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SB-4 Medi-Cal: county organized health system: County of Orange.(2017-2018)

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Date Published: 06/22/2017 09:00 PM
SB4:v95#DOCUMENT

Amended  IN  Assembly  June 22, 2017
Amended  IN  Senate  May 26, 2017
Amended  IN  Senate  May 10, 2017
Amended  IN  Senate  April 26, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 4


Introduced by Senator Mendoza

December 05, 2016


An act to add Chapter 12.495 (commencing with Section 8879.80) to Division 1 of Title 2 of the Government Code, relating to goods movement, by providing the funds necessary therefor through an election for the issuance and sale of bonds of the State of California and for the handling and disposition of those funds. An act to add Section 14087.59 to the Welfare and Institutions Code, relating to Medi-Cal.


LEGISLATIVE COUNSEL'S DIGEST


SB 4, as amended, Mendoza. Goods Movement and Clean Trucks Bond Act. Medi-Cal: county organized health system: County of Orange.
Existing law establishes the Medi-Cal program, administered by the State Department of Health Care Services, under which health care services are provided to qualified, low-income persons. The Medi-Cal program is, in part, governed and funded by federal Medicaid program provisions. Existing law authorizes a county board of supervisors, by ordinance, to establish a commission to negotiate an exclusive contract with the department to provide, or arrange for the provision of, health care services under the Medi-Cal program. This system of services provided by or through a county under these provisions is known as a county organized health system. Existing law requires the enabling ordinance to, among other things, specify the membership of the county commission, the qualifications for individual members, the manner of appointment, and how long they will serve. Pursuant to this authority, the County of Orange, by ordinance, established a commission to provide health care services under the Medi-Cal program.
This bill would codify those provisions of the enabling ordinance that prescribe the membership composition, the qualifications for individual members, and tenure of the members of the governing body of the commission established in the County of Orange.
This bill would make legislative findings and declarations as to the necessity of a special statute for the County of Orange.

The Highway Safety, Traffic Reduction, Air Quality, and Port Security Bond Act of 2006 (Proposition 1B) created the Trade Corridors Improvement Fund and provided for allocation by the California Transportation Commission of $2 billion in bond funds for infrastructure improvements on highway and rail corridors that have a high volume of freight movement, and specified categories of projects eligible to receive these funds. Existing law continues the Trade Corridors Improvement Fund in existence in order to receive revenues from sources other than the bond act for these purposes. Proposition 1B also provided for the allocation of $1 billion in bond funds to the State Air Resources Board for emission reductions, not otherwise required by law or regulation, from activities related to the movement of freight along California’s trade corridors, which was allocated by the state board pursuant to the Goods Movement Emission Reduction Program.

This bill, subject to voter approval at the June 5, 2018, statewide primary election, would enact the Goods Movement and Clean Trucks Bond Act to authorize $500,000,000 of state general obligation bonds as follows: $200,000,000 to the State Air Resources Board for projects and programs consistent with the Goods Movement Emission Reduction Program; and $300,000,000 to the State Air Resources Board for projects and programs to expand the use of zero- and near-zero-emission trucks in specified areas of the state.

Vote: TWO_THIRDSMAJORITY   Appropriation: NO   Fiscal Committee: YESNO   Local Program: NO  

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


SECTION 1.

 It is the intent of the Legislature to codify certain provisions of the enabling ordinance enacted by the Board of Supervisors of the County of Orange that prescribe the composition of the governing body of the Orange County Health Authority, which is a county organized health system, known as CalOptima, that arranges for the provision of health care services under the Medi-Cal program. The Legislature does not intend that the codification in statute of the composition of the governing body of the Orange County Health Authority by this section result in a new board but is instead a continuation of the prior board, and therefore the Board of Supervisors of the County of Orange is not required to appoint a new governing body or to change the composition of the governing body.

SEC. 2.

 Section 14087.59 is added to the Welfare and Institutions Code, to read:

