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AB-826 Medi-Cal: managed care plan tax: Healthy Families Program transition: skilled nursing facility and managed care plan charges.(2011-2012)

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AB826:v95#DOCUMENT

Amended  IN  Senate  August 24, 2012
Amended  IN  Senate  August 31, 2011
Amended  IN  Senate  June 21, 2011
Amended  IN  Assembly  March 31, 2011

CALIFORNIA LEGISLATURE— 2011–2012 REGULAR SESSION

Assembly Bill
No. 826


Introduced  by Atkins Assembly Member Swanson, Williams, Perea
(Principal Coauthor(s): Senator Cannella, DeSaulnier, Pavley, Rubio, Strickland, Yee)
AmmianoFongYamada (Coauthor(s): Assembly Member Lara, Miller, Nestande, Pan, V. Manuel Peréz, Wieckowski)
(Coauthor(s): Senator Berryhill, Emmerson)

February 17, 2011


An act to add Section 3073.5 to the Penal Code, relating to parolees. An act to repeal Chapter 16.2 (commencing with Section 12694.1) of Part 6.2 of Division 2 of the Insurance Code, to amend Sections 12009, 12201, 12204, 12207, 12242, 12251, 12253, 12254, 12257, 12258, 12260, 12301, 12302, 12303, 12304, 12305, 12307, 12412, 12413, 12421, 12422, 12423, 12427, 12428, 12429, 12431, 12433, 12434, 12491, 12493, 12494, 12601, 12602, 12631, 12632, 12636, 12636.5, 12679, 12681, 12801, 12951, 12977, 12983, 12984, and 13108 of the Revenue and Taxation Code, and to repeal Sections 14005.26 and 14005.27 of, the Welfare and Institutions Code, and to repeal Section 92 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, relating to health, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


AB 826, as amended, Atkins Swanson. Parolees: mentally ill: services. Medi-Cal: managed care plan tax: Healthy Families Program transition: skilled nursing facility and managed care plan charges.
(1) Existing law provides for the Medi-Cal program, which is administered by the State Department of Health Care Services, under which qualified low-income individuals receive health care services. 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 through contracts with various types of managed care plans. Existing law imposes a tax at a specified rate on the gross premiums of an insurer, as defined, and, until July 1, 2012, on the total operating revenue, as specified, of a Medi-Cal managed care plan, as defined. Existing law exempts from that tax the total operating revenue of a Medi-Cal managed care plan, if specified events occur before July, 1, 2012. Existing law continuously appropriates the revenues derived from the tax on Medi-Cal managed care plans for specified purposes.
This bill would extend the imposition of the tax on the total operating revenue of Medi-Cal managed care plans until July 1, 2014, and would make other conforming changes. 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, until July 1, 2013. By extending the imposition of a tax whose revenues are continuously appropriated, this bill would make an appropriation.
(2) Existing law requires, until July 1, 2012, every return required to be filed with the Insurance Commissioner pursuant to provisions governing taxes on the total operating revenue of Medi-Cal managed care plans to be signed by the insurer or the Medi-Cal managed care plan or an executive officer of the insurer or the plan and to be made under oath or contain a written declaration that is made under penalty of perjury.
This bill would instead apply this signature requirement until July 1, 2013. By expanding the crime of perjury, this bill would impose a state-mandated local program.
(3) Existing law creates the Healthy Families Program, administered by the Managed Risk Medical Insurance Board (MRMIB), to arrange for the provision of health, vision, and dental benefits to eligible children pursuant to a federal program, the Children’s Health Insurance Program.
Under existing law, the Director of Health Care Services may contract with any qualified individual, organization, or entity to provide services to, arrange for, or case manage the care of Medi-Cal beneficiaries, subject to specified requirements. Existing law requires a Medi-Cal applicant or beneficiary to be informed of the managed care and fee-for-service options available regarding methods of receiving Medi-Cal benefits.
Existing law provides for the transition of specified enrollees of the Healthy Families Program to the Medi-Cal program, to the extent that those individuals are otherwise eligible, no sooner than January 1, 2013. Existing law requires this transition to take place in 4 phases, as prescribed.
This bill would repeal the provisions requiring the transfer of Healthy Families Program enrollees into the Medi-Cal program.
(4) Section 92 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011 provides that act becomes inoperative if any of its provisions are amended or repealed.
This bill would repeal that provision and would provide that, notwithstanding Section 92 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, the provisions of Chapter 11 of the First Extraordinary Session of the Statutes of 2011 do not become inoperative upon the amendment or repeal of any provision of that chapter made by this bill.
(5) This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIII A of the California Constitution, and thus would require for passage the approval of 2/3 of the membership of each house of the Legislature.
(6) 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.

Existing law requires that certain mentally disordered prisoners, as a condition of parole, be treated by the State Department of Mental Health, as provided. Existing law authorizes the Department of Corrections and Rehabilitation to obtain day treatment, and to contract for crisis care services, for parolees with mental health problems.

This bill would require certain program contractors who provide day treatment and crisis care services for those parolees to report to the Department of Corrections and Rehabilitation regarding the outcome of services provided to program participants, as specified. The bill would also require the department, by February 1, 2012, to report to the chairpersons of specified legislative committees information provided by program contractors, as specified, the recidivism rate of program participants, the number of program participants who recidivate, the annual cost of the program, the funding sources, and the average cost per participant.

Vote: MAJORITY2/3   Appropriation: NOYES   Fiscal Committee: YES   Local Program: NOYES  

The people of the State of California do enact as follows:


SECTION 1.

 Chapter 16.2 (commencing with Section 12694.1) of Part 6.2 of Division 2 of the Insurance Code is repealed.

SEC. 2.

 Section 12009 of the Revenue and Taxation Code is amended to read:

12009.
 (a) “Medi-Cal managed care plan” or “plan” means any individual, organization, or entity, other than an insurer as described in Section 12003 or a dental managed care plan as described in Section 14087.46 of the Welfare and Institutions Code, that enters into a contract with the State Department of Health Care Services pursuant to Article 2.7 (commencing with Section 14087.3), Article 2.8 (commencing with Section 14087.5), Article 2.81 (commencing with Section 14087.96), Article 2.9 (commencing with Section 14088), or Article 2.91 (commencing with Section 14089) of Chapter 7 of, or pursuant to Article 1 (commencing with Section 14200) or Article 7 (commencing with Section 14490) of Chapter 8 of, Part 3 of Division 9 of the Welfare and Institutions Code.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 3.

 Section 12201 of the Revenue and Taxation Code, as amended by Section 2 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12201.
 (a) Every insurer and Medi-Cal managed care plan doing business in this state shall annually pay to the state a tax on the bases, at the rates, and subject to the deductions from the tax hereinafter specified. For purposes of the tax imposed by this chapter, “insurer” shall be deemed to include a home protection company as defined in Section 12740 of the Insurance Code.
(b) Notwithstanding Section 13340 of the Government Code, the revenues derived from the imposition of the tax by this chapter on Medi-Cal managed care plans are hereby continuously appropriated as follows:
(1) A percentage of the revenues derived from the imposition of the tax by this chapter on Medi-Cal managed care plans equal to the difference between 100 percent and the applicable federal medical assistance percentage (FMAP) to the department for purposes of the Medi-Cal program.
(2) After deducting the revenues appropriated pursuant to paragraph (1), any remaining revenue to the Managed Risk Medical Insurance Board for purposes of the Healthy Families Program.
(c) The Insurance Commissioner shall report the amount of revenue derived from the tax imposed on Medi-Cal managed care plans pursuant to this section to the California Health and Human Services Agency, the Joint Legislative Budget Committee, and the Department of Finance.
(d) Notwithstanding any other law, the Controller may use the funds in the Children’s Health and Human Services Special Fund for cashflow loans to the General Fund as provided in Sections 16310 and 16381 of the Government Code.
(e) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed. Any tax imposed by this section shall continue to be due and payable until the tax is paid.

SEC. 4.

 Section 12201 of the Revenue and Taxation Code, as amended by Section 3 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12201.
 (a) Every insurer doing business in this state shall annually pay to the state a tax on the bases, at the rates, and subject to the deductions from the tax hereinafter specified. For purposes of the tax imposed by this chapter, “insurer” shall be deemed to include a home protection company as defined in Section 12740 of the Insurance Code.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 5.

 Section 12204 of the Revenue and Taxation Code, as amended by Section 4 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12204.
 (a) The tax imposed on insurers by this chapter is in lieu of all other taxes and licenses, state, county, and municipal, upon those insurers and their property, except:
(1) Taxes upon their real estate.
(2) Any retaliatory exactions imposed by paragraph (3) of subdivision (f) of Section 28 of Article XIII of the Constitution.
(3) The tax on ocean marine insurance.
(4) Motor vehicle and other vehicle registration license fees and any other tax or license fee imposed by the state upon vehicles, motor vehicles or the operation thereof.
(5) That each corporate or other attorney-in-fact of a reciprocal or interinsurance exchange shall be subject to all taxes imposed upon corporations or others doing business in the state, other than taxes on income derived from its principal business as attorney-in-fact.
(b) This section shall not apply to any Medi-Cal managed care plan and to any tax imposed on that plan by this chapter.
(c) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 6.

 Section 12204 of the Revenue and Taxation Code, as amended by Section 5 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12204.
 (a) The tax imposed on insurers by this chapter is in lieu of all other taxes and licenses, state, county, and municipal, upon those insurers and their property, except:
(1) Taxes upon their real estate.
(2) Any retaliatory exactions imposed by paragraph (3) of subdivision (f) of Section 28 of Article XIII of the California Constitution.
(3) The tax on ocean marine insurance.
(4) Motor vehicle and other vehicle registration license fees and any other tax or license fee imposed by the state upon vehicles, motor vehicles or the operation thereof.
(5) That each corporate or other attorney-in-fact of a reciprocal or interinsurance exchange shall be subject to all taxes imposed upon corporations or others doing business in the state, other than taxes on income derived from its principal business as attorney-in-fact.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 7.

 Section 12207 of the Revenue and Taxation Code is amended to read:

12207.
 (a) Notwithstanding any other provision of this part, no credit shall be allowed under Section 12206, 12208, or 12209 against the tax imposed on Medi-Cal managed care plans pursuant to Section 12201.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 8.

 Section 12242 of the Revenue and Taxation Code is amended to read:

12242.
 This article shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 9.

 Section 12251 of the Revenue and Taxation Code, as amended by Section 8 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12251.
 (a) For the calendar year 1970, and each calendar year thereafter, insurers transacting insurance in this state and whose annual tax for the preceding calendar year was five thousand dollars ($5,000) or more shall make prepayments of the annual tax for the current calendar year imposed by Section 28 of Article XIII of the California Constitution and this part, provided that no prepayments shall be made with respect to the tax on ocean marine insurance underwriting profit or any retaliatory tax.
(b) Medi-Cal managed care plans shall make prepayments of the tax imposed by Section 12201 for the current calendar year, except that no prepayments shall be required prior to the effective date of the act adding this subdivision, and no penalties and interest shall be imposed pursuant to Section 12261 for not making those prepayments.
(c) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 10.

