BILL NUMBER: SB 835 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 19, 2016
AMENDED IN ASSEMBLY JUNE 10, 2016
AMENDED IN ASSEMBLY MAY 25, 2016
INTRODUCED BY Committee on Budget and Fiscal Review
JANUARY 7, 2016
An act to amend Sections 14169.53 and 14169.75 of the
Welfare and Institutions Code, relating to Medi-Cal, making an
appropriation therefor, and declaring the urgency thereof, to take
effect immediately, bill related to the budget. An act
to amend Sections 905.2, 8590.6, and 15820.946 of, and to add
Section 15820.947 to, the Government Code, to amend Section 37001.5
of, and to add Section 43011.3 to, the Health and Safety Code,
relating to state government, and making an appropriation therefor,
to take effect immediately, bill related to the budget.
LEGISLATIVE COUNSEL'S DIGEST
SB 835, as amended, Committee on Budget and Fiscal Review.
Medi-Cal: hospitals: quality assurance fee.
State government.
Existing law with respect to claims against public entities
authorizes the "board," as defined, to assess a surcharge to the
state entity against which an approved claim was filed in an amount
not to exceed 15% of the claim. Existing law requires the surcharge
to be deposited into the General Fund and provides that it may be
appropriated in support of the board in the annual Budget Act.
This bill would specify that the Department of General Services
may assess this surcharge, would require the surcharge to be
deposited into the Service Revolving Fund, and would specify that the
surcharge may be appropriated to the department in the annual Budget
Act.
Existing law defines a human trafficking caseworker to mean a
human trafficking caseworker as defined by the Evidence Code.
This bill would expand that definition to include a human
trafficking caseworker who is employed by a homeless services
provider that serves homeless children or youth and has completed a
minimum of 8 hours of training focused on victims of human
trafficking from the Runaway and Homeless Youth Training and
Technical Assistance Center.
Existing law authorizes the State Public Works Board to issue up
to $270,000,000 in revenue bonds, notes, or bond anticipation notes
to finance the acquisition, design, and construction of approved
adult local criminal justice facilities, setting aside $20,000,000 to
be awarded to the County of Napa.
Article XXXIV of the California Constitution, among other things,
prohibits any state public body from developing, constructing, or
acquiring a low-rent housing project before a majority of the
qualified electors vote upon and approve the project. Existing law
provides that the words "develop, construct, or acquire" for the
purposes of that constitutional provision shall not be interpreted to
include specified activities of a state public body.
This bill would include in those specified activities the
financing for a specified low-rent housing project by a state public
body, as provided.
Existing law requires the State Air Resources Board to establish
criteria for the evaluation of the effectiveness of motor vehicle
pollution control devices and, after establishment of those criteria,
requires the state board to evaluate motor vehicle pollution control
devices that have been submitted to it for testing.
Existing law requires vehicles in this state to be equipped with
correctly installed, operational motor vehicle pollution control
devices or systems, with specified exceptions, including an
alteration, modification, or modifying device, apparatus, or
mechanism found by resolution of the state board to either not reduce
the effectiveness of a required motor vehicle pollution control
device or to result in emissions from the modified or altered vehicle
that are at levels that comply with existing state or federal
standards for that model-year of the vehicle being modified or
converted. Existing law authorizes aftermarket and performance parts
with valid state board executive orders to be sold and installed
concurrent with a motorcycle's transfer to an ultimate purchaser.
This bill would authorize the state board to enter into agreements
with private entities and receive, on behalf of the state,
contributions from private sources in the form of equipment or money
in order to expedite the processing of applications, resolutions, and
executive orders pertaining to the above exception to the
requirement that vehicles be equipped with pollution control devices
or systems and the authorization to sell and install aftermarket and
performance parts with a valid executive order. The bill would
require all moneys received to be separately accounted for, be
deposited into the Air Pollution Control Fund, and available to the
state board for these purposes upon appropriation of the Legislature.
This bill would appropriate $3,000,000 from the Gambling Control
Fund to the Department of Justice for the purposes of addressing the
backlog in investigations related to card room licensing.
This bill would declare that it is to take effect immediately as a
bill providing for appropriations related to the Budget Bill.
