Amended in Assembly April 11, 2016

Amended in Assembly March 17, 2016

California Legislature—2015–16 Regular Session

Assembly BillNo. 2810


Introduced by Assembly Member Eggman

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(Coauthor: Senator Wolk)

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February 19, 2016


begin deleteAn act to add and repeal Article 6.3 (commencing with Section 14196.50) of Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions Code, relating to prescription drugs. end deletebegin insertAn act to amend Sections 1812.84 and 1812.85 of the Civil Code, relating to health studio services.end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 2810, as amended, Eggman. begin deleteAid-in-dying prescription drugs: coverage for Medi-Cal beneficiaries. end deletebegin insertHealth studio services: cancellation.end insert

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Existing law authorizes a consumer to cancel a contract for health studio services within specified timeframes after the contract is executed, if the health studio fails to provide the specific facilities advertised or offered or if the health studio eliminates or reduces the scope of the facilities, as specified.

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The bill would specify that a contract for health studio services may be canceled by the buyer in person or via first-class mail. The bill would make other conforming changes.

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Under the End of Life Option Act, an adult who meets certain qualifications and who has been determined by his or her attending physician to be suffering from a terminal disease, as defined, is authorized to make a request for a drug prescribed pursuant to these provisions for the purpose of ending his or her life. The act is repealed on January 1, 2026.

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Existing law establishes the Medi-Cal program, administered by the State Department of Health Care Services, under which qualified low-income persons receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid Program provisions. Existing law provides for a schedule of benefits under the Medi-Cal program, which includes prescription drugs, as specified.

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Existing federal law prohibits the expenditure of funds appropriated by Congress for the provision of health care services under the Medicaid Program from being used (1) to provide or pay for any health care item or service furnished for the purpose of causing, or for the purpose of assisting in causing, the death of any individual, as specified; or (2) to pay for health benefit coverage that includes any coverage of the item or service or of any expenses relating to the item or service.

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This bill would add to the schedule of benefits under the Medi-Cal program coverage for aid-in-dying drugs, as defined. The bill would require coverage for an aid-in-dying drug prescription to be provided to a Medi-Cal beneficiary who meets the qualifications of the End of Life Option Act and who requests a prescription in accordance with that act, and would require the cost for those services to be provided with state-only funds. The bill would authorize the department to implement, interpret, or make specific its provisions by all-county letters or similar instructions, without taking regulatory action, until the time regulations are adopted, as specified. The bill’s provisions would be repealed on January 1, 2026.

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Vote: majority. Appropriation: no. Fiscal committee: begin deleteyes end deletebegin insertnoend insert. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 1812.84 of the end insertbegin insertCivil Codeend insertbegin insert is amended to
2read:end insert

3

1812.84.  

(a) A contract for health studio services may not
4require payments or financing by the buyer to exceed the term of
5the contract, nor may the term of the contract exceed three years.
6This subdivision does not apply to a member’s obligation to pay
7valid, outstanding moneys due under the contract, including
8moneys to be paid pursuant to a termination notice period in the
P3    1contract in which the termination notice period does not exceed
230 days.

3(b) A contract for health studio services shall include a statement
4printed in a size at least 14-point type that discloses the length of
5the term of the contract. This statement shall be placed above the
6space reserved for the signature of the buyer.

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7
(c) At any time a cancellation is authorized by this title, a
8contract for health studio services may be canceled by the buyer
9in person or via first-class mail.

end insert
10begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 1812.85 of the end insertbegin insertCivil Codeend insertbegin insert is amended to read:end insert

11

1812.85.  

(a) Every contract for health studio services shall
12provide that performance of the agreed-upon services will begin
13within six months after the date the contract is entered into. The
14consumer may cancel the contract and receive a pro rata refund if
15the health studio fails to provide the specific facilities advertised
16or offered in writing by the time indicated. If no time is indicated
17in the contract, the consumer may cancel the contract within six
18months after the execution of the contract and shall receive a pro
19rata refund. If a health studio fails to meet a timeline set forth in
20this section, the consumer may cancel the contract at any time after
21the expiration of the timeline. However, if following the expiration
22of the timeline, the health studio provides the advertised or
23 agreed-upon services, the consumer may cancel the contract up to
2410 days after those services are provided.

25(b) (1) Every contract for health studio services shall, in
26addition, contain on its face, and in close proximity to the space
27reserved for the signature of the buyer, a conspicuous statement
28in a size equal to at least 10-point boldface type, as follows:

29“You, the buyer, maybegin insert choose toend insert cancel this agreement at any
30time prior to midnight of the fifth business day of the health studio
31after the date of this agreement, excluding Sundays and holidays.
32To cancel this agreement, mail or deliver a signed and datedbegin delete notice,
33or send a telegram whichend delete
begin insert notice thatend insert states that you, the buyer, are
34canceling this agreement, or words of similar effect. The notice
35shall be sentbegin insert via first-class mail or delivered in personend insert to,


36

 

   

(Name of health studio operator)

at    

(Address of health studio operator).”

 

P4    1(2) The contract for health studio services shall contain on the
2first page, in a type size no smaller than that generally used in the
3body of the document, the following: (A) the name and address
4of the health studio operator to which the notice of cancellation is
5to be mailed, and (B) the date the buyer signed the contract.

