bill. Would love to be added as a co-author to this tough day with the health plans, and I today because there's so many things that are coming forward that just seem so egregious. And I'll be honest on this one.

  • Dawn Addis

    Legislator

    It's hard to imagine balancing cost on the backs of the most mentally ill people in our society and in our care. And as I was listening to the testimony, it just feels like the system is cruel, particularly if we're taking people with schizophrenia off of their medications or people that are experiencing that kind of disorder off of their medications due to step therapy requirements.

  • Dawn Addis

    Legislator

    So thank you for bringing it forward, and I'm sure we're gonna find a bill that we agree on with the health plans at some point. Today might not be our day, but appreciate your engagement and the fact that you're working with the authors on all of these pieces that we've talked about.

  • Phillip Chen

    Legislator

    Thank you, Assemblymember. Assemblymember Ahrens?

  • Patrick Ahrens

    Legislator

    Thank you. Thank you to the author. I have to agree with my colleague Assemblymember Addis. You know, the delays in treatment and health care, I just don't see outweighing, you know, the need to burden the health care coverage of very vulnerable constituents of mine any longer. And I'm wondering if the author would like to respond to any of the opposition.

  • John Harabedian

    Legislator

    No.

  • Patrick Ahrens

    Legislator

    Yeah, I just feel pretty strongly about this as someone who grew up in a home that had a lot of substance use and mental illness. Why the opposition would choose those arguments, given everything that's going on? So I would love to second the bill forward and love to be added as a co-author.

  • John Harabedian

    Legislator

    Thank you. Love to have you both.

  • Phillip Chen

    Legislator

    The bill's been moved and seconded. Do we have any additional questions from the committee? Seeing none, Assemblymember Harabedian, would you like to close, sir?

  • John Harabedian

    Legislator

    Thank you. Appreciate the comments. Respectfully ask for an aye vote.

  • Phillip Chen

    Legislator

    Thank you so much. Mr. Secretary, please call the roll.

  • Committee Secretary

    Person

    The motion is do passed to Appropriations Committee. [Roll Call]

  • Phillip Chen

    Legislator

    The bill is on call. Some number, thank you. So, Ahrens, would you like to present your bill, sir? The bill's been moved and the bill's been seconded. AB 2511.

  • Phillip Chen

    Legislator

    And so, Ahrens, is that your pleasure, sir?

  • Patrick Ahrens

    Legislator

    Thank you, Mister Chair and members. AB 2511 requires the Department of Industrial Relations to work with other state agencies to examine pay disparities between behavioral health providers and medical surgical care providers. The DIR will collect data from health care plans and insurers to perform this study and will share its findings with the legislature. California is facing a behavioral health crisis that jeopardizes the economic stability and public safety of millions of our residents.

  • Patrick Ahrens

    Legislator

    In this time of great uncertainty, we need to ensure that we are protecting all Californians.

  • Patrick Ahrens

    Legislator

    With me today is Keith McCann, a marriage and family therapist and clinical supervisor at the Kaiser Modesto Behavioral Health Clinic, and Ben Eichert, the director of public policy and legislative affairs for the National Union of Healthcare Workers.

  • Keith McCann

    Person

    Good afternoon, Chair and committee members. My name is Keith McCann. I'm a licensed marriage and family therapist and clinical supervisor at the Kaiser Modesto Behavioral Health Center. I'm also a member of the NUHW, proud sponsor of AB 2511. A 2023 survey by the California Health Foundation found that fifty-two percent of Californians seeking behavioral health services reported difficulty finding a therapist who would accept their insurance.

  • Keith McCann

    Person

    Now, that should be no surprise. Only fifty-five percent of private practice therapists in California even accept insurance. It's the second worst rate in the nation. As a therapist who sees patients in private practice, I can also attest to this reality firsthand. I've paneled with multiple platforms, providers, and panels, all offering different reimbursable rates for forty-five to sixty minute sessions.

  • Keith McCann

    Person

    Because my time and expertise are finite and my overhead costs are fixed, I'm forced to prioritize higher paying panels or patients simply to keep my practice financially viable. The take it or leave it dynamic directly reduces access for low income people who often need timely acute services to prevent crisis escalation. Ample evidence demonstrates that health insurance coverages undervalue behavioral health care and undercompensate compared to peers who provide physical care, even when education levels, licensure requirements, and insurance costs are similar. Mental health parity remains an unfulfilled promise in our state.

  • Keith McCann

    Person

    AB 2511 is an important step in fixing the problem by creating a behavioral health system with a competitive balance, in which providers can earn fair compensation, and our state's residents can access timely care. I urge the committee to examine these reimbursement disparities as a root cause for our statewide mental health access crisis and consider legislative remedies that align insurance payments with the actual cost of delivering evidence based, compassionate care. Thank you for the opportunity to testify.

  • Phillip Chen

    Legislator

    Thank you for your testimony, sir.

  • Benjamin Eichert

    Person

    Thank you, Chair and members of the committee. I'm Benjamin Eichert, public policy director at the National Union of Healthcare Workers. We're the state's largest union of licensed private sector behavioral health providers and the proud sponsor of AB 2511. The problems that my colleague spoke about have a very significant financial impact on California families. When forced out of network, families face average bills of $861 per episode.

  • Benjamin Eichert

    Person

    Unfortunately, many end up deciding to go without care, which leads some of them to decompensate and require expensive emergency interventions. In other words, the shortage of in network behavioral health providers imposes significant cost burdens on consumers. Ample evidence shows that behavioral health providers are not incentivized to join insurance networks because their compensation is significantly lower than that of their peers who provide physical care.

  • Benjamin Eichert

    Person

    The study proposed by AB 2511 will demonstrate if and in what form these inequities exist and clarify their role in driving behavioral health providers away from insurance networks and limiting access to behavioral health care for Californians. Ensuring that Californians who need behavioral health care can access it affordably is important work that the legislature has made a priority.

  • Benjamin Eichert

    Person

    We appreciate the committee's consideration of this bill, and I respectfully request your aye vote on AB 2511. Thank you.

  • Phillip Chen

    Legislator

    Sir, thank you for your testimony. Do we have any me-toos in support?

  • Bindu Mukhamala

    Person

    Bindu Mukhamala with the National Association of Social Workers, California Chapter, in strong support and proud co-sponsors of this bill.

  • Tara Gamboa-Eastman

    Person

    Tara Gamboa-Eastman with the Steinberg Institute in support.

  • Unidentified Speaker

    Person

    Lauren, thank you. The County Forum, in support.

  • Marie Lopez

    Person

    Marie Lopez, California Nurses Association, in support.

  • Omar Altamimi

    Person

    Omar Altamimi with CPAN, the California Pan-Ethnic Health Network, in support.

  • Elmer Lizardi

    Person

    Elmer Lizardi with the California Federation of Labor Unions, in support.

  • Phillip Chen

    Legislator

    Thank you very much. Key witnesses in opposition, do we have any?

  • Olga Shilo

    Person

    Chair, members, Olga Shilo here on behalf of the California Association of Health Plans. We appreciate the intent behind AB 2511 to improve access to behavioral health care, and we do share that goal. However, we must respectfully oppose the bill at this time. AB 2511 would require health plans and insurers to submit highly detailed payment data across multiple payment pathways, including payments to providers, intermediaries, and health systems.

  • Olga Shilo

    Person

    Plans already have extensive reporting requirements, and this bill would layer on new reporting requirements to a different agency, adding administrative burdens for both the health care system and the state, and pulling time and resources away from patient care.

  • Olga Shilo

    Person

    The payment information subject to disclosure under AB 2511 is also highly sensitive and proprietary. Making this data available raises serious concerns about data security and competitive harm. In practice, it can weaken contract negotiations and encourage market behavior that ultimately puts upward pressure on premiums for employers and consumers. CAHP recognizes that California faces a well documented shortage of behavioral health providers, particularly those willing to contract with plans and insurers.

  • Olga Shilo

    Person

    More broadly, high out of network charges are driven by that shortage and by market dynamics where some providers can remain out of network, set their own rates, and bill full charges.

  • Olga Shilo

    Person

    Unfortunately, this weakens incentives to participate in networks and pushes health care costs even higher. Ultimately, AB 2511 is a costly data collection exercise that does not meaningfully expand access to care, support workforce development, or strengthen enforcement of existing mental health parity laws. While CAHP is committed to working with the author if the bill moves forward today, unfortunately, we remain opposed. Thank you.

  • David Gonzalez

    Person

    David Gonzalez on behalf of America's Physician Groups, in respectful opposition. This is kind of, we're going to be a short opposition because frankly, we agree with everything the author said. So we agree with the problem.

  • David Gonzalez

    Person

    We agree that there needs to be more investment in the behavioral health infrastructure and the workforce, and it hurts the groups. You know, one of the things that the groups do is that we have these adequate networks. That's how we keep costs down. That's how we do quality care for patients. If we don't have enough providers, then that's not going to be good for anybody.

  • David Gonzalez

    Person

    And so we do need to invest more in this workforce. They're critical for this patient population. And so please consider us partners for you and try to grab more resources for those people that do this work. It's really important for us to do it. We're opposed frankly because of the administrative burden.

  • David Gonzalez

    Person

    And that's because the groups are under a lot of pressure from regulators through MLR reduction. So we can only spend so much resources on our overhead and administrative burdens. And also just the reimbursement. So HR 1 is coming, so less resources in the system in general. And so we just have less resources, but we do appreciate the problem and want to be part of the solution. Thank you.

  • Phillip Chen

    Legislator

    Thank you for your testimony. Key, excuse me, me-toos in opposition.

  • Steffanie Watkins

    Person

    Mister Chair, members, Steffanie Watkins on behalf of the Association of California Life and Health Insurance Companies, also opposed for the previously stated reasons. Thank you.

  • Ron Bridigo

    Person

    Good afternoon, Chair, members of the committee. Ron Bridigo here on behalf of Kaiser Permanente, respectfully in opposition. Thank you.

  • Meghan Loper

    Person

    Mister Chair, members, Meghan Loper on behalf of the California Hospital Association with an opposed unless amended position.

  • Angela Hill

    Person

    Good afternoon. Angela Hill with the California Medical Association in respectful opposition.

  • Alexis Rodriguez

    Person

    Alexis Rodriguez of the California Chamber of Commerce with an opposed unless amended position. Thank you.

  • Phillip Chen

    Legislator

    Thank you very much. I'll take this back to committee. Do we have any questions from committee?

  • Pilar Schiavo

    Legislator

    Just wanted to give you an opportunity to respond to the opposition arguments.

