AB 2311: Health care districts: employment.

Official summary

Legislative Counsel’s Digest (official, as of the latest version). Written by nonpartisan legislative staff; reproduced verbatim.

Existing law, the Medical Practice Act, restricts the employment of physicians and surgeons or doctors of podiatric medicine by a corporation or other artificial legal entity to entities that do not charge for professional services rendered to patients and are approved by the Medical Board of California, subject to specified exemptions. Existing law, the Local Health Care District Law, regulates the organization and management of health care districts. Existing law establishes the Department of Health Care Access and Information and charges it with various duties related to health planning and research development.

This bill would, until January 1, 2037, establish an exemption to the general prohibition described above by authorizing health care districts and nonprofit corporations with a health care district as its sole corporate member that own or control a general acute care hospital to employ physicians and surgeons and charge for professional services, provided specified conditions are met, including prohibiting the health care district or nonprofit corporation, and any hospital under its ownership or control, from interfering with, controlling, or otherwise directing the professional judgment of a physician or surgeon. The bill would require a health care district or nonprofit corporation that employs licensees and charges for professional services under the bill to publish an annual report, as provided, on their internet website that includes data about the ability of general acute care hospitals under their ownership and control to recruit and retain physicians and surgeons, as specified.

Sponsors

Sponsors by party (alphabetical): Democratic 2 · Republican 2

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. September 18, 2026Chaptered by Secretary of State - Chapter 299, Statutes of 2026.
2. September 18, 2026Approved by the Governor.
3. September 3, 2026Enrolled and presented to the Governor at 4 p.m.
4. August 26, 2026Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 0. Page 6582.).
5. August 25, 2026In Assembly. Concurrence in Senate amendments pending.
6. August 25, 2026Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0.).
7. August 17, 2026Read second time. Ordered to third reading.
8. August 13, 2026Read second time and amended. Ordered returned to second reading.
9. August 13, 2026From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 13).
10. August 3, 2026In committee: Referred to APPR. suspense file.
11. July 2, 2026From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 10. Noes 0.) (July 1).
12. July 2, 2026Read second time and amended. Re-referred to Com. on APPR.