 Section 12251 of the Revenue and Taxation Code, as amended by Section 9 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12251.
 (a) For the calendar year 1970, and each calendar year thereafter, insurers transacting insurance in this state and whose annual tax for the preceding calendar year was five thousand dollars ($5,000) or more shall make prepayments of the annual tax for the current calendar year imposed by Section 28 of Article XIII of the California Constitution and this part, provided that no prepayments shall be made with respect to the tax on ocean marine insurance underwriting profit or any retaliatory tax.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 11.

 Section 12253 of the Revenue and Taxation Code, as amended by Section 10 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12253.
 (a) Each insurer and Medi-Cal managed care plan required to make prepayments shall remit them on or before each of the dates of April 1st, June 1st, September 1st, and December 1st of the current calendar year. Remittances for prepayments shall be made payable to the Controller and shall be delivered to the office of the commissioner, accompanied by a prepayment form prescribed by the commissioner.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 12.

 Section 12253 of the Revenue and Taxation Code, as amended by Section 11 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12253.
 (a) Each insurer required to make prepayments shall remit them on or before each of the dates of April 1st, June 1st, September 1st, and December 1st of the current calendar year. Remittances for prepayments shall be made payable to the Controller and shall be delivered to the office of the commissioner, accompanied by a prepayment form prescribed by the commissioner.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 13.

 Section 12254 of the Revenue and Taxation Code, as amended by Section 12 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12254.
 (a) (1) For each insurer, the amount of each prepayment shall be 25 percent of the amount of the annual insurance tax liability reported on the return of the insurer for the preceding calendar year.
(2) For each Medi-Cal managed care plan, the amount of each prepayment shall be 25 percent of the amount of tax the plan estimates as the amount of tax imposed by Section 12201 with respect to the plan.
(b) In establishing the prepayment amount of an insurer that has acquired the business of another insurer, the amount of tax liability of the acquiring insurer reported for the preceding calendar year shall be deemed to include the amount of tax liability of the acquired insurer reported for that year.
(c) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 14.

 Section 12254 of the Revenue and Taxation Code, as amended by Section 13 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12254.
 (a) The amount of each prepayment shall be 25 percent of the amount of the annual insurance tax liability reported on the return of the insurer for the preceding calendar year.
(b) In establishing the prepayment amount of an insurer that has acquired the business of another insurer, the amount of tax liability of the acquiring insurer reported for the preceding calendar year shall be deemed to include the amount of tax liability of the acquired insurer reported for that year.
(c) This section shall become operative on July 1, 2012 2013.

SEC. 15.

 Section 12257 of the Revenue and Taxation Code, as amended by Section 14 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12257.
 (a) If the total amount of prepayments for any calendar year exceeds the amount of annual tax for that year, the excess shall be treated as an overpayment of annual tax and, at the election of the insurer or Medi-Cal managed care plan, may be credited against the amounts due and payable for the first prepayment of the following year. Any amount of the overpayment not so credited shall be allowed as a credit or refund under Article 2 (commencing with Section 12977) of Chapter 7 of this part.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 16.

 Section 12257 of the Revenue and Taxation Code, as amended by Section 15 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12257.
 (a) If the total amount of prepayments for any calendar year exceeds the amount of annual tax for that year, the excess shall be treated as an overpayment of annual tax and, at the election of the insurer, may be credited against the amounts due and payable for the first prepayment of the following year. Any amount of the overpayment not so credited shall be allowed as a credit or refund under Article 2 (commencing with Section 12977) of Chapter 7 of this part.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 17.

 Section 12258 of the Revenue and Taxation Code, as amended by Section 16 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12258.
 (a) Any insurer or Medi-Cal managed care plan that fails to pay any prepayment within the time required shall pay a penalty of 10 percent of the amount of the required prepayment, plus interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the due date of the prepayment until the date of payment but not for any period after the due date of the annual tax. Assessments of prepayment deficiencies may be made in the manner provided by deficiency assessments of the annual tax.
(b) Notwithstanding any other law, the prepayment due on September 1, 2011, shall be due no later than 30 days after the effective date of this act for a Medi-Cal managed care plan as defined in subdivision (a) of Section 12009.
(c) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 18.

 Section 12258 of the Revenue and Taxation Code, as amended by Section 17 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12258.
 (a) Any insurer that fails to pay any prepayment within the time required shall pay a penalty of 10 percent of the amount of the required prepayment, plus interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the due date of the prepayment until the date of payment but not for any period after the due date of the annual tax. Assessments of prepayment deficiencies may be made in the manner provided by deficiency assessments of the annual tax.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 19.

 Section 12260 of the Revenue and Taxation Code, as amended by Section 18 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12260.
 (a) Notwithstanding any other provision of this article, the commissioner may relieve an insurer or Medi-Cal managed care plan of its obligation to make prepayments where the insurer or Medi-Cal managed care plan establishes to the satisfaction of the commissioner that the insurer has ceased to transact insurance in this state or the Medi-Cal managed care plan has ceased to operate a plan in this state, or the insurer’s or Medi-Cal managed care plan’s annual tax for the current year will be less than five thousand dollars ($5,000).
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 20.

 Section 12260 of the Revenue and Taxation Code, as amended by Section 19 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12260.
 (a) Notwithstanding any other provision of this article, the commissioner may relieve an insurer of its obligation to make prepayments where the insurer establishes to the satisfaction of the commissioner that either the insurer has ceased to transact insurance in this state, or the insurer’s annual tax for the current year will be less than five thousand dollars ($5,000).
(b) This section shall become operative on July 1, 2012 2013.

SEC. 21.

 Section 12301 of the Revenue and Taxation Code, as amended by Section 20 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12301.
 (a) The taxes imposed upon insurers by Section 28 of Article XIII of the California Constitution and this part, except with respect to taxes on ocean marine insurance and retaliatory taxes, are due and payable annually on or before April 1st of the year following the calendar year in which the insurer engaged in the business of insurance or transacted insurance in this state. The taxes imposed with respect to ocean marine insurance are due and payable on or before June 15th of that year.
(b) With respect to Medi-Cal managed care plans, the taxes imposed by Section 12201 shall be due and payable on or before April 1st of the year following the calendar year in which the plan contracted with the State Department of Health Care Services as described in Section 12009.
(c) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed. However, any tax imposed by Section 12201 shall continue to be due and payable until the tax is paid.

SEC. 22.

 Section 12301 of the Revenue and Taxation Code, as amended by Section 21 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12301.
 (a) The taxes imposed upon insurers by Section 28 of Article XIII of the California Constitution and this part, except with respect to taxes on ocean marine insurance and retaliatory taxes, are due and payable annually on or before April 1st of the year following the calendar year in which the insurer engaged in the business of insurance or transacted insurance in this state. The taxes imposed with respect to ocean marine insurance are due and payable on or before June 15th of that year.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 23.

 Section 12302 of the Revenue and Taxation Code, as amended by Section 22 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12302.
 (a) On or before April 1st (or June 15th with respect to taxes on ocean marine insurance) every person that is subject to any tax imposed by Section 28 of Article XIII of the California Constitution or this part, in respect to the preceding calendar year shall file, in duplicate, a tax return with the commissioner in the form as the commissioner may prescribe. The return shall show that information pertaining to its insurance business, or in the case of a Medi-Cal managed care plan, pertaining to contracts for providing services as described in Section 12009, in this state as will reflect the basis of its tax as set forth in Chapter 2 (commencing with Section 12071) and Chapter 3 (commencing with Section 12201) of this part, the computation of the amount of tax for the period covered by the return, the total amount of any tax prepayments made pursuant to Article 5 (commencing with Section 12251) of Chapter 3 of this part, and any other information as the commissioner may require to carry out the purposes of this part. Separate returns shall be filed with respect to the following kinds of insurance:
(1) Life insurance (or life insurance and disability insurance).
(2) Ocean marine insurance.
(3) Title insurance.
(4) Insurance other than life insurance (or life insurance and disability insurance), ocean marine insurance or title insurance.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 24.

 Section 12302 of the Revenue and Taxation Code, as amended by Section 23 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12302.
 (a) On or before April 1st (or June 15th with respect to taxes on ocean marine insurance) every person that is subject to any tax imposed by Section 28 of Article XIII of the California Constitution or this part, in respect to the preceding calendar year shall file, in duplicate, an insurance tax return with the commissioner in the form as the commissioner may prescribe. The return shall show that information pertaining to its insurance business in this state as will reflect the basis of its tax as set forth in Chapter 2 (commencing with Section 12071) and Chapter 3 (commencing with Section 12201) of this part, the computation of the amount of tax for the period covered by the return, the total amount of any tax prepayments made pursuant to Article 5 (commencing with Section 12251) of Chapter 3 of this part, and any other information as the commissioner may require to carry out the purposes of this part. Separate returns shall be filed with respect to the following kinds of insurance:
(1) Life insurance (or life insurance and disability insurance).
(2) Ocean marine insurance.
(3) Title insurance.
(4) Insurance other than life insurance (or life insurance and disability insurance), ocean marine insurance or title insurance.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 25.

 Section 12303 of the Revenue and Taxation Code, as amended by Section 24 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12303.
 (a) Every return required by this article to be filed with the commissioner shall be signed by the insurer or Medi-Cal managed care plan or an executive officer of the insurer or plan and shall be made under oath or contain a written declaration that it is made under penalty of perjury. A return of a foreign insurer may be signed and verified by its manager residing within this state. A return of an alien insurer may be signed and verified by the United States manager of the insurer.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 26.

 Section 12303 of the Revenue and Taxation Code, as amended by Section 25 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12303.
 (a) Every return required by this article to be filed with the commissioner shall be signed by the insurer or an executive officer of the insurer and shall be made under oath or contain a written declaration that it is made under penalty of perjury. A return of a foreign insurer may be signed and verified by its manager residing within this state. A return of an alien insurer may be signed and verified by the United States manager of the insurer.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 27.

 Section 12304 of the Revenue and Taxation Code, as amended by Section 26 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12304.
 (a) Blank forms of returns shall be furnished by the commissioner on application, but failure to secure the form shall not relieve any insurer or Medi-Cal managed care plan from making or filing a timely return.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 28.

