BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



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                                 THIRD READING


          Bill No:  AB 1540
          Author:   Assembly Health Committee 
          Amended:  9/3/09 in Senate
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  10-0, 7/8/09
          AYES:  Alquist, Strickland, Aanestad, Cedillo, DeSaulnier,  
            Leno, Maldonado, Negrete McLeod, Pavley, Wolk
          NO VOTE RECORDED:  Cox

           SENATE ENV. QUALITY COMMITTEE  :  6-0, 7/13/09
          AYES:  Simitian, Ashburn, Corbett, Hancock, Lowenthal,  
            Pavley
          NO VOTE RECORDED:  Runner

           SENATE APPROPRIATIONS COMMITTEE :  13-0, 8/24/09
          AYES:  Kehoe, Cox, Corbett, Denham, Hancock, Leno, Oropeza,  
            Price, Runner, Walters, Wolk, Wyland, Yee
           
          ASSEMBLY FLOOR  :  78-0, 6/1/09 - See last page for vote


           SUBJECT  :    Health omnibus bill

           SOURCE  :     Author


           DIGEST  :    This bill makes various changes related to  
          health care service plans, public health, and Medi-Cal.   
          This is the annual Assembly Health Committee omnibus bill  
          containing numerous technical or non-controversial changes  
          to the laws affecting various health and human services  
                                                           CONTINUED





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          agencies including the Office of Statewide Health Planning  
          and Development, Department of Mental Health Care,  
          Department of Health Care Services, and Department of  
          Public Health.  Many of the provisions make minor,  
          technical, and conforming changes, while other provisions  
          are substantive changes that extend sunset dates, or are  
          intended to improve the ability of the various agencies to  
          efficiently and effectively administer their respective  
          programs.

           Senate Floor Amendments  of 9/3/09 correct grammatical  
          mistakes, remove double-jointing language and move one  
          provision from one code section to the following code  
          section to resolve a code conflict with AB 737 (Assembly  
          Environmental Safety and Toxic Materials Committee).

           ANALYSIS  :    Existing law, the California Public Records  
          Act, requires certain public records to be made available  
          for public inspection.

          Existing law, the Health Data and Advisory Council  
          Consolidation Act, requires every organization that  
          operates, conducts, or maintains a health facility to make  
          and file with the Office of Statewide Health Planning and  
          Development (OSHPD), specified reports containing various  
          financial and patient data.  Existing law requires OSHPD to  
          publish risk-adjusted outcome reports for coronary artery  
          bypass graft surgeries, as specified.

          This bill provides, with respect to the above provisions,  
          that patient medical record numbers and any other data  
          elements that the office believes could be used to  
          determine the identity of an individual patient shall be  
          exempt from the disclosure requirements of the California  
          Public Records Act.

          Existing law, the Knox-Keene Health Care Service Plan Act  
          of 1975, provides for the licensure and regulation of  
          health care service plans by the Department of Managed  
          Health Care.  Existing law provides for the regulation of  
          health insurers by the Department of Insurance.  The  
          Knox-Keene Health Care Service Plan Act of 1975 authorizes  
          the director of the department to adopt, amend, and rescind  
          any rules necessary to carry out the act and requires  







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          health care service plans to provide certain notices.

          This bill authorizes the Director to, by regulation, modify  
          the wording of any notice required by the act for purposes  
          of clarity, readability, and accuracy.

          This bill makes other technical, nonsubstantive changes to  
          related provisions governing health care service plans.

          Existing law, known as the California Safe Drinking Water  
          Act, requires the Department of Public Health (DPH) to  
          administer provisions relating to the regulation of  
          drinking water to protect public health.

          Existing law requires DPH to adopt regulations it  
          determines to be necessary to carry out the purposes of the  
          California Safe Drinking Water Act.  Existing law requires  
          regulations adopted by DPH to include requirements  
          governing the use of point-of-entry treatment by public  
          water systems in lieu of centralized treatment, as  
          specified.

          This bill requires regulations adopted by the department to  
          include requirements governing the use of point-of-entry  
          and point-of-use treatment by public water systems in lieu  
          of centralized treatment, as specified.  This bill also  
          prohibits DPH from issuing or amending a permit to allow  
          the use of point-of-use treatment unless the department  
          determines, after a public hearing, that there is no  
          substantial community opposition.  It also limits the  
          issuance of that permit to the lesser of three years or  
          until funding for centralized treatment is available.

          Under existing law, when a primary drinking water standard  
          is not complied with, when a monitoring requirement is not  
          performed, or when a water purveyor fails to comply with  
          the conditions of a variance or exception, a public water  
          system is required to notify the department and users, as  
          specified.

          This bill, if user notification is required pursuant to  
          this provision, requires DPH to make a reasonable effort to  
          ensure that notification is given.








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          Existing law provides that DPH may issue a citation to a  
          public water system that violates the California Safe  
          Drinking Water Act.  Existing law provides that for  
          noncontinuing violations of primary drinking standards,  
          other than turbidity, DPH may assess a civil penalty in the  
          citation, as specified.

          This bill deletes the exemption for turbidity.

          This bill makes other technical, nonsubstantive changes to  
          related provisions governing the issuance of citations for  
          violations of the California Safe Drinking Water Act.

          Existing law provides for the Medi-Cal program, which is  
          administered by the Department of Health Care Services and  
          under which qualified low-income persons receive health  
          care benefits.  Existing law requires that health care  
          providers apply to, and be certified by, the department  
          prior to their participation in the Medi-Cal program.

