BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1 X2


                                                                    Page  1


          CONCURRENCE IN SENATE AMENDMENTS


          AB 1  
          X2 (Bonta)


          As Amended  September 3, 2015


          Majority vote


           -------------------------------------------------------------------- 
          |ASSEMBLY:  |      |(August 31,    |SENATE: |24-14 |(September 9,    |
          |           |50-28 |2015)          |        |      |2015)            |
          |           |      |               |        |      |                 |
          |           |      |               |        |      |                 |
           -------------------------------------------------------------------- 


          Original Committee Reference:  P.H. & D.S.


          SUMMARY:  States it is the intent of the Legislature to enact  
          legislation to establish funding sources and mechanisms to  
          provide additional support and access to services for the  
          state's Medi-Cal and developmental services programs.


          The Senate amendments state it is the intent of the Legislature  
          to use the funding sources and mechanisms to ensure network  
          adequacy, improve quality, and minimize geographic and service  
          shortages in the Medi-Cal program and to increase access to  
          services provided through regional centers.


          FISCAL EFFECT:  None


          Background:  On June 19, 2015, the Second Extraordinary Session  
          of the California State Legislature was convened pursuant to a  








                                                                    AB 1 X2


                                                                    Page  2


          proclamation by Governor Brown, which read:


            WHEREAS the state's recent expansion of health care coverage  
            has resulted in more than four million additional Californians  
            receiving coverage through Medi-Cal; and 


            WHEREAS to date, the managed care organization tax has  
            provided a stable source of funding to help pay for the costs  
            of the health care expansion; and 


            WHEREAS the federal government has issued guidance to the  
            state that it cannot extend the managed care organization tax  
            in its current format; and 


            WHEREAS the state will be forced to make more than $1 billion  
            in program cuts beginning next year if the managed care  
            organization tax is not extended; and 


            WHEREAS the state's General Fund cannot afford to provide  
            additional rate increases for providers of services for  
            Medi-Cal recipients and consumers with developmental  
            disabilities; and 


            WHEREAS the state's General Fund cannot afford to permanently  
            maintain a restoration of seven percent of hours in the  
            In-Home Supportive Services program; and 


            WHEREAS these extraordinary circumstances require the  
            Legislature of the State of California to be convened in a  
            special session. 


            NOW, THEREFORE, I, EDMUND G. BROWN JR., Governor of the State  
            of California, in accordance with Section 3(b) of Article IV  
            of the Constitution of the State of California, hereby convene  








                                                                    AB 1 X2


                                                                    Page  3


            the Legislature of the State of California to assemble in  
            extraordinary session in Sacramento, California, on the 19th  
            day of June, 2015, at a time to be determined, for the  
            following purposes:


            To consider and act upon legislation necessary to enact  
            permanent and sustainable funding from a new managed care  
            organization tax and/or alternative fund sources to provide: 


             1)   At least $1.1 billion annually to stabilize the General  
               Fund's costs for Medi-Cal; and,
             2)   Sufficient funding to continue the 7 percent restoration  
               of In-Home Supportive Services hours beyond 2015-16; and,


             3)   Sufficient funding to provide additional rate increases  
               for providers of Medi-Cal and developmental disability  
               services.


            To consider and act upon legislation necessary to:


             1)   Establish mechanisms so that that any additional rate  
               increases expand access to services; and,
             2)   Increase oversight and the effective management of  
               services provided to consumers with developmental  
               disabilities through the regional center system; and,


             3)   Improve the efficiency and efficacy of the health care  
               system, reduce the cost of providing health care services,  
               and improve the health of Californians. 


            I FURTHER DIRECT that as soon as hereafter possible, this  
            Proclamation be filed in the Office of the Secretary of State  
            and that widespread publicity and notice be given of this  
            Proclamation. 









                                                                    AB 1 X2


                                                                    Page  4



            IN WITNESS WHEREOF, I have hereunto set my hand and caused the  
            Great Seal of the State of California to be affixed this 16th  
            day of June 2015. 


            EDMUND G. BROWN JR. Governor of California.


          Analysis Prepared by:                                             
                          Patty Rodgers / HEALTH / (916) 319-2097  FN:  
          0002366