 Section 12304 of the Revenue and Taxation Code, as amended by Section 27 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12304.
 (a) Blank forms of returns shall be furnished by the commissioner on application, but failure to secure the form shall not relieve any insurer from making or filing a timely return.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 29.

 Section 12305 of the Revenue and Taxation Code, as amended by Section 28 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12305.
 (a) The insurer or Medi-Cal managed care plan required to file a return shall deliver the return in duplicate, together with a remittance payable to the Controller, for the amount of tax computed and shown thereon, less any prepayments made pursuant to Article 5 (commencing with Section 12251) of Chapter 3 of this part, to the office of the commissioner.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 30.

 Section 12305 of the Revenue and Taxation Code, as amended by Section 29 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12305.
 (a) The insurer required to file a return shall deliver the return in duplicate, together with a remittance payable to the Controller, for the amount of tax computed and shown thereon, less any prepayments made pursuant to Article 5 (commencing with Section 12251) of Chapter 3 of this part, to the office of the commissioner.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 31.

 Section 12307 of the Revenue and Taxation Code, as amended by Section 30 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12307.
 (a) Any insurer or Medi-Cal managed care plan to which an extension is granted shall pay, in addition to the tax, interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from April 1st until the date of payment.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 32.

 Section 12307 of the Revenue and Taxation Code, as amended by Section 31 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12307.
 (a) Any insurer that is granted an extension shall pay, in addition to the tax, interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from April 1st until the date of payment.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 33.

 Section 12412 of the Revenue and Taxation Code, as amended by Section 32 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12412.
 (a) Upon receipt of the duplicate copy of the return of an insurer or Medi-Cal managed care plan the board shall initially assess the tax in accordance with the data as reported by the insurer or Medi-Cal managed care plan on the return.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 34.

 Section 12412 of the Revenue and Taxation Code, as amended by Section 33 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12412.
 (a) Upon receipt of the duplicate copy of the return of an insurer the board shall initially assess the tax in accordance with the data as reported by the insurer on the return.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 35.

 Section 12413 of the Revenue and Taxation Code, as amended by Section 34 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12413.
 (a) The board shall promptly transmit notice of its initial assessment to the commissioner and the Controller, and if the initial assessment differs from the amount computed by the insurer or Medi-Cal managed care plan, notice shall also be given to the insurer or Medi-Cal managed care plan.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 36.

 Section 12413 of the Revenue and Taxation Code, as amended by Section 35 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12413.
 (a) The board shall promptly transmit notice of its initial assessment to the commissioner and the Controller, and if the initial assessment differs from the amount computed by the insurer, notice shall also be given to the insurer.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 37.

 Section 12421 of the Revenue and Taxation Code, as amended by Section 36 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12421.
 (a) As soon as practicable after an insurer’s, surplus line broker’s, or Medi-Cal managed care plan’s return is filed, the commissioner shall examine it, together with any information within his or her possession or that may come into his or her possession, and he or she shall determine the correct amount of tax of the insurer, surplus line broker, or Medi-Cal managed care plan.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 38.

 Section 12421 of the Revenue and Taxation Code, as amended by Section 37 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12421.
 (a) As soon as practicable after an insurer’s or surplus line broker’s return is filed, the commissioner shall examine it, together with any information within his or her possession or that may come into his or her possession, and he or she shall determine the correct amount of tax of the insurer or surplus line broker.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 39.

 Section 12422 of the Revenue and Taxation Code, as amended by Section 38 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12422.
 (a) If the commissioner determines that the amount of tax disclosed by the insurer’s tax return and assessed by the board is less than the amount of tax disclosed by his or her examination, he or she shall propose, in writing, to the board a deficiency assessment for the difference. The proposal shall set forth the basis for the deficiency assessment and the details of its computation.
(b) If the commissioner determines that the amount of tax disclosed by the surplus line broker’s tax return is less than the amount of tax disclosed by his or her examination, he or she shall propose, in writing, to the board a deficiency assessment for the difference. The proposal shall set forth the basis for the deficiency assessment and the details of its computation.
(c) If the commissioner determines that the amount of tax disclosed by the Medi-Cal managed care plan’s tax return is less than the amount of tax disclosed by his or her examination, he or she shall propose, in writing, to the board a deficiency assessment for the difference. The proposal shall set forth the basis for the deficiency assessment and the details of its computation.
(d) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 40.

 Section 12422 of the Revenue and Taxation Code, as amended by Section 39 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12422.
 (a) If the commissioner determines that the amount of tax disclosed by the insurer’s tax return and assessed by the board is less than the amount of tax disclosed by his or her examination, he or she shall propose, in writing, to the board a deficiency assessment for the difference. The proposal shall set forth the basis for the deficiency assessment and the details of its computation.
(b) If the commissioner determines that the amount of tax disclosed by the surplus line broker’s tax return is less than the amount of tax disclosed by his or her examination, he or she shall propose, in writing, to the board a deficiency assessment for the difference. The proposal shall set forth the basis for the deficiency assessment and the details of its computation.
(c) This section shall become operative on July 1, 2012 2013.

SEC. 41.

 Section 12423 of the Revenue and Taxation Code, as amended by Section 40 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12423.
 (a) If an insurer, surplus line broker, or Medi-Cal managed care plan fails to file a return, the commissioner may require a return by mailing notice to the insurer, surplus line broker, or Medi-Cal managed care plan to file a return by a specified date or he or she may without requiring a return, or upon no return having been filed pursuant to the demand therefor, make an estimate of the amount of tax due for the calendar year or years in respect to which the insurer, surplus line broker, or Medi-Cal managed care plan failed to file the return. The estimate shall be made from any available information which is in the commissioner’s possession or may come into his or her possession, and the commissioner shall propose, in writing, to the board a deficiency assessment for the amount of the estimated tax. The proposal shall set forth the basis of the estimate and the details of the computation of the tax.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 42.

 Section 12423 of the Revenue and Taxation Code, as amended by Section 41 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12423.
 (a) If an insurer or surplus line broker fails to file a return, the commissioner may require a return by mailing notice to the insurer or surplus line broker to file a return by a specified date or he or she may without requiring a return, or upon no return having been filed pursuant to the demand therefor, make an estimate of the amount of tax due for the calendar year or years in respect to which the insurer or surplus line broker failed to file the return. The estimate shall be made from any available information which is in the commissioner’s possession or may come into his or her possession, and the commissioner shall propose, in writing, to the board a deficiency assessment for the amount of the estimated tax. The proposal shall set forth the basis of the estimate and the details of the computation of the tax.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 43.

 Section 12427 of the Revenue and Taxation Code, as amended by Section 42 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12427.
 (a) The board shall promptly notify the insurer, surplus line broker, or Medi-Cal managed care plan of a deficiency assessment made against the insurer, surplus line broker, or Medi-Cal managed care plan.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 44.

 Section 12427 of the Revenue and Taxation Code, as amended by Section 43 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12427.
 (a) The board shall promptly notify the insurer or surplus line broker of a deficiency assessment made against the insurer or surplus line broker.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 45.

 Section 12428 of the Revenue and Taxation Code, as amended by Section 44 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12428.
 (a) An insurer, surplus line broker, or Medi-Cal managed care plan against which a deficiency assessment is made under Section 12424 or 12425 may petition for redetermination of the deficiency assessment within 30 days after service upon the insurer, surplus line broker, or Medi-Cal managed care plan of the notice thereof, by filing with the board a written petition setting forth the grounds of objection to the deficiency assessment and the correction sought. At the time the petition is filed with the board, a copy of the petition shall be filed with the commissioner.
If a petition for redetermination is not filed within the period prescribed by this section, the deficiency assessment becomes final and due and payable at the expiration of that period.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 46.

 Section 12428 of the Revenue and Taxation Code, as amended by Section 45 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12428.
 (a) An insurer or surplus line broker against which a deficiency assessment is made under Section 12424 or 12425 may petition for redetermination of the deficiency assessment within 30 days after service upon the insurer or surplus line broker of the notice thereof, by filing with the board a written petition setting forth the grounds of objection to the deficiency assessment and the correction sought. At the time the petition is filed with the board, a copy of the petition shall be filed with the commissioner.
If a petition for redetermination is not filed within the period prescribed by this section, the deficiency assessment becomes final and due and payable at the expiration of that period.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 47.

 Section 12429 of the Revenue and Taxation Code, as amended by Section 46 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12429.
 (a) If a petition for redetermination of a deficiency assessment is filed within the time allowed under Section 12428, the board shall reconsider the deficiency assessment and, if the insurer, surplus line broker, or Medi-Cal managed care plan has so requested in the petition, shall grant an oral hearing for the presentation of evidence and argument before the board or its authorized representative. The board shall give the petitioner and the commissioner at least 20 days’ notice of the time and place of hearing. The hearing may be continued from time to time as may be necessary.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 48.

 Section 12429 of the Revenue and Taxation Code, as amended by Section 47 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12429.
 (a) If a petition for redetermination of a deficiency assessment is filed within the time allowed under Section 12428, the board shall reconsider the deficiency assessment and, if the insurer or surplus line broker has so requested in the petition, shall grant an oral hearing for the presentation of evidence and argument before the board or its authorized representative. The board shall give the petitioner and the commissioner at least 20 days’ notice of the time and place of hearing. The hearing may be continued from time to time as may be necessary.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 49.

 Section 12431 of the Revenue and Taxation Code, as amended by Section 48 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12431.
 (a) The order or decision of the board upon a petition for redetermination of a deficiency assessment becomes final 30 days after service on the insurer, surplus line broker, or Medi-Cal managed care plan of a notice thereof, and any resulting deficiency assessment is due and payable at the time the order or decision becomes final.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 50.

 Section 12431 of the Revenue and Taxation Code, as amended by Section 49 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12431.
 (a) The order or decision of the board upon a petition for redetermination of a deficiency assessment becomes final 30 days after service on the insurer or surplus line broker of a notice thereof, and any resulting deficiency assessment is due and payable at the time the order or decision becomes final.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 51.

 Section 12433 of the Revenue and Taxation Code, as amended by Section 50 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12433.
 (a) If before the expiration of the time prescribed in Section 12432 for giving of a notice of deficiency assessment the insurer, surplus line broker, or Medi-Cal managed care plan has consented in writing to the giving of the notice after that time, the notice may be given at any time prior to the expiration of the time agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 52.

 Section 12433 of the Revenue and Taxation Code, as amended by Section 51 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12433.
 (a) If before the expiration of the time prescribed in Section 12432 for giving of a notice of deficiency assessment the insurer or surplus line broker has consented in writing to the giving of the notice after that time, the notice may be given at any time prior to the expiration of the time agreed upon. The period so agreed upon may be extended by subsequent agreements in writing made before the expiration of the period previously agreed upon.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 53.

