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Committee restores design–build authority for healthcare districts operating hospitals and clinics
Summary
AB 533 would reauthorize the authority for healthcare districts that own or operate hospitals or clinics to use design–build contracting. The committee approved the measure; supporters said restoring authority is necessary to secure financing and streamline construction for health facilities.
Assemblymember Flora presented AB 533, a bill to reauthorize healthcare districts’ authority to use the design–build procurement method when contracting for construction of health facilities. The authority previously existed but expired on Jan. 1, 2025, the author and sponsors said.
“AB 533 restores this authority and ensures that all districts can continue to utilize this efficient construction method without future uncertainty,” Assemblymember Flora said. Sarah Bridge of the Association of California Healthcare Districts, a sponsor, described the measure as a replica of prior authority and said it does not change public contracting requirements; it permits one entity to be used for both design and construction, which supporters said is often required to secure certain financing.
Beau Biller of the Design-Build Institute of America’s Western Pacific Region and other groups testified in support. “We ask for your aye vote,” Biller said. Other supporters included the District Hospital Leadership Forum (Connie Delgado) and the American Council of Engineering Companies of California (Jeff Neal).
A motion to move the bill was made by Mr. Ramos and seconded by Assemblymember Pacheco. The committee clerk recorded a roll call showing seven ayes and zero noes. The chair announced the measure passed the committee 7‑0 and would be left open for members to add on.
Why it matters: Supporters said the design–build authority helps healthcare districts obtain upfront cost estimates and financing necessary to build or renovate hospitals and clinics. The bill sponsor emphasized that the measure does not alter competitive bidding or public-contracting notice requirements; it restores a procurement option that had recently expired.
Votes and next steps: AB 533 passed the Local Government Committee by recorded roll call, 7‑0. The committee left the measure open for any members wishing to add on before final transmittal.
