BILL NUMBER: SB 20 AMENDED
BILL TEXT
AMENDED IN SENATE FEBRUARY 14, 2013
INTRODUCED BY Senator Hernandez
DECEMBER 3, 2012
An act relating to health care coverage.
to amend Section 1341.45 of the Health and Safety Code, relating to
health.
LEGISLATIVE COUNSEL'S DIGEST
SB 20, as amended, Hernandez. Health care coverage: basic
health program. Health care: workforce training.
Existing law provides for the licensure and regulation of health
care service plans by the Department of Managed Health Care and
imposes certain requirements on health care service plans. Existing
law imposes, for certain violations of these provisions, various
fines and administrative penalties, which are deposited in the
Managed Care Administrative Fines and Penalties Fund. Existing law
requires the first $1,000,000 in the fund to be transferred each year
to the Medically Underserved Account for Physicians in the Health
Professions Education Fund for purposes of the Steven M. Thompson
Physician Corps Loan Repayment Program. Existing law requires all
remaining funds to be transferred each year to the Major Risk Medical
Insurance Fund for purposes of the Major Risk Medical Insurance
Program.
This bill, beginning on the date that the Major Risk Medical
Insurance Program becomes inoperative, would instead require all the
funds in the Managed Care Administrative Fines and Penalties Fund to
be transferred each year to the Medically Underserved Account for
Physicians in the Health Professions Education Fund for purposes of
the Steven M. Thompson Physician Corps Loan Repayment Program. The
bill would require the Director of Finance to notify the Joint
Legislative Budget Committee in that regard.
Existing law, the federal Patient Protection and Affordable Care
Act (PPACA), requires each state to, by January 1, 2014, establish an
American Health Benefit Exchange that makes available qualified
health plans to qualified individuals and small employers. PPACA also
authorizes the establishment of a basic health program under which a
state may, if specified criteria are met, enter into contracts to
offer one or more standard health plans providing a minimum level of
essential health benefits to eligible individuals instead of offering
those individuals coverage through an exchange.
This bill would state the intent of the Legislature to enact
legislation that would establish a basic health program in California
as described in PPACA.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 1341.45 of the
Health and Safety Code is amended to read:
1341.45. (a) There is hereby created in the State Treasury the
Managed Care Administrative Fines and Penalties Fund.
(b) The fines and administrative penalties collected pursuant to
this chapter, on and after the operative date of this section, shall
be deposited into the Managed Care Administrative Fines and Penalties
Fund.
(c) (1) The fines and administrative
penalties deposited into the Managed Care Administrative Fines and
Penalties Fund shall be transferred by the department, beginning
September 1, 2009, and annually thereafter, as follows:
(1)
(A) The first one million dollars ($1,000,000) shall be
transferred to the Medically Underserved Account for Physicians
within the Health Professions Education Fund and shall, upon
appropriation by the Legislature, be used for the purposes of the
Steven M. Thompson Physician Corps Loan Repayment Program, as
specified in Article 5 (commencing with Section 128550) or
of Chapter 5 of Part 3 of Division 107 and,
notwithstanding Section 128555, shall not be used to provide funding
for the Physician Volunteer Program.
(2)
(B) Any amount over the first one million dollars
($1,000,000), including accrued interest, in the fund shall be
transferred to the Major Risk Medical Insurance Fund created pursuant
to Section 12739 of the Insurance Code and shall, upon appropriation
by the Legislature, be used for the Major Risk Medical Insurance
Program for the purposes specified in Section 12739.1 of the
Insurance Code.
(C) Transfers under this paragraph shall cease on the date the
Managed Risk Medical Insurance Program becomes inoperative. The
Director of Finance shall notify the Joint Legislative Budget
Committee at the time the program becomes inoperative.
(2) Commencing on the date transfers under paragraph (1) cease,
and annually thereafter, the fines and administrative penalties
deposited into the Managed Care Administrative Fines and Penalties
Fund shall be transferred by the department to the Medically
Underserved Account for Physicians within the Health Professions
Education Fund and shall, upon appropriation by the Legislature, be
used for the purposes of the Steven M. Thompson Physician Corps Loan
Repayment Program, as specified in Article 5 (commencing with Section
128550) of Chapter 5 of Part 3 of Division 107 and, notwithstanding
Section 128555, shall not be used to provide funding for the
Physician Volunteer Program.
(d) Notwithstanding subdivision (b) of Section 1356 and Section
1356.1, the fines and administrative penalties authorized pursuant to
this chapter shall not be used to reduce the assessments imposed on
health care service plans pursuant to Section 1356.
SECTION 1. It is the intent of the Legislature
to enact legislation that would establish the basic health program
described in Section 1331 of the federal Patient Protection and
Affordable Care Act (42 U.S.C. Sec. 18051).