 Section 12434 of the Revenue and Taxation Code, as amended by Section 52 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12434.
 (a) Any notice required by this article shall be placed in a sealed envelope, with postage paid, addressed to the insurer, surplus line broker, or Medi-Cal managed care plan at its address as it appears in the records of the commissioner or the board. The giving of notice shall be deemed complete at the time of deposit of the notice in the United States Post Office, or a mailbox, subpost office, substation or mail chute or other facility regularly maintained or provided by the United States Postal Service, without extension of time for any reason. In lieu of mailing, a notice may be served personally by delivering to the person to be served and service shall be deemed complete at the time of the delivery. Personal service to a corporation may be made by delivery of a notice to any person designated in the Code of Civil Procedure to be served for the corporation with summons and complaint in a civil action.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 54.

 Section 12434 of the Revenue and Taxation Code, as amended by Section 53 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12434.
 (a) Any notice required by this article shall be placed in a sealed envelope, with postage paid, addressed to the insurer or surplus line broker at its address as it appears in the records of the commissioner or the board. The giving of notice shall be deemed complete at the time of deposit of the notice in the United States Post Office, or a mailbox, subpost office, substation or mail chute or other facility regularly maintained or provided by the United States Postal Service, without extension of time for any reason. In lieu of mailing, a notice may be served personally by delivering to the person to be served and service shall be deemed complete at the time of the delivery. Personal service to a corporation may be made by delivery of a notice to any person designated in the Code of Civil Procedure to be served for the corporation with summons and complaint in a civil action.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 55.

 Section 12491 of the Revenue and Taxation Code, as amended by Section 54 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12491.
 (a) Every tax levied upon an insurer under Article XIII of the California Constitution and this part is a lien upon all property and franchises of every kind and nature belonging to the insurer, and has the effect of a judgment against the insurer.
(b) (1) Every tax levied upon a surplus line broker under Part 7.5 (commencing with Section 13201) of Division 2 is a lien upon all property and franchises of every kind and nature belonging to the surplus line broker, and has the effect of a judgment against the surplus line broker.
(2) A lien levied pursuant to this subdivision shall not exceed the amount of unpaid tax collected by the surplus line broker.
(c) (1) Every tax levied upon a Medi-Cal managed care plan under Chapter 1 (commencing with Section 12001) is a lien upon all property and franchises of every kind and nature belonging to the Medi-Cal managed care plan, and has the effect of a judgment against the Medi-Cal managed care plan.
(2) A lien levied pursuant to this subdivision shall not exceed the amount of unpaid tax collected by the Medi-Cal managed care plan.
(d) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 56.

 Section 12491 of the Revenue and Taxation Code, as amended by Section 55 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12491.
 (a) Every tax levied upon an insurer under the provisions of Article XIII of the California Constitution and of this part is a lien upon all property and franchises of every kind and nature belonging to the insurer, and has the effect of a judgment against the insurer.
(b) (1) Every tax levied upon a surplus line broker under the provisions of Part 7.5 (commencing with Section 13201) of Division 2 is a lien upon all property and franchises of every kind and nature belonging to the surplus line broker, and has the effect of a judgment against the surplus line broker.
(2) A lien levied pursuant to this subdivision shall not exceed the amount of unpaid tax collected by the surplus line broker.
(c) This section shall become operative on July 1, 2012 2013.

SEC. 57.

 Section 12493 of the Revenue and Taxation Code, as amended by Section 56 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12493.
 (a) Every lien has the effect of an execution duly levied against all property of a delinquent insurer, surplus line broker, or Medi-Cal managed care plan.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 58.

 Section 12493 of the Revenue and Taxation Code, as amended by Section 57 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12493.
 (a) Every lien has the effect of an execution duly levied against all property of a delinquent insurer or surplus line broker.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 59.

 Section 12494 of the Revenue and Taxation Code, as amended by Section 58 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12494.
 (a) No judgment is satisfied nor lien removed until either:
(1) The taxes, interest, penalties, and costs are paid.
(2) The insurer’s, surplus line broker’s, or Medi-Cal managed care plan’s property is sold for the payment thereof.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 60.

 Section 12494 of the Revenue and Taxation Code, as amended by Section 59 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12494.
 (a) No judgment is satisfied nor lien removed until either:
(1) The taxes, interest, penalties, and costs are paid.
(2) The insurer’s or surplus line broker’s property is sold for the payment thereof.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 61.

 Section 12601 of the Revenue and Taxation Code, as amended by Section 60 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12601.
 (a) Amounts of taxes, interest, and penalties not remitted to the commissioner with the original return of the insurer or Medi-Cal managed care plan shall be payable to the Controller.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 62.

 Section 12601 of the Revenue and Taxation Code, as amended by Section 61 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12601.
 (a) Amounts of taxes, interest, and penalties not remitted to the commissioner with the original return of the insurer shall be payable to the Controller.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 63.

 Section 12602 of the Revenue and Taxation Code, as amended by Section 62 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12602.
 (a) (1) On and after January 1, 1994, and before January 1, 1995, each insurer whose annual taxes exceed fifty thousand dollars ($50,000) shall make payment by electronic funds transfer, as defined by Section 45 of the Insurance Code. On and after January 1, 1995, each insurer whose annual taxes exceed twenty thousand dollars ($20,000) shall make payment by electronic funds transfer. The insurer shall choose one of the acceptable methods described in Section 45 of the Insurance Code for completing the electronic funds transfer.
(2) Each Medi-Cal managed care plan shall make payment by electronic funds transfer, as defined by Section 45 of the Insurance Code. The plan shall choose one of the acceptable methods described in Section 45 of the Insurance Code for completing the electronic funds transfer.
(b) Payment shall be deemed complete on the date the electronic funds transfer is initiated, if settlement to the state’s demand account occurs on or before the banking day following the date the transfer is initiated. If settlement to the state’s demand account does not occur on or before the banking day following the date the transfer is initiated, payment shall be deemed to occur on the date settlement occurs.
(c) (1) Any insurer or Medi-Cal managed care plan required to remit taxes by electronic funds transfer pursuant to this section that remits those taxes by means other than an appropriate electronic funds transfer, shall be assessed a penalty in an amount equal to 10 percent of the taxes due at the time of the payment.
(2) If the Department of Insurance finds that an insurer’s or Medi-Cal managed care plan’s failure to make payment by an appropriate electronic funds transfer in accordance with subdivision (a) is due to reasonable cause or circumstances beyond the insurer’s or Medi-Cal managed care plan’s control, and occurred notwithstanding the exercise of ordinary care and in the absence of willful neglect, that insurer or Medi-Cal managed care plan shall be relieved of the penalty provided in paragraph (1).
(3) Any insurer or Medi-Cal managed care plan seeking to be relieved of the penalty provided in paragraph (1) shall file with the Department of Insurance a statement under penalty of perjury setting forth the facts upon which the claim for relief is based.
(d) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 64.

 Section 12602 of the Revenue and Taxation Code, as amended by Section 63 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12602.
 (a) On and after January 1, 1994, and before January 1, 1995, each insurer whose annual taxes exceed fifty thousand dollars ($50,000) shall make payment by electronic funds transfer, as defined by Section 45 of the Insurance Code. On and after January 1, 1995, each insurer whose annual taxes exceed twenty thousand dollars ($20,000) shall make payment by electronic funds transfer. The insurer shall choose one of the acceptable methods described in Section 45 of the Insurance Code for completing the electronic funds transfer.
(b) Payment shall be deemed complete on the date the electronic funds transfer is initiated, if settlement to the state’s demand account occurs on or before the banking day following the date the transfer is initiated. If settlement to the state’s demand account does not occur on or before the banking day following the date the transfer is initiated, payment shall be deemed to occur on the date settlement occurs.
(c) (1) Any insurer required to remit taxes by electronic funds transfer pursuant to this section that remits those taxes by means other than an appropriate electronic funds transfer, shall be assessed a penalty in an amount equal to 10 percent of the taxes due at the time of the payment.
(2) If the Department of Insurance finds that an insurer’s failure to make payment by an appropriate electronic funds transfer in accordance with subdivision (a) is due to reasonable cause or circumstances beyond the insurer’s control, and occurred notwithstanding the exercise of ordinary care and in the absence of willful neglect, that insurer shall be relieved of the penalty provided in paragraph (1).
(3) Any insurer seeking to be relieved of the penalty provided in paragraph (1) shall file with the Department of Insurance a statement under penalty of perjury setting forth the facts upon which the claim for relief is based.
(d) This section shall become operative on July 1, 2012 2013.

SEC. 65.

 Section 12631 of the Revenue and Taxation Code, as amended by Section 64 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12631.
 (a) Any insurer or Medi-Cal managed care plan that fails to pay any tax, except a tax determined as a deficiency assessment by the board under Article 3 (commencing with Section 12421) of Chapter 4, within the time required, shall pay a penalty of 10 percent of the amount of the tax in addition to the tax, plus interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the due date of the tax until the date of payment.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 66.

 Section 12631 of the Revenue and Taxation Code, as amended by Section 65 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12631.
 (a) Any insurer that fails to pay any tax, except a tax determined as a deficiency assessment by the board under Article 3 (commencing with Section 12421) of Chapter 4, within the time required, shall pay a penalty of 10 percent of the amount of the tax in addition to the tax, plus interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the due date of the tax until the date of payment.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 67.

 Section 12632 of the Revenue and Taxation Code, as amended by Section 66 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12632.
 (a) An insurer or Medi-Cal managed care plan that fails to pay any deficiency assessment when it becomes due and payable shall, in addition to the deficiency assessment, pay a penalty of 10 percent of the amount of the deficiency assessment, exclusive of interest and penalties. The amount of any deficiency assessment, exclusive of penalties, shall bear interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the date on which the amount, or any portion thereof, would have been payable if properly reported and assessed until the date of payment.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 68.

 Section 12632 of the Revenue and Taxation Code, as amended by Section 67 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12632.
 (a) An insurer that fails to pay any deficiency assessment when it becomes due and payable shall, in addition to the deficiency assessment, pay a penalty of 10 percent of the amount of the deficiency assessment, exclusive of interest and penalties. The amount of any deficiency assessment, exclusive of penalties, shall bear interest at the modified adjusted rate per month, or fraction thereof, established pursuant to Section 6591.5, from the date on which the amount, or any portion thereof, would have been payable if properly reported and assessed until the date of payment.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 69.

 Section 12636 of the Revenue and Taxation Code, as amended by Section 68 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12636.
 (a) If the board finds that an insurer’s or Medi-Cal managed care plan’s failure to make a timely return or payment is due to reasonable cause and to circumstances beyond the insurer’s or Medi-Cal managed care plan’s control, and which occurred despite the exercise of ordinary care and in the absence of willful neglect, the insurer or Medi-Cal managed care plan may be relieved of the penalty provided by Section 12258, 12282, 12287, 12631, 12632, or 12633.

