This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2019.

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 78

Author:(Committee on Budget)

As Amended Ver:June 22, 2020

Majority vote. Budget Bill Appropriation Takes Effect Immediately

SUMMARY:

This is the California Infrastructure and Economic Development Bank (IBank) trailer bill for the 2020-21 budget. It contains the necessary changes necessary to implement the 2020 Budget Act. Specifically, this bill:

The Senate Amendments:

1. Deletes the current contents of the bill and replaces it with the following:
2. Establishes a Climate Catalyst Revolving Loan Fund at the IBank to receive funds from non-state governmental entities and private sources for the purpose of making loans for climate catalyst projects that further the state's climate goals. These moneys are available for expenditure upon appropriation by the Legislature. The Strategic Growth Council will advise the Legislature on categories to fund and a report on the projects funded would be prepared annually.
3. Limits the total amount of rate reduction bonds and bonds issued to finance public development facilities that may be outstanding at any one time to $15 billion. Currently, the limit for rate reductions bonds is $10 billion and the limit for bonds to finance public development is $5 billion. This change does not increase the total authority, rather it combines the limits allowing for more flexibility between the categories.
4. Authorizes I-Bank's board to establish one or more programs administered by the IBank directly, in conjunction with financial companies or financial institutions, in direct or indirect participation with special purpose entities established for small business finance or under contract with small business financial development corporations.
5. Authorizes IBank to establish any and all programs that it determines necessary or desirable to directly or indirectly assist small businesses obtain capital.

COMMENTS:

This bill is a budget trailer bill within the overall 2020-21 budget package necessary to implement actions related to the IBank.

According to the Author:

None

Arguments in Support:

None on file.

Arguments in Opposition:

None on file.

FISCAL COMMENTS:

This bill authorizes the deposit of additional moneys into the IBank Fund and thereby makes a continuous appropriation.

VOTES:

ASSEMBLY FLOOR: 54-13-13

YES: Aguiar-Curry, Bauer-Kahan, Bloom, Boerner Horvath, Bonta, Burke, Calderon, Carrillo, Cervantes, Chau, Chu, Cooper, Daly, Eggman, Frazier, Friedman, Gabriel, Cristina Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Limón, Maienschein, McCarty, Medina, Mullin, Muratsuchi, Nazarian, O'Donnell, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Weber, Wicks, Wood, Rendon

NO: Bigelow, Brough, Dahle, Flora, Fong, Gallagher, Kiley, Mathis, Melendez, Obernolte, Patterson, Voepel, Waldron

ABS, ABST OR NV: Arambula, Berman, Chen, Chiu, Choi, Cooley, Cunningham, Diep, Eduardo Garcia, Lackey, Levine, Low, Mayes

UPDATED:

VERSION: June 22, 2020

CONSULTANT: Genevieve Morelos / BUDGET / (916) 319-2099 FN: 0003148

 THIRD READING  

Bill No: AB 78

Author: Committee on Budget

Amended: 6/22/20 in Senate

Vote: 21

PRIOR VOTES NOT RELEVANT

SENATE BUDGET & FISCAL REVIEW COMMITTEE: 13-5, 6/24/20

AYES: Mitchell, Nielsen, Beall, Caballero, Durazo, Leyva, McGuire, Monning, Pan, Roth, Skinner, Stern, Wieckowski

NOES: Dahle, Hurtado, Melendez, Moorlach, Morrell

SUBJECT: Bergeson-Peace Infrastructure and Economic Development Bank

SOURCE: Author

DIGEST:

This bill is the Infrastructure and Economic Development Bank (IBank) trailer bill, and contains changes to implement the 2020-21 Budget Act.

ANALYSIS: This bill makes technical and clarifying statutory revisions affecting IBank programs necessary to implement the Budget Act of 2020. Specifically, this bill:

1. Establishes the Climate Catalyst Revolving Loan Fund Act of 2020, which makes moneys in the fund available for expenditure upon appropriation by the Legislature for purposes of funding “climate catalyst projects” to further the state’s climate goals, activities that reduce climate risk, and the implementation of low-carbon technology and infrastructure.
2. Defines “climate catalyst project” as any building, structure, equipment, infrastructure, or other improvement within California, or financing the general needs of any sponsor or participating party for operations or activities within the state that are consistent with, and intended to, further the purposes of the act.
3. Requires the IBank to administer the fund and provides how the IBank is to administer the moneys, such as authorizing the bank to pledge moneys in the fund as security for the payment on an issuance of bonds for purposes of this act.
4. Requires the Strategic Growth Council (SGC), in consultation with the Labor and Workforce Development Agency, to advise the Legislature of potential categories of climate catalyst projects that focus on the state’s key climate mitigation and resilience priorities and inform IBank of the advice provided to the Legislature.
5. Requires the IBank to prepare and submit a report, as specified, regarding the fund’s program activities for the preceding fiscal year to SGC, the Governor, and the Legislature.
6. Limits the total amount of rate reduction bonds and bonds issued to finance public development facilities that may be outstanding at any one time to $15 billion. Currently, the limit for rate reductions bonds is $10 billion and the limit for bonds to finance public development is $5 billion. This change does not increase the total authority; rather it combines the limits allowing for more flexibility between the categories.
7. Authorizes IBank’s board to establish one or more programs administered by the bank directly, in conjunction with financial companies or financial institutions, in direct or indirect participation with special purpose entities established for small business finance or under contract with small business financial development corporations.
8. Authorizes IBank’s board to establish any and all programs pursuant to the Small Business Financial Assistance Act of 2013 and other provisions of law, as specified, that it determines necessary or desirable to directly or indirectly assist small businesses obtain capital.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: No