Existing law provides for the Medi-Cal program, which is
administered by the State Department of Health Care Services, under
which qualified low-income individuals receive health care services.
The Medi-Cal program is, in part, governed and funded by federal
Medicaid program provisions. Existing law, subject to federal
approval, imposes a hospital quality assurance fee, as specified, on
certain general acute care hospitals to be deposited into the
Hospital Quality Assurance Revenue Fund. Existing law provides that
moneys in the Hospital Quality Assurance Revenue Fund are
continuously appropriated during the first program period of January
1, 2014, to December 31, 2016, inclusive, and available only for
certain purposes, including paying for health care coverage for
children, as specified, and making supplemental payments for certain
services to private hospitals and increased capitation payments to
Medi-Cal managed care plans. For subsequent program periods, existing
law requires that the moneys in the Hospital Quality Assurance
Revenue Fund be used for the above-described purposes upon
appropriation by the Legislature in the annual Budget Act. Existing
law provides that these provisions are inoperative on January 1,
2017, and that a hospital is not required to pay the hospital quality
assurance fee after that date, as specified.
This bill would extend the operation of these provisions to
January 1, 2018. The bill would instead, for the second program
period and subsequent program periods, require moneys in the Hospital
Quality Assurance Revenue Fund to be continuously appropriated,
thereby making an appropriation, for the above-described purposes.
This bill would declare that it is to take effect immediately as a
bill providing for appropriations related to the Budget Bill.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: 2/3 majority . Appropriation:
yes. Fiscal committee: yes. State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 905.2 of the
Government Code is amended to read:
905.2. (a) This section shall apply to claims against the state
filed with the Department of General Services except as provided in
subparagraph (B) of paragraph (2) of subdivision (b).
(b) There shall be presented in accordance with this chapter and
Chapter 2 (commencing with Section 910) all claims for money or
damages against the state:
(1) For which no appropriation has been made or for which no fund
is available but the settlement of which has been provided for by
statute or constitutional provision.
(2) (A) For which the appropriation made or fund designated is
exhausted.
(B) Claims for reissuance of stale, dated, or replacement warrants
shall be filed with the state entity that originally issued the
warrant and, if allowed, shall be paid from the issuing entity's
current appropriation.
(3) For money or damages on express contract, or for an injury for
which the state is liable.
(4) For which settlement is not otherwise provided for by statute
or constitutional provision.
(c) Claimants shall pay a filing fee of twenty-five dollars ($25)
for filing a claim described in subdivision (b), except for claims
for reissuance of stale, dated, or replacement warrants as described
in subparagraph (B) of paragraph (2) of subdivision (b). This fee
shall be deposited into the Service Revolving Fund and shall only be
available for the support of the Department of General Services upon
appropriation by the Legislature.
(1) The fee shall not apply to the following persons:
(A) Persons who are receiving benefits pursuant to the
Supplemental Security Income (SSI) and State Supplementary Payment
(SSP) programs (Article 5 (commencing with Section 12200) of Chapter
3 of Part 3 of Division 9 of the Welfare and Institutions Code), the
California Work Opportunity and Responsibility to Kids Act (CalWORKs)
program (Chapter 2 (commencing with Section 11200) of Part 3 of
Division 9 of the Welfare and Institutions Code), the federal
Supplemental Nutrition Assistance Program (SNAP; 7 U.S.C. Sec. 2011
et seq.), or Section 17000 of the Welfare and Institutions Code.
(B) Persons whose monthly income is 125 percent or less of the
current monthly poverty line annually established by the Secretary of
California Health and Human Services pursuant to the federal Omnibus
Budget Reconciliation Act of 1981 (Public Law 97-35), as amended.
(C) Persons who are sentenced to imprisonment in a state prison or
confined in a county jail, or who are residents in a state
institution and, within 90 days prior to the date the claim is filed,
have a balance of one hundred dollars ($100) or less credited to the
inmate's or resident's trust account. A certified copy of the
statement of the account shall be submitted.
(2) Any claimant who requests a fee waiver shall attach to the
application a signed affidavit requesting the waiver and verification
of benefits or income and any other required financial information
in support of the request for the waiver.
(3) Notwithstanding any other law, an applicant shall not be
entitled to a hearing regarding the denial of a request for a fee
waiver.