Any

(b) Any insurer or Medi-Cal managed care plan seeking to be relieved of the penalty shall file with the board a statement under penalty of perjury setting forth the facts upon which the claim for relief is based.

(b)

(c) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 70.

 Section 12636 of the Revenue and Taxation Code, as amended by Section 69 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12636.
 (a) If the board finds that an insurer’s failure to make a timely return or payment is due to reasonable cause and to circumstances beyond the insurer’s control, and which occurred despite the exercise of ordinary care and in the absence of willful neglect, the insurer may be relieved of the penalty provided by Section 12258, 12282, 12287, 12631, 12632, or 12633.

Any

(b) Any insurer seeking to be relieved of the penalty shall file with the board a statement under penalty of perjury setting forth the facts upon which the claim for relief is based.

(b)

(c) This section shall become operative on July 1, 2012 2013.

SEC. 71.

 Section 12636.5 of the Revenue and Taxation Code, as amended by Section 70 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12636.5.
 (a) Every payment on an insurer’s, surplus line broker’s, or Medi-Cal managed care plan’s delinquent annual tax shall be applied as follows:
(1) First, to any interest due on the tax.
(2) Second, to any penalty imposed by this part.
(3) The balance, if any, to the tax itself.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 72.

 Section 12636.5 of the Revenue and Taxation Code, as amended by Section 71 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12636.5.
 (a) Every payment on an insurer’s or surplus line broker’s delinquent annual tax shall be applied as follows:
(1) First, to any interest due on the tax.
(2) Second, to any penalty imposed by this part.
(3) The balance, if any, to the tax itself.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 73.

 Section 12679 of the Revenue and Taxation Code, as amended by Section 72 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12679.
 (a) If an insurer’s or Medi-Cal managed care plan’s right to do business has been forfeited or its corporate powers suspended, service of summons may be made upon the persons designated by law to be served as agents or officers of the insurer or Medi-Cal managed care plan, and these persons are the agents of the insurer or Medi-Cal managed care plan for all purposes necessary in order to prosecute the action. In the case of corporations whose powers have been suspended, the persons constituting the board of directors may defend the action.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 74.

 Section 12679 of the Revenue and Taxation Code, as amended by Section 73 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12679.
 (a) If an insurer’s right to do business has been forfeited or its corporate powers suspended, service of summons may be made upon the persons designated by law to be served as agents or officers of the insurer, and these persons are the agents of the insurer for all purposes necessary in order to prosecute the action. In the case of corporations whose powers have been suspended, the persons constituting the board of directors may defend the action.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 75.

 Section 12681 of the Revenue and Taxation Code, as amended by Section 74 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12681.
 (a) In the action, a certificate of the Controller or of the secretary of the board, showing unpaid taxes against an insurer or Medi-Cal managed care plan is prima facie evidence of:
(1) The assessment of the taxes.
(2) The delinquency.
(3) The amount of the taxes, interest, and penalties due and unpaid to the state.
(4) That the insurer or Medi-Cal managed care plan is indebted to the state in the amount of taxes, interest, and penalties appearing unpaid.
(5) That there has been compliance with all the requirements of law in relation to the assessment of the taxes.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 76.

 Section 12681 of the Revenue and Taxation Code, as amended by Section 75 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12681.
 (a) In the action, a certificate of the Controller or of the secretary of the board, showing unpaid taxes against an insurer is prima facie evidence of:
(1) The assessment of the taxes.
(2) The delinquency.
(3) The amount of the taxes, interest, and penalties due and unpaid to the state.
(4) That the insurer is indebted to the state in the amount of taxes, interest, and penalties appearing unpaid.
(5) That there has been compliance with all the requirements of law in relation to the assessment of the taxes.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 77.

 Section 12801 of the Revenue and Taxation Code, as amended by Section 76 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12801.
 (a) Annually, between December 10th and 15th, the Controller shall transmit to the commissioner a statement showing the names of all insurers and Medi-Cal managed care plans that failed to pay on or before December 10th the whole or any portion of the tax that became delinquent in the preceding June or which has been unpaid for more than 30 days from the date it became due and payable as a deficiency assessment under this part or the whole or any part of the interest or penalties due with respect to the tax. The statement shall show the amount of the tax, interest, and penalties due from each insurer or Medi-Cal managed care plan.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 78.

 Section 12801 of the Revenue and Taxation Code, as amended by Section 77 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12801.
 (a) Annually, between December 10th and 15th, the Controller shall transmit to the commissioner a statement showing the names of all insurers that failed to pay on or before December 10th the whole or any portion of the tax that became delinquent in the preceding June or which has been unpaid for more than 30 days from the date it became due and payable as a deficiency assessment under this part or the whole or any part of the interest or penalties due with respect to the tax. The statement shall show the amount of the tax, interest, and penalties due from each insurer.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 79.

 Section 12951 of the Revenue and Taxation Code, as amended by Section 78 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12951.
 (a) If any amount has been illegally assessed, the board shall set forth that fact in its records, certify the amount determined to be assessed in excess of the amount legally assessed and the insurer, surplus line broker, or Medi-Cal managed care plan against which the assessment was made, and authorize the cancellation of the amount upon the records of the Controller and the board. The board shall mail a notice to the insurer, surplus line broker, or Medi-Cal managed care plan of any cancellation authorized. Any proposed determination by the board pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to the effective date of that determination.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 80.

 Section 12951 of the Revenue and Taxation Code, as amended by Section 79 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12951.
 (a) If any amount has been illegally assessed, the board shall set forth that fact in its records, certify the amount determined to be assessed in excess of the amount legally assessed and the insurer or surplus line broker against which the assessment was made, and authorize the cancellation of the amount upon the records of the Controller and the board. The board shall mail a notice to the insurer or surplus line broker of any cancellation authorized. Any proposed determination by the board pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to the effective date of that determination.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 81.

 Section 12977 of the Revenue and Taxation Code, as amended by Section 80 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12977.
 (a) If the board determines that any tax, interest, or penalty has been paid more than once or has been erroneously or illegally collected or computed, the board shall set forth that fact in its records of the board, certify the amount of the taxes, interest, or penalties collected in excess of what was legally due, and from whom they were collected or by whom paid, and certify the excess to the Controller for credit or refund.
(b) The Controller upon receipt of a certification for credit or refund shall credit the excess on any amounts then due and payable from the insurer, surplus line broker, or Medi-Cal managed care plan under this part and refund the balance.
(c) Any proposed determination by the board pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to the effective date of that determination.
(d) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 82.

 Section 12977 of the Revenue and Taxation Code, as amended by Section 81 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12977.
 (a) If the board determines that any tax, interest, or penalty has been paid more than once or has been erroneously or illegally collected or computed, the board shall set forth that fact in its records of the board, certify the amount of the taxes, interest, or penalties collected in excess of what was legally due, and from whom they were collected or by whom paid, and certify the excess to the Controller for credit or refund.
(b) The Controller upon receipt of a certification for credit or refund shall credit the excess on any amounts then due and payable from the insurer or surplus line broker under this part and refund the balance.
(c) Any proposed determination by the board pursuant to this section with respect to an amount in excess of fifty thousand dollars ($50,000) shall be available as a public record for at least 10 days prior to the effective date of that determination.
(d) This section shall become operative on July 1, 2012 2013.

SEC. 83.

 Section 12983 of the Revenue and Taxation Code, as amended by Section 82 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12983.
 (a) Interest shall be allowed upon the amount of any overpayment of tax by an insurer or Medi-Cal managed care plan pursuant to this part at the modified adjusted rate per month established pursuant to Section 6591.5, from the first day of the monthly period following the period during which the overpayment was made. For purposes of this section, “monthly period” means the month commencing on the day after the due date of the payment through the same date as the due date in each successive month. In addition, a refund or credit shall be made of any interest imposed upon the claimant with respect to the amount being refunded or credited.
The interest shall be paid as follows:
(1) In the case of a refund, to the last day of the calendar month following the date upon which the claimant is notified in writing that a claim may be filed or the date upon which the claim is approved by the board, whichever date is the earlier.
(2) In the case of a credit, to the same date as that to which interest is computed on the tax or amount against which the credit is applied.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 84.

 Section 12983 of the Revenue and Taxation Code, as amended by Section 83 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12983.
 (a) Interest shall be allowed upon the amount of any overpayment of tax by an insurer pursuant to this part at the modified adjusted rate per month established pursuant to Section 6591.5, from the first day of the monthly period following the period during which the overpayment was made. For purposes of this section, “monthly period” means the month commencing on the day after the due date of the payment through the same date as the due date in each successive month. In addition, a refund or credit shall be made of any interest imposed upon the claimant with respect to the amount being refunded or credited.
The interest shall be paid as follows:
(1) In the case of a refund, to the last day of the calendar month following the date upon which the claimant is notified in writing that a claim may be filed or the date upon which the claim is approved by the board, whichever date is the earlier.
(2) In the case of a credit, to the same date as that to which interest is computed on the tax or amount against which the credit is applied.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 85.

 Section 12984 of the Revenue and Taxation Code, as amended by Section 84 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12984.
 (a) If the board determines that any overpayment has been made intentionally or made not incident to a bona fide and orderly discharge of a liability reasonably assumed by the insurer, surplus line broker, or Medi-Cal managed care plan to be imposed by law, no interest shall be allowed on the overpayment.
(b) If any insurer, surplus line broker, or Medi-Cal managed care plan which has filed a claim for refund requests the board to defer action on its claim, the board, as a condition to deferring action, may require the claimant to waive interest for the period during which the insurer, surplus line broker, or Medi-Cal managed care plan requests the board to defer action on the claim.
(c) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 86.

 Section 12984 of the Revenue and Taxation Code, as amended by Section 85 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

12984.
 (a) If the board determines that any overpayment has been made intentionally or made not incident to a bona fide and orderly discharge of a liability reasonably assumed by the insurer or surplus line broker to be imposed by law, no interest shall be allowed on the overpayment.
(b) If any insurer or surplus line broker which has filed a claim for refund requests the board to defer action on its claim, the board, as a condition to deferring action, may require the claimant to waive interest for the period during which the insurer or surplus line broker requests the board to defer action on the claim.
(c) This section shall become operative on July 1, 2012 2013.

SEC. 87.