According to the Senate Budget and Fiscal Review Committee, by authorizing the deposit of additional moneys into the California Infrastructure and Economic Development Bank Fund, a continuously appropriated fund, this bill would make an appropriation.

SUPPORT: (Verified 6/23/20)

None received

OPPOSITION: (Verified 6/23/20)

None received

Prepared by: Joe Stephenshaw and Joanne Roy / B. & F.R. / 916-651-4103

6/25/20 0:46:55

**** END ****

SENATE COMMITTEE ON

Senator Holly Mitchell, Chair

2019 - 2020 Regular

Bill No: Hearing Date: June 24, 2020

Subject: Bergeson-Peace Infrastructure and Economic Development Bank

Summary:

This bill is the Infrastructure and Economic Development Bank (IBank) trailer bill, and contains changes to implement the 2020-21 budget.

Proposed Law:

This bill makes technical and clarifying statutory revisions affecting IBank programs necessary to implement the Budget Act of 2020. Specifically, this bill:

1. Establishes the Climate Catalyst Revolving Loan Fund Act of 2020, which makes moneys in the fund available for expenditure upon appropriation by the Legislature for purposes of funding “climate catalyst projects” to further the state’s climate goals, activities that reduce climate risk, and the implementation of low-carbon technology and infrastructure.
2. Defines “climate catalyst project” as any building, structure, equipment, infrastructure, or other improvement within California, or financing the general needs of any sponsor or participating party for operations or activities within the state that are consistent with, and intended to, further the purposes of the act.
3. Requires the IBank to administer the fund and provides how the IBank is to administer the moneys, such as authorizing the bank to pledge moneys in the fund as security for the payment on an issuance of bonds for purposes of this act.
4. Requires the Strategic Growth Council (SGC), in consultation with the Labor and Workforce Development Agency, to advise the Legislature of potential categories of climate catalyst projects that focus on the state’s key climate mitigation and resilience priorities and inform IBank of the advice provided to the Legislature.
5. Requires the IBank to prepare and submit a report, as specified, regarding the fund’s program activities for the preceding fiscal year to SGC, the Governor, and the Legislature.
6. Limits the total amount of rate reduction bonds and bonds issued to finance public development facilities that may be outstanding at any one time to $15 billion. Currently, the limit for rate reductions bonds is $10 billion and the limit for bonds to finance public development is $5 billion. This change does not increase the total authority; rather it combines the limits allowing for more flexibility between the categories.
7. Authorizes IBank’s board to establish one or more programs administered by the bank directly, in conjunction with financial companies or financial institutions, in direct or indirect participation with special purpose entities established for small business finance or under contract with small business financial development corporations.
8. Authorizes IBank’s board to establish any and all programs pursuant to the Small Business Financial Assistance Act of 2013 and other provisions of law, as specified, that it determines necessary or desirable to directly or indirectly assist small businesses obtain capital.

Fiscal Effect:

By authorizing the deposit of additional moneys into the California Infrastructure and Economic Development Bank Fund, a continuously appropriated fund, this bill would make an appropriation.

Support:

None on file.

Opposed:

None on file.

-- END --

(Without Reference to File)

CONCURRENCE IN SENATE AMENDMENTS

CSA1 Bill Id:AB 78

Author:(Committee on Budget)

As Amended Ver:June 18, 2019

Majority vote. Budget Bill Appropriation Takes Effect Immediately

SUMMARY:

This is the Omnibus Health Trailer Bill for 2019-20. It contains necessary changes related to the Budget Act of 2019. This bill makes various statutory changes to implement the 2019-20 budget. Specifically, this bill:

