BILL NUMBER: SB 2194	CHAPTERED  09/14/00

	CHAPTER   435
	FILED WITH SECRETARY OF STATE   SEPTEMBER 14, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 12, 2000
	PASSED THE SENATE   AUGUST 18, 2000
	PASSED THE ASSEMBLY   AUGUST 10, 2000
	AMENDED IN ASSEMBLY   JUNE 21, 2000

INTRODUCED BY   Senator Soto

                        MARCH 16, 2000

   An act to amend Section 14015 of the Welfare and Institutions
Code, relating to health.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 2194, Soto.  Medi-Cal:  eligibility.
   Existing law provides for the Medi-Cal program, administered by
the State Department of Health Services, under which qualified
low-income persons are provided with health care services.
   Under existing law the providing of Medi-Cal benefits does not
impose any limitation or restriction upon a person's right to sell,
exchange, or change the form of property holdings, nor do these
benefits constitute any encumbrance upon these holdings.
   Existing law further provides, however, that the transfer or gift
of assets, including income and resources, for less than fair market
value shall, to the extent and under the circumstances provided for
under federal medicaid provisions, result in a period of
ineligibility for Medi-Cal benefits.
   This bill would provide that assets transferred exclusively for a
purpose other than to qualify for medical assistance shall not result
in ineligibility for Medi-Cal benefits.
   Because each county is required to make eligibility determinations
under the Medi-Cal program, and because this bill would affect
eligibility determinations under that program, the bill would create
a state-mandated local program.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 14015 of the Welfare and Institutions Code is
amended to read:
   14015.  (a) The providing of health care under this chapter shall
not impose any limitation or restriction upon the person's right to
sell, exchange or change the form of property holdings nor shall the
care provided constitute any encumbrance on the holdings.  However,
the transfer or gift of assets, including income and resources, for
less than fair market value shall, to the extent and under the
circumstances set forth in Title XIX of the federal Social Security
Act (42 U.S.C. Sec. 1396 et seq.) result in a period of ineligibility
for aid.
   (b) Pursuant to Section 1917 (c)(2)(C)(ii) of the federal Social
Security Act (42 U.S.C. Sec. 1396p(c)(2)(C)(ii)), a satisfactory
showing that assets transferred exclusively for a purpose other than
to qualify for medical assistance shall not result in ineligibility
for Medi-Cal and shall include, but not be limited to, the following:

   (1) The property that would have been considered exempt for
purposes of establishing eligibility pursuant to federal or state
laws at the time of transfer.
   (2) Property with a net market value that, when the property is
transferred, if included in the property reserve, would not result in
ineligibility.
   (3) Property for which adequate consideration is received.
   (4) Property upon which foreclosure or repossession was imminent
at the time of transfer, provided there is no evidence of collusion.

   (5) Assets transferred in return for an enforceable contract for
life care that does not include complete medical care.
   (6) Assets transferred without adequate consideration, provided
that the applicant or beneficiary provides convincing evidence to
overcome the presumption that the transfer was for the purpose of
establishing eligibility or reducing the share of cost.
   (c) In administering this section, it shall be presumed that
property transferred by the applicant or beneficiary prior to the
look back period established by the department preceding the date of
initial application was not transferred to establish eligibility or
reduce the share of cost.  This property shall not be considered in
determining eligibility.
   (d) Any item of durable medical equipment which is purchased for a
recipient pursuant to this chapter exclusively with Medi-Cal program
funds shall be returned to the department when the department
determines that the item is no longer medically necessary for the
recipient.  Items of durable medical equipment shall include, but are
not limited to, wheelchairs and special hospital beds.
  SEC. 2.  Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code.  If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.