BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1540 
                                                                  Page  1

          Date of Hearing:   May 20, 2009 

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

              AB 1540 (Committee on Health) - As Amended:  May 5, 2009  

          Policy Committee:                              Health Vote:17-0
                       ES &TM                                 7-0 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill is the omnibus bill of the Assembly Health Committee.  
          The bill addresses several technical issues and clarifications  
          related to the California Department of Managed Health Care  
          (DMHC), the Office of Statewide Health Planning and Development  
          (OSHPD), and the California Department of Public Health (DPH).  
          In addition, this bill conforms California law to federal Safe  
          Drinking Water Act (SDWA) requirements and extends the sunset of  
          the California Health Benefits Review Program (CHBRP) until  
          2015. 

           FISCAL EFFECT  

          1)By ensuring continued compliance with federal SDWA  
            requirements, California will continue receiving the state's  
            share of two federal grants, $74 million (100% federal),  
            combined, in the current year. 

          2)Annual fee-supported special fund costs of $2 million to  
            extend CHBRP until 2015. CHBRP is financed by annual  
            assessments on health plans and insurers. 

           COMMENTS  
           
          1)Rationale  . This omnibus bill addresses several technical  
            changes in health programs. The DPH is a specific supporter of  
            the SDWA provisions to ensure compliance with federal law and  
            prevent the loss of federal funding and grants. In addition,  
            this bill extends the sunset of CHBRP, established by AB 1996  
            (Thomson), Chapter 795, Statutes of 2002. CHBRP is required to  
            publish analysis with relevant data on the public health,  








                                                                  AB 1540 
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            medical, and economic impact of proposed health plan and  
            health insurance benefit mandate legislation. 

           2)Background . The Safe Drinking Water Act (SDWA) is a federal  
            law that ensures the quality of drinking water.  Under SDWA,  
            the federal Environmental Protection Agency sets standards for  
            drinking water quality and oversees the states, localities,  
            and water suppliers who implement those standards. California  
            has authority over drinking water, delegated from the federal  
            government. This bill ensures continued compliance with  
            federal law by (a) limiting the types of water suppliers who  
            may certify alternative water sources (b) modifying penalties  
            for violations of turbidity standards for drinking water, and  
            (c) authorizing point-of-use devices for water treatment to  
            meet drinking water standards.

           Analysis Prepared by  :    Mary Ader / APPR. / (916) 319-2081