(d) The time for the Department of General Services to determine
the sufficiency, timeliness, or any other aspect of the claim shall
begin when any of the following occur:
(1) The claim is submitted with the filing fee.
(2) The fee waiver is granted.
(3) The filing fee is paid to the department upon the department's
denial of the fee waiver request, so long as payment is received
within 10 calendar days of the mailing of the notice of the denial.
(e) Upon approval of the claim by the Department of General
Services, the fee shall be reimbursed to the claimant, except that no
fee shall be reimbursed if the approved claim was for the payment of
an expired warrant. Reimbursement of the filing fee shall be paid by
the state entity against which the approved claim was filed. If the
claimant was granted a fee waiver pursuant to this section, the
amount of the fee shall be paid by the state entity to the
department. The reimbursement to the claimant or the payment to the
department shall be made at the time the claim is paid by the state
entity, or shall be added to the amount appropriated for the claim in
an equity claims bill.
(f) The board Department of General
Services may assess a surcharge to the state entity against
which the approved claim was filed in an amount not to exceed 15
percent of the total approved claim. The board
department shall not include the refunded filing fee in
the surcharge calculation. This surcharge shall be deposited into the
General Service Revolving Fund and may
be appropriated in support of the board as reimbursements
to Item 7870-001-0001 of Section 2.00 of department in
the annual Budget Act.
(1) The surcharge shall not apply to approved claims to reissue
expired warrants.
(2) Upon the request of the department in a form prescribed by the
Controller, the Controller shall transfer the fees from the state
entity's appropriation to the appropriation for the support of the
department. However, the department shall not request an amount that
shall be submitted for legislative approval pursuant to Section
13928. 14659.10.
(g) The filing fee required by subdivision (c) shall apply to all
claims filed after June 30, 2004, or the effective date of this
statute. The surcharge authorized by subdivision (f) may be
calculated and included in claims paid after June 30, 2004, or the
effective date of the statute adding this subdivision.
(h) This section shall not apply to claims made for a violation of
the California Whistleblower Protection Act (Article 3 (commencing
with Section 8547) of Chapter 6.5 of Division 1 of Title 2).
SEC. 2. Section 8590.6 of the
Government Code is amended to read:
8590.6. For the purposes of this article:
(a) "Comprehensive services" means primary services that include
all of the following:
(1) Shelter or established referral services for shelter on a 24
hours a day, seven days a week, basis.
(2) A 24 hours a day, seven days a week, telephone hotline for
crisis calls.
(3) Temporary housing and food facilities.
(4) Psychological support and peer counseling provided in
accordance with Section 1038.2 of the Evidence Code.
(5) Referrals to existing services in the community.
(6) Emergency transportation, as feasible.
(b) "Director" means the Director of the Office of Emergency
Services.
(c) "Fund" means the Human Trafficking Victims Assistance Fund.
(d) "Human trafficking caseworker" means a human trafficking
caseworker as defined in Section 1038.2 of the Evidence
Code. Code, or a human trafficking caseworker who is
employed by a homeless services provider that serves homeless
children or youth and has completed a minimum of eight hours of
training focused on victims of human trafficking from the Runaway and
Homeless Youth Training and Technical Assistance Center.
(e) "Office" means the Office of Emergency Services.
(f) "Qualified nonprofit organization" means a nongovernmental,
nonprofit organization that does both of the following:
(1) Employs a minimum of one individual who is a human trafficking
caseworker.
(2) Provides services to victims of human trafficking, including,
but not limited to, housing assistance, counseling services, and
social services to victims of human trafficking.
(g) "Victim of human trafficking" means any person who is a
trafficking victim as described in Section 236.1 of the Penal Code
and satisfies either of the following conditions:
(1) Was trafficked in the state.
(2) Fled his or her trafficker to the state.
SEC. 3. Section 15820.946 of the
Government Code is amended to read:
15820.946. (a) The participating county contribution for adult
local criminal justice facilities financed under this chapter shall
be a minimum of 10 percent of the total project costs. The BSCC may
reduce contribution requirements for participating counties with a
general population below 200,000 upon petition by a participating
county to the BSCC requesting a lower level of contribution.