  • Patrick Ahrens

    Legislator

    Well, I'm always happy to work with the respectful opposition. But I will say that I think the comments are a tad overblown. This isn't an exercise. This is a study bill to see if we are undervaluing and not paying our behavioral health workers enough. That's all that this is.

  • Patrick Ahrens

    Legislator

    It's a study bill. It is not administratively burdensome. It is not going to shake the foundations of our health care system. This is not going to take away from providing patient care. This is a study bill to study an issue.

  • Patrick Ahrens

    Legislator

    That's all it is.

  • Pilar Schiavo

    Legislator

    And for your witness, I'm sorry if I missed your name.

  • Keith McCann

    Person

    Keith McCann.

  • Pilar Schiavo

    Legislator

    McCann, Mister McCann. Can you share how much you were paid by insurance, generally speaking, like a decade ago?

  • Keith McCann

    Person

    Oh, a decade ago. Wow. $80.75 a session.

  • Pilar Schiavo

    Legislator

    Do you still today get paid somewhere around that or not much above that, sir?

  • Keith McCann

    Person

    Not much above it. Again, most, you know, ranges, either from platforms to direct panels that you contract with, can vary. It varies. There's no consistency.

  • Pilar Schiavo

    Legislator

    Right.

  • Keith McCann

    Person

    And so we tend to deviate to the ones that are paying the higher reimbursement rate, and then very few people can access those. The wait list is long.

  • Pilar Schiavo

    Legislator

    What's the highest reimbursement you think you get for an individual, for an hour, fifty minutes?

  • Keith McCann

    Person

    $117 an hour.

  • Pilar Schiavo

    Legislator

    Okay. I mean, I think this is a huge piece of the problem for mental health providers and therapists, that the cost of providing care has not kept up with even the cost of living. And, you know, we see this time and time and time and time and time again in this committee about trying to figure out how we provide more access to mental health care in our communities.

  • Pilar Schiavo

    Legislator

    And I hear from therapists in my community about how challenging it is to take insurance, that you're not reimbursed for the cost of care, and insurance is not something that you can, like you said, keep your practice afloat with.

  • Pilar Schiavo

    Legislator

    And I think that, you know, it's time that we have some sunshine on this situation to really understand why, when other care providers have been able to at least have reasonable increases, folks who are providing mental health care, in a time when we have a mental health care crisis, are not keeping up with that.

  • Pilar Schiavo

    Legislator

    So I'm happy to support this bill today. Appreciate that you're trying to bring some sunshine to the situation, and happy to move the bill.

  • Phillip Chen

    Legislator

    It's been moved and seconded. Assemblymember Patel.

  • Darshana Patel

    Legislator

    Hi. Thank you, Assemblymember Ahrens, for bringing this bill forward. I have both friends in my community who are practitioners and who also seek care. And I have heard anecdotal tales over and over and over again how reimbursement is not sufficient, that there are concerns around clawbacks once services are provided, etcetera, etcetera, and then people just not being able to access the care that they need. And I am a strong supporter of getting more data.

  • Darshana Patel

    Legislator

    And as Assemblymember Schiavo stated, getting some sunshine on this. It's very important that we have that kind of sound data to help us make our decisions. I do have some concerns, and I hope that you continue to work with the opposition, with the respectful opposition, as you typically do. And those concerns are around making sure that we are comparing apples to apples.

  • Darshana Patel

    Legislator

    When we're looking for those comparables, that we look at similarly situated practitioners. And while I'm not an expert, I'm just, you know, from first blush, I am concerned that we're comparing behavioral health providers to medical surgical providers, which are very different types of practices.

  • Darshana Patel

    Legislator

    And, you know, it's very complex to think about how an interactive type of therapy session would be compared to an outpatient or even inpatient surgical practice. So I just want to make sure we're comparing the right kinds of practitioners, understanding, of course, both types of practitioners deal with very complex situations with their patients, but complex in different ways. So I just want us to continue thinking about what is the appropriate comparable and how we design that for DIR to take a look at, as I, I don't know.

  • Darshana Patel

    Legislator

    And like you, I am learning. I don't know that DIR has the capacity to understand those nuances of the types of practices and roles that our providers work with.

  • Patrick Ahrens

    Legislator

    Absolutely. And would be happy to continue working with your office and the respectful opposition on helping clarify that.

  • Darshana Patel

    Legislator

    Thank you. I will be voting aye today.

  • Patrick Ahrens

    Legislator

    Thank you.

  • Phillip Chen

    Legislator

    Thank you, Assemblymember. Senator Caloza.

  • Jessica Caloza

    Legislator

    Thank you so much, Chair, and thank you to my colleague for his leadership on this issue. I think you've done so much. You've talked about so much of your own personal stories as it relates to mental health issues that we see health care professionals facing.

  • Jessica Caloza

    Legislator

    And I think that this bill is much needed to really understand what those disparities are, especially when we think about the types of real world scenarios and realities that mental health care providers are facing, from COVID to everything that's going on now with immigration and ICE. They see everything under the sun.

  • Jessica Caloza

    Legislator

    And so, thank you for your leadership on this. And we also know that a big hurdle for Californians seeking mental health care is that they can't find a provider that takes their insurance, and they really can't afford to pay out of pocket given the rising cost of everything to live in California. And so I just wanted to add that, and I would also like to be added as a co-author, if you'll have me. Thank you.

  • Phillip Chen

    Legislator

    Any other questions from the committee? Seeing none. So, Ahrens, would you like to close, sir?

  • Patrick Ahrens

    Legislator

    Respectfully ask for your aye vote.

  • Phillip Chen

    Legislator

    Thank you very much. The bill has been moved and seconded. Mister Secretary, please call the roll.

  • Committee Secretary

    Person

    The motion is do pass to the appropriations committee. [Roll Call]

  • Phillip Chen

    Legislator

    The bill's on call. Thank you, Assemblymember. The Southern Missoria, item 15, AB 1923.

  • Esmeralda Soria

    Legislator

    Good afternoon, chair and members. I'd like to start by saying I accept the amendments offered by the chair and the analysis, and I want to thank her and her staff for their work on this bill. AB 1923 will help keep California's hospitals open by reinvesting in the distressed hospital loan program, expanding the eligibility to new financially distressed hospitals, and ensuring past recipients still under financial distress are able to receive loan forgiveness.

  • Esmeralda Soria

    Legislator

    On December 22, 2022, less than three weeks from the day I was sworn in, I learned of Madera Community Hospital's intention to close. By January the following year, the hospital had closed its doors and created a health care crisis in the heart of my district.

  • Esmeralda Soria

    Legislator

    Madera Community Hospital was the only hospital in Madera County, and patients that had previously depended on it for care now face long drives to neighboring counties, if they could afford transportation at all. In addition to depriving Madera residents of health care access, it inundated hospitals in neighboring counties that could not take the influx of displaced patients from Madera.

  • Esmeralda Soria

    Legislator

    To address this crisis and the numerous looming financial crises at other hospitals throughout the state, I worked with Senator Caballero and my other legislative colleagues in 2023 to create the distressed hospital loan program. This program infused $300,000,000 into 15 desperate hospitals that our communities depended on, keeping them from closing or severely curtailing services, and in Madera's case, reopening its doors in March of last year. However, the financial strain on California's hospitals has only continued to grow.

  • Esmeralda Soria

    Legislator

    In the past three years, four California hospitals have either closed or been barely saved from closing. In 2025 alone, five hospitals shuttered service lines, including vital maternity units, pediatric units, and more. In addition to our hospitals' existing financial challenges, changes to federal health care funding stand to devastate numerous hospitals, especially those that primarily serve Medi-Cal patients like the ones in my district.

  • Esmeralda Soria

    Legislator

    AB 1923 will help keep our hospitals open by building on the success of the original distressed hospital loan program and expanding it to ensure our hospitals can weather the coming fiscal storm. In the end, AB 1923 will provide a lifeline to communities like mine.

  • Esmeralda Soria

    Legislator

    Here with me today to testify in support of 1923 is Doctor Elaine Batchlor, CEO of MLK Community Healthcare Los Angeles, and Mary Casillas, CEO of Hazel Hawkins Hollister. These two hospitals were recipients of the 2023 distressed hospital loan program.

  • Elaine Batchlor

    Person

    Good afternoon. Thank you for the opportunity to support this bill. I'm Doctor Elaine Batchlor, and I'm the chief executive officer of MLK Community Healthcare, a nonprofit safety net hospital that serves over 1,000,000 people in South Los Angeles. We run one of the busiest emergency departments in the country, serving more Medicaid patients in our emergency department than any other hospital in California. We received a distressed hospital loan in 2023.

  • Elaine Batchlor

    Person

    The $14,000,000 we received allowed us to maintain operations during a period of dangerously low cash after our finances had been depleted by the cost of caring for our community during the COVID pandemic. These funds supported essential operating expenses, including staffing and medical supplies. By stabilizing our finances, the loan enabled us to implement a turnaround plan that included operational improvements and additional short-term funding from the county and state.

  • Elaine Batchlor

    Person

    Our operational improvements included reducing our reliance on high-cost temporary labor, reducing length of stay and improving patient throughput, and improving capture of health plan payments. Despite these improvements, we, like many other hospitals in California and across the country, are now facing significant budget shortfalls as a result of Medicaid cuts that were passed into law with HR 1.

  • Elaine Batchlor

    Person

    Nearly eight in ten of our patients rely on Medicaid, so these cuts will have a dramatic impact on us. We project that HR 1 will create a gap of $80 to $100,000,000 a year in our budget. When you're a safety net hospital, a gap that large is unsustainable.

  • Elaine Batchlor

    Person

    The proposed renewal of the distressed hospital loan program would be a vital lifeline for our hospital. As we work with our public partners to address the structural funding shortfall we face as a safety net hospital, this program would provide a much-needed bridge for us, as it did in 2023.

  • Phillip Chen

    Legislator

    Thank you. Thank you. Please finish your comments, ma'am.

  • Elaine Batchlor

    Person

    I urge you to support this bill.

  • Phillip Chen

    Legislator

    Thank you so much.

  • Mary Casillas

    Person

    Good afternoon, chair and members. My name is Mary Casillas, CEO of Hazel Hawkins Hospital in Hollister, and I am here today in support of Assembly Bill 1923. I'd like to begin by speaking about Hazel Hawkins Hospital. We are a critical access public district hospital and the only acute care facility serving our entire community. For our community, we are not just a hospital.

  • Mary Casillas

    Person

    We are a lifeline. First, I want to express my deep gratitude to the state of California for providing a $10,000,000 distressed hospital loan to our organization. That support has been essential. We have begun to stabilize financially. However, contrary to the intent of the original program, we are now required to begin repaying our loan.