          Existing law allows the department to grant provisional  
          provider status or preferred provisional provider status to  
          an applicant or provider, and requires the department to  
          terminate that status if any specified grounds exist.

          This bill corrects obsolete references in the above  
          provisions.

          Under existing law, the Medi-Cal program is partially  
          governed and funded as part of the federal Medicaid  
          Program.  Existing law requires the department to amend the  
          Medicaid state plan with respect to the billing option for  
          services by local education agencies to ensure that schools  
          are reimbursed for all eligible services that they provide  
          that are not precluded by federal requirements.  Existing  
          law would repeal these provisions on January 1, 2010.

          This bill changes the repeal date to January 1, 2013.

          Existing law establishes the Local Education Agency  
          Medi-Cal Recovery Account in the Special Deposit Fund, to  
          be used only to support the department in meeting the  
          requirements of the above provisions, and specifies a  
          formula for funding and staffing activities provided for  







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          under these provisions.

          Existing law provides that as of January 1, 2010, unless  
          the Legislature enacts a new statute or extends the date  
          beyond January 1, 2010, all funds in the Local Education  
          Agency Medi-Cal Recovery Account shall be returned  
          proportionately to all local education agencies whose  
          federal Medicaid funds were used to create the account.

          This bill renames the account the Local Educational Agency  
          Medi-Cal Recovery Fund.

          This bill also provides that, as of January 1, 2013, unless  
          the Legislature enacts a new statute or extends the repeal  
          date, all funds in the Local Educational Agency Medi-Cal  
          Recovery Fund shall be returned proportionally to all local  
          educational agencies whose federal Medicaid funds were used  
          to create the Fund.

          Existing law, until January 1, 2011, requests the  
          University of California to establish the California Health  
          Benefit Review Program (CHBRP) to assess legislation  
          proposing a mandated health benefit or service, as defined,  
          to be provided by health care service plans and health  
          insurers, and to prepare a written analysis in accordance  
          with specified criteria.

          This bill extends the repeal date of the above provisions  
          to June 30, 2015.

          Existing law requests the University of California (UC) to  
          submit a report to the Governor and the Legislature no  
          later than January 1, 2010, regarding the implementation of  
          the above provisions.

          This bill, instead, requests the UC to submit a report no  
          later than January 1, 2014.

          Existing law, for fiscal years 2006-07 to 2009-10,  
          inclusive, provides funding for the UC's implementation of  
          the above provisions from a fee imposed upon health care  
          service plans and health insurers, which would not exceed a  
          total of $2,000,000, and is to be deposited in the Health  
          Care Benefits Fund.







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          This bill, instead, provides for the imposition of that fee  
          for fiscal years 2010-11 to 2014-15, inclusive.

          Existing law requires DPH to maintain a program for the  
          control of tuberculosis.  Existing law, until January 1,  
          2011, requires a local health department that elects to  
          participate in the program to provide for certification for  
          one year, by the local health officer, of tuberculin skin  
          test technicians.

          This bill deletes the repeal date of these provisions,  
          thereby extending the operation of these provisions  
          indefinitely.

          This bill incorporates additional changes to Section  
          6276.24 of the Government Code proposed by SB 359 (Romero)  
          that would become operative only if SB 359 and this bill  
          are both chaptered and become effective on or before  
          January 1, 2010, and this bill is chaptered last.  The bill  
          incorporates additional changes to Section 14043.28 of the  
          Welfare and Institutions Code proposed by AB 839 (Emmerson)  
          that become operative only if AB 839 and this bill are both  
          chaptered and become effective on or before January 1,  
          2010, and this bill is chaptered last.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

           Major Provisions     2009-10      2010-11      2011-12      Fund  

          DMHC regulations   $85        $85        $0          
          Special*

          CHBRP sunset       up to $2,000          up to $2,000up to  
          $2,000             Special
          Extension          fully offset by specified health care  
          service
                             plan and health insurer assessments)








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          LEA Medi-Cal       up to $1,500          up to $1,500up to  
          $1,500             Federal
          Recovery Fund                   (fully offset by LEA  
          federal Medicaid funds)
          sunset extension

          * Managed Care Fund

           SUPPORT  :   (Verified  9/4/09)

          California Hospital Association
          California Medical Association
          California Society for Clinical Social Work
          Department of Health Care Services 
          Department of Managed Health Care
          Department of Public Health
          Health and Human Services Agency
          Health Officers Association of California


           ASSEMBLY FLOOR  : 
          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Bill  
            Berryhill, Tom Berryhill, Blakeslee, Blumenfield,  
            Brownley, Buchanan, Caballero, Charles Calderon, Carter,  
            Chesbro, Conway, Cook, Coto, Davis, De La Torre, De Leon,  
            DeVore, Duvall, Emmerson, Eng, Evans, Feuer, Fletcher,  
            Fong, Fuentes, Fuller, Furutani, Gaines, Galgiani,  
            Garrick, Gilmore, Hagman, Hall, Harkey, Hayashi,  
            Hernandez, Hill, Huber, Huffman, Jeffries, Jones, Knight,  
            Krekorian, Lieu, Logue, Bonnie Lowenthal, Ma, Mendoza,  
            Miller, Monning, Nava, Nestande, Niello, Nielsen, John A.  
            Perez, V. Manuel Perez, Portantino, Price, Ruskin, Salas,  
            Saldana, Silva, Skinner, Smyth, Solorio, Audra  
            Strickland, Swanson, Torlakson, Torres, Torrico, Tran,  
            Villines, Yamada
          NO VOTE RECORDED:  Block, Bass


          RJG:mw  9/4/09   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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