BILL ANALYSIS ------------------------------------------------------------ |SENATE RULES COMMITTEE | SB 1368| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ------------------------------------------------------------ UNFINISHED BUSINESS Bill No: SB 1368 Author: Senate Health Committee Amended: 8/2/10 Vote: 27 SENATE HEALTH COMMITTEE : 5-0, 4/21/10 AYES: Alquist, Leno, Negrete McLeod, Pavley, Romero NO VOTE RECORDED: Strickland, Aanestad, Cedillo, Cox SENATE FLOOR : 33-0, 5/17/10 AYES: Aanestad, Alquist, Calderon, Cedillo, Cogdill, Corbett, Correa, Cox, Denham, DeSaulnier, Ducheny, Dutton, Florez, Hancock, Harman, Hollingsworth, Huff, Kehoe, Leno, Liu, Lowenthal, Negrete McLeod, Padilla, Pavley, Romero, Runner, Simitian, Steinberg, Strickland, Walters, Wolk, Wyland, Yee NO VOTE RECORDED: Ashburn, Oropeza, Price, Wiggins, Wright, Vacancy, Vacancy SENATE APPROPRIATIONS COMMITTEE: Senate Rule 28.8 ASSEMBLY FLOOR : 78-0, 8/12/10 (Consent) - See last page for vote SUBJECT : Health care SOURCE : Senate Health Committee DIGEST : This bill authorizes the Office of Statewide Health Planning and Development (OSHPD) to charge a portion CONTINUED SB 1368 Page 2 of loan insurance premium in advance, not to exceed $6 per year for each $1,000 of loan principal. Authorizes OSHPD to insure the refinancing of a loan if the amount to be insured is not more than 90 percent of the original construction costs, and makes technical changes in the Health and Safety and Insurance Codes. Assembly Amendments delete a portion of the bill that require a specified report to be sent to the Emergency Medical Services Authority, and require the authority to compile and forward a summary of each count's report to the Legislature. ANALYSIS : Existing law, the Emergency Medical Services System and Prehospital Emergency Medical Care Personnel Act establishes the Emergency Medical Services Authority within the California Health and Human Services Agency to provide statewide coordination of local county emergency medical services programs. Existing law authorizes each county to establish an emergency medical services fund, and makes money in the fund available for the reimbursement of physicians, surgeons, and hospitals for losses incurred in the provision of emergency medical services when payment is not otherwise made for those services. Existing law requires each county establishing an emergency medical services fund to report the implementation and status of the fund to the Legislature on April 15 of each year. Existing law establishes the Office of Statewide Health Planning and Development and sets forth its powers and duties, including, but not limited to, administration of the California Health Facility Construction Loan Insurance Law for the purposes of insuring health facility construction loans. Existing law establishes the Health Facility Construction Loan Insurance Fund and continuously appropriates the fund to the office for these purposes. Existing law authorizes the office to charge a premium charge for the insurance of these loans, with the premiums to be deposited in the fund. This bill authorizes the office to annually charge a portion of the premium in advance not to exceed six dollars SB 1368 Page 3 per year for each $1,000 of principal of the proposed loan. The bill makes the total dollar amount of the premium advanced nonrefundable and requires that it be credited against the amount of the premium charged or, if the commitment expires and the loan is not insured, the bill requires that the advance be retained by the office to offset costs and expenses of the office, as prescribed. By increasing the amounts to be deposited into a continuously appropriated fund, this bill makes an appropriation. Existing law sets forth the conditions for loans to be eligible for loan insurance under these provisions, including, but not limited to, the requirement that the proceeds of the loan be guaranteed to be used exclusively for the construction, improvement, or expansion of the health facility, as approved by the office. Existing law authorizes insurance of loans to refinance another prior loan if the prior loan would have been eligible at the time it was made. This bill permits the refinancing of up to 90 percent of a prior loan if the loan would otherwise be eligible, without regard to whether the prior loan would have been eligible at the time it was made. Existing law creates the Access for Infants and Mothers Program, which is administered by the Managed Risk Medical Insurance Board, to provide coverage for perinatal and infant care to residents of this state meeting certain income and other eligibility requirements and paying certain subscriber contributions. Existing law creates the California Major Risk Medical Insurance Program, which is also administered by the Managed Risk Medical Insurance Board, to provide major risk health coverage to residents of this state who are unable to secure adequate private health coverage because of preexisting medical conditions and who meet other eligibility requirements and pay certain subscriber contributions. This bill deletes obsolete references within these provisions. SB 1368 Page 4 FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes Local: No SUPPORT : (Verified 8/16/10) American College of Emergency Physicians State Chapter of California ARGUMENTS IN SUPPORT : American College of Emergency Physicians State Chapter of California (CAL/ACEP) states that, while the Maddy EMS Funds only reimburse a small portion of the cost of care, they are nevertheless a critical source of funding helping to preserve the emergency care safety net. CAL/ACEP adds that a time when cuts to coverage and services are happening at both the state and local level while the demand for emergency services is on the rise, it is essential to ensure that every Maddy EMS dollar is spent to preserve the emergency care safety net as it was intended to do. CAL/ACEP contends that the administrative reports completed by counties are the public's primary way to ensure Maddy EMS Funds are being administered properly. ASSEMBLY FLOOR : AYES: Adams, Ammiano, Anderson, Arambula, Bass, Beall, Bill Berryhill, Tom Berryhill, Blakeslee, Block, Blumenfield, Bradford, Brownley, Buchanan, Caballero, Charles Calderon, Carter, Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon, DeVore, Eng, Evans, Feuer, Fletcher, Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani, Garrick, Gatto, Gilmore, Hagman, Hall, Harkey, Hayashi, Hernandez, Hill, Huber, Huffman, Jeffries, Jones, Knight, Lieu, Logue, Bonnie Lowenthal, Ma, Mendoza, Miller, Monning, Nava, Nestande, Niello, Nielsen, V. Manuel Perez, Portantino, Ruskin, Salas, Saldana, Silva, Skinner, Smyth, Solorio, Audra Strickland, Swanson, Torlakson, Torres, Torrico, Tran, Villines, Yamada, John A. Perez NO VOTE RECORDED: Norby, Vacancy SB 1368 Page 5 CTW:do 8/16/10 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END ****