BILL ANALYSIS �
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|SENATE RULES COMMITTEE | AB 1309|
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THIRD READING
Bill No: AB 1309
Author: Miller (R), et al.
Amended: 7/2/12 in Senate
Vote: 27 - Urgency
PRIOR VOTES NOT RELEVANT
SUBJECT : University of California: UC Riverside Medical
School
SOURCE : Author
DIGEST : This bill appropriates $15 million to the
University of California (UC) for the support of the
medical school at the UC. The source of the $15 million
would be settlement monies from an ongoing investigation
into fraud in the state's Medi-Cal program (General Fund
revenues).
Senate Floor Amendments of 7/2/12 delete the prior version
of the bill and insert language to appropriate $15 million
of an expected settlement to the UC for the University of
Riverside for a medical school.
ANALYSIS : Existing provisions of the California
Constitution establish the UC as a public trust under the
administration of the Regents of the UC. The UC system
includes 10 campuses, which are respectively located in
Berkeley, Davis, Irvine, Los Angeles, Merced, Riverside,
San Diego, San Francisco, Santa Barbara, and Santa Cruz.
CONTINUED
AB 1309
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This bill appropriates $15 million to the UC for the
support of the medical school at the UC. The source of the
$15 million would be settlement monies from an ongoing
investigation into fraud in the state's Medi-Cal program
(General Fund revenues).
Comments
According to the author:
In 2008, a former SCAN �Senior Care Action Network]
employee contacted Senator Lowenthal alleging that SCAN
excessively profited "approximately $200 to $300
million". In May of 2008, the State Controller's office
notified the Department of Health Care Services (DHCS)
of the allegation and requested the DHCS to evaluate the
reasonableness of SCAN's contracted rates. An
investigation was launched and it has been discovered
that there were overpayments which the state is now in
the process of collecting through a settlement process.
In June of 2011, the UC Riverside was notified the
national medical school accreditors would withhold
preliminary accreditation until concerns over the lack
of recurring funds from the State of California are
addressed.
The state anticipates the settlement to amount to about
$340 million.
Prior legislation . SB 870 (Ducheny, 2010) would have
included $10 million from within the UC budget to provide
start-up costs for the UC Riverside medical school.
FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
This bill appropriates $15 million of an expected
settlement to the UC for the University of Riverside for a
Medical School.
AB 1309
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PQ:k 7/3/12 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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