Bill Text: CA SB499 | 2009-2010 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Hospitals: seismic safety.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Passed) 2009-10-11 - Chaptered by Secretary of State. Chapter 601, Statutes of 2009. [SB499 Detail]

Download: California-2009-SB499-Introduced.html

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BILL NUMBER: SB 499	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Ducheny

                        FEBRUARY 26, 2009

   An act to amend Section 1341.45 of the Health and Safety Code,
relating to health care coverage.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 499, as introduced, Ducheny. Managed Care Administrative Fines
and Penalties Fund: California Major Risk Medical Insurance Program.
   Existing law establishes the California Major Risk Medical
Insurance Program (MRMIP) that is administered by the Managed Risk
Medical Insurance Board (MRMIB) to provide major risk medical
coverage to eligible persons who have been rejected for coverage by
at least one private health plan. Existing law creates the Major Risk
Medical Insurance Fund for purposes of MRMIP.
   Existing law, the Knox-Keene Health Care Service Plan Act of 1975,
provides for the licensure and regulation of health care service
plans by the Department of Managed Health Care. Existing law requires
the deposit of fines and administrative penalties assessed against
health care service plans in the Managed Care Administrative Fines
and Penalties Fund. Beginning September 1, 2009, existing law
requires that any amount over the first $1,000,000 deposited in the
fund be transferred to the Major Risk Medical Insurance Fund to be
used, upon appropriation by the Legislature, for purposes of MRMIP.
   This bill would require MRMIB to report to the Legislature no
later than March 1, 2010, and annually thereafter, on the amount and
use of moneys transferred to the Major Risk Medical Insurance Fund
pursuant to that provision and the effect of those moneys on the
waiting list for MRMIP.
   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.  Section 1341.45 of the Health and Safety Code is
amended to read:
   1341.45.  (a) There is hereby created in the State Treasury the
Managed Care Administrative Fines and Penalties Fund.
   (b) The fines and administrative penalties collected pursuant to
this chapter, on and after the operative date of this section, shall
be deposited into the Managed Care Administrative Fines and Penalties
Fund.
   (c) The fines and administrative penalties deposited into the
Managed Care Administrative Fines and Penalties Fund shall be
transferred by the department, beginning September 1, 2009, and
annually thereafter, as follows:
   (1) The first one million dollars ($1,000,000) shall be
transferred to the Medically Underserved Account for Physicians
within the Health Professions Education Fund and shall, upon
appropriation by the Legislature, be used for the purposes of the
Steven M. Thompson Physician Corps Loan Repayment Program, as
specified in Article 5 (commencing with Section 128550) or Chapter 5
of Part 3 of Division 107 and, notwithstanding Section 128555, shall
not be used to provide funding for the Physician Volunteer Program.
   (2) Any amount over the first one million dollars ($1,000,000),
including accrued interest, in the fund shall be transferred to the
Major Risk Medical Insurance Fund created pursuant to Section 12739
of the Insurance Code and shall, upon appropriation by the
Legislature, be used for the  California  Major Risk Medical
Insurance Program for the purposes specified in Section 12739.1 of
the Insurance Code.
   (d) Notwithstanding subdivision (b) of Section 1356 and Section
1356.1, the fines and administrative penalties authorized pursuant to
this chapter shall not be used to reduce the assessments imposed on
health care service plans pursuant to Section 1356. 
   (e) The Managed Risk Medical Insurance Board shall report to the
Legislature no later than March 1, 2010, and annually thereafter, on
the amount and use of moneys transferred to the Major Risk Medical
Insurance Fund pursuant to this section and the effect of these
moneys on the waiting list for the California Major Risk Medical
Insurance Program.