14087.59.
 (a) Notwithstanding subdivision (d) of Section 14087.54, governance of the commission in the County of Orange established pursuant to Section 14087.54 shall be vested in a governing body consisting of 10 members: nine voting members and one nonvoting member. The nonvoting member shall be the Director of the Orange County Health Care Agency. The nine voting members shall be nominated by the Orange County Health Care Agency and appointed by a majority vote of the Board of Supervisors of the County of Orange and shall consist of the following:
(1) Two members shall each be a member of the Board of Supervisors of the County of Orange, with one additional member of the Board of Supervisors of the County of Orange to serve as an alternate.
(2) One member shall be a current or former hospital administrator.
(3) One member shall be a representative of a community clinic.
(4) One member shall be a member of the public who is a legal resident of the County of Orange.
(5) One member shall be a practicing licensed medical provider who is not an owner or officer, or a member of the board of directors, of a contracted independent physician’s association or provider network.
(6) One member shall be a current CalOptima member or a family member of a current CalOptima member.
(7) One member shall be an accounting or public finance professional, or an attorney who is an active member of the State Bar.
(8) One member shall be a practicing licensed physician who is a representative of a contracted independent physician’s association or provider network.
(b) Each member of the governing body shall reside in, or be employed in, the County of Orange and shall be generally representative of the diverse backgrounds, interests, and demography of persons residing in the County of Orange. Each member of the governing body shall have a commitment to a health care system that seeks to improve access to high-quality health care for persons served by the commission and that in fact delivers high-quality care and is financially viable. Each member shall possess the requisite skills and knowledge necessary to design and operate a quality publicly assisted health care delivery system.
(c) (1) Members of the governing body of the commission shall serve four-year terms, except for those members who are members of the Board of Supervisors of the County of Orange who shall serve a one-year term.
(2) A member of the governing body described in any of paragraphs (2) to (8), inclusive, of subdivision (a) shall serve no more than two consecutive terms. This limitation shall apply only to service for consecutive terms. No other limitation on the number of terms a person may serve is intended.

SEC. 3.

 The Legislature finds and declares that a special statute is necessary and that a general statute cannot be made applicable within the meaning of Section 16 of Article IV of the California Constitution because of the unique circumstances applicable to the County of Orange with respect to the operation and governance of the Orange County Health Authority, which is a county organized health system known as CalOptima.
SECTION 1.Chapter 12.495 (commencing with Section 8879.80) is added to Division 1 of Title 2 of the Government Code, to read:
12.495.The Goods Movement and Clean Trucks Bond Act
1.General Provisions
8879.80.

This chapter shall be known as the Goods Movement and Clean Trucks Bond Act.

8879.82.

As used in this chapter, the following terms have the following meanings:

(a)“Board” has the meaning as described in Section 8879.87.

(b)“Committee” means the Goods Movement and Clean Trucks Bond Committee created pursuant to Section 8879.87.

(c)“Fund” means the Goods Movement and Clean Trucks Bond Fund created pursuant to Section 8879.83.

2.Goods Movement and Clean Trucks Bond Fund and Program
8879.83.

(a)The Goods Movement and Clean Trucks Bond Fund is hereby created in the State Treasury.

(b)The proceeds of bonds deposited in the fund shall be used, upon appropriation by the Legislature, to fund goods movement and clean trucks improvements as follows:

(1)Two hundred million dollars ($200,000,000) to the State Air Resources Board for projects and programs consistent with the Goods Movement Emission Reduction Program (Chapter 3.2 (commencing with Section 39625) of Part 2 of Division 26 of the Health and Safety Code). Priority shall be given to projects and programs identified under the Sustainable Freight Action Plan released in July 2016 pursuant to Executive Order B-32-15.

(2)Three hundred million dollars ($300,000,000) to the State Air Resources Board for projects and programs to expand the use of zero- and near-zero-emission trucks according to the following:

(A)Areas of the state that are designated as severe or extreme nonattainment areas for ozone and designated as nonattainment areas for particulate matter.

(B)Air basins that have a port located in a coastal zone or the San Francisco Bay area.

3.Fiscal Provisions
8879.85.

Bonds in the total amount of five hundred million dollars ($500,000,000), or so much thereof as is necessary, not including the amount of any refunding bonds, or so much thereof as is necessary, may be issued and sold to provide a fund to be used for carrying out the purposes expressed in this chapter and to reimburse the General Obligation Bond Expense Revolving Fund pursuant to Section 16724.5. The bonds, when sold, issued, and delivered, shall be and constitute a valid and binding obligation of the State of California, and the full faith and credit of the State of California is hereby pledged for the punctual payment of both principal of, and interest on, the bonds as the principal and interest become due and payable.

8879.86.

The bonds authorized by this chapter shall be prepared, executed, issued, sold, paid, and redeemed as provided in the State General Obligation Bond Law (Chapter 4 (commencing with Section 16720) of Part 3 of Division 4), except Section 16727, and all of the other provisions of that law as amended from time to time apply to the bonds and to this chapter and are hereby incorporated in this chapter as though set forth in full in this chapter.

8879.87.

(a)Solely for the purpose of authorizing the issuance and sale, pursuant to the State General Obligation Bond Law, of the bonds authorized by this chapter, the Goods Movement and Clean Trucks Bond Committee is hereby created. For the purposes of this chapter, the Goods Movement and Clean Trucks Bond Committee is “the committee” as that term is used in the State General Obligation Bond Law. The committee consists of the Treasurer, the Controller, the Director of Finance, and the Secretary of Transportation, or a designated representative of each of those officials. The Treasurer shall serve as the chairperson of the committee. A majority of the committee may act for the committee.

(b)For the purposes of the State General Obligation Bond Law, the State Air Resources Board, with respect to paragraphs (1) and (2) of subdivision (b) of Section 8879.83, is designated to be the “board.”

