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HomeHealth and Safety CodeDiv. 107Pt. 7Ch. 1Art. 3§ 129785 Healthcare Facility Construction Fees

§ 129785 Healthcare Facility Construction Fees

Health and Safety Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 129785 Healthcare Facility Construction Fees

Key Takeaways

  • •Hospitals and nursing homes must pay a fee when they want to build or fix up their buildings. The fee is a small percentage of the total cost to build or fix.
  • •The fee can't be more than 2% of the building cost for hospitals, and 1.5% for nursing homes. But the fee can't be less than $250.
  • •If the building costs way more than they thought (more than 5% extra), they have to pay more fee. If it costs way less (more than 5% less), they might get some money back.
  • •For small projects, they can pay one fee for the whole year instead of paying for each project. For hospitals, this is $500 for projects up to $50,000. For nursing homes, it's $250 for projects up to $25,000.

Example

A hospital wants to build a new wing that they think will cost $1,000,000.

The hospital has to pay a fee to apply for permission to build. Since it's a hospital, the fee can't be more than 2% of $1,000,000, which is $20,000. But if the actual cost ends up being $1,100,000 (more than 5% extra), they have to pay more fee based on the extra $100,000.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 129785 Healthcare Facility Construction Fees

(a)  (1)  The department shall determine an application filing fee that will cover the costs of administering this chapter. For a hospital facility, as defined in subdivision (a), (b), or (f) of Section 1250, the fee shall not exceed 2 percent of a project’s estimated construction cost. For a skilled nursing or intermediate care facility, as defined in subdivision (c), (d), (e), or (g) of Section 1250, the fee shall not exceed 1.5 percent of a project’s estimated construction cost. Application filing fees shall be established in accordance with applicable procedures established in Article 5 (commencing with Section 11346) of Chapter 3.5 of Part 1 of Division 3 of Title 2 of the Government Code. (2)  Notwithstanding paragraph (1), the minimum application filing fee in any case shall be two hundred fifty dollars ($250). (b)  The department shall issue an annual permit upon submission of an application, pursuant to Section 129765, for one or more projects of a hospital facility, as defined in subdivision (a), (b), or (f) of Section 1250, if the total estimated construction cost is fifty thousand dollars ($50,000) or less per fiscal year. The fee for the annual permit shall be five hundred dollars ($500) and shall be in lieu of an application filing fee. The annual permit shall cover all projects undertaken for a particular hospital facility up to a total estimated construction cost of fifty thousand dollars ($50,000) during the state fiscal year in which the annual permit is issued. If a hospital facility chooses not to apply for an annual permit to cover a project or projects costing fifty thousand dollars ($50,000) or less in total, the hospital facility may instead submit the project or projects for review and approval as otherwise specified in this chapter, including paying the application filing fee determined under subdivision (a). (c)  The department shall issue an annual permit upon submission of an application, pursuant to Section 129765, for one or more projects of a skilled nursing or intermediate care facility, as defined in subdivision (c), (d), (e), or (g) of Section 1250, if the total estimated construction cost is twenty-five thousand dollars ($25,000) or less per fiscal year. The fee for the annual permit shall be two hundred fifty dollars ($250) and shall be in lieu of an application filing fee. The annual permit shall cover all projects undertaken for a particular skilled nursing or intermediate care facility up to a total estimated construction cost of twenty-five thousand dollars ($25,000) during the state fiscal year in which the annual permit is issued. If a skilled nursing or intermediate care facility chooses not to apply for an annual permit to cover a project or projects costing twenty-five thousand dollars ($25,000) or less in total, the skilled nursing or intermediate care facility may instead submit the project or projects for review and approval as otherwise specified in this chapter, including paying the application filing fee determined under subdivision (a). (d)  If the actual construction cost exceeds the estimated construction cost by more than 5 percent, a further fee shall be paid to the department, based on the above schedule and computed on the amount that the actual cost exceeds the amount of the estimated cost. If the estimated construction cost exceeds the actual construction cost by more than 5 percent, the department shall refund the excess portion of any paid fees, based on the above schedule and computed on the amount that the estimated cost exceeds the amount of the actual cost. A refund is not required if the applicant did not complete construction or alteration of 75 percent of the square footage included in the project, as contained in the approved drawings and specifications for the project. In addition, the department shall adopt regulations specifying other circumstances when the department shall refund to an applicant all or part of any paid fees for projects submitted under this chapter. The regulations shall include, but not be limited to, refunds of paid fees for a project that is determined by the department to be exempt or otherwise not reviewable under this chapter, and for a project that is withdrawn by the applicant prior to the commencement of review by the department of the drawing and specifications submitted for the project. All refunds pursuant to this section shall be paid from the Hospital Building Account in the Architecture Public Building Fund, as established pursuant to Section 129795. (Amended by Stats. 2021, Ch. 143, Sec. 288. (AB 133) Effective July 27, 2021.)

Last verified: January 23, 2026

Key Terms

facilityapplicationconstructionhospitalnursingfineannual permitssmall projects

Related Statutes

  • § 129765 Hospital Plan Approval Requirements
  • § 1276.65 Direct Caregiver Staffing Hours
  • § 1286 Health Facility Smoking Rules
  • § 109948.1 Home Medical Device Services
  • § 128755 Hospital And Facility Reporting Deadlines

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Health and Safety Code. Section 129785.
View Official Source