AB 3017: Qualified medical supplies providers: sales taxes: repayment.

Existing state sales and use tax laws impose a tax on retailers measured by gross receipts on the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state.

This bill would provide a procedure for a qualified medical supplies provider to submit a claim for qualified repayments, as defined, with the California Department of Tax and Fee Administration, as provided. This bill would define a qualified medical supplies provider to mean a pharmacy or durable medical equipment provider enrolled in Medi-Cal who, among other things, paid sales taxes imposed under the Sales and Use Tax Law and the California Constitution for sales of medical supplies or equipment furnished to Medi-Cal beneficiaries occurring during the period beginning June 1, 2011, and before November 1, 2013, for which a portion of payments from Medi-Cal for those sales, which included applicable sales tax reimbursement, was paid back to the State Department of Health Care Services by the pharmacy or durable medical equipment provider due to the reduction of Medi-Cal payment by specified law.

This bill would, on or before March 1, 2020, require the California Department of Tax and Fee Administration to provide to the Controller the amount of qualified repayments to be made to each qualified medical supplies provider, and would appropriate an amount necessary from the General Fund to the department to make the payments of qualified repayments. The bill would provide that the total amount of money available to make qualified repayments shall not exceed the aggregate amount paid to the State Department of Health Care Services, as described above.

This bill would make findings regarding the public purpose served by the bill.

This bill would declare that it is to take effect immediately as an urgency statute.