1. A. Health Care Subsidies
   1. Establishes a program of financial assistance to help low-income and middle-income Californians access affordable health care coverage through the California Health Benefit Exchange (Exchange).
   2. Authorizes this program to provide financial assistance to California residents with household incomes at or below 600 percent of the federal poverty level, and authorizes the Exchange to provide other appropriate subsidies designed to make health care coverage more accessible and affordable for individuals and households.
   3. Requires the Exchange to adopt, and may amend, an annual program design for each coverage year, based on funds appropriated to the program for that coverage year, by resolution of the Exchange board, requiring approval by the Director of Finance following 10 days notification in writing to the Joint Legislative Budget Committee.
   4. Requires that an appropriation made for the program shall contain provisional language directing the Exchange to provide a certain proportion of the funds to specified income ranges as determined by the Legislature and may provide other parameters guiding the design of the program.
   5. Requires the Exchange to provide appropriate opportunities for stakeholders and the public to consult in the design of the program.
   6. Requires that an advanced premium assistance subsidy, provided by the program, be remitted by the Exchange to a qualified health plan issuer, based on the program participant's projected household income, family size, and other factors determined pursuant to the program design and subject to reconciliation against actual household income, family size, and other factors.
   7. Requires that a premium assistance subsidy provided by the program be provided only to a California resident who is eligible for the federal premium tax credit, except that premium assistance subsidy shall not be subject to the income requirements of that section.
   8. Requires an individual receiving a subsidy to reconcile premium assistance based on actual household income, family size, and other factors.
   9. Establishes the right of, and process for, a health care applicant to appeal the determination of eligibility for state financial assistance, or the amount of the advanced premium assistance subsidy.
   10. Prohibits the use of California Health Trust Fund funds from funding the minimum essential coverage individual mandate or the financial assistance program, except for the Exchange's operational costs necessary to administer the individual mandate and financial assistance program.

B. Individual Healthcare Mandate

Requires every California resident to be enrolled in, and maintain minimum essential coverage, for each month beginning on or after January 1, 2020.

• 1. Makes findings and declarations that the individual mandate is necessary to protect the state's interests of:
     1. Protecting the health and welfare of the state's residents.
     2. Ensuring access to affordable health care coverage in this state.
     3. Ensuring a stable and well-functioning health insurance market in this state.
  2. Authorizes the Franchise Tax Board to enforce the mandate by implementing the Individual Shared Responsibility Penalty.
  3. Exempts the following individuals, with respect to any month, from the requirements imposed by the individual mandate:
     1. An individual who has in effect a certificate of exemption for hardship or religious conscience issued by the Exchange under Section 100715 for that month.
     2. An individual who is a member of a health care sharing ministry for that month. "Health care sharing ministry" has the same meaning as the term was defined in Internal Revenue Code Section 5000A(d)(2)(B) on January 1, 2017.
     3. An individual who is incarcerated for that month, other than incarceration pending the disposition of charges.
     4. An individual who is not a citizen or national of the United States and is not lawfully present in the United States for that month.
     5. An individual who is a member of an Indian tribe, as defined in Internal Revenue Code Section 45A(c)(6) of 1986, during that month.
     6. An individual for whom that month occurs during a period described in subparagraph (A) or (B) of Section 911(d)(1) of the Internal Revenue Code of 1986 that is applicable to the individual.
     7. An individual who is a bona fide resident of a possession of the United States, as determined under Internal Revenue Code Section 937(a) of 1986, for that month.
     8. An individual who is a bona fide resident of another state for that month.
     9. An individual who is enrolled in limited or restricted scope coverage under the Medi-Cal program or another health care coverage program administered by and determined to be substantially similar to limited or restricted scope coverage by the State Department of Health Care Services for that month.
  4. Requires the Exchange to grant an exemption from the mandate for reason of religious conscience to an individual who is either:
     1. A member of a recognized religious sect and is an adherent of established tenets or teachings of that sect or division.
     2. A member of a religious sect who relies solely on a religious method of healing, for whom the acceptance of medical health services would be inconsistent with the religious beliefs of the individual, and who includes an attestation that the individual has not received medical health services during the preceding taxable year.
  5. Requires that an individual who claims this exemption, but received medical health services during the coverage year, lose eligibility for the religious conscience exemption, and incur liability for the cost of the care and for the penalty.
  6. Requires the Exchange to establish a process for determining if an individual is entitled to an exemption, and notifying the individual and the Franchise Tax Board of the determination.
  7. Establishes the right of, and process for, an individual to appeal an eligibility determination for an exemption from the Minimum Essential Coverage Individual Mandate.
  8. Requires the appellant to file an amended return for that taxable year to reconcile the advanced premium assistance subsidy, upon final exhaustion of administrative or judicial review, whichever is later, that affects the amount of advance payment of the premium tax credit or the amount of advanced premium assistance subsidy, or both, for a taxable year that has been reconciled previously.
  9. Sets forth the Individual Shared Responsibility Penalty amount for each month as the greater of one twelfth of:
     1. An amount equal to 2.5% above the applicable filing threshold (with a maximum of the average premium for Exchange bronze plans); or,
     2. $695 (or one-half per child under the age of 18 years old), (with a maximum of $2,085).
  10. Requires the Exchange to conduct outreach and enrollment efforts to individuals who did not indicate on their tax returns that they and their dependents were enrolled in minimum essential coverage.
  11. Requires the Franchise Tax Board to provide the Exchange with individual income tax return information.
  12. Authorizes the Exchange and the Franchise Tax Board to promulgate rules and regulations to implement this program, and may adopt them as emergency regulations until January 1, 2022.
  13. Requires the Franchise Tax Board to annually publish information related to the number of households paying the penalty; the total penalty amount collected; and the number and type of most commonly claimed exemptions, as specified.