(b) The BSCC shall determine the funding and scoring criteria
consistent with the requirements of this chapter. Financing shall be
awarded only to those counties that have previously received only a
partial award or have never received an award from the state within
the financing programs authorized in Chapters 3.11 (commencing with
Section 15820.90) to 3.131 (commencing with Section 15820.93),
inclusive. Notwithstanding this restriction, twenty million
dollars ($20,000,000) of the amount authorized in Section 15820.942
shall be set aside and awarded to Napa County. The funding
criteria shall include, as a mandatory criterion, documentation of
the percentage of pretrial inmates in the county jail from January 1,
2015, to December 31, 2015, inclusive, and a description of the
county's current risk assessment based pretrial release program.
Funding preference shall also be given to counties that are most
prepared to proceed successfully with this financing in a timely
manner. The determination of preparedness to proceed shall include
the following:
(1) Counties providing a board of supervisors' resolution
authorizing an adequate amount of available matching funds to satisfy
the counties' contribution and approving the forms of the project
documents deemed necessary, as identified by the board to the BSCC,
to effectuate the financing authorized by this chapter, and
authorizing the appropriate signatory or signatories to execute those
documents at the appropriate times. The identified matching funds in
the resolution shall be compatible with the state's lease-revenue
bond financing.
(2) Counties providing documentation evidencing CEQA compliance
has been completed. Documentation of CEQA compliance shall be either
a final Notice of Determination or a final Notice of Exemption, as
appropriate, and a letter from county counsel certifying the
associated statute of limitations has expired and either no
challenges were filed or identifying any challenges filed and
explaining how they have been resolved in a manner that allows the
project to proceed as proposed.
(c) Funding consideration shall be given to counties that are
seeking to replace compacted, outdated, or unsafe housing capacity
that will also add treatment space or counties that are seeking to
renovate existing or build new facilities that provide adequate space
for the provision of treatment and rehabilitation services,
including mental health treatment.
(d) A participating county may replace existing housing capacity,
realizing only a minimal increase of capacity, using this financing
authority if the requesting county clearly documents an existing
housing capacity deficiency.
(e) A participating county with a request resulting in any
increase in capacity using this financing authority shall be required
to certify and covenant in writing that the county is not, and will
not be, leasing housing capacity to any other public or private
entity for a period of 10 years beyond the completion date of the
adult local criminal justice facility.
(f) Any locked facility constructed or renovated with state
funding awarded under this program shall include space to provide
onsite, in-person visitation capable of meeting or surpassing the
minimum number of weekly visits required by state regulations for
persons detained in the facility.
(g) Any county applying for financing authority under this program
shall include a description of efforts to address sexual abuse in
its adult local criminal justice facility constructed or renovated
pursuant to this chapter.
SEC. 4. Section 15820.947 is added to the
Government Code , to read:
15820.947. Notwithstanding the award restriction in subdivision
(b) of Section 15820.946, twenty million dollars ($20,000,000) of the
amount authorized in Section 15820.942 shall be set aside and
awarded to the County of Napa without the submission of any further
adult local criminal justice facility proposal. This amount may be
utilized in conjunction with a partial award made to the County of
Napa pursuant to Chapter 3.131 (commencing with Section 15820.93).
These awards represent the maximum state contribution for the adult
local criminal justice facility in the County of Napa.
SEC. 5. Section 37001.5 of the Health
and Safety Code is amended to read:
37001.5. The words "develop, construct, or acquire," as used in
Section 1 of Article XXXIV of the State Constitution, shall not be
interpreted to apply to activities of a state public body when
such that body does any of the
following:
(a) Provides financing, secured by a deed of trust or other
security instrument to a private owner of existing housing; or
acquires a development, for which financing previously has been
provided, as a temporary measure to protect its security and with an
intention to change the ownership so that it will not continue to be
the owner of a low-rent housing project.
(b) Acquires or makes improvements to land which is anticipated to
be sold, ground leased, or otherwise transferred to a private owner
prior to its development as a low-rent housing project, provided (1)
the land and improvements thereon are not subject to an exemption
from property taxation by reason of public ownership for more than
five years following acquisition or improvement by the state public
body, or (2) such an exemption from property taxation persists beyond
the five-year period and no alternative use is designated for the
land or improvements, but any property tax revenues lost by affected
taxing agencies on account of the exemption of land or improvements
from property taxes by reason of public ownership of the property, or
any interest in the property after the five-year period, are fully
reimbursed by payments in lieu of taxes following the expiration of
the five-year period.
