BILL NUMBER: AB 1098	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY   JANUARY 3, 2000

INTRODUCED BY   Assembly Member Romero
   (Coauthors:  Assembly Members Aroner, Firebaugh, Honda, and
Keeley)

                        FEBRUARY 25, 1999

   An act to  add Chapter 6 (commencing with Section 11500)
to Part 1 of Division 3 of the Unemployment Insurance Code, relating
to jobs.   amend Section 14171.6 of the Welfare and
Institutions Code, relating to health. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1098, as amended, Romero.   Jobs  
Medi-Cal  . 
   Existing law provides for the Medi-Cal program, which is
administered by the State Department of Health Services, pursuant to
which medical benefits are provided to public assistance recipients
and certain other low-income persons.
   Existing law defines a provider for the purposes of the Medi-Cal
program.
   This bill would revise the definition of a provider for that
purpose.  
   Existing law contains programs for unemployment compensation and
job creation.  Among other things, existing law provides for
employment and employability programs under the direction of the
Employment Development Department.
   This bill would create the Communities First! Jobs Program to
create public service jobs.  The program would be supervised by a
director employed by the Employment Development Department.  The
director would enroll eligible workers to be employed by appropriate
state or local public agencies.  The bill would establish various
requirements for the eligibility of workers, and provide for the
types of jobs, including wage and benefit requirements, that would be
made available to program workers.  The bill would require annual
reports to the Legislature concerning the program's operation.

   Vote:  majority.  Appropriation:  no.  Fiscal committee:  yes.
State-mandated local program:  no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  
  SECTION 1.  (a) The Legislature finds and declares  
  SECTION 1.  Section 14171.6 of the Welfare and Institutions Code is
amended to read: 
   14171.6.  (a) (1) Any provider, as defined in paragraph (3), that
obtains reimbursement under this chapter to which it is not entitled
shall be subject to interest charges or penalties as specified in
this section.
   (2) When it is established upon audit that the provider has not
received reimbursement to which it is entitled, the department shall
pay the provider interest assessed at the rate, and in the manner,
specified in subdivision (h) of Section 14171.
   (3) For purposes of this section, "provider" means  any
provider of services, as defined in subdivision (a) of Section 51051
of Title 22 of the California Code of Regulations   any
individual, partnership, group, association, corporation,
institution, or entity and the officers, directors, employees, or
agents thereof, that provides services, goods, supplies, or
merchandise, directly or indirectly, to a Medi-Cal beneficiary and
that has been enrolled in the Medi-Cal program  .
   (b) When it is established upon audit that the provider has
claimed payments under this chapter to which it is not entitled, the
provider shall pay, in addition to the amount improperly received,
interest at the rate specified by subdivision (h) of Section 14171.
   (c) (1) When it is established upon audit that the provider
claimed payments related to services or costs that the department had
previously notified the provider in an audit report that the costs
or services were not reimbursable, the provider shall pay, in
addition to the amount improperly claimed, a penalty of 10 percent of
the amount improperly claimed after receipt of the notice, plus the
cost of the audit.
   (2) In addition to the penalty and costs specified by paragraph
(1), interest shall be assessed at the rate specified in subdivision
(h) of Section 14171.
   (3) Providers that wish to preserve appeal rights or to challenge
the department's positions regarding appeal issues may claim the
costs or services and not be reimbursed therefor if they are
identified and presented separately on the cost report.
   (d) (1) When it is adjudicated that the provider fraudulently
claimed and received payments under this chapter, the provider shall
pay, in addition to that portion of the claim that was improperly
claimed, a penalty of 300 percent of the amount improperly claimed,
plus the cost of the audit.
   (2) In addition to the penalty and costs specified by paragraph
(1), interest shall be assessed at the rate specified by subdivision
(h) of Section 14171.
   (3) For purposes of this subdivision, a fraudulent claim is a
claim upon which the provider has been convicted of fraud upon the
Medi-Cal program.
   (e) Nothing in this section shall prevent the imposition of any
other civil or criminal penalties to which the provider may be
liable.
   (f) Any appeal to any action taken pursuant to subdivision (b),
(c), or (d) is subject to the administrative appeals process provided
by Section 14171.
   (g) As used in this section, "cost of the audit" includes actual
hourly wages, travel, and incidental expenses at rates allowable by
rules adopted by the State Board of Control and applicable overhead
costs that are incurred by employees of the state in administering
this chapter with respect to the performance of audits.
   (h) This section shall not apply to any clinic licensed pursuant
to subdivision (a) of Section 1204 of the Health and Safety Code.
_____________________________________  All matter omitted in this
version  of the bill appears in the bill as  introduced in the
Assembly, February  25, 1999 (JR 11)
____________________________________