1. Restoration of Optional Medi-Cal Benefits. Restores Medi-Cal coverage of the following benefits: audiology, incontinence creams and washes, optical, podiatry, and speech therapy, beginning no sooner than January 1, 2020.
   1. Suspends these benefits on December 31, 2021, unless it is determined that estimated annual General Fund revenues exceed estimated annual General Fund expenditures for the 2021-22 and 2022-23 fiscal years. Establishes legislative intent to consider alternative solutions to restore these benefits if the suspension takes effect.
2. SBIRT Expansion to Opioids and Other Drugs. Establishes the Screening, Brief Intervention, Referral, and Treatment (SBIRT) in law as a Medi-Cal benefit, and expands the benefit, from covering only alcohol, to also covering the overuse of opioids and other illicit drugs.
3. Value-Based Payments. Establishes a program to provide payments to providers to incentivize quality improvements to behavioral health integration, prenatal and postpartum care, chronic disease management, and quality of managed care for children.
   1. Makes findings and declarations that: Value-based payments incentivize providers to improve quality and efficiency of care; and Proposition 56 payments are intended, in part, to ensure quality of care in Medi-Cal.
   2. Authorizes the use of Proposition 56 (the California Healthcare, Research and Prevention Tobacco Tax Act of 2016) funds to be used for Value-based payments, including through managed care plans, for the purpose of improving care for some of the most vulnerable or at-risk populations in Medi-Cal managed care.
   3. Requires this program to operate for a minimum of 3 years, contingent on federal financial participation, and requires the department to design the program and designate which managed care plans are required to participate.
   4. Requires the department to require designated Medi-Cal managed care plans to make the payments to network providers who meet the requirements of the program.
   5. Exempts county mental health plans from participation in this program.
   6. Establishes Value Based Payment programs aimed at improving, in Medi-Cal managed care, all of the following: behavioral health integration, prenatal and postpartum care, chronic disease management, and quality and outcomes for children.
   7. Requires that Value Based Payment programs be funded with revenue from Proposition 56.
   8. Suspends these payments on December 31, 2021, unless it is determined that estimated annual General Fund revenues exceed estimated annual General Fund expenditures for the 2021-22 and 2022-23 fiscal years.
4. Value-Based Payments Data Sharing. Authorizes the Department of Public Health to share data with the Department of Health Care services for the purpose of determining whether children enrolled in Medi-Cal are being screened for lead poisoning and receiving appropriate related services.
   1. Authorizes the Department of Health Care Services to disclose the information to a managed health care plan in which a beneficiary who is the subject of the information is enrolled, who may further disclose the information to the beneficiary's health care provider to proactively offer and coordinate care and treatment services and administer payment programs.
   2. Requires the Department of Health care Services to use, disclose and maintain the confidentiality of information in accordance with the federal Health Insurance Portability and Accountability Act of 1996.
5. Health Home Program Extension. Extends the sunset date for the Health Home Program to June 30, 2024.
6. MCO Tax Extension. Establishes the intent of the Legislature to enact a managed care organization provider tax in California, contingent on federal approval.
7. High Deductible Health Plans. Revises the actuarial value of a nongrandfathered bronze level high deductible health plan to be between plus 4% to minus 2%.
8. Medi-Cal Checkwrite Contingency. Authorizes the Department of Health Care Services to make contingency payments to health care providers if there is a disruption to the Medi-Cal checkwrite process.
9. Medi-Cal Drug Rebate Fund. Establishes a special fund for drug rebates to manage the impact on the General Fund when drug rebates are received or funding adjustments are calculated.
10. Medi-Cal Pharmacy Carve-Out Executive Order. Requires the Department of Health Care Services to convene an advisory group to receive feedback on changes, modifications and operational timeframes regarding the implementation of pharmacy benefits offered in Medi-Cal.
    1. Requires the advisory group to be composed of organizations such as hospitals, clinics, health plans and consumer advocates.
    2. Requires the department to provide regular updates on the pharmacy transition that include descriptions of: i) changes in the division of responsibilities between the department and managed care plans; and ii) anticipated changes, if any, to beneficiary access to prescription medications.
    3. Requires the department to include in the Governor's proposed budget the fiscal assumptions for the transition of the outpatient pharmacy benefit to a fee-for-service benefit.
11. Hospital Seismic Upgrade Extension Application Deadline. Authorizes Providence Tarzana Medical Center and Children's Hospital and Research Center at Oakland to seek an extension to meet seismic standards for their SPC-1 buildings by September 1, 2019.
    1. Requires the first quarterly status report to be due on October 1, 2018, and every January 1, April 1, July 1 and October 1 thereafter, until seismic compliance is achieved.
    2. Makes findings and declarations that: this is a specific one-time exception for these two hospitals; the seismic safety building standards for hospitals are intended to keep patients, workers, hospital visitors and all Californians safe during and after a major seismic event; California hospitals have been granted extensions to seismic safety building standards timelines since the enactment of these laws in 1983; and it is in the best interest of the public to grant these two hospitals extra time to submit the application while maintaining access to services.
12. Office of the Surgeon General. Establishes the Office of the Surgeon General, within the California Health and Human Services Agency, to:
    1. Raise public awareness on, and coordinate policies governing scientific screening and treatment for toxic stress and adverse childhood events;
    2. Advise the Governor, Secretary of the of the Health and Human Services Agency and policy makers on a comprehensive approach to address health issues and challenges, including toxic stress and adverse childhood events, as effectively and early as possible;
    3. Marshal the insights and energy of medical professionals, scientists and other academic experts, public health experts, public servants and everyday Californians to solve health challenges, including toxic stress and adverse childhood events.
    4. Establishes that the Surgeon General shall be: i) appointed by the Governor; ii) the director of the Office of the Surgeon General; and iii) required to be confirmed by the Senate (for appointments made after July 1, 2019).
13. AB 2798 Fund Source Revision. Requires that resources to implement AB 2798 (Maienschein), Chapter 922, Statutes of 2018, be made available from the Internal Departmental Quality Improvement Account, upon appropriation.