(c) Leases existing dwelling units from the private owner of such
units, provided the lease or a subtenancy thereunder does not result
in a decrease of property tax revenues with respect to the dwelling
units leased.
(d) Provides assistance to the private owner or occupant of
existing housing which enables an occupant to live in decent, safe,
and sanitary housing at a rent he or she can afford to pay.
(e) Provides assistance to a low-rent housing project and monitors
construction or rehabilitation of such that
project and compliance with conditions of such
that assistance to the extent of:
(1) Carrying out routine governmental functions.
(2) Performing conventional activities of a lender.
(3) Imposing constitutionally mandated or statutorily authorized
conditions accepted by a grantee of assistance.
(f) Provides assistance to a development prior to its becoming a
low-rent housing project without intending or expecting that the
development will become a low-rent housing project, as defined.
(g) Provides financing for a low-rent housing project pursuant to
Chapter 6.7 (commencing with Section 51325) of Part 3 of Division 31.
(h) Provides financing for a low-rent housing project pursuant to
Article 3.2 (commencing with Section 987.001) and Article 5y
(commencing with Section 998.540) of Chapter 6 of Division 4 of the
Military and Veterans Code. This subdivision shall apply to all
low-rent housing projects that convert the project's financing to
permanent financing after January 1, 2017.
SEC. 6. Section 43011.3 is added to the
Health and Safety Code , to read:
43011.3. The state board may enter into agreements with private
entities and receive, on behalf of the state, contributions from
private sources in the form of equipment or money in order to
expedite the processing of applications, resolutions, and executive
orders pertaining to subdivisions (h) and (i) of Section 27156 of the
Vehicle Code. All moneys received pursuant to this section shall be
separately accounted for and deposited in the Air Pollution Control
Fund and shall be available, upon appropriation, to the state board
for purposes of this section.
SEC. 7. The sum of three million dollars
($3,000,000) is hereby appropriated from the Gambling Control Fund to
the Department of Justice for the purposes of Schedule (2) of Item
0820-001-0567 of Section 2.00 of the Budget Act of 2016 in order to
address the backlog in investigations related to card room licensing
SEC. 8. This act is a bill providing for
appropriations related to the Budget Bill within the meaning of
subdivision (e) of Section 12 of Article IV of the California
Constitution, has been identified as related to the budget in the
Budget Bill, and shall take effect immediately.
SECTION 1. Section 14169.53 of the Welfare and
Institutions Code is amended to read:
14169.53. (a) (1) All fees required to be paid to the state
pursuant to this article shall be paid in the form of remittances
payable to the department.
(2) The department shall directly transmit the fee payments to the
Treasurer to be deposited in the fund. Notwithstanding Section
16305.7 of the Government Code, any interest and dividends earned on
deposits in the fund from the proceeds of the fee assessed pursuant
to this article shall be retained in the fund for purposes specified
in subdivision (b).
(b) (1) Notwithstanding subdivision (c) of Section 14167.35,
subdivision (b) of Section 14168.33, and subdivision (b) of Section
14169.33, all funds from the proceeds of the fee assessed pursuant to
this article in the fund, together with any interest and dividends
earned on money in the fund, shall continue to be used exclusively to
enhance federal financial participation for hospital services under
the Medi-Cal program, to provide additional reimbursement to, and to
support quality improvement efforts of, hospitals, and to minimize
uncompensated care provided by hospitals to uninsured patients, as
well as to pay for the state's administrative costs and to provide
funding for children's health coverage, in the following order of
priority:
(A) To pay for the department's staffing and administrative costs
directly attributable to implementing this article, not to exceed two
hundred fifty thousand dollars ($250,000) for each subject fiscal
quarter, exclusive of any federal matching funds.
(B) To pay for the health care coverage, as described in
subdivision (g), except that for the two subject fiscal quarters in
the 2013-14 fiscal year, the amount for children's health care
coverage shall be one hundred fifty-five million dollars
($155,000,000) for each subject fiscal quarter, exclusive of any
federal matching funds.
