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SB-581 State contributions: California Excellence Fund.(2017-2018)

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Date Published: 02/05/2018 09:00 PM
SB581:v98#DOCUMENT

Amended  IN  Assembly  February 05, 2018

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 581


Introduced by Senator De León Senators De León, Allen, Hill, Lara, and McGuire

February 17, 2017


An act to amend Section 1366.24 of the Health and Safety Code, and to amend Section 10128.54 of the Insurance Code, relating to health care coverage. add Section 16302.5 to the Government Code, relating to state contributions.


LEGISLATIVE COUNSEL'S DIGEST


SB 581, as amended, De León De León. Cal-COBRA: disclosures. State contributions: California Excellence Fund.
Existing law requires, whenever any person donates any money to the state, the Treasurer to receive it upon the receipt of a certificate from the Controller. Existing law requires, if the donor at the time of making the donation files with the Controller a written designation of the fund or appropriation the person desires to benefit thereby, that donation to be credited accordingly. Under existing law, if a designation is not made, the donation is required to be credited to the State School Fund. The California Constitution requires the calculation, as specified, of a minimum amount of state funding to be provided each fiscal year for allocation to school districts and community college districts.
This bill would create the California Excellence Fund in the General Fund to accept monetary contributions to the State of California for exclusively public purposes. This bill would allow the donor to designate, when making the monetary contribution, which of several specified purposes for which the contribution could be used. This bill would require amounts in the California Excellence Fund to be first transferred to the General Fund and second, upon appropriation by the Legislature, for the purposes designated by donors, as provided. This bill would require that the funds transferred to the General Fund be considered for purposes of the calculation of a minimum amount of state funding to be provided each fiscal year for allocation to school districts and community college districts.
This bill would require the Treasurer to establish a procedure for the public to make monetary contributions to the California Excellence Fund and to provide to the Department of Finance information about the aggregate amount of monetary contributions made to the fund and the aggregate amounts available for each purpose designated by donors, as specified.
This bill would become operative only if SB 227 of the 2017–18 Regular Session is enacted and takes effect on or before January 1, 2019.

The Knox-Keene Health Care Service Plan Act of 1975 provides for the licensure and regulation of health care service plans by the Department of Managed Health Care and makes a willful violation of the act a crime. Existing law also provides for the regulation of health insurers by the Department of Insurance. The California Continuation Benefits Replacement Act (Cal-COBRA) requires health care service plans and health insurers providing coverage under a group benefit plan to employers of 2 to 19 eligible employees to offer a continuation of that coverage for a specified period of time to certain qualified beneficiaries, as specified. Existing law requires a group benefit plan that is subject to Cal-COBRA to make specified disclosures to covered employees, including that a covered employee who is considering declining continuation of coverage should be aware that companies selling individual health insurance may require a review of the employee’s medical history that could result in a higher premium or denial of coverage.

This bill would eliminate the disclosure requirement described above.

Vote: MAJORITY   Appropriation302.5. (a) (1) The California Excellence Fund is hereby created in the General Fund to accept monetary contributions to the State of California for exclusively public purposes as specified under Section 170 of the Internal Revenue Code, relating to charitable, etc., contributions and gifts. Section 11005 shall not apply to monetary contributions received by the California Excellence Fund.
(2) The donor shall be able to designate when making the monetary contribution in paragraph (1) as to which of the following purposes the contribution could be used for after the allocations are made to the General Fund pursuant to subdivision (b):
(A) Public schools that provide instruction in kindergarten or grades 1 to 12, inclusive.
(B) The institutions of the University of California.
(C) The institutions of the California State University.
(D) The institutions of the California Community Colleges.
(E) State parks.
(b) All amounts in the fund shall be allocated as follows:
(1) First, transferred to the General Fund an amount equal to the aggregate amount of certified credits allowed pursuant to subparagraph (AD) of paragraph (1) of subdivision (c) of Section 17039 and Section 17053.88 of the Revenue and Taxation Code for the taxable year. Funds transferred to the General Fund shall be considered General Fund revenues for purposes of Sections 8 and 8.5 of Article XVI of the California Constitution.
(2) Second, upon appropriation by the Legislature, for the purposes specified in paragraph (2) of subdivision (a).
(c) (1) For the purposes of this section, the Treasurer shall do both of the following:
(A) Establish a procedure for the public to make monetary contributions to the California Excellence Fund.
(B) Provide to the Department of Finance information about the aggregate amount of monetary contributions made to the California Excellence Fund and the aggregate amounts available for each designated purpose specified in paragraph (2) of subdivision (a) at least on a quarterly basis and as often as necessary for the state budget, beginning on January 1, 2019.
(2) (A) The Treasurer shall adopt any regulations necessary or appropriate to implement this section.
(B) The Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3) shall not apply to any regulation adopted by the Treasurer pursuant to subparagraph (A).

