California 2013-2014 Regular Session Status: Passed Assembly

AB 83 — Public health: Medi-Cal managed care plan taxes.

Last action — Died on inactive file.

  1. ✓
    Introduced
  2. ✓
    In Committee
  3. 3
    Passed Assembly
  4. 4
    Passed Senate
  5. 5
    To Executive
  6. 6
    Enacted

This bill died with 2013-2014 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.

This bill is no longer active — its legislative session has ended, so there is no live prognosis. It would have to be reintroduced in the current session to move again.

Summary

Existing law establishes the Medi-Cal program, administered by the State Department of Health Care Services, under which health care services are provided to qualified, low-income persons. The Medi-Cal program is, in part, governed and funded by federal Medicaid Program provisions. Under existing law, one of the methods by which Medi-Cal services are provided is pursuant to contracts with various types of managed care plans. Existing law imposes a tax on the gross premiums of insurers in lieu of other taxes on insurers, and, until July 1, 2012, imposed a tax on the total operating revenue, of a Medi-Cal managed care plan, as defined. The revenues derived from the tax on Medi-Cal managed care plans are continuously appropriated for specified purposes. This bill would, beginning July 1, 2012, and ending July 1, 2013, impose a tax on the total operating revenue of a Medi-Cal managed care plan, as defined. The proceeds from the tax would be continuously appropriated from the Children's Health and Human Services Special Fund to the State Department of Health Care Services and the Managed Risk Medical Insurance Board for specified purposes. This bill also would authorize the Controller to loan funds in the Children's Health and Human Services Special Fund to the General Fund, as provided. Existing law requires every return required to be filed with the State Insurance Commissioner pursuant to provisions governing taxes on the gross premiums of insurers to be signed by the insurer or an executive officer of the insurer and to be made under oath or contain a written declaration that it is made under penalty of perjury. This bill would also require Medi-Cal managed care plans to file returns with the commissioner under oath or with a written declaration that is made under penalty of perjury. By expanding the crime of perjury, this bill would impose a state-mandated local program. The Sales and Use Tax Law imposes a sales tax on retailers for the privilege of selling tangible personal property at retail, measured by the gross receipts from the sale of tangible personal property sold at retail in this state. A violation of specified provisions of this law is a crime. This bill would, on July 1, 2013, and before July 1, 2016, except if specified contingencies occur as provided, and only if and to the extent that federal financial participation is available and necessary federal approvals have been obtained, impose a sales tax on sellers of Medi-Cal managed care plans for the privilege of selling Medi-Cal health care services at retail, measured by the gross receipts from the sale of those services in this state at a specified rate of those gross receipts, as provided. This bill would specify that a seller is a person or entity that enters into a contract with the State Department of Health Care Services to provide for specified health care services, as provided. This bill would provide for the administration of the tax by the State Board of Equalization. This bill would require all revenues, less refunds, derived from the taxes to be deposited into the Children's Health and Human Services Special Fund. This bill would continuously appropriate the revenues in the fund to the State Department of Health Care Services solely for purposes of funding managed care rates for health care services for children, seniors, persons with disabilities, and duel eligibles in the Medi-Cal program that reflect the cost of services and acuity of the population served. By changing the definition of a crime, the bill would impose a state-mandated local program. This bill would also appropriate $245,000,000 from the Federal Trust Fund to the Managed Risk Medical Insurance Board for the purposes of the Healthy Families Program to be available for expenditure in the 2012–13 fiscal year. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. This bill would declare that it is to take effect immediately as an urgency statute.

Bill Text

Action History

  1. Died on inactive file.

  2. Ordered to inactive file at the request of Senator Leno.

  3. Joint Rule 10.5 suspended. (Ayes 28. Noes 10. Page 1363.)

  4. (Ayes 24. Noes 6. Page 1361.)

  5. Ordered to third reading.

  6. Withdrawn from committee.

  7. From committee chair, with author's amendments: Amend, and re-refer to committee. Read second time, amended, and re-referred to Com. on RLS.

  8. Referred to Com. on RLS.

  9. In Senate. Read first time. To Com. on RLS. for assignment.

  10. Read third time. Passed. Ordered to the Senate. (Ayes 51. Noes 24. Page 1394.)

  11. (Ayes 53. Noes 22. Page 1314.)

  12. Read second time. Ordered to third reading.

  13. Assembly Rule 63 suspended. (Ayes 53. Noes 22. Page 1313.)

  14. Ordered to second reading.

  15. (Ayes 53. Noes 22. Page 1312.)

  16. Withdrawn from committee.

  17. Referred to Com. on BUDGET.

  18. From printer. May be heard in committee February 10.

  19. Read first time. To print.

Sponsors

  • Committee on Budget · Primary

Sponsorship breakdown

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1 sponsors · 0 co-sponsors · 121 not signed on · 5 voted No

Sponsors (1)

  • Committee on Budget

Co-sponsors (0)

None.

Not signed on (121)

121 members have not signed on to this bill.