 Section 13108 of the Revenue and Taxation Code, as amended by Section 86 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

13108.
 (a) A judgment shall not be rendered in favor of the plaintiff when the action is brought by or in the name of an assignee of the insurer paying the tax, interest, or penalties, or by any person other than the insurer or Medi-Cal managed care plan that has paid the tax, interest, or penalties.
(b) This section shall become inoperative on July 1, 2012 2013, and, as of January 1, 2013 2014, is repealed, unless a later enacted statute, that becomes operative on or before July 1, 2012 2013, deletes or extends the dates on which it becomes inoperative and is repealed.

SEC. 88.

 Section 13108 of the Revenue and Taxation Code, as amended by Section 87 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is amended to read:

13108.
 (a) A judgment shall not be rendered in favor of the plaintiff when the action is brought by or in the name of an assignee of the insurer paying the tax, interest, or penalties, or by any person other than the insurer that has paid the tax, interest, or penalties.
(b) This section shall become operative on July 1, 2012 2013.

SEC. 89.

 Section 14005.26 of the Welfare and Institutions Code is repealed.
14005.26.

(a)The department shall exercise the option pursuant to Section 1902(a)(l0)(A)(ii)(XIV) of the federal Social Security Act (42 U.S.C. Sec. 1396a(a)(10)(A)(ii)(XIV)) to provide full-scope benefits with no share of cost under this chapter and Chapter 8 (commencing with Section 14200) to children who have attained six years of age but have not attained 19 years of age, who are optional targeted low-income children pursuant to Section 1905(u)(2)(B) of the federal Social Security Act (42 U.S.C. Sec. 1396d(u)(2)(B)), with family incomes up to and including 200 percent of the federal poverty level. The department shall seek federal approval of a state plan amendment to implement this subdivision.

(b)Pursuant to Section 1902(r)(2) of the federal Social Security Act (42 U.S.C. Sec. 1396a(r)(2)), the department shall adopt the option to use less restrictive income and resource methodologies to exempt all resources and disregard income at or above 200 percent and up to and including 250 percent of the federal poverty level for the individuals described in subdivision (a). The department shall seek federal approval of a state plan amendment to implement this subdivision.

(c)For purposes of carrying out the provisions of this section, the department may adopt the option pursuant to Section 1902(e)(13) of the federal Social Security Act (42 U.S.C. Sec. 1396a(e)(13)) to rely upon findings of the Managed Risk Medical Insurance Board (MRMIB) regarding one or more components of eligibility.

(d)(1)The department shall exercise the option pursuant to Section 1916A of the federal Social Security Act (42 U.S.C. Sec. 1396o-1) to impose premiums for individuals described in subdivision (a) whose family income has been determined to be above 150 percent and up to and including 200 percent of the federal poverty level, after application of the income disregard pursuant to subdivision (b). The department shall not impose premiums under this subdivision for individuals described in subdivision (a) whose family income has been determined to be at or below 150 percent of the federal poverty level, after application of the income disregard pursuant to subdivision (b). The department shall obtain federal approval for the implementation of this subdivision.

(2)All premiums imposed under this section shall equal the family contributions described in paragraph (2) of subdivision (d) of Section 12693.43 of the Insurance Code and shall be reduced in conformity with subdivisions (e) and (f) of Section 12693.43 of the Insurance Code.

(e)This section shall be implemented only to the extent that all necessary federal approvals and waivers described in this section have been obtained and the enhanced rate of federal financial participation under Title XXI of the federal Social Security Act (42 U.S.C. Sec. 1397aa et seq.) is available for targeted low-income children pursuant to that act.

(f)The department shall not enroll targeted low-income children described in this section in the Medi-Cal program until all necessary federal approvals and waivers have been obtained, and no sooner than January 1, 2013.

(g)(1)To the extent the new budget methodology pursuant to paragraph (6) of subdivision (a) of Section 14154 is not fully operational, for the purposes of implementing this section, for individuals described in subdivision (a) whose family income has been determined to be up to and including 150 percent of the federal poverty level, as determined pursuant to subdivision (b), the department shall utilize the budgeting methodology for this population as contained in the November 2011 Medi-Cal Local Assistance Estimate for Medi-Cal county administration costs for eligibility operations.

(2)For purposes of implementing this section, the department shall include in the Medi-Cal Local Assistance Estimate an amount for Medi-Cal eligibility operations associated with the individuals whose family income is determined to be above 150 percent and up to and including 200 percent of the federal poverty level, after application of the income disregard pursuant to subdivision (b). In developing an estimate for this activity, the department shall consider the projected number of final eligibility determinations each county will process and projected county costs. Within 60 days of the passage of the annual Budget Act, the department shall notify each county of their allocation for this activity based upon the amount allotted in the annual Budget Act for this purpose.

(h)When the new budget methodology pursuant to paragraph (6) of subdivision (a) of Section 14154 is fully operational, the new budget methodology shall be utilized to reimburse counties for eligibility determinations made for individuals pursuant to this section.

(i)Eligibility determinations and annual redeterminations made pursuant to this section shall be performed by county eligibility workers.

(j)In conducting eligibility determinations for individuals pursuant to this section and Section 14005.27, the following reporting and performance standards shall apply to all counties:

(1)Counties shall report to the department, in a manner and for a time period prescribed by the department, in consultation with the County Welfare Directors Association, the number of applications processed on a monthly basis, a breakout of the applications based on income using the federal percentage of poverty levels, the final disposition of each application, including information on the approved Medi-Cal program, if applicable, and the average number of days it took to make the final eligibility determination for applications submitted directly to the county and from the single point of entry (SPE).

(2)Notwithstanding any other provision of law, the following performance standards shall be applied to counties regarding eligibility determinations for individuals eligible pursuant to this section:

(A)For children whose applications are received by the county human services department from the SPE, the following standards shall apply:

(i)Applications for children who are granted accelerated enrollment by the SPE shall be processed according to the timeframes specified in subdivision (d) of Section 14154.

(ii)Applications for children who are not granted accelerated enrollment by the SPE due to the existence of an already active Medi-Cal case shall be processed according to the timeframes specified in subdivision (d) of Section 14154.

(iii)For applications for children who are not described in clause (i) or (ii), 90 percent shall be processed within 10 working days of being received, complete and without client errors.

(iv)If an application described in this section also contains adults, and the adult applicants are required to submit additional information beyond the information provided for the children, the county shall process the eligibility for the child or children without delay, consistent with this section while gathering the necessary information to process eligibility for the adults.

(B)The department, in consultation with the County Welfare Directors Association, shall develop reporting requirements for the counties to provide regular data to the state regarding the timeliness and outcomes of applications processed by the counties that are received from the SPE.

(C)Performance thresholds and corrective action standards as set forth in Section 14154 shall apply.

(D)For applications submitted directly to the county, these applications shall be processed by the counties in accordance with the performance standards established under subdivision (d) of Section 14154.

(3)This subdivision shall be implemented 90 days after the effective date of the act that added this section, or October 1, 2012, whichever is later.

(4)Twelve months after implementation of this section pursuant to subdivision (f), the department shall provide enrollment information regarding individuals determined eligible pursuant to subdivision (a) to the fiscal and appropriate policy committees of the Legislature.

(k)(1)Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, for purposes of this transition, the department, without taking any further regulatory action, shall implement, interpret, or make specific this section by means of all-county letters, plan letters, plan or provider bulletins, or similar instructions until the time regulations are adopted. It is the intent of the Legislature that the department be allowed temporary authority as necessary to implement program changes until completion of the regulatory process.

(2)To the extent otherwise required by Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the department shall adopt emergency regulations implementing this section no later than July 1, 2014. The department may thereafter readopt the emergency regulations pursuant to that chapter. The adoption and readoption, by the department, of regulations implementing this section shall be deemed to be an emergency and necessary to avoid serious harm to the public peace, health, safety, or general welfare for purposes of Sections 11346.1 and 11349.6 of the Government Code, and the department is hereby exempted from the requirement that it describe facts showing the need for immediate action and from review by the Office of Administrative Law.

(l)(1)If at any time the director determines that this section or any part of this section may jeopardize the state’s ability to receive federal financial participation under the federal Patient Protection and Affordable Care Act (Public Law 111-148), or any amendment or extension of that act, or any additional federal funds that the director, in consultation with the Department of Finance, determines would be advantageous to the state, the director shall give notice to the fiscal and policy committees of the Legislature and to the Department of Finance. After giving notice, this section or any part of this section shall become inoperative on the date that the director executes a declaration stating that the department has determined, in consultation with the Department of Finance, that it is necessary to cease to implement this section or a part or parts thereof, in order to receive federal financial participation, any increase in the federal medical assistance percentage available on or after October 1, 2008, or any additional federal funds that the director, in consultation with the Department of Finance, has determined would be advantageous to the state.

(2)The director shall retain the declaration described in paragraph (1), shall provide a copy of the declaration to the Secretary of the State, the Secretary of the Senate, the Chief Clerk of the Assembly, and the Legislative Counsel, and shall post the declaration on the department’s Internet Web site.

(3)In the event that the director makes a determination under paragraph (1) and this section ceases to be implemented, the children shall be enrolled back into the Healthy Families Program.

SEC. 90.

 Section 14005.27 of the Welfare and Institutions Code is repealed.
14005.27.

(a)Individuals enrolled in the Healthy Families Program pursuant to Part 6.2 (commencing with Section 12693) of Division 2 of the Insurance Code on the effective date of the act that added this section and who are determined eligible to receive benefits pursuant to subdivisions (a) and (b) of Section 14005.26, shall be transitioned into Medi-Cal, pursuant to this section.

(b)To the extent necessary and for the purposes of carrying out the provisions of this section, in performing initial eligibility determinations for children enrolled in the Healthy Families Program pursuant to Part 6.2 (commencing with Section 12693) of Division 2 of the Insurance Code, the department shall adopt the option pursuant to Section 1902(e)(13) of the federal Social Security Act (42 U.S.C. Sec. 1396a(e)(13)) to allow the department or county human services departments to rely upon findings made by the Managed Risk Medical Insurance Board (MRMIB) regarding one or more components of eligibility. The department shall seek federal approval of a state plan amendment to implement this subdivision.

(c)To the extent necessary, the department shall seek federal approval of a state plan amendment or a waiver to provide presumptive eligibility for the optional targeted low-income category of eligibility pursuant to Section 14005.26 for individuals presumptively eligible for or enrolled in the Healthy Families Program pursuant to Part 6.2 (commencing with Section 12693) of Division 2 of the Insurance Code. The presumptive eligibility shall be based upon the most recent information contained in the individual’s Healthy Families Program file. The timeframe for the presumptive eligibility shall begin no sooner than January 1, 2013, and shall continue until a determination of Medi-Cal eligibility is made, which determination shall be performed within one year of the individual’s Healthy Families Program annual review date.

