2023 California Code › Health and Safety Code - HSC › DIVISION 2 - LICENSING PROVISIONS › CHAPTER 2.17 - Hospital procurement contracts: disclosures › Section 1339.87.

1339.87. (a) (1) By July 1, 2021, each licensed hospital with operating expenses of fifty million dollars ($50,000,000) or more, and each licensed hospital with operating expenses of twenty-five million dollars ($25,000,000) or more that is part of a hospital system, shall submit a report to the office on its minority, women, LGBT, and disabled veteran business enterprise procurement efforts during the previous year.
(2) The report shall include all of the following:
(A) The hospital’s supplier diversity policy statement.
(B) The hospital’s outreach and communications to minority, women, LGBT, and disabled veteran business enterprises, including:
(i) How the hospital encourages and seeks out minority, women, LGBT, and disabled veteran business enterprises to become potential suppliers.
(ii) How the hospital encourages its employees involved in procurement to seek out minority, women, LGBT, and disabled veteran business enterprises to become potential suppliers.
(iii) How the hospital conducts outreach and communication to minority, women, LGBT, and disabled veteran business enterprises.
(iv) How the hospital supports organizations that promote or certify minority, women, LGBT, and disabled veteran business enterprises.
(v) Information regarding appropriate contacts at the hospital for interested business enterprises.
(C) (i) The hospital’s procurements that are made from minority, women, LGBT, and disabled veteran business enterprises with at least a majority of the enterprise’s workforce in California, with each category aggregated separately, to the extent that information is readily accessible.
(ii) A hospital that is part of a hospital system or is organized within a regional network within a hospital system may report the diversity of its procurement in compliance with this subparagraph from a systemwide or regional network level if there are suppliers that provide services or goods to all hospitals within the hospital system or regional network. A hospital shall report the diversity of the remainder of its procurement, including the suppliers that do not resource the entire hospital system or regional network, as an individual hospital.
(3) The report may include other relevant information.
(b) This section shall not be construed to require quotas, set-asides, or preferences in a licensed hospital’s procurement of goods or services, nor does this section apply to hospital producer or licensee contracts. Licensed hospitals retain the authority to use business judgment to select the supplier for a particular contract.
(c) Failure to file the report required by subdivision (a) shall subject the licensed hospital to a civil penalty of one hundred dollars ($100) per day. A hospital may request, and the office may grant, a 30-day extension to file the report if needed due to unintended or unforeseen delays. The penalty imposed by this section shall be enforced by the office and is appealable by means of any remedy provided by Sections 128770 and 128775. This subdivision is the sole means for enforcement of this section.
(d) On and after July 1, 2021, each licensed hospital specified in subdivision (a) shall annually update its supplier diversity report and submit the new report to the office no later than July 1 of that year.
(e) By July 31, 2021, the office shall establish and maintain a link on the office’s internet website that provides public access to the contents of each licensed hospital’s report on minority, women, LGBT, and disabled veteran business enterprise procurement efforts. The office shall include a statement on the office’s internet website that the information contained in the hospital’s report on minority, women, LGBT, and disabled veteran business enterprises is provided for informational purposes only.
(f) This section shall remain in effect only until January 1, 2025, and as of that date is repealed.
(Amended by Stats. 2023, Ch. 840, Sec. 3. (AB 1392) Effective January 1, 2024. Repealed as of January 1, 2025, by its own provisions. See later operative version added by Sec. 4 of Stats. 2023, Ch. 840.)