  • Mary Casillas

    Person

    Regardless of our financial realities, repayment at this stage could push us right back into financial distress. The operating margin for us is extremely small, and any significant financial burden could jeopardize the care we provide to our community. We are not out of the woods. While we have made progress, we remain a fragile and still unstable organization. The changes associated with HR 1 over the next two years are expected to create additional financial instability for hospitals like ours.

  • Mary Casillas

    Person

    These external pressures only increase the urgency of ensuring we have a stable foundation today. At the same time, we are facing millions of dollars in deferred capital needs. This includes critical equipment like a nineteen-year-old CT scanner that must be replaced, as well as required seismic compliance upgrades that will cost our hospital more than $20,000,000. Loan forgiveness would make a meaningful difference.

  • Mary Casillas

    Person

    It would give us the breathing room we need to continue rebuilding and strengthening our services for the hospital and patients that depend on us.

  • Mary Casillas

    Person

    Assembly Bill 1923 represents an opportunity to protect access to care in our region and to support hospitals with essential health and safety for our community. Thank you for your consideration.

  • Phillip Chen

    Legislator

    Thank you so much for testifying. Me-toos in support, please.

  • Catherine Scott

    Person

    Catherine Austin Scott from the California Hospital Association, sponsor of the bill. Appreciate your support.

  • Dylan Elliot

    Person

    Dylan Elliott on behalf of the County of Fresno in support.

  • Connie Delgado

    Person

    Good afternoon, Mister Chair and members. Connie Delgado on behalf of the District Hospital Leadership Forum in support.

  • Erin Norwood

    Person

    Good afternoon. Erin Norwood on behalf of Madera Community Hospital in strong support. Thank you.

  • Sarah Bridge

    Person

    Sarah Bridge on behalf of the Association of California Health Care Districts in support. Thank you.

  • Josh Garner

    Person

    Josh Garner on behalf of the California Association of Public Hospitals and Health Systems and the Santa Cruz County Board of Supervisors in support. Thanks.

  • Theo Paos

    Person

    Theo Paos, Tenet Hospital, is in support. Thank you.

  • Cox Carmen-Nicole

    Person

    Greetings. Carmen-Nicole Cox, the Cox Firm for Law and Policy, on behalf of the California Children's Hospital Association in support.

  • Ms. Peavey

    Person

    Thank you. Good evening. My name is Ms. Peavey. I'm currently running for governor of California, and I'm in full support of this bill. Thank you.

  • Alexis Rodriguez

    Person

    Alexis Rodriguez with the California Chamber of Commerce in support. Thank you.

  • Tim Madden

    Person

    Tim Madden representing the California chapter of the American College of Emergency Physicians in support.

  • Jeff Neil

    Person

    Jeff Neil representing the Contra Costa County Board of Supervisors, also in support.

  • Meghan Loper

    Person

    Meghan Loper on behalf of the United Hospital Association in support.

  • Marie Lopez

    Person

    Marie Lopez, California Nurses Association, in support.

  • Alfredo Medina

    Person

    Alfredo Medina here on behalf of Providence Health in support.

  • Phillip Chen

    Legislator

    Thank you very much. Do we have any main witnesses in opposition at this time? The bill's been moved. It's been seconded.

  • Beth Malinowski

    Person

    Good afternoon, chair and members. Beth Malinowski with SEIU California. We're respectfully opposed unless amended to AB 1923. State bailouts for for-profit hospitals are not justified because they socialize private business risk without secure and commensurate public control, accountability, and long-term system reform. Nonprofit and public hospitals are under strong profit pressure, but investor-owned systems are the most likely to cut unprofitable services, chase well-insured patients, and engage in aggressive price and billing practices.

  • Beth Malinowski

    Person

    Using public funds to stabilize this model without changing its incentives reinforces behavior that undermines equity and affordability. If the state resources for-profit rescues for for-profit hospitals while other providers and sectors absorb losses, it raises obvious fairness concerns. Why should taxpayers backstop shareholders but not safety net providers? Reviews of investor-owned providers have documented repeated fraud and abuse settlements and, in some analyses, worse quality at higher prices compared to their nonprofit peers. Public rescue funds without tight conditions could effectively reward the most exploitative actors.

  • Beth Malinowski

    Person

    The state could consider options to preserve access while shifting governance toward public accountability. For these reasons, we are opposed unless amended on AB 1923. Thank you.

  • Phillip Chen

    Legislator

    Thank you very much. Any key witnesses in opposition? Excuse me. Me-toos in opposition.

  • Omar Altamimi

    Person

    Good afternoon, chair and members. Omar Altamimi with the California Pan-Ethnic Health Network. We were originally opposed unless amended. With the amendments, we look forward to moving to neutral, and appreciate the committee and the author's office for working with us on that.

  • Katie Dynes

    Person

    Katie van Dynes with Health Access California. We were in an opposed unless amended position and appreciate the work of the committee and the author. When we see the amendments in print, we'll be removing our opposition. Thank you.

  • Sandra Poole

    Person

    Sandra Poole, Western Center on Law and Poverty, in alignment with my colleagues. We were opposed unless amended. With the amendments, we have moved to neutral.

  • Phillip Chen

    Legislator

    Thank you very much. I'm gonna take this back to the committee. Do we have any members with questions? Assemblymember Carrillo.

  • Juan Carrillo

    Legislator

    Happy to support the bill. There are two distressed hospitals in my district which have been struggling, even to pass a bond. They tried twice, and this is the right thing to do. So I appreciate your support. Thank you.

  • Phillip Chen

    Legislator

    Thank you, Assemblymember, mover. Assemblymember Addis.

  • Dawn Addis

    Legislator

    Thank you, and thank you to the author for your work on this. I want to hear the concerns of the opposition. I hope you're going to continue to work on this bill. I trust that you will, going through the process. Being in another rural area, and I know you and I have worked together on rural issues before, where health care access is just incredibly challenging, and we cannot afford any more hospital closures.

  • Dawn Addis

    Legislator

    I know one of my counties is in absolute support of this, and that's because one of the hospitals in that county, Watsonville Hospital, is a distressed hospital. And even after much has been done by this legislature, it is still on the brink of closure, and we just can't afford to have that happen. But I also really do want to say again, I do think the opposition has some valid points and hope that you'll continue to work and have those conversations. We covered this issue.

  • Dawn Addis

    Legislator

    I'll just say this last piece. We covered this issue yesterday in the health budget subcommittee. We heard from the departments about the distressed hospital loan program, about 15 of the 16 hospitals that are really struggling to move forward. I think there's only one that's in repayment, is what was said in the hearing, and it's a very, very stark situation.

  • Dawn Addis

    Legislator

    But what I'll add, that we heard in the hearing, that I thought was promising, was that those distressed hospitals that are starting to add services, and some of which are in maternity care, are starting to be able to turn things around. And I think that all of us should be optimistic if we can both help our distressed hospitals and bring maternity care back to families across our state. That would be the win-win for us.

  • Dawn Addis

    Legislator

    So I'm optimistic, and I appreciate your leadership in bringing this forward.

  • Phillip Chen

    Legislator

    Thank you, Assemblymember. Any other questions from Assemblymember Schiavo?

  • Pilar Schiavo

    Legislator

    I know this is a passion project for you, and I'm so appreciative of your work. And I know it's brought back a critical hospital for you and your community. I have been working with Ridgecrest as the chair of Military and Veterans Affairs, which is a hospital that has received some of this funding as well. And, you know, I do have concerns, and I raised this in the budget subcommittee: are these loans or are these grants?

  • Pilar Schiavo

    Legislator

    Because they seem to be turning really into grants. Right?

  • Pilar Schiavo

    Legislator

    And I do, I mean, these are public dollars, and I think the opposition raises important questions and concerns around that transparency. If we are going to be infusing so much in public dollars in these hospitals, there needs to be a higher level of accountability and transparency with that. I know that one of the issues that was discussed in the hearing yesterday was around the use of travelers, and the overuse of travelers who are much, much more expensive than hiring local staff, nurses, or others.

  • Pilar Schiavo

    Legislator

    And it sounds like there was work to move those hospitals away from the heavy use of travelers, but I think that's an example of the kind of transparency and collaboration that needs to happen to help hospitals come back into financial solvency. It's a hard time for hospitals.

  • Pilar Schiavo

    Legislator

    And I know with HR 1, there is a lot of rough waters ahead. And so I know this program is going to be really important, and I hope that there can be collaboration with opposition to figure out striking the right balance around some of that transparency and accountability that our public dollars demand and deserve. Happy to support it today, and to see those conversations continue, and thanks for your leadership.

  • Phillip Chen

    Legislator

    Thank you, Assemblymember. Any other questions from the committee? Seeing none, the bill's been moved and seconded. Assemblymember Soria, would you like to close?

  • Esmeralda Soria

    Legislator

    Yeah. Thank you so much to the committee members for those comments. I, too, want to appreciate the opposition for what they've shared. I continue to stay committed to ensuring that this program is successful and that, yes, there's transparency and accountability. I think that's important.

  • Esmeralda Soria

    Legislator

    To your point, Assemblywoman Addis, I'm also looking forward to seeing that in my hospital, the labor and delivery comes back, because there's a major desert in my region. And so I'm hoping. But again, I think these dollars are much necessary. It's not going to fix the long-term issues that we have.

  • Esmeralda Soria

    Legislator

    I know I've had several conversations with several of you, but it is a need that we have today, and we can't afford to do nothing, because if our hospital closes, some of the most vulnerable patients will be in dire need. And so this is a decision between life and death.

  • Esmeralda Soria

    Legislator

    And so thank you again for those comments. We'll continue to work on the legislation to get it to a place where folks can continue to support it. But thank you so much again for the work already done and to everyone who will support this bill. I respectfully ask for an aye vote.

  • Phillip Chen

    Legislator

    Thank you, Assemblymember. With that, Mister Secretary, please call the roll.

  • Committee Secretary

    Person

    [Roll Call]

  • Phillip Chen

    Legislator

    The bill is out. Thank you, Assemblymember. The next item that we have is AB 2327 with the Assemblymember Lowenthal.

  • Josh Lowenthal

    Legislator

    Thank you, Mr. Chair and members. I am pleased to present AB 2327, which establishes a fair and balanced process to ensure that Medi-Cal managed care plans, including subcontracted plans, have the resources necessary to ensure delivery of health care services to the Medicaid beneficiaries the plan serves, to maintain stability and fiscal solvency, and to limit the potential for cross-subsidization.