14. HIV Care Program – Financial Eligibility. Requires the HIV Care Program to adopt the financial eligibility requirements used by the AIDS Drug Assistance Program.
15. Sexually Transmitted Disease Prevention Program. Requires the Department of Public Health to allocate funds, appropriated through the Budget Act, to local health jurisdictions for sexually transmitted disease outreach, screening, and other core services in accordance, to the extent possible, with the following: a) Local health jurisdictions shall be targeted and prioritized based on population and incidence rates of sexually transmitted diseases and b) Funds shall be allocated to targeted local health jurisdictions in a manner that balances the need to spread funding to as many local health jurisdictions and community-based organizations as possible and the need to provide meaningful services to each recipient.
    1. Requires that no less than 50% of the funds allocated to local health jurisdictions shall be provided to community-based organizations, provided that there are community-based organizations in the jurisdiction that provide these services and are qualified, as specified.
    2. Requires each recipient of funds to demonstrate qualifications and preparedness to the department, as specified.
    3. Requires the department to develop accountability measures for each funded local health jurisdiction.
    4. Requires the department to authorize innovative and impactful outreach, screening, and other core services, including, but not limited to, at least one of the following:
       1. Voluntary screening for sexually transmitted diseases among inmates and wards of county adult and juvenile correctional facilities.
       2. Technology, telehealth, and digital platforms and applications to enhance immediate access to screening, testing, and treatment as well as partner services in order to speed services and to reduce administrative costs.
       3. State-of-the-art testing modalities that ensure swift and accurate screening for and diagnosis of sexually transmitted diseases.
       4. Community-based testing and disease investigation.
    5. Suspends this program on December 31, 2021, unless it is determined that estimated annual General Fund revenues exceed estimated annual General Fund expenditures for the 2021-22 and 2022-23 fiscal years. Establishes legislative intent to consider alternative solutions to restore this program if the suspension takes effect.
16. HIV Prevention Program. Requires the Department of Public Health to distribute funding, appropriated in the Budget Act, on a competitive basis, to community-based organizations or local health jurisdictions to provide comprehensive HIV prevention and control activities for the most vulnerable and underserved individuals living with, or at high risk for, HIV infections.
    1. Authorizes comprehensive HIV prevention and control activities to include, but are not limited to: HIV testing, linkage to and retention in care, pre-exposure prophylaxis and post-exposure prophylaxis, and syringe services programs.
    2. Requires the department to allocate funds in a manner that balances the need to spread funding as widely as possible with the need to provide meaningful activities to each recipient.
    3. Requires that no less than 50 percent of the funds are provided to community-based organizations.
    4. Requires the department to develop accountability measures for each entity receiving these funds.
    5. Suspends this program on December 31, 2021, unless it is determined that estimated annual General Fund revenues exceed estimated annual General Fund expenditures for the 2021-22 and 2022-23 fiscal years. Establishes legislative intent to consider alternative solutions to restore this program if the suspension takes effect.
17. Hepatitis C Prevention. Requires the Department of Public Health to allocate funds, appropriated through the Budget Act, to local health jurisdictions to provide hepatitis C virus (HCV) activities including, but not limited to, monitoring, prevention, testing, and linkage to and retention in care activities for the most vulnerable and underserved individuals living with, or at high risk for, HCV infection.
    1. Requires that local health jurisdictions be prioritized for funding based on factors that indicate a need for these activities.
    2. Requires that no less than 50 percent of the funds allocated to local health jurisdictions be provided to community-based organizations for these purposes, provided that there are community-based organizations in the jurisdiction that are able to provide these activities and demonstrate appropriate qualifications, as specified.
    3. Requires the department to develop accountability measures for each local health jurisdiction that is funded.
    4. Suspends this program on December 31, 2021, unless it is determined that estimated annual General Fund revenues exceed estimated annual General Fund expenditures for the 2021-22 and 2022-23 fiscal years. Establishes legislative intent to consider alternative solutions to restore this program if the suspension takes effect.
18. State Hospitals Patient Wages and Workers' Compensation. Establishes that patients of State Hospitals are: a) not subject to state minimum wage requirements when working as a component of vocational rehabilitation programs; and b) entitled to workers' compensation benefits if injured in the course of a vocational rehabilitation program work assignment, including a sheltered workshop, and for the death of the patient if the injury causes death, subject to specified prohibitions.
    1. Specifically, this bill prohibits:
       1. A patient from being entitled to compensation for a psychiatric injury;
       2. Compensation if the injury resulted from an assault in which the patient was the initial aggressor, or as the result of the patient intentionally injuring themselves;
       3. The patient from being entitled to any temporary disability indemnity benefits while committed in a state hospital or while reincarcerated in a county jail or state prison; and
       4. The payment of benefits to a patient while the patient is committed in a state hospital facility.
    2. Authorizes a patient to file an application with the Workers' Compensation Appeals Board to resolve any workers' compensation dispute.
    3. Provides that a former patient shall have one year, after release or discharge, in which to file an application with the Workers' Compensation Appeals Board.
    4. Requires the department to present to each patient worker, prior to their first vocational rehabilitation assignment, a printed statement of their rights under this division and a description of procedures to follow in filing for benefits.
    5. Requires the department to post the statement of patients' rights in various conspicuous locations where patients work or reside.
    6. Requires the department to, at the request of a patient, furnish a list of qualified workers' compensation attorneys to represent the patient before the Workers' Compensation Appeals Board.
19. Prohibition on Confiscation of State Hospitals Patient Funds. Prohibits requiring a State Hospital patient, who receives earnings during the patient's participation in a sheltered workshop or vocational rehabilitation program, to return or remit those earnings to the State Hospital for the cost of care, support, maintenance and medical attention.
20. Budget Bill. Establishes that this is a budget trailer bill and makes an appropriation.

