BILL NUMBER: SB 2083 CHAPTERED 09/27/00 CHAPTER 696 FILED WITH SECRETARY OF STATE SEPTEMBER 27, 2000 APPROVED BY GOVERNOR SEPTEMBER 25, 2000 PASSED THE SENATE AUGUST 31, 2000 PASSED THE ASSEMBLY AUGUST 31, 2000 AMENDED IN ASSEMBLY AUGUST 24, 2000 INTRODUCED BY Senator Speier FEBRUARY 25, 2000 An act to amend Sections 14087.51 and 14087.57 of the Welfare and Institutions Code, relating to Medi-Cal. LEGISLATIVE COUNSEL'S DIGEST SB 2083, Speier. Medi-Cal. Existing law permits a special commission to be created in San Mateo County and any other county designated by the California Medical Assistance Commission, in order to, among other things, enter into contracts for the provision of health care services to the county's Medi-Cal recipients and to subscribers in the Healthy Families Program. This bill would also authorize the Board of Supervisors of San Mateo County to authorize the commission to provide health care delivery systems for other eligible persons. Existing law specifies that a member of a commission or advisory to the commission established pursuant to the authority described above shall not be deemed to be interested in a contract entered into by the commission for purposes of certain prohibitions applicable to specified public officers and employees in certain circumstances, including the situation in which a commission contract authorizes the member or the organization the member represents to provide services to Medi-Cal beneficiaries under the commission's programs. This bill would expand that provision to apply to any contract that authorizes the member of the commission or advisory committee or an organization the member represents to provide services under the commission's programs. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 14087.51 of the Welfare and Institutions Code is amended to read: 14087.51. (a) It is necessary that a special commission be established in San Mateo County and in any other county designated by the California Medical Assistance Commission in order to meet the problems of the delivery of publicly assisted medical care in the counties and to demonstrate ways of promoting quality care and cost efficiency. (b) The Board of Supervisors of San Mateo County and of the designated counties may, by ordinance, establish commissions to do any or all of the following: (1) Negotiate the exclusive contracts specified in Section 14087.5 and to arrange for the provision of health care services provided pursuant to this chapter. (2) Enter into contracts for the provision of health care services to subscribers in the Healthy Families Program. (c) In addition to the authority specified in subdivision (b), the Board of Supervisors of San Mateo County may, by ordinance, authorize the commission established pursuant to this section to provide health care delivery systems for any or all of the following persons: (1) Persons who are eligible to receive medical benefits under this chapter in the county, including, but not limited to, persons who are eligible through federal waiver or a pilot project. (2) Persons who are eligible to receive medical benefits under both Title 18 and Title 19 of the federal Social Security Act. (3) Persons who are eligible to receive medical benefits under Title 18 of the federal Social Security Act. (4) Persons who are eligible to receive medical benefits under publicly supported programs if the commission and participating providers acting pursuant to subcontracts with the commission agree to hold harmless the beneficiaries of the publicly supported programs if the contract between the sponsoring government agency and the commission does not ensure sufficient funding to cover program costs. (d) If the board of supervisors elects to enact an ordinance pursuant to this section, all rights, powers, duties, privileges, and immunities vested in a county by an article shall be vested in the county commission. Any reference in this article to "county" shall mean a commission established pursuant to this section. (e) The enabling ordinance shall specify the membership of the county commission, the qualifications for individual members, and such other matters as the board of supervisors deems necessary or convenient for the conduct of the county commission's activities. All commissioners shall be appointed by majority vote of the board of supervisors and shall serve at the pleasure thereof. The board of supervisors may appoint no more than two of its own members to serve on the commission. (f) As an alternative to establishing a separate commission, the enabling ordinance may designate the board of supervisors itself as the commission authorized by this article. SEC. 2. Section 14087.57 of the Welfare and Institutions Code is amended to read: 14087.57. Notwithstanding any provision of law, a member of a commission authorized by Section 14087.51 or 14087.54, or a member of any advisory committee to the commission, shall not be deemed to be interested in a contract entered into by the commission within the meaning of Article 4 (commencing with Section 1090) of Chapter 1 of Division 4 of Title 1 of the Government Code if all of the following apply: (a) The member was appointed to represent the interests of physicians, health care practitioners, hospitals, pharmacies, or other health care organizations. (b) The contract authorizes the member or the organization the member represents to provide services under the commission's program. (c) The contract contains substantially the same terms and conditions as contracts entered into with other individuals or organizations that the member was appointed to represent. (d) The member does not influence or attempt to influence the commission or another member of the commission to enter into the contract in which the member is interested. (e) The member discloses the interest to the commission and abstains from voting on the contract. (f) The commission notes the member's disclosure and abstention in its official records and authorizes the contract in good faith by a vote of its membership sufficient for the purpose without counting the vote of the interested member.