  • Josh Lowenthal

    Legislator

    I'd like to start by accepting the committee amendments and thanking the Chair and committee staff for their great work on this bill. The circumstances that necessitated this bill rose out of a 2024 state reprocurement of commercial plans in certain counties, including LA County, which resulted in an unusual six-way settlement, as outlined in the analysis.

  • Josh Lowenthal

    Legislator

    At the outset, it's important to point out that for the purposes of this bill, a subcontracting plan means subcontractor to a primary plan pursuant to the terms of a multiparty settlement agreement to which the department is a party, entered into as part of the Medi-Cal managed care procurement for plan years beginning January 1, 2024.

  • Josh Lowenthal

    Legislator

    As proposed to be amended, AB 2327 requires DHCS to appoint an independent, qualified actuarial consultant to review the rates paid by the primary plan to the subcontracted plan for a particular rating period, if certain conditions are met based on reasonable actuarial documentation and financial data provided to the department by the subcontracting plan.

  • Josh Lowenthal

    Legislator

    The appointed actuarial consultant will evaluate the rates for that rating period payable to the subcontracting plan and issue a written determination of whether rates payable to the subcontracting plan are actuarially sound. If the department determines, based on the independent actuarial analysis, that the rates paid by the primary plan to a subcontracting plan for a particular rating period are not actuarially sound.

  • Josh Lowenthal

    Legislator

    The department shall order a revision to the rates paid by the primary plan to a subcontracting plan for that rating period to ensure that the revised rates are actuarially sound. While the rates paid to a primary plan are required to be actuarially sound, there is no such requirement for the rates paid from a primary plan to a subcontracted plan.

  • Josh Lowenthal

    Legislator

    This scenario presents with a number of serious challenges for subcontracted plans out in practice. One of the greatest challenges under this scenario is that a primary plan is allowed to retain an administrative fee unrelated to their retained administrative function, which results in dollars that would otherwise be available for Medi-Cal care and quality treatment being retained. The process proposed under this bill is intended to assess whether the rates paid to a subcontractor under this unique set of circumstances are actuarially sound.

  • Josh Lowenthal

    Legislator

    Ensuring that the rates are actuarially sound will help ensure that health care services are being delivered to Medi-Cal recipients efficiently without being compromised or disrupted. The state has a responsibility to ensure that our investments in safety net programs are being administered appropriately.

  • Josh Lowenthal

    Legislator

    And, effectively, and AB 2327 establishes a fair and balanced process to ensure that. I'm very pleased to be joined by Abbie Totten, Plan President for Molina Healthcare, who is located inside my district, who is here to testify in support of this bill.

  • Abbie Totten

    Person

    Thank you, committee members, Madam Chair. My name is Abbie Totten. I'm the Plan President for Molina Healthcare of California, here in support of AB 2327. Molina serves over a million Medi-Cal enrollees throughout the state of California, including more than 517,000 in LA County, where we operate as a fully delegated, subcontracted managed care plan.

  • Abbie Totten

    Person

    Our experience in Los Angeles has highlighted a gap in existing policy that can lead to insufficient rates, jeopardize health care for enrollees, and frankly, waste tens of millions of dollars every year.

  • Abbie Totten

    Person

    The issue is simple. When the rates that DHCS pays to the primary health plan contractors, they are required to meet certain actuarial soundness standards. No such requirements exist for the rates paid to subcontracted managed care plans. Although the primary plan is allowed to retain the administrative fee to cover any administrative services that are not delegated, nothing currently precludes them from retaining an admin fee far in excess of their actual and reasonable costs.

  • Abbie Totten

    Person

    As a result, the rates that may otherwise be actuarially sound become insufficient once the administrative fee is assessed. I have seen it suggested that subcontract administrative fees are often minimal. I would disagree. In LA County, every 1% of administrative fee that is retained is $19 million. That is not minimal. Those are state and federal dollars that could otherwise be put towards supporting patient care, program innovation, and quality improvement in the Medi-Cal program.

  • Abbie Totten

    Person

    Further, the primary plan may also apply the administrative fee on certain pass-through payments for programs like transitional rent and maternity care, where plans are supposed to pass through payments to the provider. The Medi-Cal system does not and cannot work as intended when tens of millions of dollars are diverted out of the intended payment stream. For that reason, we would request your support of this fair and balanced process to review subcontractor rates.

  • Mia Bonta

    Legislator

    Thank you. Are there any others who would like to offer support in the hearing room? Seeing none, we will move to primary witnesses in opposition. You'll have two minutes each. Thank you.

  • Alissa Ko

    Person

    Thank you. Good afternoon, Madam Chair and members. My name is Alissa Ko, a Vice President for External Affairs for Health Net. Thank you for this opportunity to speak in opposition of AB 2327. Founded more than 45 years ago, Health Net believes in every person deserving a safety net for their health.

  • Alissa Ko

    Person

    We play a unique role in the Medi-Cal system, where we are the primary contract for 10 counties and a subcontractor for 4 counties. We probably serve approximately 1.5 million enrollees throughout California. Across the state, health plans routinely subcontracted both with other plans and providers. Even under these arrangements, the state continues to impose a host of requirements and responsibilities on the primary plan. Under subcontract model, DHCS holds a primary contractor responsible to ensure that members receive appropriate Medi-Cal benefits.

  • Alissa Ko

    Person

    They're accountable for and take all the risk for services, including quality, network adequacy, and compliance. As a committee analysis point out, these arrangements, subcontracts are received that actually approve rates from the primary contract plan by the department. Given the significant oversight responsibilities and administrative requirements imposed, DHCS allows and approves a modest administrative fee for primary plans. This fee is contractually agreed by the primary plan and the subcontractor. These multibillion-dollar contracts are agreed to up front that lay out roles and responsibilities between very sophisticated parties.

  • Alissa Ko

    Person

    If there's a disagreement amongst parties, there's an existing process already in place through the agreement between the two parties. This bill sets a precedent that every privately negotiated agreement is open to legislative action. Additionally, the language outlined in the amendment creates a lengthy and extremely costly process for the department. Ultimately, this bill does nothing to improve the quality of care for Medi-Cal enrollees, and we respectfully urge for your no vote. Thank you.

  • Katie Andrew

    Person

    Good afternoon, Chair and members. My name is Katie Andrew, and I'm here on behalf of the Local Health Plans of California, which represents all 17 community-based Medi-Cal plans serving over 9 million Californians. While we are currently in opposition to AB 2327, we do wanna thank the author and committee for their work on this bill. We are still evaluating the most recent amendments with our members.

  • Katie Andrew

    Person

    However, while we believe that the recent amendments may address our most immediate concerns, we still have concerns with the potential for setting precedent of extending actuarial soundness requirements intended for state to plan payments into private contracts between plans and subcontractors. Additionally, we are also concerned with the approach of creating a statewide solution to a very local and specific issue.

  • Katie Andrew

    Person

    As currently in print, the bill allows subcontractors to bring disputes directly to DHCS, which is a major departure from long-standing practice.

  • Katie Andrew

    Person

    Today, planned delegate contracts include pathways for dispute resolution processes. Moving those disputes to the state places DHCS in the role of arbitrator of private contracts, something that has not historically been done and risks unintended consequences for network stability, upward rate pressures, and increased admin burden. For these reasons, LHPC respectfully opposes AB 2327 at this time, but we remain committed to working with the author and the committee to address any remaining concerns following a more thorough review of the recent amendments. Thank you.

  • Mia Bonta

    Legislator

    Thank you. Are there others in the hearing room that would like to register a position of opposition?

  • Rachael Blucher

    Person

    Hi. Good evening. Rachael Blucher on behalf of L.A. Care. Apologies for the late letter, but also in opposition, aligning our comments with LHPC around the new amendments that we're still reviewing. Thank you.

  • Mia Bonta

    Legislator

    Thank you.

  • Steffanie Watkins

    Person

    Stephanie Watkins with the Association of California Life and Health Insurance Companies. We'd also like to apologize for the late letter, but we are in opposition. Thank you.

  • Mia Bonta

    Legislator

    Thank you. Seeing no other opposition, I will bring it back to committee for any comments or questions. Moved by Addis. Assemblymember Patel, do you have a question?

  • Darshana Patel

    Legislator

    Yes, I do.

  • Mia Bonta

    Legislator

    Go ahead.

  • Darshana Patel

    Legislator

    Thank you for bringing this bill forward. My uncle was actually an actuary before he retired for the state of Pennsylvania and prior to that, Blue Cross. So when you talk about actuarially sound calculations, I have a very vague understanding of that whole process. We used to talk about it all the time, mathematically speaking, of course. But looking at your bill, I just have one very minor question.

  • Darshana Patel

    Legislator

    According to the analysis, both the contractor and the subcontractor will get the same rates approved through these actuarially sound processes. My question is around the administrative cost for that goes to the contractor. Is there any thoughts, or can you clarify why this is going to the contractor and not being distributed between the contractor and the subcontractor, or in some other way?

  • Josh Lowenthal

    Legislator

    Thank you, Assemblymember. Through the Chair, I'd love to ask the witness to answer this question.

  • Abbie Totten

    Person

    So in the current bill that is in print, there have actually been the significant amendments we think would address that, which would minimize the need for any additional cost to the state and ensure that the rates at both levels of the plans are actuarially sound. So it isn't simply about the subcontractor, but ensuring as it passes through it is.

  • Darshana Patel

    Legislator

    Clearly, you're great at working with your opposition. So thank you for that.

  • Mia Bonta

    Legislator

    Seeing no other questions, or comments, assembly member, I wanna thank you for bringing forward this bill. You initially had a conversation with me, highlighting the incredibly critical nature of your primary health care provider insurance provider in Molina, and know that you've really wanted to make sure that we are able to strike a balance to not have this extend beyond the conditions of this particular case that is impacting your your district significantly.

  • Mia Bonta

    Legislator

    And and I just wanted to, one, ask a question about the the assertion around the modest administrative fee being indicated and whether that is a a statement that you would hold to be true as well.

  • Josh Lowenthal

    Legislator

    Um yea it, it

  • Mia Bonta

    Legislator

    To the way it is perhaps, but

  • Josh Lowenthal

    Legislator

    Okay. Okay. That's fine, actually. Please.

  • Unidentified Speaker

    Person

    Yeah. So just to clarify whether or not 1% of revenue is modest or not

  • Unidentified Speaker

    Person

    I think it depends on what the actual costs for administering the oversight of the subcontracted plan is. If $19,000,000 is what is required, then that is what is required based on a review by an independent outside party, so that there is no concern about whether money is being moved elsewhere for profit versus for care for individuals. K.

  • Mia Bonta

    Legislator

    Yeah.