The Senate Amendments:

COMMENTS:

This bill is a budget trailer bill within the overall 2019-20 budget package to implement actions taken affecting the Departments of Health Care Services, Public Health, State Hospitals, the California Health and Human Services Agency, the California Health Benefits Exchange, the Franchise Tax Board, and the Office of Statewide Health Planning and Development.

According to the Author:

Arguments in Support:

None on file.

Arguments in Opposition:

None on file.

FISCAL COMMENTS:

VOTES:

ASSEMBLY FLOOR: 54-13-13

YES: Aguiar-Curry, Bauer-Kahan, Bloom, Boerner Horvath, Bonta, Burke, Calderon, Carrillo, Cervantes, Chau, Chu, Cooper, Daly, Eggman, Frazier, Friedman, Gabriel, Cristina Garcia, Gipson, Gloria, Gonzalez, Gray, Grayson, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Limón, Maienschein, McCarty, Medina, Mullin, Muratsuchi, Nazarian, O'Donnell, Petrie-Norris, Quirk, Quirk-Silva, Ramos, Reyes, Luz Rivas, Robert Rivas, Rodriguez, Blanca Rubio, Salas, Santiago, Smith, Mark Stone, Ting, Weber, Wicks, Wood, Rendon

NO: Bigelow, Brough, Dahle, Flora, Fong, Gallagher, Kiley, Mathis, Melendez, Obernolte, Patterson, Voepel, Waldron

ABS, ABST OR NV: Arambula, Berman, Chen, Chiu, Choi, Cooley, Cunningham, Diep, Eduardo Garcia, Lackey, Levine, Low, Mayes

UPDATED:

VERSION: June 18, 2019

CONSULTANT: Andrea Margolis / BUDGET / (916) 319-2099 FN: 0001144

 THIRD READING  

Bill No: AB 78

Author: Committee on Budget

Amended: 6/18/19 in Senate

Vote: 21

SENATE BUDGET & FISCAL REVIEW COMMITTEE: 11-5, 6/19/19

AYES: Mitchell, Beall, Durazo, Leyva, McGuire, Monning, Pan, Roth, Skinner, Umberg, Wieckowski

NOES: Nielsen, Jones, Moorlach, Morrell, Stone

NO VOTE RECORDED: Hurtado, Stern

ASSEMBLY FLOOR: Not relevant

SUBJECT: Health

SOURCE: Author

DIGEST:

This bill is an omnibus health trailer bill, and contains changes to implement the 2019-20 Budget.

