BILL ANALYSIS                                                                                                                                                                                                    Ó




                                                                  AB 2706
                                                                  Page A

          ASSEMBLY THIRD READING
          AB 2706 (Roger Hernández)
          As Amended  May 27, 2014
          Majority vote 

           EDUCATION           5-1         HEALTH              13-6        
           
           ----------------------------------------------------------------- 
          |Ayes:|Olsen, Gonzalez,          |Ayes:|Pan, Ammiano, Chau,       |
          |     |Nazarian, Weber, Williams |     |Bonilla, Bonta, Chesbro,  |
          |     |                          |     |Gomez, Gonzalez,          |
          |     |                          |     |Roger Hernández,          |
          |     |                          |     |Lowenthal, Nazarian,      |
          |     |                          |     |Ridley-Thomas, Wieckowski |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Chávez                    |Nays:|Maienschein, Chávez,      |
          |     |                          |     |Waldron, Nestande,        |
          |     |                          |     |Patterson, Wagner         |
           ----------------------------------------------------------------- 

           APPROPRIATIONS      12-5                                        
           
           ----------------------------------------------------------------- 
          |Ayes:|Gatto, Bocanegra,         |     |                          |
          |     |Bradford,                 |     |                          |
          |     |Ian Calderon, Campos,     |     |                          |
          |     |Eggman, Gomez, Holden,    |     |                          |
          |     |Pan, Quirk,               |     |                          |
          |     |Ridley-Thomas, Weber      |     |                          |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Bigelow, Donnelly, Jones, |     |                          |
          |     |Linder, Wagner            |     |                          |
           ----------------------------------------------------------------- 

           SUMMARY  :  Requires, for purposes of the 2015-16, 2016-17, and  
          2017-18 school years, a public school, including a charter  
          school, to add an informational item to its enrollment forms, or  
          amend an existing enrollment form in order to provide the parent  
          or legal guardian information about health care coverage options  
          and enrollment assistance; and repeals this requirement on  
          January 1, 2019.  Specifically,  this bill  :  










                                                                  AB 2706
                                                                  Page B

          1)Requires, for purposes of the 2015-16, 2016-17, and 2017-18  
            school years, a public school, including a charter school, to  
            add an informational item to its enrollment forms, or amend an  
            existing enrollment form in order to provide the parent or  
            legal guardian information about health care coverage options  
            and enrollment assistance.

          2)Specifies that a school may do either of the following: 

             a)   Use a template developed by the State Superintendent of  
               Public Instruction.

             b)   Develop an information item or amend an existing  
               enrollment form to provide information about health care  
               coverage options and enrollment assistance. 

          3)Authorizes a school to include a factsheet with the enrollment  
            forms explaining basic information about affordable health  
            care coverage options for children and families; and, requires  
            the California Department of Education (CDE) to develop a  
            standardized template for both of the following:

             a)   The informational item or amendment required.  This  
               template shall include a statement indicating that the  
               information disclosed shall only be shared with specified  
               entities or individuals who assist with health care  
               coverage enrollment and shall not be shared with any other  
               entities or individuals.

             b)   The factsheet described.

          4)Requires the CDE to make any templates available on its  
            Internet Web site and shall, upon request, provide written  
            copies of the template to a school district.

          5)Specifies that a school district shall not discriminate  
            against a pupil who does not have health care coverage or use  
            any information relating to a pupil's health care coverage or  
            interest in learning about health care coverage in any manner  
            that would bring harm to the pupil or the pupil's family.

          6)Specifies that a school district is not liable for any civil  
            damages resulting from any act or omission that may arise from  
            the health care coverage secured by a parent or legal  









                                                                  AB 2706
                                                                  Page C

            guardian, or the lack thereof, as a result of the connection  
            to assistance provided by a school within the district.

           EXISTING LAW  :  
           
          1)Requires, effective January 1, 2014, under the federal Patient  
            Protection and Affordable Care Act (ACA), an individual to  
            have the option to apply for state subsidy programs, which  
            include the state Medicaid program, the state's Children's  
            Health Insurance Program, enrollment in a qualified health  
            plan through a state exchange, and a Basic Health Plan, if  
            there is one, either in person, mail, online, telephone, or  
            other commonly available electronic means. 


          2)Requires, under the ACA, individuals to maintain health  
            insurance or pay a penalty, with exceptions for financial  
            hardship, religion, incarceration, and immigration status.


          3)Creates the California Health Benefit Exchange, known as  
            Covered California, as an independent state entity governed by  
            a five-member board, to be a marketplace for Californians to  
            purchase health care coverage and as a way to meet the  
            personal responsibility requirements of the ACA.  


          4)Permits school districts or county superintendents of schools  
            to incorporate into the School Lunch Program application  
            packet or notification of eligibility for the School Lunch  
            Program notification that the child may qualify for free or  
            reduced-cost health coverage under the California Health  
            Benefit Exchange.


           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, General Fund and Proposition 98 (1988) state-mandated  
          costs to school districts and charter schools, potentially in  
          the thousands.  Local costs likely minimized to the extent local  
          education agencies utilize the standardized form developed by  
          the CDE.  Minor costs to CDE to create a standardized template  
          and post on the department's Web site. 

           COMMENTS  :  According to the author, due to the expansion of  









                                                                  AB 2706
                                                                  Page D

          health care coverage options under the ACA, millions of  
          Californians are newly eligible for health care coverage, with  
          many being children under the age 18.<1> There is great  
          opportunity in 2014 to enroll these eligible children; however  
          notable barriers exist for eligible populations to enroll in  
          Medi-Cal including lack of awareness about the programs,  
          difficult application or re-enrollment processes, and stigmas  
          associated with enrolling in low-income health insurance and  
          other public programs.<2> While the ACA will dramatically reduce  
          the number of uninsured Californians, a significant number of  
          eligible children will be left behind in the absence of  
          proactive and practical solutions. 
           
           Previous Legislation:  AB 422 (Nazarian), Chapter 444, Statutes  
          of 2013, adds information regarding health care coverage  
          available through Covered California, to notifications that may  
          be included at the option of the school district or county  
          superintendent on applications for the School Lunch Program,  
          effective January 1, 2014.  
           

          Analysis Prepared by  :    Chelsea Kelley and Jill Rice / ED. /  
          (916) 319-2087 


                                                                 FN:  
                                                                 0003859




          ---------------------------
          <1>"California Health Care Almanac Quick Reference Guide,  
          California's Uninsured: A Supplement to California HealthCare  
          Foundation's California's Uninsured: By the Numbers," California  
          HealthCare Foundation. May 2013.
          <2> Laurel Lucia, Ken Jacobs, M. Miranda Dietz, Dave  
          Graham-Squire, Nadereh Pourat, and Dylan H. Roby. "After  
          Millions of  Californians Gain Health Coverage Under the  
          Affordable Care Act, Who Will Remain Uninsured?" UCLA Center for  
          Health Policy Research, UC Berkeley Labor Center, CalSIM,  
          September 2012.