  • Mia Bonta

    Legislator

    Thank you. And I also just wanna note that we are wanting to, in the legislature, move to assembly member Aaron's comments earlier, move to a system that is not experiencing the kind of administrative burden that we know is being so costly for our system. There's an estimate in some research reviews that indicates that 25% of every dollar spent is goes towards administrative burden, in our healthcare system.

  • Mia Bonta

    Legislator

    That's 25% of our, of our spend in the state of California for consumers and the state that could go towards actual patient care. And, so with that, I wanted to, thank you assembly member for being so persistent in making sure that we had an opportunity to review this particular circumstance and note that we, are in general agreement with the idea of the opposition that the state does not need to intervene in negotiations or look to state to set rates, between private parties.

  • Mia Bonta

    Legislator

    In this particular instance, however, the the state played a very heavy role in in the initial intervention and directly with the state directly negotiating a settlement agreement between these two parties. So I do believe that the state has some responsibility to continue to make sure that this particular arrangement is one that we that benefits ultimately patients in your district and throughout, you know, in your district especially. So with that, we have offered significant amendments, to that.

  • Mia Bonta

    Legislator

    I thank you for accepting those committee amendments, because I think it goes a long way to address some of the concerns that we've raised and and that you've narrowed the bill considerably from the initial state to Assemblymember Patel's questions and provides the kind of guardrails that we need to be able to contain the process associated with this particular negotiated agreement. With that, would you like to close?

  • Josh Lowenthal

    Legislator

    I I think you summarized the situation very nicely, Madam Chair, and I myself. I also just wanna say thank you to the opposition. We have had very constructive dialogue throughout the process and appreciate it so much, and respectfully ask for your aye vote.

  • Mia Bonta

    Legislator

    We have a motion in Addis. Do we have a second? Second by Gonzalez. With that secretary, can you please call the roll?

  • Committee Secretary

    Person

    The motion is do passes amended to appropriations. [roll call]

  • Mia Bonta

    Legislator

    That measure is on call, Assemblymember. Thank you. We're gonna move now to item number 25, AB 2353 by Pacheco.

  • Mia Bonta

    Legislator

    Thank you so much.

  • Blanca Pacheco

    Legislator

    Good afternoon. I was about to say good morning.

  • Mia Bonta

    Legislator

    No. But, but don't say good evening because, you know, this isn't Vegas.

  • Blanca Pacheco

    Legislator

    Good afternoon. Good afternoon, Madam Chair and members. I am here to present Assembly Bill 2353 related to health care mandates and affordability. I appreciate all the committee's work, and you, Madam Chair, on this bill, and I accept the committee amendments. Hospital care in California is under threat.

  • Blanca Pacheco

    Legislator

    Nearly 45% of our hospitals operate at a deficit. In 2025 alone, financial strain forced hospitals and health systems to lay off 3,500 workers. Three hospitals closed in the last three years, and dozens more have reduced services. Given the crippling national health care cuts and the state's impending budget deficit, California's health care delivery system cannot withstand additional strain while maintaining critical care for residents. Patients need access to safe, high quality care, and that starts with disciplined policy making, especially now.

  • Blanca Pacheco

    Legislator

    As policy makers, our constituents trust us to evaluate the many health care related legislative proposals. But when we make decisions about these bills, we often do so absent comprehensive and independent analysis about the downstream impact on patient costs or benefits. Recently enacted hospital mandates have added billions of dollars in costs, costs that are ultimately shouldered by patients, families, and employers.

  • Blanca Pacheco

    Legislator

    While there is an entity that evaluates proposed health insurance benefit mandates, no agency is tasked with providing an independent review of mandates imposed on health care providers.

  • Blanca Pacheco

    Legislator

    AB 2353 fills that gap by tasking the Department of Health Care Access in partnership with the University of California to establish the Center for Health Provider Policy Impact to analyze these costs. This center will provide independent analysis of proposed legislation, regulations, and other policy actions affecting hospitals. Rising health care costs are a burden for Californians now more than ever. AB 2353 gives us better information to weigh trade offs and make decisions that protect both access and affordability.

  • Blanca Pacheco

    Legislator

    And with me today to speak in support of this bill and answer any technical questions is Ben Johnson with the California Hospital Association.

  • Mia Bonta

    Legislator

    Thank you. You'll have two minutes.

  • Ben Johnson

    Person

    Good afternoon, Madam Chair, and thank you to the committee and the chair for the work on the amendments, and to the author for your leadership in this effort. Hospitals care for patients with the greatest healthcare needs. They do this year-round, 24/7, for everyone who comes through their doors. While well-intentioned, hospitals are subject to numerous rules and regulations, whether it's staffing requirements, building standards, privacy rules, or the rules governing payments from public payers.

  • Ben Johnson

    Person

    And these regulations do come with costs that are ultimately borne by families, patients, and employers in the form of higher costs for health care coverage and at the point of service.

  • Ben Johnson

    Person

    And in the last several years, policies have increased these costs by billions of dollars for hospitals alone. Despite their importance, no dedicated independent organization exists to look at the impacts of these laws and regulations on hospital care delivery, access, health outcomes, and overall cost of care. AB 2353 would fill that gap by providing timely, comprehensive, and academically rigorous analyses of the impacts of policies on hospitals, their patients, and communities. The time to do this is now.

  • Ben Johnson

    Person

    Hospitals are currently in an impossible situation with runaway inflation, looming and troubling increases in the state's uninsured population, and stagnant or falling reimbursement.

  • Ben Johnson

    Person

    And these trends are worsening an already unstable situation where nearly half of hospitals are losing money providing care. As reported by Public Citizen just last week, dozens of hospitals in the state are at risk of closure, and we already have health care deserts. 22 California hospitals have had to shut our maternity units in just the last three years, leaving 12 counties wholly without maternity care.

  • Ben Johnson

    Person

    Again, we are grateful for the committee's work to make sure the bill isn't a barrier in the lawmaking process, but instead an added resource and somewhere policymakers can turn to get the facts on sometimes contentious policy issues and debates. This bill won't fix all these challenges alone, but it represents an important piece of progress towards these goals.

  • Ben Johnson

    Person

    The legislature has asked hospitals how they can help, and this is an important first step. So moving this bill forward would ultimately allow Californians to stand more assured that the policy decisions made here and elsewhere are making care more accessible, equitable, higher quality, and ultimately more affordable for all. Thank you.

  • Mia Bonta

    Legislator

    Thank you. Are there others in the committee room who would like to offer support? Please come forward. State your name, affiliation, and position on the bill.

  • Connie Delgado

    Person

    Madam chair and members, Connie Delgado, on behalf of the District Hospital Leadership Forum, in support.

  • Kasha Hunt

    Person

    Kasha Hunt with Political Solutions here on behalf of MemorialCare Health Systems.

  • Lisette Short

    Person

    Lisette Short, on behalf of Adventist Health, the Alliance of Catholic Healthcare, Rady Children's Health, and PEACH, representing Safety Net Hospitals.

  • Erica Busamante

    Person

    Erica Busamante with Stanford Healthcare and Stanford Medicine Children's Health, in support.

  • Sarah Bridge

    Person

    Sarah Bridge, on behalf of the Association of California Healthcare Districts, here in strong support. Thank you.

  • Preston Young

    Person

    Thank you. Preston Young from Sutter Health here in support.

  • Matt Easley

    Person

    Good evening. Matt Easley on behalf of Palomar Health in support.

  • Ronald Berdugo

    Person

    Ronald Berdugo with Kaiser Permanente in support. Thank you.

  • Jen Chase

    Person

    Jen Chase, on behalf of the University of California. We don't have an official position, but are supportive of the concept and really like to thank the chair, the committee, the author, and the sponsors. Thanks.

  • Alexis Rodriguez

    Person

    Alexis Rodriguez with the California Chamber of Commerce in support. Thank you.

  • Alfredo Medina

    Person

    Hi. Good afternoon. Alfredo Medina here on behalf of Cedars-Sinai, Cottage Health, and Providence Health. Thank you.

  • Cox Carmen-Nicole

    Person

    Greetings. Carmen-Nicole Cox, the Cox Firm for Law and Policy, on behalf of California Children's Hospital Association, in support.

  • Jonathan Clay

    Person

    Jonathan Clay, on behalf of Scripps Health, in support.

  • Meghan Loper

    Person

    Meghan Loper, on behalf of the United Hospital Association, in support.

  • Missy Johnson

    Person

    Good afternoon, Madam Chair and members. Missy Johnson, on behalf of my colleague, Jeff Neal, for the Contra Costa County Board of Supervisors, in support.

  • Kevin Guzman

    Person

    Kevin Guzman with the California Medical Association in support.

  • Theo Paris

    Person

    Theo Paris, on behalf of Tenet Hospital, in support.

  • Mia Bonta

    Legislator

    Thank you. We will now move to any primary witnesses in opposition. Please come forward. You'll each have two minutes. Go ahead when you're ready.

  • Katelin Van Deynze

    Person

    Good evening, Madam Chair and members. I'm Katelin Van Deynze with Health Access California, the statewide healthcare consumer advocacy coalition, and we're strongly opposed to AB 2353. With and without the committee amendments, this bill requires analyses of bills looking at the impacts on hospitals by the UC, a large and growing health system. This would create one-sided reports that advantage hospitals and disadvantage consumers in legislative debates. Legislative debates should focus on the needs of Californians, not hospital bottom lines.

  • Katelin Van Deynze

    Person

    This bill claims to be about consumer affordability and access, but would be used to oppose bills and reopen existing laws that hospitals oppose, like hospital financial assistance, the Office of Health Care Affordability, you name it. This bill assumes the legislature has not been adequately evaluating the impact of bills on hospitals, and those laws are driving high healthcare costs. That cannot be further from the truth. Hospital prices directly translate to higher premiums and cost sharing for consumers.

  • Katelin Van Deynze

    Person

    These higher costs lead to people skipping care, crushing medical debt, increasing wage stagnation, and income inequality.

  • Katelin Van Deynze

    Person

    Yes, there are hospitals that are struggling, and we, consumer advocates and the healthcare workers that oppose this bill, want hospitals to stay open. But keeping hospitals open is not what this bill is about. We already distinguish in our laws between hospitals that are extremely wealthy and those that need assistance. This bill would give the Hospital Association institutional and one-sided reports that will be used to oppose efforts to protect access and improve affordability. And what about the impacts of HR 1?