Show all 121 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

AB 83 BUDGET Assembly Third Reading By BLUMENFIELD

Passed 51 Yea · 24 Nay · 4 Other
Party YeaNayPresentNot Voting
Unaffiliated 452003
Democratic 6001
Republican 0400
Total 512404
% of votes cast 65%30%0%5%
How each member voted (79)
Member Party Vote
Achadjian — Nay
Alejo — Yea
Ammiano — Not Voting
Bigelow — Nay
Blumenfield — Yea
Bradford — Yea
Brown — Yea
Buchanan — Yea
Mansoor — Nay
Medina — Yea
Nestande — Nay
Skinner — Yea
Wagner — Nay
Campos — Yea
Frazier — Yea
Gomez — Yea
Stone — Yea
Hall — Yea
Gray — Yea
Atkins — Yea
Jones-Sawyer — Yea
Mitchell — Yea
Bonilla — Yea
Levine — Yea
Mullin — Yea
Nazarian — Yea
Bocanegra — Yea
John A. Pérez — Yea
Salas — Yea
Bloom — Yea
Cooley — Yea
Daly — Yea
Dickinson — Yea
Eggman — Yea
Pan — Yea
Perea — Yea
Quirk — Yea
Rendon — Yea
Torres — Yea
Wieckowski — Yea
Williams — Yea
Gorell — Nay
Lowenthal — Not Voting
Chau — Yea
Chesbro — Yea
Harkey — Nay
Holden — Not Voting
Linder — Nay
Logue — Nay
Maienschein — Nay
Melendez — Nay
Chávez — Nay
Conway — Nay
Donnelly — Nay
Morrell — Nay
Olsen — Nay
Ting — Yea
Waldron — Nay
Weber — Yea
Wilk — Nay
Fox — Yea
Gatto — Yea
Yamada — Yea
Gordon — Yea
Hagman — Nay
Beth Gaines — Nay
Roger Hernández — Yea
V. Manuel Pérez — Yea
Allen, Benjamin Democratic Not Voting
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Fong, Mike Democratic Yea
Garcia, Robert Democratic Yea
Muratsuchi, Al Democratic Yea
Quirk-Silva, Sharon Democratic Yea
Dahle, Megan Republican Nay
Grove, Shannon Republican Nay
Jones, Brian W. Republican Nay
Patterson, Joe Republican Nay

Official roll call →

Subjects

taxation healthcare
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Frequently asked questions

What does AB 83 do?
Existing law establishes the Medi-Cal program, administered by the State Department of Health Care Services, under which health care services are provided to qualified, low-income persons. The Medi-Cal program is, in part, governed and funded by federal Medicaid Program provisions. Under existing law, one of the methods by which Medi-Cal services are provided is pursuant to contracts with various types of managed care plans. Existing law imposes a tax on the gross premiums of insurers in lieu of other taxes on insurers, and, until July 1, 2012, imposed a tax on the total operating revenue, of a Medi-Cal managed care plan, as defined. The revenues derived from the tax on Medi-Cal managed care plans are continuously appropriated for specified purposes. This bill would, beginning July 1, 2012, and ending July 1, 2013, impose a tax on the total operating revenue of a Medi-Cal managed care plan, as defined. The proceeds from the tax would be continuously appropriated from the Children's Health and Human Services Special Fund to the State Department of Health Care Services and the Managed Risk Medical Insurance Board for specified purposes. This bill also would authorize the Controller to loan funds in the Children's Health and Human Services Special Fund to the General Fund, as provided. Existing law requires every return required to be filed with the State Insurance Commissioner pursuant to provisions governing taxes on the gross premiums of insurers to be signed by the insurer or an executive officer of the insurer and to be made under oath or contain a written declaration that it is made under penalty of perjury. This bill would also require Medi-Cal managed care plans to file returns with the commissioner under oath or with a written declaration that is made under penalty of perjury. By expanding the crime of perjury, this bill would impose a state-mandated local program. The Sales and Use Tax Law imposes a sales tax on retailers for the privilege of selling tangible personal property at retail, measured by the gross receipts from the sale of tangible personal property sold at retail in this state. A violation of specified provisions of this law is a crime. This bill would, on July 1, 2013, and before July 1, 2016, except if specified contingencies occur as provided, and only if and to the extent that federal financial participation is available and necessary federal approvals have been obtained, impose a sales tax on sellers of Medi-Cal managed care plans for the privilege of selling Medi-Cal health care services at retail, measured by the gross receipts from the sale of those services in this state at a specified rate of those gross receipts, as provided. This bill would specify that a seller is a person or entity that enters into a contract with the State Department of Health Care Services to provide for specified health care services, as provided. This bill would provide for the administration of the tax by the State Board of Equalization. This bill would require all revenues, less refunds, derived from the taxes to be deposited into the Children's Health and Human Services Special Fund. This bill would continuously appropriate the revenues in the fund to the State Department of Health Care Services solely for purposes of funding managed care rates for health care services for children, seniors, persons with disabilities, and duel eligibles in the Medi-Cal program that reflect the cost of services and acuity of the population served. By changing the definition of a crime, the bill would impose a state-mandated local program. This bill would also appropriate $245,000,000 from the Federal Trust Fund to the Managed Risk Medical Insurance Board for the purposes of the Healthy Families Program to be available for expenditure in the 2012–13 fiscal year. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. This bill would declare that it is to take effect immediately as an urgency statute.
Who sponsors AB 83?
AB 83 is sponsored by Committee on Budget.
What is the current status of AB 83?
This bill died with 2013-2014 Regular Session. It reached “Passed Assembly” and never advanced before the session ended, so it can no longer move — a new version would have to be reintroduced in the current session.
Where can I track AB 83?
Track AB 83 free on One Click Politics — get push/email alerts when it moves.

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