SEC. 2.

 This act shall become operative only if Senate Bill 227 of the 2017–18 Regular Session is enacted and takes effect on or before January 1, 2019.
SECTION 1.Section 1366.24 of the Health and Safety Code is amended to read:
1366.24.

(a)Every health care service plan evidence of coverage, provided for group benefit plans subject to this article, that is issued, amended, or renewed on or after January 1, 1999, shall disclose to covered employees of group benefit plans subject to this article the ability to continue coverage pursuant to this article, as required by this section.

(b)This disclosure shall state that all enrollees who are eligible to be qualified beneficiaries, as defined in subdivision (c) of Section 1366.21, shall be required, as a condition of receiving benefits pursuant to this article, to notify, in writing, the health care service plan, or the employer if the employer contracts to perform the administrative services as provided for in Section 1366.25, of all qualifying events as specified in paragraphs (1), (3), (4), and (5) of subdivision (d) of Section 1366.21 within 60 days of the date of the qualifying event. This disclosure shall inform enrollees that failure to make the notification to the health care service plan, or to the employer when under contract to provide the administrative services, within the required 60 days will disqualify the qualified beneficiary from receiving continuation coverage pursuant to this article. The disclosure shall further state that a qualified beneficiary who wishes to continue coverage under the group benefit plan pursuant to this article shall request the continuation in writing and deliver the written request, by first-class mail, or other reliable means of delivery, including personal delivery, express mail, or private courier company, to the health care service plan, or to the employer if the plan has contracted with the employer for administrative services pursuant to subdivision (d) of Section 1366.25, within the 60-day period following the later of (1) the date that the enrollee’s coverage under the group benefit plan terminated or will terminate by reason of a qualifying event, or (2) the date the enrollee was sent notice pursuant to subdivision (e) of Section 1366.25 of the ability to continue coverage under the group benefit plan. The disclosure required by this section shall also state that a qualified beneficiary electing continuation shall pay to the health care service plan, in accordance with the terms and conditions of the plan contract, which shall be set forth in the notice to the qualified beneficiary pursuant to subdivision (d) of Section 1366.25, the amount of the required premium payment, as set forth in Section 1366.26. The disclosure shall further require that the qualified beneficiary’s first premium payment required to establish premium payment be delivered by first-class mail, certified mail, or other reliable means of delivery, including personal delivery, express mail, or private courier company, to the health care service plan, or to the employer if the employer has contracted with the plan to perform the administrative services pursuant to subdivision (d) of Section 1366.25, within 45 days of the date the qualified beneficiary provided written notice to the health care service plan or the employer, if the employer has contracted to perform the administrative services, of the election to continue coverage in order for coverage to be continued under this article. This disclosure shall also state that the first premium payment shall equal an amount sufficient to pay any required premiums and all premiums due, and that failure to submit the correct premium amount within the 45-day period will disqualify the qualified beneficiary from receiving continuation coverage pursuant to this article.

(c)The disclosure required by this section shall also describe separately how qualified beneficiaries whose continuation coverage terminates under a prior group benefit plan pursuant to subdivision (b) of Section 1366.27 may continue their coverage for the balance of the period that the qualified beneficiary would have remained covered under the prior group benefit plan, including the requirements for election and payment. The disclosure shall clearly state that continuation coverage shall terminate if the qualified beneficiary fails to comply with the requirements pertaining to enrollment in, and payment of premiums to, the new group benefit plan within 30 days of receiving notice of the termination of the prior group benefit plan.