  • Katelin Van Deynze

    Person

    Again, our consumer protection laws are already built to consider hospital finances. And let me be clear, consumers, not hospitals, will bear the brunt of the impacts of HR 1. Before the Affordable Care Act, people lived sicker and they died younger without access to health care. People, even with serious health crises, would not go to the hospital out of fear of the bill. And if they did go, hospitals are only required to provide them emergency and stabilization care.

  • Katelin Van Deynze

    Person

    And even with so many people uninsured and unable to afford care, hospitals only spent 2% of their revenue on charity care before the ACA and 1% after. We should be focusing our efforts on patients and getting people covered and making care more affordable, not this. We urge your no vote. Thank you.

  • Elmer Lizardi

    Person

    Thank you so much, chair and members. Elmer Lizardi with the California Federation of Labor Unions. We are opposed, as AB 2353 proposes to give hospitals a new biased analysis in the legislative process built around their profits instead of around patients, workers, and communities. The main issue that we see is that this proposal assumes that hospital prices are driven by laws here in Sacramento, when the reality is that hospital prices are driven by market power.

  • Elmer Lizardi

    Person

    Working families are facing skyrocketing hospital bills, and health care affordability is one of the key issues that labor fights for at the bargaining table.

  • Elmer Lizardi

    Person

    The bill's premise is that new standards on hospitals are inherently unaffordable, yet statewide data shows that California hospitals as a whole posted $11 billion in income in 2024, with sector profits exceeding pre pandemic levels. This is not a system drowning in regulatory costs. This is one that is highly consolidated. Yes, some individual facilities are financially distressed, and we should address that in a targeted way.

  • Elmer Lizardi

    Person

    But creating a broad new procedural shield for hospitals as a class, based on the fiction that laws passed last year are the main drivers of prices, misdiagnoses the problem and moves us further away from real solutions like tackling staffing shortages, consolidation, and, of course, excessive charges. This bill also establishes a dangerous precedent that industries can come to the legislature and push for biased reviews focused on their bottom line and not the impact on Californians.

  • Elmer Lizardi

    Person

    The bill also asks the University of California, an institution that itself operates an extensive hospital and clinic system, to run this review program. This is a built-in conflict of interest. The bill asks a major hospital operator to decide whether bills affecting hospitals are too burdensome on hospitals.

  • Elmer Lizardi

    Person

    Nothing in AB 2353 requires hospitals to justify their current price growth, to pass any savings directly on to patients or purchasers, or to show that slowing new standards will lower premiums, deductibles, or out of pocket costs. The only guaranteed beneficiaries of this process will be the hospital systems whose bottom lines will be protected.

  • Elmer Lizardi

    Person

    If the legislature starts creating bespoke procedural speed bumps whenever a powerful industry claims that accountability might hurt its margins, it will become harder and harder to pass meaningful reforms in any sector to protect workers and the public. With this in mind, we are respectfully opposed, and we ask for a no vote. Thank you.

  • Mia Bonta

    Legislator

    Thank you. Are there others in opposition who would like to register?

  • Beth Malinowski

    Person

    Good afternoon, Chair and members. Beth Malinowski, SEIU California, in opposition.

  • Rene Bayardo

    Person

    Thank you. Rene Bayardo, representing Blood Cancer United, in opposition.

  • Bryant Miramontes

    Person

    Good afternoon, Chair and members. Bryant Miramontes with the California Teachers Association, and with respectful opposition. Thanks.

  • Marie Lopez

    Person

    Marie Lopez, California Nurses Association, in opposition.

  • Omar Altamimi

    Person

    Omar Altamimi, CPEHN, California Pan-Ethnic Health Network, in opposition.

  • Sandra Poole

    Person

    Sandra Poole, on behalf of Western Center on Law and Poverty, in opposition.

  • Aliyah Griffin

    Person

    Aliyah Griffin with the American Federation of State, County, and Municipal Employees in opposition.

  • Mia Bonta

    Legislator

    Thank you. Seeing no other opposition, I will bring it back to committee for any comment or questions. Assemblymember Schiavo.

  • Pilar Schiavo

    Legislator

    I wanted to thank the author for bringing this forward. I know we are all really focused on the impacts on our hospitals and health care right now with HR 1. And I think on its face, this seems like a policy that makes sense.

  • Pilar Schiavo

    Legislator

    But, you know, what concerns me is that it's just for hospitals. And I am, I'm concerned that, you know, I'm a person, or a legislator, that has the experience of bringing forward consumer protection bills with hospital opposition. That's not a unique experience for me or for others here on this committee and in the legislature. And last year, I authored AB 1312, which required screening by hospitals for financial assistance or charity care.

  • Pilar Schiavo

    Legislator

    This is something that's already required that hospitals do, but not all hospitals were doing it.

  • Pilar Schiavo

    Legislator

    And so we felt like we needed to kind of further emphasize the need for that and make additional requirements around it. And it didn't require any additional, you know, financing because they're already supposed to be doing it. And we heard stories of patients who were being told to go, you know, open GoFundMes to pay for their health care when they should be getting offered, especially as nonprofits. Nonprofit hospitals have made a commitment to charity care because of their nonprofit status.

  • Pilar Schiavo

    Legislator

    They get, you know, sometimes millions of dollars in tax breaks because of that.

  • Pilar Schiavo

    Legislator

    And, you know, hospitals talked about this, the administrative burden around this. And, you know, I think that's an example of a bill that would be caught up in a study like this saying, well, you know, this is gonna cost the hospital something. A lot of things that we require the hospitals to do are gonna cost them something. It doesn't mean that they shouldn't do it. And this is an example of something that definitely should be getting done by the hospital.

  • Pilar Schiavo

    Legislator

    So, you know, I think that there is, I think that, you know, through the legislature, legislators can work to make sure that we're protecting struggling hospitals. We were just, you know, seeing a bill on distressed hospitals and how we support them. But also, you know, I think it's incumbent upon us to be able to pass laws that protect consumers.

  • Pilar Schiavo

    Legislator

    And, you know, there's a number of things that I think are protecting consumers and sometimes protecting consumers' pocketbooks that, you know, that I think could be flagged in a problematic way through this process. So, so I'm not able to support the bill today.

  • Pilar Schiavo

    Legislator

    I'll see how it progresses through the process, but just wanted to kind of raise those concerns about why I'm not able to get there.

  • Blanca Pacheco

    Legislator

    Madam chair, may I respond?

  • Mia Bonta

    Legislator

    Of course. Yeah. Okay.

  • Blanca Pacheco

    Legislator

    And I respect your comments, so I thank you, assembly member.

  • Blanca Pacheco

    Legislator

    In fact, this bill would not prevent legislators from voting on bills. We already do an independent analysis when it comes to health insurance benefits, and I also am pushing another bill that would also provide an independent analysis on utilities. And so it doesn't prevent legislators from voting on a bill. It just provides more information on the impact, be it health care plans.

  • Blanca Pacheco

    Legislator

    Here, this bill would be hospitals, and my other bill would be utilities. So I just wanted to clarify that.

  • Pilar Schiavo

    Legislator

    Yeah. And that wasn't the point I was making. I know that we can still vote on bills. I think, you know, one of the things that I think has been raised in this committee a lot is that we would love for the financial analysis that we see on our bills on a regular basis to include what we are saving. Right?

  • Pilar Schiavo

    Legislator

    That, for example, especially in this committee, we're emphasizing a lot on preventative care. When preventative care happens, we know that it prevents ER visits and saves costs on the other end. Unfortunately, in the financial analysis that we see, that's never pointed out. Right? And so I think I have the same kind of concerns here.

  • Pilar Schiavo

    Legislator

    I think that I would prefer that we fix our financial analysis that we have here in house and be able to make sure that it was a comprehensive one that addresses both costs and savings that can be realized through our bills. But I don't feel like this is going to get us to where we need to get to.

  • Mia Bonta

    Legislator

    Thank you. Assemblymember Aguiar-Curry.

  • Cecilia Aguiar-Curry

    Legislator

    Thank you, Assemblymember. And we had a brief conversation that I had some concerns on this bill. And I will, I know that you're gonna keep working on it, and I appreciate that. So I'll be voting aye today. But my main concern is handing any industry more tools to influence the process in ways that could weaken the many non economic reasons for good policy.

  • Cecilia Aguiar-Curry

    Legislator

    You know, we've heard so many conversations today about small towns and rural areas in the district and access to hospital services. It's constantly at risk. So I worry about the analysis many times arguing for reducing, not increasing, hospital services for my constituents. That concerns me, and I hope you'll consider that as you move forward. Thank you.

  • Mia Bonta

    Legislator

    Moved by Chen. Seconded by Carrillo. I wanna thank you, the author, for bringing forward this bill. And I also just wanna acknowledge that the concerns raised by the opposition are, I hold many of those concerns. I think that they are significant.

  • Mia Bonta

    Legislator

    One of the things that I think softened me to this particular approach was the many conversations I had with providers, hospitals in particular, across the state during our tour of looking at the healthcare infrastructure. And there was a lot of conversation around some of the challenges that our hospital systems were facing as a result of some of the regulatory frameworks and pieces that we've moved forward in the legislature.

  • Mia Bonta

    Legislator

    I also wanna just share that I, fervently, as you all will know and remember from last year, believe in our Office of Health Care Affordability and also believe in the process that we've set up, the analysis process that we've set up through our CHBRP process. Both of those, I think, together are tools that we've already had at our disposal to be able to try to understand and consider the cost associated with legislation that we move forward.

  • Mia Bonta

    Legislator

    One, in the instance of any of the overall costs around affordability within our healthcare system, and the other specifically around the cost for any benefit mandates.

  • Mia Bonta

    Legislator

    So I share the concerns that have been offered by our colleagues here as well as by the opposition. And I also trust that you, as an author, will continue to work on this legislation to ensure that we have an opportunity to really fully get to the heart of what is the intent of this bill. I do have, you know, feelings about making sure that we are kind of having one industry prioritized and offering an analysis and report on how legislation impacts that industry.

  • Mia Bonta

    Legislator

    But I do also appreciate the amendments that you were willing to take to kind of balance that. With that, I know that you will continue to work on this bill.

  • Mia Bonta

    Legislator

    I trust that you will, and hopefully we'll be able to address some of the concerns that you've heard today. With that, would you like to close?

  • Blanca Pacheco

    Legislator

    Yes. And thank you, Madam Chair. And thank you all for allowing me this opportunity to present this important bill. This bill has actually come a long way from where it started. I am grateful to the Chair and the sponsors for the multiple iterations of the language.

  • Blanca Pacheco

    Legislator

    And I have heard from the opposition, and I am committed to working with the opposition. I think there's a pathway forward where we can all work together to help workers and hospitals. But we all just need to have conversations so that we can fine tune this bill. California legislators face complex policy decisions every day.

