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AB-448 • 2026

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

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

Budget Children Crime Education Healthcare Parental Rights Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Patel
Last action
2026-02-02
Official status
From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.
Effective date
Not listed

Plain English Breakdown

The bill summary does not provide specific details about penalties or civil fines for violations, leaving this information uncertain.

California Health Facilities Financing Authority Act: Loan Repayment and Short-term Therapeutic Program Requirements

The bill extends loan repayment periods for certain hospitals and sets new requirements for short-term residential therapeutic programs.

What This Bill Does

  • Extends the time nondesignated public hospitals have to repay loans from two years to five years, with monthly payments starting 32 months after the loan is given.
  • Requires at least one parent or guardian to reside in a single address within California for the duration of their child's treatment in short-term residential therapeutic programs.
  • Ensures children and youth in these programs can make confidential phone calls to parents or guardians and have appropriate footwear.
  • Requires short-term residential therapeutic programs to post requirements on their websites.

Who It Names or Affects

  • Nondesignated public hospitals receiving loans from the California Health Facilities Financing Authority
  • Children and youth in short-term residential therapeutic programs

Terms To Know

nondesignated public hospital
A public hospital that does not receive special designation or funding under specific state programs.
short-term residential therapeutic program
A licensed facility providing specialized care and supervision to children, including foster children, for short periods of time.

Limits and Unknowns

  • The bill does not specify the exact penalties or civil fines for violating new requirements.
  • It is unclear how many hospitals will benefit from extended loan repayment terms.

Bill History

  1. 2026-02-02 California Legislative Information

    From committee: Filed with the Chief Clerk pursuant to Joint Rule 56.

  2. 2026-01-31 California Legislative Information

    Died pursuant to Art. IV, Sec. 10(c) of the Constitution.

  3. 2025-04-30 California Legislative Information

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 16. Noes 0.) (April 29). Re-referred to Com. on APPR.

  4. 2025-04-24 California Legislative Information

    Re-referred to Com. on HEALTH. pursuant to Assembly Rule 96.

  5. 2025-04-22 California Legislative Information

    Re-referred to Com. on HUM. S.

  6. 2025-04-21 California Legislative Information

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

  7. 2025-03-11 California Legislative Information

    In committee: Hearing postponed by committee.

  8. 2025-02-18 California Legislative Information

    Referred to Coms. on HUM. S. and JUD.

  9. 2025-02-07 California Legislative Information

    From printer. May be heard in committee March 9.

  10. 2025-02-06 California Legislative Information

    Read first time. To print.

Official Summary Text

AB 448, as amended, Patel.
Short-term residential therapeutic program: requirements.
California Health Facilities Financing Authority Act: nondesignated hospitals: loan repayment.
Under existing law, the California Health Facilities Financing Authority Act (act) authorizes the California Health Facilities Financing Authority to, among other things, make loans from the continuously appropriated California Health Facilities Financing Authority Fund to participating health institutions, as defined, for financing or refinancing the acquisition, construction, or remodeling of health facilities. Under the act, the authority is authorized to issue revenue bonds to provide the funds for achieving these purposes. Existing law appropriates $40,000,000 to provide cashflow loans to nondesignated public hospitals, as needed, due to the financial impacts of the COVID-19 public health emergency. Existing law requires the nondesignated public hospitals participating in this loan program to repay
and discharge the loan within 24 months of the date of the loan.
This bill would extend the repayment requirements for nondesignated public hospitals participating in the loan program that had received a loan approval from, and entered into a loan and security agreement with, the authority by requiring those hospitals to begin monthly repayments on the loan 32 months after the date of the loan, and discharge the loan within 60 months of the date of the loan, as prescribed. The bill would require the monthly payments to be amortized over the term of the loan, at 0% interest. By removing restrictions limiting the expenditure of moneys appropriated for purposes of these loans, the bill would make an appropriation.
Existing law, the California Community Care Facilities Act, provides for the licensure and regulation of community care and residential facilities, including short-term residential therapeutic programs, by the State Department of Social Services. A violation of the act is a misdemeanor. Existing law defines “short-term residential therapeutic program” as a residential facility licensed by the department and operated by any public agency or private organization that provides an integrated program of specialized and intensive care and supervision, services and supports, treatment, and short-term, 24-hour care and supervision to children, including foster children. Existing law requires a short-term residential therapeutic program to follow the requirements applicable to group homes, and to have national accreditation from an entity identified by the department pursuant to a specified
process. Existing law requires a short-term residential therapeutic program to prepare and maintain a current, written plan of operation including, among other things, a statement of purposes and goals and a detailed program statement.
This bill additionally would require a short-term residential therapeutic program to ensure that at least one parent, or a legal guardian, will be residing at single, physical address within the state for the duration of the child’s or youth’s treatment. The bill also would require the short-term residential therapeutic program to ensure that a child or youth residing in the program facility is at all times able to make confidential telephone calls to their parent or legal guardian, as specified, and has access at all times to appropriate footwear that is suitable to be worn outdoors. The bill would require the short-term residential therapeutic program to post these requirements on its internet website. The bill would subject the
short-term residential therapeutic program to civil penalties for violating those requirements, or license suspension or revocation if the violation causes harm to a child’s or youth’s health or safety. The bill would require the department to adopt regulations to implement, interpret, or make specific the bill’s requirements. Because a violation of the bill’s requirements by a short-term residential therapeutic program would be a crime, the bill would impose a state-mandated local program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that no reimbursement is required by this act for a specified reason.

Current Bill Text

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