8879.88.

The committee shall determine whether or not it is necessary or desirable to issue bonds authorized pursuant to this chapter in order to carry out the actions specified in Section 8879.83, and, if so, the amount of bonds to be issued and sold. Successive issues of bonds may be authorized and sold to carry out those actions progressively, and are not required to be sold at any one time. Bonds may bear interest subject to federal income tax.

8879.89.

There shall be collected each year and in the same manner and at the same time as other state revenue is collected, in addition to the ordinary revenues of the state, a sum in an amount required to pay the principal of, and interest on, the bonds each year. It is the duty of all officers charged by law with any duty in regard to the collection of the revenue to do and perform each and every act that is necessary to collect that additional sum.

8879.90.

Notwithstanding Section 13340, there is hereby appropriated from the General Fund in the State Treasury, for the purposes of this chapter, an amount that will equal the total of the following:

(a)The sum annually necessary to pay the principal of, and interest on, bonds issued and sold pursuant to this chapter, as the principal and interest become due and payable.

(b)The sum necessary to carry out Section 8879.91, appropriated without regard to fiscal years.

8879.91.

For the purposes of carrying out this chapter, the Director of Finance may authorize the withdrawal from the General Fund of an amount not to exceed the amount of the unsold bonds that have been authorized by the committee to be sold for the purpose of carrying out this chapter, less any amount withdrawn pursuant to this section and Section 8879.92. Any amounts withdrawn shall be deposited in the fund to be allocated in accordance with this chapter. Any moneys made available under this section shall be returned to the General Fund from proceeds received from the sale of bonds for the purpose of carrying out this chapter.

8879.92.

The board may request the Pooled Money Investment Board to make a loan from the Pooled Money Investment Account, including other authorized forms of interim financing that include, but are not limited to, commercial paper, in accordance with Section 16312, for purposes of carrying out this chapter. The amount of the request shall not exceed the amount of the unsold bonds that the committee, by resolution, has authorized to be sold for the purpose of carrying out this chapter, excluding refunding bonds authorized pursuant to Section 8879.96. The board shall execute any documents required by the Pooled Money Investment Board to obtain and repay the loan. Any amounts loaned shall be deposited in the fund to be allocated by the board in accordance with this chapter.

8879.93.

Notwithstanding any other provision of this chapter, or of the State General Obligation Bond Law, if the Treasurer sells bonds pursuant to this chapter that include a bond counsel opinion to the effect that the interest on the bonds is excluded from gross income for federal tax purposes, subject to designated conditions, the Treasurer may maintain separate accounts for the investment of bond proceeds and for the investment of earnings on those proceeds. The Treasurer may use or direct the use of those proceeds or earnings to pay any rebate, penalty, or other payment required under federal law or take any other action with respect to the investment and use of those bond proceeds required or desirable under federal law to maintain the tax-exempt status of those bonds and to obtain any other advantage under federal law on behalf of the funds of this state.

8879.94.

All moneys deposited in the fund that are derived from premium and accrued interest on bonds sold pursuant to this chapter shall be reserved in the fund and shall be available for transfer to the General Fund as a credit to expenditures for bond interest, except that amounts derived from premium may be reserved and used to pay the cost of bond issuance prior to any transfer to the General Fund.

8879.95.

Pursuant to Chapter 4 (commencing with Section 16720) of Part 3 of Division 4, the cost of bond issuance shall be paid or reimbursed out of the bond proceeds, including premium, if any. To the extent the cost of bond issuance is not paid from premiums received from the sale of bonds, these costs shall be allocated proportionately to each program funded through this chapter by the applicable bond sale. Any bond refunded with the proceeds of refunding bonds as authorized by this section may be legally defeased to the extent permitted by law in the manner and to the extent set forth in the resolution, as amended from time to time, authorizing the refunded bond.

8879.96.

The bonds may be refunded in accordance with Article 6 (commencing with Section 16780) of Chapter 4 of Part 3 of Division 4, which is a part of the State General Obligation Bond Law. Approval by the voters of the state for the issuance of the bonds described in this chapter includes the approval of the issuance of any bonds issued to refund any bonds originally issued under this chapter or any previously issued refunding bonds.

8879.97.

The Legislature hereby finds and declares that, inasmuch as the proceeds from the sale of bonds authorized by this chapter are not “proceeds of taxes” as that term is used in Article XIII B of the California Constitution, the disbursement of these proceeds is not subject to the limitations imposed by that article.

SEC. 2.

Section 1 of this act shall take effect upon the adoption by the voters of the Goods Movement and Clean Trucks Bond Act, as set forth in Section 1 of this act.

SEC. 3.

The Secretary of State shall submit the Goods Movement and Clean Trucks Bond Act, as set forth in Section 1 of this act, to the voters at the June 5, 2018, statewide primary election.