  • Blanca Pacheco

    Legislator

    AB 2353 would provide a critical tool to assess the cost of health care legislation, including helping safeguard the future of patient care.

  • Blanca Pacheco

    Legislator

    And again, I thank you all for this opportunity, and I respectfully ask for your aye vote.

  • Mia Bonta

    Legislator

    Thank you. You have a motion with Chen and a second by Carrillo. Secretary, please call the roll.

  • Committee Secretary

    Person

    [Roll Call]

  • Mia Bonta

    Legislator

    [Roll Call]

  • Committee Secretary

    Person

    [Roll Call]

  • Committee Secretary

    Person

    [Roll Call]

  • Committee Secretary

    Person

    [Roll Call]

  • Mia Bonta

    Legislator

    That measure's on call. Thank you, Assemblymember. We're gonna move now to item number five, AB 1679 by Gonzalez. Moved by Chen.

  • Mia Bonta

    Legislator

    Second by Johnson.

  • Mark Gonzalez

    Legislator

    My witnesses have to leave and catch a bite, so I'm gonna read this really quickly. Thank you, Madam Chair, members, for the opportunity to speak to you today. I'm pleased to present AB 1679, which creates a temporary commercial activation permit framework for local governments to allow pop-up businesses to operate for up to a hundred and twenty days. I wanna begin by expressing my appreciation to the chair and the committee staff for their work on this bill. I will be accepting the committee's amendments.

  • Mark Gonzalez

    Legislator

    I remain committed to strengthening the bill and having conversations with stakeholders so we can address potential preemption concerns. In my district, in areas like Downtown LA, Chinatown, Koreatown, Little Tokyo, Boyle Heights, and many of our downtowns, we see storefront after storefront boarded up and vacant. COVID-19 had permanent impacts on the retail and restaurant sectors, forcing countless small businesses to close. And to this day, we still haven't recovered.

  • Mark Gonzalez

    Legislator

    Furthermore, small business owners are increasingly unable to take on the financial risk of long-term leases that require large upfront investments.

  • Mark Gonzalez

    Legislator

    An innovative and recognized way to revitalize our local economies is to welcome pop-up businesses. Pop-up businesses are retail or service businesses like traveling restaurants, product launches, holiday markets, brand collaborations, and art galleries that temporarily move into vacant storefronts. Pop-ups reawaken commercial spaces. They create local events, drive foot traffic, sales taxes, and positive spillover effects to nearby businesses. However, they are struggling to legally operate in our current permitting structure.

  • Mark Gonzalez

    Legislator

    Many temporary permits only last a week, and the only other alternative is to apply for a permanent business license. For small businesses opening up temporarily in multiple cities in a single year, this is an extreme cost. For example, Los Angeles can range from $80 to $184 for a temporary food facility permit. The permanent restaurant permit process will cost exponentially more. In Sacramento, a temporary food facility permit that is considered high risk costs $379.

  • Mark Gonzalez

    Legislator

    On the other hand, acquiring a permanent restaurant permit is $1,738. Pop-ups have been shut down because they lacked a permanent permit, even if they were considered a low-risk business. After trying to pursue these costly permanent permits, many businesses closed down and abandoned the space, leaving it vacant and once again empty. Current requirements for pop-ups are disproportionate to the scale and duration of their use.

  • Mark Gonzalez

    Legislator

    AB 1679 will address these issues by requiring local governments to create a new temporary commercial activation permit, which will be a consistent, limited, low-risk framework to activate storefronts across our state.

  • Mark Gonzalez

    Legislator

    Permits will be limited to a hundred and twenty days and ensure that any pop-ups using the permit follow all necessary health and safety requirements. Revitalization of downtowns and neighborhood commercial corridors is a statewide priority, and AB 1679 addresses commercial stagnation by supporting entrepreneurship, reducing barriers to entry, and creating a pathway from temporary testing to permanent tenancy.

  • Mark Gonzalez

    Legislator

    This afternoon, in support to testify on this bill are Eddie Navarrette, who represents the sponsor of the bill, the Independent Hospitality Coalition, and my very good friend, Corissa Hernandez, owner and operator of Nativo HLP, a local LA business and board member with the Independent Hospitality Coalition. Take it away.

  • Eddie Navarrette

    Person

    Good evening, committee chair and members. My name is Eddie Navarrette. I am the President of the Independent Hospitality Coalition, representing a diverse network of small businesses across LA County. Across California, we are facing a growing challenge that can be seen in nearly every community: rising commercial vacancies and empty storefronts that are sitting idle for months, sometimes years. In LA alone, retail vacancy has climbed to some of its highest levels in over a decade.

  • Eddie Navarrette

    Person

    These vacancies are not just economic issues. They have real impacts in our neighborhoods. Empty storefronts reduce foot traffic, discourage new investment, and create a ripple effect where surrounding businesses struggle to survive. When one space goes dark, it often leads to others following, weakening entire commercial corridors and the communities that depend on them. At the same time, we have no shortage of entrepreneurs ready to open for business.

  • Eddie Navarrette

    Person

    What they lack is access. The cost and complexity of permanent construction has pushed too many operators out before they even open. For many businesses, the requirement to commit to a full build-out upfront is simply not achievable in today's economic climate. AB 1679 provides a practical solution by creating a pathway for temporary commercial activations of vacant storefronts. This allows small businesses to enter spaces with lower upfront costs, test concepts, and build towards permanence without taking on overwhelming financial risk.

  • Eddie Navarrette

    Person

    This includes a wide range of businesses like markets, yoga studios, gyms, and the businesses we have yet to discover. At the core, this is about giving small businesses the opportunity to execute their resiliency. Our small business community has continued to adapt through some of the most challenging economic conditions in recent history, but our policies have not kept pace. We need a regulatory framework that reflects the progress of the small business community. Commercial vacancies aren't just an economic issue.

  • Eddie Navarrette

    Person

    They're a signal that our current system isn't working for small businesses. AB 1679 creates a real-world solution by allowing temporary activation of these spaces, helping bring back life to our streets and supporting the kind of walkable, transit-oriented communities California should be taking the lead on. On behalf of the Independent Hospitality Coalition and the businesses that we represent, we respectfully ask for your aye vote. Thank you.

  • Mia Bonta

    Legislator

    Thank you.

  • Corissa Hernandez

    Person

    Good evening. My name is Corissa Hernandez. I'm a small business owner, and I own Nativo restaurant in Los Angeles. This bill is deeply personal to me. I previously had a restaurant in Boyle Heights right next to Mariachi Plaza, one of the most culturally rich and historic parts of our city.

  • Corissa Hernandez

    Person

    That space was more than a business. It was a safe place rooted in culture and community, and I lost it. Not because there wasn't demand, but because of the structural challenges that so many small businesses are up against. And what I've witnessed since then has been heartbreaking. Entire corridors that were once filled with life, now sitting empty.

  • Corissa Hernandez

    Person

    Storefronts that used to be run by local entrepreneurs, people who poured everything they had into their businesses, now boarded up or vacant for years. And every empty storefront represents loss: loss of jobs, economic activity, and reinvestment back into our communities. But more than that, it represents lost opportunity, because the truth is our communities don't lack talent. We lack access. That is why AB 1679 matters so much.

  • Corissa Hernandez

    Person

    This bill creates real pathways for entrepreneurs, especially those from underserved backgrounds, to step into business ownership through pop-ups and temporary activations. It gives people a place to start, and that matters. Because when someone is able to generate income, hire from their community, and reinvest locally, that is economic mobility in action. That is how we create jobs, support affordability, and build stronger communities from within. We're not asking for handouts.

  • Corissa Hernandez

    Person

    We're asking for opportunity. Opportunity to activate spaces that have been sitting empty for years, to bring life back into our neighborhoods, and to change the trajectory of communities for generations to come. Because when a small business thrives, an entire community rises with it. And that is why I respectfully ask for your aye vote. Thank you.

  • Mia Bonta

    Legislator

    Thank you. Are there any others in the hearing room who would like to offer support?

  • Christopher Sanchez

    Person

    Good evening, Madam Chair and members. Christopher Sanchez with Inclusive Action for the City, in strong support.

  • Tim Taylor

    Person

    Good evening. Tim Taylor with the National Federation of Independent Business, in support. Thank you.

  • Shanta Paikian

    Person

    Good evening. Shanta Paikian on behalf of the California Downtown Association, in support.

  • Mia Bonta

    Legislator

    Thank you. Are there any primary witnesses in opposition? Please come forward.

  • Amanda Bloom

    Person

    Honorable Chair and members, I am Amanda Bloom, the Executive Director of the California Association of Environmental Health Administrators. Our organization represents the 62 local directors of environmental health who implement the California Retail Food Code. We are currently in an opposed unless amended position on this bill, but I would like to thank the committee staff, the author, and the sponsors for the meaningful conversations thus far.

  • Amanda Bloom

    Person

    As the committee analysis noted, there are several changes which need to be made to the California Retail Food Code in order to facilitate the implementation of the temporary commercial activation, specifically of, food businesses. We welcome today's amendment that the committee is recommending to align the temporary food service facilities portion of the retail food code with AB 1679.

  • Amanda Bloom

    Person

    We also believe that the health and safety code related to compact mobile vending and catering operations needs to be aligned with AB 1679. Basically, we want to assure that the food businesses can access the type of permit which is most appropriate for the commercial space that they seek to activate in order to assure that the food that's prepared and served in the activated spaces is safe for the public.

  • Amanda Bloom

    Person

    We are very pleased, to have a basic agreement with the author and sponsors on the necessary amendments, and we look forward to seeing those amendments in print. Thank you.

  • Mia Bonta

    Legislator

    Thank you. Are there any others in opposition in the hearing room who would like to register as such? Move by Ahrens? Oh, it's already been first, and yes. We have Chen and Johnson motion first and second. I see no other opposition.

  • Mia Bonta

    Legislator

    I'll bring it back to committee for any comments or questions. Other than lots of support, we will just ask assembly member that you close.

  • Mark Gonzalez

    Legislator

    Thank you to the opposition. Yes. We will continue those ongoing conversations. And thank you, Corissa, for sharing your personal story. I remember you and I talked about that many years ago and, where you're, where we're at today and here you are today.

  • Mark Gonzalez

    Legislator

    Whether you are in a rural or urban area, it's a common sight to see empty store funds. Our small businesses and residents are desperate to fill them, and AB 1679 creates a clear accessible way to bring those spaces back to life. Thank you, members. I requestfully ask for your aye vote.

  • Mia Bonta

    Legislator

    Please call the roll.

