California 2013-2014 Regular Session Status: Enacted

SB 78 — Public health: Medi-Cal managed care plan taxes.

Last action — Chaptered by Secretary of State. Chapter 33, Statutes of 2013.

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

This bill has been enacted into law. Introduced January 10, 2013. Enacted.

Prognosis

Likely to advance 70% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 1 sponsor

    1 primary, 0 co-sponsors signed on.

  • Cleared a recorded vote

    Passed 3 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

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. 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. 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 dual 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. Chaptered by Secretary of State. Chapter 33, Statutes of 2013.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 4:45 p.m.

  4. (Corrected June 18.)

  5. Assembly amendments concurred in. (Ayes 27. Noes 10.) Ordered to engrossing and enrolling.

  6. Urgency clause adopted.

  7. In Senate. Concurrence in Assembly amendments pending.

  8. Read third time. Urgency clause adopted. Passed. (Ayes 54. Noes 25. Page 2034.) Ordered to the Senate.

  9. Ordered to third reading.

  10. Withdrawn from committee. (Ayes 53. Noes 24. Page 2032.)

  11. From committee with author's amendments. Read second time and amended. Re-referred to Com. on BUDGET.

  12. Referred to Com. on BUDGET.

  13. In Assembly. Read first time. Held at Desk.

  14. Read third time. Passed. (Ayes 24. Noes 9. Page 893.) Ordered to the Assembly.

  15. Read second time. Ordered to third reading.

  16. Ordered to second reading.

  17. Withdrawn from committee.

  18. Referred to Com. on RLS.

  19. From printer. May be acted upon on or after February 10.

  20. (Corrected May 9).

  21. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

  • Committee on Budget and Fiscal Review · Primary

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 0 co-sponsors · 121 not signed on · 7 voted No

Sponsors (1)

  • Committee on Budget and Fiscal Review

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

SB 78 B. & F. R. Senate Third Reading By BLUMENFIELD

Passed 54 Yea · 25 Nay
Party YeaNayPresentNot Voting
Unaffiliated 482000
Democratic 6100
Republican 0400
Total 542500
% of votes cast 68%32%0%0%
How each member voted (79)
Member Party Vote
Achadjian — Nay
Alejo — Yea
Bloom — Yea
Blumenfield — Yea
Bradford — Yea
Brown — Yea
Buchanan — Yea
Jones-Sawyer — Yea
Linder — Nay
Maienschein — Nay
Mansoor — Nay
Olsen — Nay
Perea — Yea
Rendon — Yea
Wagner — Nay
Weber — Yea
Williams — Yea
Stone — Yea
Lowenthal — Yea
Gray — Yea
Daly — Yea
Skinner — Yea
Atkins — Yea
Mitchell — Yea
Campos — Yea
Chau — Yea
Bonilla — Yea
Frazier — Yea
Gatto — Yea
Gonzalez — Yea
Gordon — Yea
Hagman — Nay
Bocanegra — Yea
Harkey — Nay
John A. Pérez — Yea
Salas — Yea
Ammiano — Yea
Bigelow — Nay
Chesbro — Yea
Cooley — Yea
Holden — Yea
Levine — Yea
Logue — Nay
Dickinson — Yea
Eggman — Yea
Medina — Yea
Melendez — Nay
Mullin — Yea
Nazarian — Yea
Pan — Yea
Quirk — Yea
Ting — Yea
Waldron — Nay
Wieckowski — Yea
Wilk — Nay
Chávez — Nay
Morrell — Nay
Conway — Nay
Donnelly — Nay
Nestande — Nay
Fox — Yea
Yamada — Yea
Gomez — Yea
Gorell — Nay
Hall — Yea
Beth Gaines — Nay
Roger Hernández — Yea
V. Manuel Pérez — Yea
Allen, Benjamin Democratic Nay
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 →

Unfinished Supp 1 SB78 Committee on B. & F.R. (Leno) Urgency Clause Concurrence

Passed 27 Yea · 10 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 241002
Democratic 3000
Total 271002
% of votes cast 69%26%0%5%
How each member voted (39)
Member Party Vote
Lara — Yea
Liu — Not Voting
Monning — Yea
Steinberg — Yea
Walters — Nay
Wolk — Yea
Emmerson — Nay
Evans — Yea
Hernandez — Yea
Correa — Yea
De León — Yea
DeSaulnier — Yea
Galgiani — Yea
Hueso — Yea
Leno — Yea
Lieu — Yea
Price — Yea
Roth — Yea
Torres — Yea
Beall — Yea
Block — Yea
Cannella — Nay
Corbett — Yea
Hill — Yea
Knight — Nay
Nielsen — Nay
Pavley — Yea
Wright — Yea
Anderson — Nay
Wyland — Nay
Huff — Nay
Fuller — Nay
Yee — Yea
Hancock — Yea
Beth Gaines — Nay
Bill Berryhill — Not Voting
Calderon, Lisa Democratic Yea
Jackson, Corey A. Democratic Yea
Padilla, Stephen C. Democratic Yea

Official roll call →

3rd Reading SB78 Committee on B. & F.R.

Passed 24 Yea · 9 Nay · 5 Other
Party YeaNayPresentNot Voting
Unaffiliated 22904
Democratic 2001
Total 24905
% of votes cast 63%24%0%13%
How each member voted (38)
Member Party Vote
Anderson — Nay
Beall — Yea
Block — Yea
Hill — Yea
Lara — Yea
Liu — Yea
Wolk — Yea
Emmerson — Nay
Correa — Yea
DeSaulnier — Yea
Wright — Yea
Wyland — Nay
De León — Yea
Cannella — Nay
Evans — Yea
Galgiani — Yea
Hernandez — Yea
Hueso — Yea
Huff — Nay
Knight — Nay
Corbett — Yea
Leno — Yea
Lieu — Not Voting
Monning — Yea
Nielsen — Nay
Pavley — Yea
Price — Not Voting
Roth — Yea
Steinberg — Yea
Walters — Not Voting
Fuller — Nay
Yee — Yea
Hancock — Yea
Beth Gaines — Not Voting
Bill Berryhill — Nay
Calderon, Lisa Democratic Not Voting
Jackson, Corey A. Democratic Yea
Padilla, Stephen C. Democratic Yea

Official roll call →

Subjects

taxation healthcare health-insurance
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

What does SB 78 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. 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. 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 dual 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 SB 78?
SB 78 is sponsored by Committee on Budget and Fiscal Review.
What is the current status of SB 78?
This bill has been enacted into law. Introduced January 10, 2013. Enacted.
Where can I track SB 78?
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