6(3) The contract shall provide a description of the services,
7facilities, and hours of access to which the consumer is entitled.
8Any services, facilities, and hours of access that are not described
9in the contract shall be considered optional services, and these
10optional services shall be considered as separate contracts for the
11purposes of this title and Section 1812.83.

12(4) Until the health studio operator has complied with this
13section, the buyer may cancel the contract for health studio
14services.

15(5) All moneys paid pursuant to a contract for health studio
16services shall be refunded within 10 days after receipt of the notice
17of cancellation, except that payment shall be made for any health
18studio services received prior to cancellation.

19(c) If at any time during the term of the contract, including a
20transfer of the contractual obligation, the health studio eliminates
21or substantially reduces the scope of the facilities, such as
22swimming pools or tennis courts, that were described in the
23contract, in an advertisement relating to the specific location, or
24in a written offer, and available to the consumer upon execution
25of the contract, the consumer may cancel the contract and receive
26a pro rata refund. The consumer may not cancel the contract
27pursuant to this subdivision if the health studio, after giving
28reasonable notice to its members, temporarily takes facilities out
29of operation for reasonable repairs, modifications, substitutions,
30or improvements. This subdivision shall not be interpreted to give
31the consumer the right to cancel a contract because of changes to
32the type or quantity of classes or equipment offered, provided the
33consumer is informed in the contract that the health studio reserves
34the right to make changes to the type or quantity of classes or
35equipment offered and the changes to the type or quantity of classes
36or equipment offered are reasonable under the circumstances.

37(d) (1) If a contract for health studio services requires payment
38of one thousand five hundred dollars ($1,500) to two thousand
39dollars ($2,000), inclusive, including initiation fees or initial
40membership fees, by the person receiving the services or the use
P5    1of the facility, the person shall have the right to cancel the contract
2within 20 days after the contract is executed.

3(2) If a contract for health studio services requires payment of
4two thousand one dollars ($2,001) to two thousand five hundred
5dollars ($2,500), inclusive, including initiation fees or initial
6membership fees, by the person receiving the services or the use
7of the facility, the person shall have the right to cancel the contract
8within 30 days after the contract is executed.

9(3) If a contract for health studio services requires payment of
10two thousand five hundred one dollars ($2,501) or more, including
11initiation fees or initial membership fees, by the person receiving
12the services or the use of the facility, the person shall have the
13right to cancel the contract within 45 days after the contract is
14executed.

15(4) The right of cancellation provided in this subdivision shall
16be set out in the membership contract.

17(5) The rights and remedies under this paragraph are cumulative
18to any rights and remedies under other law.

19(6) A health studio entering into a contract for health studio
20services that requires a payment of less than one thousand five
21hundred dollars ($1,500), including initiation or initial membership
22fees and exclusive of interest or finance charges, by the person
23receiving the services or the use of the facilities, is not required to
24comply with paragraph (1), (2), or (3).

25(e) Upon cancellation, the consumer shall be liable only for that
26portion of the total contract payment, including initiation fees and
27other charges however denominated, that has been available for
28use by the consumer, based upon a pro rata calculation over the
29term of the contract. The remaining portion of the contract payment
30shall be returned to the consumer by the health studio.

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31

SECTION 1.  

Article 6.3 (commencing with Section 14196.50)
32is added to Chapter 7 of Part 3 of Division 9 of the Welfare and
33Institutions Code
, to read:

34 

35Article 6.3.  Coverage for Aid-in-Dying Drugs
36

 

37

14196.50.  

(a) Aid-in-dying drugs, as defined in Section 443.1
38of the Health and Safety Code are covered under the Medi-Cal
39program.

P6    1(b) Notwithstanding any other law, a beneficiary who is a
2qualified person, as defined in Section 443.1 of the Health and
3Safety Code, and who requests a prescription for an aid-in-dying
4drug in accordance with the End of Life Option Act (Part 1.85
5(commencing with Section 443) of the Health and Safety Code)
6shall receive coverage for any drug prescribed for this purpose as
7provided by this article.

8

14196.51.  

(a) The cost for services under this article shall be
9provided with state-only funds.

10(b) (1) Notwithstanding Chapter 3.5 (commencing with Section
1111340) of Part 1 of Division 3 of Title 2 of the Government Code,
12the department may implement, interpret, or make specific this
13section by all-county letters or similar instructions from the
14director, without taking regulatory action, until the time regulations
15are adopted.

16(2) The department shall adopt emergency regulations pursuant
17to Chapter 3.5 (commencing with Section 11340) of Part 1 of
18Division 3 of Title 2 of the Government Code no later than January
191, 2018. The department may readopt any emergency regulation
20authorized by this section that is the same as, or substantially
21equivalent to, an emergency regulation previously adopted under
22this section. The initial adoption of emergency regulations and one
23readoption of emergency regulations implementing this section
24shall be deemed an emergency and necessary for the immediate
25preservation of the public peace, health, safety, or general welfare.

26(3) Initial emergency regulations and the one readoption of
27emergency regulations authorized by this section shall be exempt
28from review by the Office of Administrative Law. The initial
29emergency regulations and the one readoption of emergency
30regulations shall be submitted to the Office of Administrative Law
31for filing with the Secretary of State and each shall remain in effect
32for no more than 180 days, by which time final regulations may
33be adopted.

34

14196.52.  

This article shall remain in effect only until January
351, 2026, and as of that date is repealed, unless a later enacted
36statute, that is enacted before January 1, 2026, deletes or extends
37that date.

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