(C) To make increased capitation payments to managed health care
plans pursuant to this article and Section 14169.82, including the
nonfederal share of capitation payments to managed health care plans
pursuant to this article and Section 14169.82 for services provided
to individuals who meet the eligibility requirements in Section 1902
(a)(10)(A)(i)(VIII) of Title XIX of the federal Social Security Act
(42 U.S.C. Sec. 1396a(a)(10)(A)(i)(VIII)), and who meet the
conditions described in Section 1905(y) of the federal Social
Security Act (42 U.S.C. Sec. 1396d(y)).
(D) To make increased payments and direct grants to hospitals
pursuant to this article and Section 14169.83, including the
nonfederal share of payments to hospitals under this article and
Section 14169.83 for services provided to individuals who meet the
eligibility requirements in Section 1902(a)(10)(A)(i)(VIII) of Title
XIX of the federal Social Security Act (42 U.S.C. Sec. 1396a(a)(10)
(A)(i)(VIII)), and who meet the conditions described in Section 1905
(y) of the federal Social Security Act (42 U.S.C. Sec. 1396d(y)).
(2) Notwithstanding subdivision (c) of Section 14167.35,
subdivision (b) of Section 14168.33, and subdivision (b) of Section
14169.33, and notwithstanding Section 13340 of the Government Code,
the moneys in the fund shall be continuously appropriated during the
first program period only, without regard to fiscal year, for the
purposes of this article, Article 5.229 (commencing with Section
14169.31), Article 5.228 (commencing with Section 14169.1), Article
5.227 (commencing with Section 14168.31), former Article 5.226
(commencing with Section 14168.1), former Article 5.22 (commencing
with Section 14167.31), and former Article 5.21 (commencing with
Section 14167.1).
(3) Notwithstanding any other law, for the second program period
and subsequent program periods, the moneys in the fund shall be
continuously appropriated, without regard to fiscal year, for the
purposes of this article and Sections 14169.82 and 14169.83.
(c) Any amounts of the quality assurance fee collected in excess
of the funds required to implement subdivision (b), including any
funds recovered under subdivision (d) of Section 14169.61, shall be
refunded to general acute care hospitals, pro rata with the amount of
quality assurance fee paid by the hospital, subject to the
limitations of federal law. If federal rules prohibit the refund
described in this subdivision, the excess funds shall be used as
quality assurance fees for the next program period for general acute
care hospitals, pro rata with the amount of quality assurance fees
paid by the hospital for the program period.
(d) Any methodology or other provision specified in this article
may be modified by the department, in consultation with the hospital
community, to the extent necessary to meet the requirements of
federal law or regulations to obtain federal approval or to enhance
the probability that federal approval can be obtained, provided the
modifications do not violate the spirit, purposes, and intent of this
article and are not inconsistent with the conditions of
implementation set forth in Section 14169.72. The department shall
notify the Joint Legislative Budget Committee and the fiscal and
appropriate policy committees of the Legislature 30 days prior to
implementation of a modification pursuant to this subdivision.
(e) The department, in consultation with the hospital community,
shall make adjustments, as necessary, to the amounts calculated
pursuant to Section 14169.52 in order to ensure compliance with the
federal requirements set forth in Section 433.68 of Title 42 of the
Code of Federal Regulations or elsewhere in federal law.
(f) The department shall request approval from the federal Centers
for Medicare and Medicaid Services for the implementation of this
article. In making this request, the department shall seek specific
approval from the federal Centers for Medicare and Medicaid Services
to exempt providers identified in this article as exempt from the
fees specified, including the submission, as may be necessary, of a
request for waiver of the broad-based requirement, waiver of the
uniform fee requirement, or both, pursuant to paragraphs (1) and (2)
of subdivision (e) of Section 433.68 of Title 42 of the Code of
Federal Regulations.
(g) (1) For purposes of this subdivision, the following
definitions shall apply:
(A) "Actual net benefit" means the net benefit determined by the
department for a net benefit period after the conclusion of the net
benefit period using payments and grants actually made, and fees
actually collected, for the net benefit period.
(B) "Aggregate fees" means the aggregate fees collected from
hospitals under this article.
