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AB-3017 Qualified medical supplies providers: sales taxes: repayment. (2017-2018)



SECTION 1.

 Section 6836 is added to the Revenue and Taxation Code, to read:

6836.
 (a) A qualified medical supplies provider may receive from the state a qualified repayment if all of the provisions of this section are satisfied.
(b) (1) For purposes of this section, a “qualified medical supplies provider” means a pharmacy or durable medical equipment provider enrolled in Medi-Cal who meets all of the following requirements:
(A) The pharmacy or durable medical equipment provider furnished medical supplies or equipment to Medi-Cal beneficiaries as a Medi-Cal provider and had its reimbursement payments from Medi-Cal for those medical supplies or equipment reduced pursuant to Chapter 3 of the Statutes of 2011.
(B) The pharmacy or provider paid to the State Board of Equalization sales taxes imposed under the Sales and Use Tax Law (Part 1 (commencing with Section 6001)), and Sections 35 and 36 of Article XIII of the California Constitution on the gross receipts from the 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 Chapter 3 of the Statutes of 2011.
(2) “Qualified repayment” means an amount equal to the amount of sales tax reimbursement paid back to the State Department of Health Care Services by the qualified medical supplies provider described in subparagraph (B) of paragraph (1), less any amounts previously refunded, credited, or paid to a qualified medical supplies provider through any means whatsoever.
(c) (1) Before January 1, ____, a qualified medical supplies provider may file a claim for a qualified repayment with the California Department of Tax and Fee Administration.
(2) The claim shall be in writing, and shall be completed in accordance with any instructions or regulations as the department may prescribe, including, but not limited to, proof of payment of the tax described in subparagraph (B) of paragraph (1) of subdivision (b).
(3) The department shall work with representatives of a qualified medical supplies provider to establish the information and documentation necessary to process a claim for repayment using information available to the qualified medical supplies provider from the Medi-Cal program.
(4) On or before March 1, 2020, the department shall provide to the Controller the amount of qualified repayments to be made to each qualified medical supplies provider pursuant to this section. The total amount of money available to make qualified repayments shall not exceed an amount equal to the aggregate amount of qualified repayments paid to the State Department of Health and Care Services. If the total amount of claims filed exceeds the amount appropriated or the amount appropriated is less than the aggregate amount of qualified repayments received by the State Department of Health and Care Services, the department shall determine the pro rata share due to each qualified medical supplies provider based on the proportion each claim bears to the total amount of claims and shall report that amount to be provided.
(5) There is hereby appropriated from the General Fund to the department an amount necessary to make the payments of qualified repayments to qualified medical supplies providers allowed pursuant to this section.
(6) No interest shall be paid on any qualified repayment made pursuant to this section.
SEC. 2.
 The Legislature finds and declares that the addition of Section 6836 to the Revenue and Taxation Code by this act serves a public purpose and does not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution by allowing Medi-Cal providers, who furnish medical supplies or equipment to vulnerable Californians and were denied a refund by the statute of limitations, to recoup a portion of sale tax amounts paid on the sales of those items for which Medi-Cal reimbursements were reduced retroactively after delays by court action.
SEC. 3.
 This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
To protect the financial solvency of affected qualified medical supplies providers who furnish medical supplies or equipment to vulnerable Californians as soon as possible, it is necessary that this act take effect immediately.