(d)(1)The California Health and Human Services Agency, in consultation with the Managed Risk Medical Insurance Board, the State Department of Health Care Services, the Department of Managed Health Care, and diverse stakeholders groups, shall provide the fiscal and policy committees of the Legislature with a strategic plan for the transition of the Healthy Families Program pursuant to this section by no later than October 1, 2012. This strategic plan shall, at a minimum, address all of the following:

(A)State, county, and local administrative components which facilitate a successful subscriber transition such as communication and outreach to subscribers and applicants, eligibility processing, enrollment, communication, and linkage with health plan providers, payments of applicable premiums, and overall systems operation functions.

(B)Methods and processes for diverse stakeholder engagement throughout the entire transition, including all phases of the transition.

(C)State monitoring of managed care health plans’ performance and accountability for provision of services, and initial quality indicators for children and adolescents transitioning to Medi-Cal.

(D)Health care and dental delivery system components such as standards for informing and enrollment materials, network adequacy, performance measures and metrics, fiscal solvency, and related factors that ensure timely access to quality health and dental care for children and adolescents transitioning to Medi-Cal.

(E)Inclusion of applicable operational steps, timelines, and key milestones.

(F)A time certain for the transfer of the Healthy Families Advisory Board, as described in Part 6.2 (commencing with Section 12693) of Division 2 of the Insurance Code, to the State Department of Health Care Services.

(2)The intent of this strategic plan is to serve as an overall guide for the development of each plan for each phase of this transition, pursuant to paragraphs (1) to (8), inclusive, of subdivision (e), to ensure clarity and consistency in approach and subscriber continuity of care. This strategic plan may also be updated by the California Health and Human Services Agency as applicable and provided to the Legislature upon completion.

(e)(1)The department shall transition individuals from the Healthy Families Program to the Medi-Cal program in four phases, as follows:

(A)Phase 1. Individuals enrolled in a Healthy Families Program health plan that is a Medi-Cal managed care health plan shall be enrolled in the same plan no earlier than January 1, 2013, pursuant to the requirements of this section and Section 14011.6, and to the extent the individual is otherwise eligible under this chapter and Chapter 8 (commencing with Section 14200).

(B)Phase 2. Individuals enrolled in a Healthy Families Program managed care health plan that is a subcontractor of a Medi-Cal managed health care plan, to the extent possible, shall be enrolled into a Medi-Cal managed health care plan that includes the individuals’ current plan pursuant to the requirements of this section and Section 14011.6, and to the extent the individuals are otherwise eligible under this chapter and Chapter 8 (commencing with Section 14200). The transition of individuals described in this subparagraph shall begin no earlier than April 1, 2013.

(C)Phase 3. Individuals enrolled in a Healthy Families Program plan that is not a Medi-Cal managed care plan and does not contract or subcontract with a Medi-Cal managed care plan shall be enrolled in a Medi-Cal managed care plan in that county. Enrollment shall include consideration of the individuals’ primary care providers pursuant to the requirements of this section and Section 14011.6, and to the extent the individuals are otherwise eligible under this chapter and Chapter 8 (commencing with Section 14200). The transition of individuals described in this subparagraph shall begin no earlier than August 1, 2013.

(D)Phase 4.

(i)Individuals residing in a county that is not a Medi-Cal managed care county shall be provided services under the Medi-Cal fee-for-service delivery system, subject to clause (ii). The transition of individuals described in this subparagraph shall begin no earlier than September 1, 2013.

(ii)In the event the department creates a managed health care system in the counties described in clause (i), individuals residing in those counties shall be enrolled in managed health care plans pursuant to this chapter and Chapter 8 (commencing with Section 14200).

(2)For the transition of individuals pursuant to subparagraphs (A), (B), (C), and (D) of paragraph (1), implementation plans shall be developed to ensure state and county systems readiness, health plan network adequacy, and continuity of care with the goal of ensuring there is no disruption of service and there is continued access to coverage for all transitioning individuals. If an individual is not retained with his or her current primary care provider, the implementation plan shall require the managed care plan to report to the department as to how continuity of care is being provided. Transition of individuals described in subparagraphs (A), (B), (C), and (D) of paragraph (1) shall not occur until 90 days after the department has submitted an implementation plan to the fiscal and policy committees of the Legislature. The implementation plans shall include, but not be limited to, information on health and dental plan network adequacy, continuity of care, eligibility and enrollment requirements, consumer protections, and family notifications.

(3)The following requirements shall be in place prior to implementation of Phase 1, and shall be required for all phases of the transition:

(A)Managed care plan performance measures shall be integrated and coordinated with the Healthy Families Program performance standards including, but not limited to, child-only Healthcare Effectiveness Data and Information Set (HEDIS) measures, and measures indicative of performance in serving children and adolescents. These performance measures shall also be in compliance with all performance requirements under the Knox-Keene Health Care Service Plan Act of 1975 (Chapter 2.2 (commencing with Section 1340) of Division 2 of the Health and Safety Code) and existing Medi-Cal managed care performance measurements and standards as set forth in this chapter and Chapter 8 (commencing with Section 14200), Title 22 of the California Code of Regulations, and all-plan letters, including, but not limited to, network adequacy and linguistic services, and shall be met prior to the transition of individuals pursuant to Phase 1.

(B)Medi-Cal managed care health plans shall allow enrollees to remain with their current primary care provider. If an individual does not remain with the current primary care provider, the plan shall report to the department as to how continuity of care is being provided.

(4)(A)As individuals are transitioned pursuant to subparagraphs (A) and (B) of paragraph (1), for individuals residing in all counties except the Counties of Sacramento and Los Angeles, their dental coverage shall transition to fee-for-service dental coverage and may be provided by their current provider if the provider is a Medi-Cal fee-for-service dental provider.

(B)For individuals residing in the County of Sacramento, their dental coverage shall continue to be provided by their current dental managed care plan if their plan is a Medi-Cal dental managed care plan. If their plan is not a Medi-Cal dental managed care plan, they shall select a Medi-Cal dental managed care plan. If they do not choose a Medi-Cal dental managed care plan, they shall be assigned to a plan with preference to a plan with which their current provider is a contracted provider. Any children in the Healthy Families Program transitioned into Medi-Cal dental managed care plans shall also have access to the beneficiary dental exception process, pursuant to Section 14089.09. Further, the Sacramento advisory committee, established pursuant to Section 14089.08, shall be consulted regarding the transition of children in the Healthy Families Program into Medi-Cal dental managed care plans.

(C)(i)For individuals residing in the County of Los Angeles, for purposes of continuity of care, their dental coverage shall continue to be provided by their current dental managed care plan if that plan is a Medi-Cal dental managed care plan. If their plan is not a Medi-Cal dental managed care plan, they may select a Medi-Cal dental managed care plan or choose to move into Medi-Cal fee-for-service dental coverage.

(ii)It is the intent of the Legislature that children transitioning to Medi-Cal under this section have a choice in dental coverage, as provided under existing law.

(5)Dental health plan performance measures and benchmarks shall be in accordance with Section 14459.6.

(6)Medi-Cal managed care health and dental plans shall report to the department, as frequently as specified by the department, specified information pertaining to transition implementation, enrollees, and providers, including, but not limited to, grievances related to access to care, continuity of care requests and outcomes, and changes to provider networks, including provider enrollment and disenrollment changes. The plans shall report this information by county, and in the format requested by the department.

(7)The department may develop supplemental implementation plans to separately account for the transition of individuals from the Healthy Families Program to specific Medi-Cal delivery systems.

(8)The department shall consult with the Legislature and stakeholders, including, but not limited to, consumers, families, consumer advocates, counties, providers, and health and dental plans, in the development of implementation plans described in paragraph (3) for individuals who are transitioned to Medi-Cal in Phase 2 and Phase 3, as described in subparagraphs (B) and (C) of paragraph (1).

(9)(A)The department shall consult and collaborate with the Department of Managed Health Care in assessing Medi-Cal managed care health plan network adequacy in accordance with the Knox-Keene Health Care Service Plan Act of 1975 (Chapter 2.2 (commencing with Section 1340) of Division 2 of the Health and Safety Code) for purposes of the developed transition plans pursuant to paragraph (2) for each of the phases.

(B)For purposes of individuals transitioning in Phase 1, as described in subparagraph (A) of paragraph (1), network adequacy shall be assessed as described in this paragraph and findings from this assessment shall be provided to the fiscal and appropriate policy committees of the Legislature 60 days prior to the effective date of implementing this transition.

(10)The department shall provide monthly status reports to the fiscal and policy committees of the Legislature on the transition commencing no later than February 15, 2013. This monthly status transition report shall include, but not be limited to, information on health plan grievances related to access to care, continuity of care requests and outcomes, changes to provider networks, including provider enrollment and disenrollment changes, and eligibility performance standards pursuant to subdivision (m). A final comprehensive report shall be provided within 90 days after completion of the last phase of transition.

(f)(1)The department and MRMIB shall work collaboratively in the development of notices for individuals transitioned pursuant to paragraph (1) of subdivision (d).

(2)The state shall provide written notice to individuals enrolled in the Healthy Families Program of their transition to the Medi-Cal program at least 60 days prior to the transition of individuals in Phase 1, as described in subparagraph (A) of paragraph (1) of subdivision (d), and at least 90 days prior to transition of individuals in Phases 2 and 3, as described in subparagraphs (B) and (C) of paragraph (1) of subdivision (d).

(3)Notices developed pursuant to this subdivision shall ensure individuals are informed regarding the transition, including, but not limited to, how individuals’ systems of care may change, when the changes will occur, and whom they can contact for assistance when choosing a Medi-Cal managed care plan, if applicable, including a toll-free telephone number, and with problems they may encounter. The department shall consult with stakeholders regarding notices developed pursuant to this subdivision. These notices shall be developed using plain language, and written translation of the notices shall be available for those who are limited English proficient or non-English speaking in all Medi-Cal threshold languages.

(4)The department shall designate department liaisons responsible for the coordination of the Healthy Families Program and may establish a children’s-focused section for this purpose and to facilitate the provision of health care services for children enrolled in Medi-Cal.

(5)The department shall provide a process for ongoing stakeholder consultation and make information publicly available, including the achievement of benchmarks, enrollment data, utilization data, and quality measures.

(g)(1)In order to aid the transition of Healthy Families Program enrollees, MRMIB, on the effective date of the act that added this section and continuing through the completion of the transition of Healthy Families Program enrollees to the Medi-Cal program, shall begin requesting and collecting from health plans contracting with MRMIB pursuant to Part 6.2 (commencing with Section 12693) of Division 2 of the Insurance Code, information about each health plan’s provider network, including, but not limited to, the primary care and all specialty care providers assigned to individuals enrolled in the health plan. MRMIB shall obtain this information in a manner that coincides with the transition activities described in subdivision (d), and shall provide all of the collected information to the department within 60 days of the department’s request for this information to ensure timely transitions of the Healthy Family Programs enrollees.