ANALYSIS: This bill makes technical and clarifying statutory revisions affecting health programs necessary to implement the Budget Act of 2019. Specifically, this bill:

1. Establishes the Office of the Surgeon General within the Health and Human Services Agency, delineates the authority and responsibilities of the Surgeon General, and makes Surgeon General appointees subject to Senate confirmation on or after July 1, 2019.
2. Establishes a program within the Health Benefit Exchange (Covered California) to provide state subsidies to assist individuals with incomes under 600 percent of the federal poverty level afford health insurance.
3. Implements an individual mandate penalty for individuals that fail to purchase minimum essential coverage during a calendar year.
4. Revises the funding source for accelerating hospital licensing applications by the Department of Public Health.
5. Revises the actuarial value of Bronze-level health plans offered in Covered California to comply with new federal rulemaking.
6. Implements a grant program to local health jurisdictions for prevention of sexually transmitted diseases, with no less than 50 percent of the funding provided to community-based organizations. Suspends the grant program on December 31, 2021, unless the Director of Finance determines that General Fund revenues exceed expenditures by a sufficient amount for the 2021-22 and 2022-23 fiscal years to fund programs subject to suspension.
7. Implements a grant program to local health jurisdictions for prevention of human immunodeficiency virus (HIV), with no less than 50 percent of the funding provided to community-based organizations. Suspends the grant program on December 31, 2021, unless the Director of Finance determines that General Fund revenues exceed expenditures by a sufficient amount for the 2021-22 and 2022-23 fiscal years to fund programs subject to suspension.
8. Implements a grant program to local health jurisdictions for prevention of hepatitis C, with no less than 50 percent of the funding provided to community-based organizations. Suspends the grant program on December 31, 2021, unless the Director of Finance determines that General Fund revenues exceed expenditures by a sufficient amount for the 2021-22 and 2022-23 fiscal years to fund programs subject to suspension.
9. Aligns financial eligibility requirements for the HIV Care Program at the Department of Public Health with those for the AIDS Drug Assistance Program.
10. Establishes a Value-Based Payments program to provide supplemental incentive payments to Medi-Cal providers to meet certain metrics related to behavioral health integration, chronic disease management, prenatal and postpartum care, and early childhood preventive services. Suspends the program on December 31, 2021, unless the Director of Finance determines General Fund revenues exceed expenditures by a sufficient amount for the 2021-22 and 2022-23 fiscal years to fund programs subject to suspension.
11. Extends filing deadlines until September 1, 2019, for seismic safety requirements under the Alfred E. Alquist Hospital Facilities Seismic Safety Act for UCSF Benioff Children’s Hospital in Oakland and Providence Tarzana Medical Center in Los Angeles.
12. Makes changes to labor and workers’ compensation rules to allow patients at state hospitals participating in a vocational rehabilitation or sheltered workshop program to be paid the federal minimum wage and to standardize the wage structure across the state hospitals.
13. Prohibits the Department of State Hospitals from confiscating patient earnings from a vocational rehabilitation or sheltered workshop program to pay for the costs of care or housing.
14. Directs the Department of Health Care Services (DHCS) to seek federal approval to provide screening, brief intervention, and referral to treatment services to screen for opioids and other illicit drugs. Suspends the program on December 31, 2021, unless the Director of Finance determines that General Fund revenues exceed expenditures by a sufficient amount for the 2021-22 and 2022-23 fiscal years to fund programs subject to suspension.
15. Allows DHCS to continue payment to Medi-Cal providers in the event of a delay or other system error in the Medi-Cal Checkwrite Schedule provider claims processing system.
16. Establishes the Medi-Cal Drug Rebate Fund to collect funds received from federal and state supplemental prescription drug rebate programs.
17. Restores the following optional Medi-Cal benefits no sooner than January 1, 2020: audiology, speech therapy, podiatry, and incontinence creams and washes. Suspends the restorations on December 31, 2021, unless the Director of Finance determines that General Fund revenues exceed expenditures by a sufficient amount for the 2021-22 and 2022-23 fiscal years to fund programs subject to suspension.
18. Requires DHCS to establish a pharmacy working group to receive feedback on the Administration’s proposed transition of Medi-Cal pharmacy benefits from managed care to fee-for-service, provide a description of changes for managed care plans and beneficiaries, and include fiscal assumptions for the transition in the Governor’s proposed budget.
19. Extends the availability of funding for the Health Home Program until July 1, 2024.

FISCAL EFFECT: Appropriation: Yes Fiscal Com.: Yes Local: Yes

According to the Senate Budget and Fiscal Review Committee, this bill extends until July 1, 2024, the availability of $50 million appropriated from the Health Home Program Account to DHCS to implement the Health Home Program approved in SB 75 (Committee on Budget and Fiscal Review, Chapter 18, Statutes of 2015).

SUPPORT: (Verified 6/17/19)

None received

OPPOSITION: (Verified 6/17/19)

None received

Prepared by: Scott Ogus / B. & F.R. / 916-651-4103

6/19/19 16:38:09

**** END ****

SENATE COMMITTEE ON

Senator Holly Mitchell, Chair

2019 - 2020 Regular

Bill No: Hearing Date: June 19, 2019

Subject: Health

Summary:

This bill is an omnibus health trailer bill, and contains changes to implement the 2019-20 budget.