  • Committee Secretary

    Person

    The motion is do passes amended to the Appropriations Committee.[roll call]

  • Mia Bonta

    Legislator

    That bill is out. Thank you so much.

  • Phillip Chen

    Legislator

    Thank you. Item 33, AB 2729, Chair Bonta. At your pleasure, madam chair.

  • Mia Bonta

    Legislator

    Good late afternoon, Chair and Committee Members. California is the world's largest fourth largest economy, but that success has not translated into equitable access to health care. Today, nearly 15,000,000 Californians rely on Medi Cal, making it a cornerstone of our health care system. Yet 2.5 Californians remain uninsured and many more are underinsured or struggling to afford care. Federal actions under house Resolution one threatened to reverse decades of progress.

  • Mia Bonta

    Legislator

    These changes are expected to result in up to 2,000,000 Californians losing Medi Cal coverage, impose burdensome work requirements that create red tape, not employment, require more frequent eligibility checks leading to coverage loss due to paperwork, not eligibility. At the same time, California is already facing state level constraints including enrollment freezes, premiums for certain populations, reduced eligibility pathways. The reality is clear. We are at risk of losing coverage, benefits, and access to care for millions of Californians.

  • Mia Bonta

    Legislator

    AB 2729 establishes the employer responsibility for Medi Cal Trust Fund in order to create a dedicated funding stream to stabilize Medi Cal, receive employer contributions, penalties, and other revenues, and ensure funds are used to prevent loss of coverage, restore benefits, and maintain access to care.

  • Mia Bonta

    Legislator

    3,600,000 working Californians are enrolled in medical, working Californians, not because they don't work, but because coverage is unavailable or unaffordable. 42% of working age medical enrollees work full time. This result is in a multibillion dollar public subsidy is a multibillion dollar public subsidy where taxpayers should cost shoulder cost that employers could help share and potentially generate 5 to $8,000,000,000 in total revenue. Here today is Beth Malinowski from the government relations advocate for SEIU and Christine Smith, policy and legislative advocate with Health Access California.

  • Beth Malinowski

    Person

    Chair, Members, good afternoon. Beth Malinowski with SEIU California here today as a proud supporter of AB 2729. SAU California affiliate locals are proud to represent the workforce at every stage of a Californian's journey to coverage and care. For too long, working people have relied on Medi Cal for care. Why?

  • Beth Malinowski

    Person

    Because of poverty wages, because employers have not offered affordable comprehensive coverage, or because workers have been held at part time hours just out of reach of coverage. As a result, employers evade their responsibilities and shift the cost of job based health coverage on taxpayers and the public. Today, over eight in ten or 83% of medical enrollees report being in a working family.

  • Beth Malinowski

    Person

    Now as California is saddled with the herculean task of implementing work requirements, work requirements that we know from past experiments in other states are not going to increase availability of good paying jobs, not going to increase number of people working, but will increase the burden on our state and individuals to prove work, ultimately leading to people being out of care. We know we need to do a better job holding employers accountable.

  • Beth Malinowski

    Person

    We also know that HR 1 risks job loss. Up to two hundred 17,000 health care workers could lose their jobs. We're grateful to Anna Rabonta and other members of the State Assembly and state Senate who are moving this commission forward.

  • Beth Malinowski

    Person

    It's part of our responsibility to administer our state's Medicaid program and to be responsive to the hardworking Californians who are on programs today and our taxpayers as well, we need a pathway to generate revenue through employer accountability measures and guarantee those dollars are directed back to DHCS to fund direct and indirect cost of administering the Medi Cal program. AB 2729 by creating a new fund through your treasury is an important step forward.

  • Beth Malinowski

    Person

    And with us, respectfully request your aye vote today.

  • Christine Smith

    Person

    Good afternoon. My name is Christine Smith with Health Access California in strong support of AB 2729. Medi Cal Sup Medi Cal ensures that almost 15,000,000 Californians can see a doctor, fill a prescription, or get behavioral health care when they need it. Now under HR 1 passed by Congress last July, this expansion population is at risk of losing access to health care.

  • Christine Smith

    Person

    The cuts included in HR 1 threatened to unravel years of progress on health care coverage and affordability in a matter of months.

  • Christine Smith

    Person

    Up to 2,000,000 Californians are expected to lose health care coverage due to the devastating medical cuts in HR 1. Today, California taxpayers are subsidizing large employers and profitable companies who fail to provide affordable health insurance to their employees. This bill puts a fund in place to receive the money if the legislature and the governor act to make large employers pay their fair share for their workers who are on Medi Cal.

  • Christine Smith

    Person

    When families lose health care, we lose our freedom to stay healthy and maintain our economic independence. We need to address health care funding gaps to ensure a stable economy and protect our quality of life.

  • Christine Smith

    Person

    Thank you.

  • Phillip Chen

    Legislator

    Thank you so much. Another, me twos in support, please. The bill will be moved in a second. Thank you very much.

  • Natalie Pita

    Person

    Natalie Pita on behalf of the California Academy of Family Physicians in strong support.

  • Gabriela Chavez

    Person

    Good morning, Chair and Members. Gabriela Chavez with UTW in a strong support.

  • Marie Lopez

    Person

    Marie Lopez, California Nurses Association in support, and it's freezing in here.

  • Omar Alta

    Person

    Good afternoon, Chair, Members. Omar Alta meeting with CPAN, the California Pan Ethnic Health Network in support.

  • Dennis Romero

    Person

    Good afternoon. Dennis Cuevas Romero with the California Primary Care Association, advocates in support.

  • Sandra Poole

    Person

    Good afternoon. Sandra Poole on behalf of Western Center in Law and Poverty in support.

  • Kevin Guzman

    Person

    Kevin Guzman with the California Medical Association in support.

  • Phillip Chen

    Legislator

    Thank you very much for your testimony. Do we have any key witnesses in opposition?

  • Alexis Rodriguez

    Person

    Thank you, and good evening, Chair, Members. Alexis Rodriguez with the California Chamber of Commerce here in respectful opposition to AB 2729. While we support the goal of expanding access to affordable health care, we believe this bill takes the wrong approach. AB 2729 alludes to new taxes and penalties on employers as specified in the budget, limiting sufficient, transparency and thorough review from the legislature's policy committees. A policy of this magnitude deserves careful analysis and meaningful stakeholder input.

  • Alexis Rodriguez

    Person

    This measure implies that an employer with workers on Medi Cal was purposely offloading obligations onto taxpayers. Medi Cal Enrollment is driven by numerous factors without malfeasance from an employer, including part time or seasonal workers who are not subject to the requirements under current law, new hires in waiting periods, and workers in households with family members enrolled in independent enrolled for independent reasons. At a time when affordability is a top concern, imposing new financial burdens on employers will discourage midsize companies from expanding their operations and workforce.

  • Alexis Rodriguez

    Person

    Potentially faced with additional financial burdens, employers may be forced to, into hiring freezes or limit company growth, growth outcomes, that could ultimately undermine California's economic stability. For these reasons, we reflectually urge a no vote.

  • Alexis Rodriguez

    Person

    Thank you.

  • Phillip Chen

    Legislator

    Thank you for your testimony. Me too is in opposition at this time.

  • Esau Flores

    Person

    Good afternoon. Esau Flores with the California Restaurant Association in opposition.

  • Leticia Garcia

    Person

    Good afternoon. Leticia Garcia with the California Retailers Association, also in respectful opposition, and also on behalf of the California Business Properties Association. Thank you.

  • Phillip Chen

    Legislator

    Thank you for your testimony. I'm gonna take this back to committee. Any questions from our committee members? Seeing none, Madam Chair, would you like to close?

  • Mia Bonta

    Legislator

    Thank you. We are in a situation where we have tied our health care and our ability to be healthy to whether or not we are employed, and we've tied our ability to fund and provide health care by strapping everybody to medical right now. People who work are on medical. We have a situation where we have large corporations being subsidized by the state of California.

  • Mia Bonta

    Legislator

    You all we all as a legislature will be faced with making unimaginable decisions around the status of protecting and preserving health care for every single individual in the state of California.

  • Mia Bonta

    Legislator

    And in that, we are dealing with a situation where our largest corporations with billions of dollars going to them are subsidized through the state calif of California when they don't have the ability or refuse to put their own employees on their health care plans. This needs to change. This speaks to the absolute brokenness that we can have ex are dealing with right now. There are similar models that have been in place in Massachusetts.

  • Mia Bonta

    Legislator

    There is a model for the strongest economy and labor market in the state of California, one of, in San Francisco.

  • Mia Bonta

    Legislator

    It did not collapse those labor markets. Employers continued to hire employees, and people had the health care that they deserved. And our corporations paid their fair share. I respectfully request your aye vote.

  • Phillip Chen

    Legislator

    Thank you so much, Madam Chair. The recommendation is do passed. It's been moved and seconded. Mister Secretary, please call the roll.

  • Committee Secretary

    Person

    Motion is do passed to Appropriations Committee. Bonta? Aye.

  • Committee Secretary

    Person

    Bonta, aye. Chen. Addis. Aye. Addis, aye. Aguiar-Curry.

  • Committee Secretary

    Person

    Aye. Aguiar-Curry, aye. Ahrens. Aye. Ahrens, aye.

  • Committee Secretary

    Person

    Caloza. Carrillo. Aye. Carrillo, aye.

  • Committee Secretary

    Person

    Gonzalez. Gonzalez, aye. Johnson. Johnson, no. Patel.

  • Committee Secretary

    Person

    Patterson? Patterson, no. Rogers? Rogers, aye. Sanchez?

  • Committee Secretary

    Person

    Sanchez, no. Schiavo. Schiavo, aye. Sharp-Collins. Stephanie? Stephanie, aye.

  • Phillip Chen

    Legislator

    That bill is out. Thank you very much.

  • Mia Bonta

    Legislator

    Thank you, members. Thank you, members. We've heard our last bill up for consideration in this, in this hearing. So we will now move to, complete our voting on all of the measures that we've heard today beginning with the consent calendar. Moved by Chen, seconded by Addis. Secretary, please call the roll.

  • Committee Secretary

    Person

    [Roll Call]

  • Mia Bonta

    Legislator

    We will start at the beginning for those who were in other committees. We're gonna go back to the go back to the top for those in the back for consent, add ons.

  • Committee Secretary

    Person

    [Roll Call]

  • Mia Bonta

    Legislator

    Okay. We are going to entertain any vote vote changes now. Item number 32 AB 206 13 Sharp Collins is out. Entertaining vote changes. Johnson vote change for item number 27 AB 2511 from aye to not voting. With that, hearing adjourned. Thank you.

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