BILL ANALYSIS                                                                                                                                                                                                    �




                     SENATE GOVERNANCE & FINANCE COMMITTEE
                            Senator Lois Wolk, Chair
          

          BILL NO:  SB 475                      HEARING:  8/8/12
          AUTHOR:  Wright                       FISCAL:  No
          VERSION:  6/7/12                      TAX LEVY:  No
          CONSULTANT:  Weinberger               

                         BROWN ACT AND TELECONFERENCES
          

          Allows a local health authority to fulfill the Brown Act's 
          teleconference meeting quorum requirement by counting board 
          members located outside of its jurisdiction. 


                           Background and Existing Law  

          The Ralph M. Brown Act requires the meetings of local 
          governments' legislative bodies to be "open and public," 
          thereby ensuring people's access to information so that 
          they may retain control over the public agencies that serve 
          them.   Local officials must post agendas 72 hours before 
          their regular meetings and cannot discuss or make decisions 
          about topics that are not on the agenda.

          The Brown Act allows local governments' governing bodies to 
          use teleconferencing for their meetings as long as they 
          post agendas at all teleconference locations, take all 
          votes by rollcall, and accommodate persons wishing to 
          address the governing body.  Each teleconference location 
          must be identified in the notice and agenda of the meeting 
          and must be accessible to the public.  During a 
          teleconference, at least a quorum of the members of the 
          governing body must participate from locations within the 
          boundaries of the local government's jurisdiction (SB 139, 
          Kopp, 1998).  Before 2009, a different quorum requirement 
          applied to specified local health authorities.

          In the early 1990s, the Wilson Administration sought to 
          control the costs of Medi-Cal through a more comprehensive 
          program of managed care.  As part of that effort, the 
          Legislature established the "Two-Plan Model" in nine 
          counties.  Those counties must enroll Medi-Cal 
          beneficiaries in one of two managed care plans.  One plan 
          is a commercial plan selected by the State Department of 
          Health Services, the other a locally sponsored public plan, 




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          called a Local Initiative health plan, with greater 
          obligations to contract with safety net providers.  The 
          plans compete to foster more efficient services for the 
          recipients.

          The Local Initiative health plans serve more than 1.7 
          million Medi-Cal, Healthy Families, and Healthy Kids 
          beneficiaries throughout California.   The plans in eight 
          counties, Alameda, Kern, Los Angeles, Riverside, San 
          Bernardino, Santa Clara, San Francisco, and San Joaquin, 
          are public, not-for-profit organizations with governing 
          boards that include doctors, hospitals, labor unions 
          Medi-Cal beneficiaries, consumer advocates, county 
          supervisors, community clinics and county health 
          departments.   In Contra Costa County, the Contra Costa 
          County Board of Supervisors governs the Local Initiative 
          health plan but has an advisory committee offering input 
          and advice on policy matters.  The Local Initiative health 
          plans' governing boards are subject to the Brown Act.

          These governing boards range in size from nine to nineteen 
          members and sometimes include persons living or working 
          outside of the board's jurisdiction.  Because some of these 
          boards found it difficult to meet quorum requirements 
          either in person or through teleconferencing, the 
          Legislature provided an exception to the Brown Act's quorum 
          requirement for health authorities conducting 
          teleconference meetings (AB 1438, Salinas, 2005).  

          Specifically, the Salinas bill allowed health authority 
          board members who are participating in a teleconference 
          meeting from outside the jurisdiction of the authority to 
          be counted to establish a quorum if:
                 At least 50 percent of the number of members needed 
               for a quorum are present within the boundaries of the 
               authority's jurisdiction, and
                 The health authority provides a teleconference 
               number to the public that allows any person to call in 
               to participate in the meeting, and
                 The health authority identifies the teleconference 
               number in the notice and agenda of the meeting.

          While the exception enacted by the Salinas bill remains in 
          statute, a sunset date made its provisions ineffective in 
          2009.  Local health authority officials want the 
          Legislature to restore the exemption to the Brown Act's 





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          quorum requirement for health authorities conducting 
          teleconference meetings.


                                   Proposed Law  

          Senate Bill 475 deletes the 2009 sunset date enacted by the 
          2005 Salinas bill.  By deleting that date, SB 475 
          reestablishes the statute that allows health authority 
          board members who are participating in a teleconference 
          meeting from outside the authority's jurisdiction to be 
          counted towards a quorum under specified conditions.  SB 
          475 enacts a new sunset date, specifying that the statute 
          will become ineffective on January 1, 2018.


                               State Revenue Impact
           
          No estimate.



                                     Comments  

          1.   Purpose of the bill  .  Local Initiative health plans' 
          governing boards consist of doctors, hospitals, Medi-Cal 
          beneficiaries, consumer advocates, county supervisors, 
          community clinics, and county health departments.  Most of 
          these representatives have fulltime jobs outside of their 
          board duties and very demanding schedules.  Even with 
          regularly scheduled monthly or bi-monthly meetings some 
          boards find it hard to meet quorum requirements.  SB 475 
          simply restores an exception that was in effect from 2006 
          to 2009 which gave local health authorities' governing 
          boards more flexibility in fulfilling the quorum 
          requirement for teleconference meetings.  By allowing half 
          of the members necessary to establish a quorum to call in 
          from outside the board's jurisdiction during teleconference 
          meetings, SB 475 makes it easier for health plan boards to 
          meet and conduct business on a regular basis.  

          2.   Appoint someone else  .  The criteria for appointing 
          members to a Local Initiative health plan's governing board 
          aren't all that strict.  The members who aren't county 
          managers or county supervisors can come from a wide variety 
          of education, health, and social services groups.  





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          Sometimes the most qualified individuals are also the least 
          available.  However, there are many qualified people who 
          can serve on these boards if only the county supervisors 
          would look beyond the most obvious choices.  Instead of 
          asking legislators to amend the Brown Act to accommodate 
          well-intentioned, but very busy people, maybe county 
          supervisors should recruit appointees who are better able 
          to serve.

          3.   Findings and declarations  .  The California Constitution 
          requires that new statutes which limit public access to 
          meetings of public bodies be adopted with findings 
          demonstrating the interest protected by the limitation and 
          the need for protecting that interest (Proposition 59, 
          2004).  SB 475 contains legislative findings and 
          declarations regarding the necessity of limiting the 
          public's right of access to local health authorities' 
          meetings.

          4.   Gut-and amend  .  When the Senate passed SB 475 on May 9, 
          2011, the bill revised statutes governing local 
          governments' public-private infrastructure agreements.  The 
          May 22, 2012 Assembly amendments deleted that language and 
          converted the bill into a measure allowing a health 
          authority to count board members located outside of its 
          jurisdiction towards the Brown Act's quorum requirement.  
          Because this topic was never heard in the Senate, the 
          Senate Rules Committee has referred the amended bill under 
          Senate Rule 29.10 to the Senate Governance and Finance 
          Committee for a hearing on the Assembly's amendments.  At 
          its August 8 hearing, the Committee has four choices:
                 Send the bill back to the Senate Floor, 
               recommending concurrence.
                 Send the bill back to the Senate Floor, 
               recommending nonconcurrence.
                 Send the bill back to the Senate Floor, without 
               recommendation.
                 Hold the bill.


                                 Assembly Actions  

          Assembly Local Government Committee:  9-0
          Assembly Floor:                    76-0







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                         Support and Opposition  (8/2/12)

           Support  :  L.A. Care Health Plan; Local Health Plans of 
          California.

           Opposition  :  Unknown.