Proposed Law:

This bill makes technical and clarifying statutory revisions affecting health programs necessary to implement the Budget Act of 2019. Specifically, this bill:

1. Establishes the Office of the Surgeon General within the Health and Human Services Agency, delineates the authority and responsibilities of the Surgeon General, and makes Surgeon General appointees subject to Senate confirmation on or after July 1, 2019.
2. Establishes a program within the Health Benefit Exchange (Covered California) to provide state subsidies to assist individuals with incomes under 600 percent of the federal poverty level (FPL) afford health insurance.
3. Implements an individual mandate penalty for individuals that fail to purchase minimum essential coverage during a calendar year.
4. Revises the funding source for accelerating hospital licensing applications by the Department of Public Health.
5. Revises the actuarial value of Bronze-level health plans offered in Covered California to comply with new federal rulemaking.
6. Implements a grant program to local health jurisdictions for prevention of sexually transmitted diseases, with no less than 50 percent of the funding provided to community-based organizations. Suspends the grant program on December 31, 2021, unless the Director of Finance determines that General Fund revenues exceed expenditures by a sufficient amount for the 2021-22 and 2022-23 fiscal years to fund programs subject to suspension.
7. Implements a grant program to local health jurisdictions for prevention of human immunodeficiency virus (HIV), with no less than 50 percent of the funding provided to community-based organizations. Suspends the grant program on December 31, 2021, unless the Director of Finance determines that General Fund revenues exceed expenditures by a sufficient amount for the 2021-22 and 2022-23 fiscal years to fund programs subject to suspension.
8. Implements a grant program to local health jurisdictions for prevention of hepatitis C, with no less than 50 percent of the funding provided to community-based organizations. Suspends the grant program on December 31, 2021, unless the Director of Finance determines that General Fund revenues exceed expenditures by a sufficient amount for the 2021-22 and 2022-23 fiscal years to fund programs subject to suspension.
9. Aligns financial eligibility requirements for the HIV Care Program at the Department of Public Health with those for the AIDS Drug Assistance Program.
10. Establishes a Value-Based Payments program to provide supplemental incentive payments to Medi-Cal providers to meet certain metrics related to behavioral health integration, chronic disease management, prenatal and postpartum care, and early childhood preventive services. Suspends the program on December 31, 2021, unless the Director of Finance determines General Fund revenues exceed expenditures by a sufficient amount for the 2021-22 and 2022-23 fiscal years to fund programs subject to suspension.
11. Extends filing deadlines until September 1, 2019, for seismic safety requirements under the Alfred E. Alquist Hospital Facilities Seismic Safety Act for UCSF Benioff Children’s Hospital in Oakland and Providence Tarzana Medical Center in Los Angeles.
12. Makes changes to labor and workers’ compensation rules to allow patients at state hospitals participating in a vocational rehabilitation or sheltered workshop program to be paid the federal minimum wage and to standardize the wage structure across the state hospitals.
13. Prohibits the Department of State Hospitals from confiscating patient earnings from a vocational rehabilitation or sheltered workshop program to pay for the costs of care or housing.
14. Directs the Department of Health Care Services (DHCS) to seek federal approval to provide screening, brief intervention, and referral to treatment services to screen for opioids and other illicit drugs. Suspends the program on December 31, 2021, unless the Director of Finance determines that General Fund revenues exceed expenditures by a sufficient amount for the 2021-22 and 2022-23 fiscal years to fund programs subject to suspension.
15. Allows DHCS to continue payment to Medi-Cal providers in the event of a delay or other system error in the Medi-Cal Checkwrite Schedule provider claims processing system.
16. Establishes the Medi-Cal Drug Rebate Fund to collect funds received from federal and state supplemental prescription drug rebate programs.
17. Restores the following optional Medi-Cal benefits no sooner than January 1, 2020: audiology, speech therapy, podiatry, and incontinence creams and washes. Suspends the restorations on December 31, 2021, unless the Director of Finance determines that General Fund revenues exceed expenditures by a sufficient amount for the 2021-22 and 2022-23 fiscal years to fund programs subject to suspension.
18. Requires DHCS to establish a pharmacy working group to receive feedback on the Administration’s proposed transition of Medi-Cal pharmacy benefits from managed care to fee-for-service, provide a description of changes for managed care plans and beneficiaries, and include fiscal assumptions for the transition in the Governor’s proposed budget.
19. Extends the availability of funding for the Health Home Program until July 1, 2024.

Fiscal Effect:

Extends until July 1, 2024, the availability of $50 million appropriated from the Health Home Program Account to DHCS to implement the Health Home Program approved in SB 75 (Committee on Budget and Fiscal Review), Chapter 18, Statutes of 2015.

Support:

None on file.

Opposed:

None on file.

-- END --

ASSEMBLY THIRD READING

ATR Bill Id:AB 78

Author:(Ting)

As Introduced Ver:December 3, 2018

Majority vote. Budget Bill Appropriation Takes Effect Immediately

SUMMARY:

This bill expresses the intent of the Legislature to enact statutory changes relating to the Budget Act of 2019.

Major Provisions

COMMENTS:

According to the Author:

Arguments in Support:

Arguments in Opposition:

FISCAL COMMENTS:

VOTES:

UPDATED:

VERSION: December 3, 2018

CONSULTANT: Christian Griffith / BUDGET / (916) 319-2099 FN: 0000121