(2)The department shall analyze the existing Healthy Families Program delivery system network and the Medi-Cal fee-for-service provider networks, including, but not limited to, Medi-Cal dental providers, to determine overlaps of the provider networks in each county for which there are no Medi-Cal managed care plans or dental managed care plans. To the extent there is a lack of existing Medi-Cal fee-for-service providers available to serve the Healthy Families Program enrollees, the department shall work with the Healthy Families Program provider community to encourage participation of those providers in the Medi-Cal program, and develop a streamlined process to enroll them as Medi-Cal providers.

(3)(A)MRMIB, within 60 days of a request by the department, shall provide the department any data, information, or record concerning the Healthy Families Program as is necessary to implement the transition of enrollment required pursuant to this section.

(B)Notwithstanding any other provision of law, all of the following shall apply:

(i)The term “data, information, or record” shall include, but is not limited to, personal information as defined in Section 1798.3 of the Civil Code.

(ii)Any data, information, or record shall be exempt from disclosure under the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of the Government Code) and any other law, to the same extent that it was exempt from disclosure or privileged prior to the provision of the data, information, or record to the department.

(iii)The provision of any such data, information, or record to the department shall not constitute a waiver of any evidentiary privilege or exemption from disclosure.

(iv)The department shall keep all data, information, or records provided by MRMIB confidential to the full extent permitted by law, including, but not limited to, the California Public Records Act (Chapter 3.5 (commencing with Section 6250) of Division 7 of the Government Code, and consistent with MRMIB’s contractual obligations to keep the data, information, or records confidential.

(h)This section shall be implemented only to the extent that all necessary federal approvals and waivers have been obtained and the enhanced rate of federal financial participation under Title XXI of the federal Social Security Act (42 U.S.C. Sec. 1397aa et seq.) is available for targeted low-income children pursuant to that act.

(i)(1)The department shall exercise the option pursuant to Section 1916A of the federal Social Security Act (42 U.S.C. Sec. 1396o-1) to impose premiums for individuals described in subdivision (a) of Section 14005.26 whose family income has been determined to be above 150 percent and up to and including 200 percent of the federal poverty level, after application of the income disregard pursuant to subdivision (b) of Section 14005.26. The department shall not impose premiums under this subdivision for individuals described in subdivision (a) of Section 14005.26 whose family income has been determined to be at or below 150 percent of the federal poverty level, after application of the income disregard pursuant to subdivision (b) of Section 14005.26. The department shall obtain federal approval for the implementation of this subdivision.

(2)All premiums imposed under this section shall equal the family contributions described in paragraph (2) of subdivision (d) of Section 12693.43 of the Insurance Code and shall be reduced in conformity with subdivisions (e) and (f) of Section 12693.43 of the Insurance Code.

(j)The department shall not enroll targeted low-income children described in this section in the Medi-Cal program until all necessary federal approvals and waivers have been obtained, or no sooner than January 1, 2013.

(k)(1)To the extent the new budget methodology pursuant to paragraph (6) of subdivision (a) of Section 14154 is not fully operational, for the purposes of implementing this section, for individuals described in subdivision (a) whose family income has been determined to be at or below 150 percent of the federal poverty level, as determined pursuant to subdivision (b), the department shall utilize the budgeting methodology for this population as contained in the November 2011 Medi-Cal Local Assistance Estimate for Medi-Cal county administration costs for eligibility operations.

(2)For purposes of implementing this section, the department shall include in the Medi-Cal Local Assistance Estimate an amount for Medi-Cal eligibility operations associated with the transfer of Healthy Families Program enrollees eligible pursuant to subdivision (a) of Section 14005.26 and whose family income is determined to be above 150 percent and up to and including 200 percent of the federal poverty level, after application of the income disregard pursuant to subdivision (b) of Section 14005.26. In developing an estimate for this activity, the department shall consider the projected number of final eligibility determinations each county will process and projected county costs. Within 60 days of the passage of the annual Budget Act, the department shall notify each county of their allocation for this activity based upon the amount allotted in the annual Budget Act for this purpose.

(l)When the new budget methodology pursuant to paragraph (6) of subdivision (a) of Section 14154 is fully operational, the new budget methodology shall be utilized to reimburse counties for eligibility determinations made for individuals pursuant to this section.

(m)Except as provided in subdivision (b), eligibility determinations and annual redeterminations made pursuant to this section shall be performed by county eligibility workers.

(n)In conducting the eligibility determinations for individuals pursuant to this section and Section 14005.26, the following reporting and performance standards shall apply to all counties:

(1)Counties shall report to the department, in a manner and for a time period determined by the department, in consultation with the County Welfare Directors Association, the number of applications processed on a monthly basis, a breakout of the applications based on income using the federal percentage of poverty levels, the final disposition of each application, including information on the approved Medi-Cal program, if applicable, and the average number of days it took to make the final eligibility determination for applications submitted directly to the county and from the single point of entry (SPE).

(2)Notwithstanding any other law, the following performance standards shall be applied to counties for eligibility determinations for individuals eligible pursuant to this section:

(A)For children whose applications are received by the county human services department from the SPE, the following standards shall apply:

(i)Applications for children who are granted accelerated enrollment by the SPE shall be processed according to the timeframes specified in subdivision (d) of Section 14154.

(ii)Applications for children who are not granted accelerated enrollment by the SPE due to the existence of an already active Medi-Cal case shall be processed according to the timeframes specified in subdivision (d) of Section 14154.

(iii)For applications for children who are not described in clause (i) or (ii), 90 percent shall be processed within 10 working days of being received, complete and without client errors.

(iv)If an application described in this section also contains adults, and the adult applicants are required to submit additional information beyond the information provided for the children, the county shall process the eligibility for the child or children without delay, consistent with this section while gathering the necessary information to process eligibility for the adults.

(B)The department, in consultation with the County Welfare Directors Association, shall develop reporting requirements for the counties to provide regular data to the state regarding the timeliness and outcomes of applications processed by the counties that are received from the SPE.

(C)Performance thresholds and corrective action standards as set forth in Section 14154 shall apply.

(D)For applications received directly into the county, these applications shall be processed by the counties in accordance with the performance standards established under subdivision (d) of Section 14154.

(3)This subdivision shall be implemented 90 days after enactment of this section or January 1, 2013, whichever is later.

(4)Twelve months after implementation of this section pursuant to subdivision (d), the department shall provide enrollment information regarding individuals determined eligible pursuant to subdivision (a) to the fiscal and appropriate policy committees of the Legislature.

(o)(1)Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, for purposes of this transition, the department, without taking any further regulatory action, shall implement, interpret, or make specific this section by means of all-county letters, plan letters, plan or provider bulletins, or similar instructions until the time regulations are adopted. It is the intent of the Legislature that the department be allowed temporary authority as necessary to implement program changes until completion of the regulatory process.

(2)To the extent otherwise required by Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the department shall adopt emergency regulations implementing this section no later than July 1, 2014. The department may thereafter readopt the emergency regulations pursuant to that chapter. The adoption and readoption, by the department, of regulations implementing this section shall be deemed to be an emergency and necessary to avoid serious harm to the public peace, health, safety, or general welfare for purposes of Sections 11346.1 and 11349.6 of the Government Code, and the department is hereby exempted from the requirement that it describe facts showing the need for immediate action and from review by the Office of Administrative Law.

(p)(1)If at any time the director determines that this section or any part of this section may jeopardize the state’s ability to receive federal financial participation under the federal Patient Protection and Affordable Care Act (Public Law 111-148), or any amendment or extension of that act, or any additional federal funds that the director, in consultation with the Department of Finance, determines would be advantageous to the state, the director shall give notice to the fiscal and policy committees of the Legislature and to the Department of Finance. After giving notice, this section or any part of this section shall become inoperative on the date that the director executes a declaration stating that the department has determined, in consultation with the Department of Finance, that it is necessary to cease to implement this section or a part or parts thereof in order to receive federal financial participation, any increase in the federal medical assistance percentage available on or after October 1, 2008, or any additional federal funds that the director, in consultation with the Department of Finance, has determined would be advantageous to the state.

(2)The director shall retain the declaration described in paragraph (1), shall provide a copy of the declaration to the Secretary of the State, the Secretary of the Senate, the Chief Clerk of the Assembly, and the Legislative Counsel, and shall post the declaration on the department’s Internet Web site.

(3)In the event that the director makes a determination under paragraph (1) and this section ceases to be implemented, the children shall be enrolled back into the Healthy Families Program.

SEC. 91.

 Section 92 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, is repealed.
Sec. 92.

This act shall become inoperative if any of its provisions are amended or repealed.

SEC. 92.

 Notwithstanding Section 92 of Chapter 11 of the First Extraordinary Session of the Statutes of 2011, the provisions of Chapter 11 of the First Extraordinary Session of the Statutes of 2011 shall not become inoperative upon the amendment or repeal of those provisions made by this act.

SEC. 93.

 No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution because the only costs that may be incurred by a local agency or school district will be incurred because this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.
SECTION 1.Section 3073.5 is added to the Penal Code, to read:
3073.5.

(a)Program contractors who, pursuant to paragraph (8) of subdivision (a) of Section 7021, provide day treatment and crisis care services for parolees with mental health problems shall report to the department on the outcomes of services provided to participants. Reported outcomes shall include, but not be limited to, all of the following:

(1)The number of participants served, the length, in days, of the average, median, shortest, and longest periods of consecutive days in which the participants participated in the program, and the number of participants who were return participants.

(2)The types of services provided to program participants, and the actual costs of the services and administration, including, but not limited to, funds spent on case management, supportive housing, transportation, mental health treatment, and education.

(3)The outcomes of participants, including the number of participants who remain stably housed in permanent supportive housing, the number of participants who ceased to participate in the program and the reasons for that cessation, and the number of participants who have been arrested and dates of arrest.

(4)The number of participants who successfully transitioned to county mental health programs.

(b)The department shall report by February 1, 2012, to the chairpersons of the Joint Legislative Budget Committee, the Assembly Committee on Budget, the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Public Safety, the Senate Committee on Public Safety, the Assembly Committee on Housing and Community Development, the Senate Committee on Transportation and Housing, the Senate Committee on Appropriations, and the Assembly Committee on Appropriations all of the following information:

(1)The information provided by program contractors pursuant to subdivision (a).

(2)The number of program participants who recidivate.

(3)The recidivism rate of program participants compared to the recidivism rate for Enhanced Outpatient Program and Correctional Clinical Case Management System parolees living in the same county who did not participate in the program.

(4)The annual cost of the program and the funding sources.

(5)The average cost per participant.