BILL NUMBER: SB 720 CHAPTERED 08/06/01 CHAPTER 143 FILED WITH SECRETARY OF STATE AUGUST 6, 2001 APPROVED BY GOVERNOR AUGUST 6, 2001 PASSED THE ASSEMBLY JULY 19, 2001 PASSED THE SENATE MAY 29, 2001 AMENDED IN SENATE APRIL 19, 2001 INTRODUCED BY Senator Margett FEBRUARY 23, 2001 An act to amend Sections 14087.961 and 14087.969 of the Welfare and Institutions Code, relating to health care. LEGISLATIVE COUNSEL'S DIGEST SB 720, Margett. County administration of health services. Existing law authorizes the Board of Supervisors of the County of Los Angeles to establish a commission consisting of 13 members nominated by specified entities, for the provision or arrangement for the provision of health care services under the Medi-Cal program in all or a portion of the geographic area of the county. Existing law specifies that the members of the commission governing body and any advisory panel to the governing body of the local health initiative in Los Angeles County shall be deemed not to be interested in contracts in specified circumstances. This bill would specifically require that certain nominees represent specified interests. This bill would also revise the specified circumstances under which the members of the commission would be deemed not to be interested in contracts. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 14087.961 of the Welfare and Institutions Code is amended to read: 14087.961. Governance of the commission shall be vested in a governing body consisting of 13 members, each of whom shall have a fiduciary duty to act in the best interest of the commission and the local initiative, nominated by the following entities, and appointed by the board of supervisors: (a) Four members shall be nominated by the board of supervisors to represent the County of Los Angeles. No more than one member nominated by the board of supervisors shall be a member of the board of supervisors and each remaining member nominated by the board of supervisors shall possess experience as a health care administrator or as a health care provider. (b) One member shall be a representative of private hospitals that have Medi-Cal disproportionate share status, or if that status no longer exists, that serve an equivalent patient population, who shall be nominated by the Hospital Council of Southern California. (c) One member shall be a representative of private hospitals that do not have Medi-Cal disproportionate share status, who shall be nominated by the Hospital Council of Southern California. (d) One member shall be a representative of free and community clinics, who shall be nominated by an entity or group recognized by the board of supervisors as representing free and community clients. (e) One member shall be a representative of federally qualified health centers, who shall be nominated by an entity or group recognized by the board of supervisors as representing federally qualified health centers, or if that status no longer exists, an equivalent group of health centers. (f) One member shall be a physician representative, who shall be nominated by the Los Angeles County Medical Association, in consultation with other physician associations within the county. (g) One member shall be a representative of Knox-Keene licensed prepaid health plans, who shall be nominated by the California Association of Health Plans. (h) One member shall represent health care consumers, and at the time of being nominated, shall be a health care consumer. The initial nominee shall be nominated by the working group on the role of the consumer for the first nominee, and thereafter, by a process determined by the community advisory committee under which only health care consumers may nominate and vote for appointees. (i) One member shall be a health care consumer advocate, who shall represent health care consumers. The initial nominee shall be nominated by the working group on the role of the consumer for the first nominee, and thereafter, by a process determined by the community advisory committee under which only health care consumers may nominate and vote for appointees. (j) One member shall be a children's health care provider representative, who shall be nominated by the Children's Planning Council as the coordinating entity for organizations and agencies providing direct services to, or advocacy for, children and families within the county. SEC. 2. Section 14087.969 of the Welfare and Institutions Code is amended to read: 14087.969. Notwithstanding any other provision of law, neither a member of the governing body of the commission nor a member of any advisory panel to the governing body shall be deemed to be interested in a contract or amendment to a contract entered into by the commission within the meaning of Article 4 (commencing with Section 1090) of Chapter 1 of Division 4 of Title 1 of the Government Code if all of the following apply: (a) The board of supervisors or the governing body appointed the individual to represent the interests of the county, physicians, health care practitioners, hospitals, pharmacies, other health care organizations, consumers, or consumer advocates. (b) The contract authorizes the individual or the organization the individual represents to provide services under the local initiative. (c) The contract or amendment contains substantially the same terms and conditions as contracts or amendments entered into with other individuals or organizations that the individual was appointed to represent. (d) The individual does not influence or attempt to influence any advisory panel, the governing body, or any member of the governing body to enter into the particular contract that authorizes the individual or the organization the individual represents to provide services under the local initiative. (e) The individual discloses the interest to the governing body and the advisory panel, if applicable, and abstains from voting on the contract. (f) The governing body and the advisory panel, if applicable, notes the disclosure and abstention in its official records and authorizes the contract in good faith by a vote of its membership sufficient for that purpose without counting the vote of the individual.