(C) "Aggregate payments" means the aggregate payments and grants
made directly or indirectly to hospitals under this article,
including payments and grants described in Sections 14169.54,
14169.55, 14169.57, and 14169.58, and subdivision (b) of Section
14169.82.
(D) "Net benefit" means the aggregate payments for a net benefit
period minus the aggregate fees for the net benefit period.
(E) "Net benefit period" means a subject fiscal year or portion
thereof that is in a program period and begins on or after July 1,
2014.
(F) "Preliminary net benefit" means the net benefit determined by
the department for a net benefit period prior to the beginning of
that net benefit period using estimated or projected data.
(2) The amount of funding provided for children's health care
coverage under subdivision (b) for a net benefit period shall be
equal to 24 percent of the net benefit for that net benefit period.
(3) The department shall determine the preliminary net benefit for
all net benefit periods in the first program period before July 1,
2014. The department shall determine the preliminary net benefit for
all net benefit periods in a subsequent program period before the
beginning of the program period.
(4) The department shall determine the actual net benefit and make
the reconciliation described in paragraph (5) for each net benefit
period within six months after the date determined by the department
pursuant to subdivision (h).
(5) For each
net benefit period, the department shall reconcile the amount of
moneys in the fund used for children's health coverage based on the
preliminary net benefit with the amount of the fund that may be used
for children's health coverage under this subdivision based on the
actual net benefit. For each net benefit period, any amounts that
were in the fund and used for children's health coverage in excess of
the 24 percent of the actual net benefit shall be returned to the
fund, and the amount, if any, by which 24 percent of the actual net
benefit exceeds 24 percent of the preliminary net benefit shall be
available from the fund to the department for children's health
coverage. The department shall notify the Joint Legislative Budget
Committee and the fiscal and appropriate policy committees of the
Legislature of the results of the reconciliation for each net benefit
period pursuant to this paragraph within five working days of
performing the reconciliation.
(6) The department shall make all calculations and reconciliations
required by this subdivision in consultation with the hospital
community using data that the department determines is the best data
reasonably available.
(h) After consultation with the hospital community, the department
shall determine a date upon which substantially all fees have been
paid and substantially all supplemental payments, grants, and rate
range increases have been made for a program period, which date shall
be no later than two years after the end of a program period. After
the date determined by the department pursuant to this subdivision,
no further supplemental payments shall be made under the program
period, and any fees collected with respect to the program period
shall be used for a subsequent program period consistent with this
section. Nothing in this subdivision shall affect the department's
authority to collect quality assurance fees for a program period
after the end of the program period or after the date determined by
the department pursuant to this subdivision. The department shall
notify the Joint Legislative Budget Committee and fiscal and
appropriate policy committees of that date within five working days
of the determination.
(i) Use of the fee proceeds to enhance federal financial
participation pursuant to subdivision (b) shall include use of the
proceeds to supply the nonfederal share, if any, of payments to
hospitals under this article for services provided to individuals who
meet the eligibility requirements in Section 1902(a)(10)(A)(i)(VIII)
of Title XIX of the federal Social Security Act (42 U.S.C. Sec.
1396a(a)(10)(A)(i)(VIII)), and who meet the conditions described in
Section 1905(y) of the federal Social Security Act (42 U.S.C. Sec.
1396d(y)) such that expenditures for services provided to the
individual are eligible for the enhanced federal medical assistance
percentage described in that section.
SEC. 2. Section 14169.75 of the Welfare and
Institutions Code is amended to read:
14169.75. Notwithstanding Section 14169.72, this article shall
become inoperative on January 1, 2018. A hospital shall not be
required to pay the fee after that date unless the fee was owed
during the period in which the article was operative, and payments
authorized under Section 14169.53 shall not be made unless the
payments were owed during the period in which the article was
operative.
SEC. 3. This act is a bill providing for
appropriations related to the Budget Bill within the meaning of
subdivision (e) of Section 12 of Article IV of the California
Constitution, has been identified as related to the budget in the
Budget Bill, and shall take effect immediately.
SEC. 4. This act is an urgency statute
necessary for the immediate preservation of the public peace, health,
or safety within the meaning of Article IV of the Constitution and
shall go into immediate effect. The facts constituting the necessity
are:
In order to provide continued health care coverage for
Californians at the earliest possible time, it is necessary that this
bill take effect immediately.