(d)Prior to August 1, 1998, every health care service plan shall provide to all covered employees of employers subject to this article a written notice containing the disclosures required by this section, or shall provide to all covered employees of employers subject to this section a new or amended evidence of coverage that includes the disclosures required by this section. Any specialized health care service plan that, in the ordinary course of business, maintains only the addresses of employer group purchasers of benefits and does not maintain addresses of covered employees, may comply with the notice requirements of this section through the provision of the notices to its employer group purchasers of benefits.

(e)Every plan disclosure form issued, amended, or renewed on and after January 1, 1999, for a group benefit plan subject to this article shall provide a notice that, under state law, an enrollee may be entitled to continuation of group coverage and that additional information regarding eligibility for this coverage may be found in the plan’s evidence of coverage.

SEC. 2.Section 10128.54 of the Insurance Code is amended to read:
10128.54.

(a)Every insurer’s evidence of coverage for group benefit plans subject to this article, that is issued, amended, or renewed on or after January 1, 1999, shall disclose to covered employees of group benefit plans subject to this article the ability to continue coverage pursuant to this article, as required by this section.

(b)This disclosure shall state that all insureds who are eligible to be qualified beneficiaries, as defined in subdivision (c) of Section 10128.51, shall be required, as a condition of receiving benefits pursuant to this article, to notify, in writing, the insurer, or the employer if the employer contracts to perform the administrative services as provided for in Section 10128.55, of all qualifying events as specified in paragraphs (1), (3), (4), and (5) of subdivision (d) of Section 10128.51 within 60 days of the date of the qualifying event. This disclosure shall inform insureds that failure to make the notification to the insurer, or to the employer when under contract to provide the administrative services, within the required 60 days will disqualify the qualified beneficiary from receiving continuation coverage pursuant to this article. The disclosure shall further state that a qualified beneficiary who wishes to continue coverage under the group benefit plan pursuant to this article shall request the continuation in writing and deliver the written request, by first-class mail, or other reliable means of delivery, including personal delivery, express mail, or private courier company, to the disability insurer, or to the employer if the plan has contracted with the employer for administrative services pursuant to subdivision (d) of Section 10128.55, within the 60-day period following the later of (1) the date that the insured’s coverage under the group benefit plan terminated or will terminate by reason of a qualifying event, or (2) the date the insured was sent notice pursuant to subdivision (e) of Section 10128.55 of the ability to continue coverage under the group benefit plan. The disclosure required by this section shall also state that a qualified beneficiary electing continuation shall pay to the disability insurer, in accordance with the terms and conditions of the policy or contract, which shall be set forth in the notice to the qualified beneficiary pursuant to subdivision (d) of Section 10128.55, the amount of the required premium payment, as set forth in Section 10128.56. The disclosure shall further require that the qualified beneficiary’s first premium payment required to establish premium payment be delivered by first-class mail, certified mail, or other reliable means of delivery, including personal delivery, express mail, or private courier company, to the disability insurer, or to the employer if the employer has contracted with the insurer to perform the administrative services pursuant to subdivision (d) of Section 10128.55, within 45 days of the date the qualified beneficiary provided written notice to the insurer or the employer, if the employer has contracted to perform the administrative services, of the election to continue coverage in order for coverage to be continued under this article. This disclosure shall also state that the first premium payment shall equal an amount sufficient to pay all required premiums and all premiums due, and that failure to submit the correct premium amount within the 45-day period will disqualify the qualified beneficiary from receiving continuation coverage pursuant to this article.

(c)The disclosure required by this section shall also describe separately how qualified beneficiaries whose continuation coverage terminates under a prior group benefit plan pursuant to Section 10128.57 may continue their coverage for the balance of the period that the qualified beneficiary would have remained covered under the prior group benefit plan, including the requirements for election and payment. The disclosure shall clearly state that continuation coverage shall terminate if the qualified beneficiary fails to comply with the requirements pertaining to enrollment in, and payment of premiums to, the new group benefit plan within 30 days of receiving notice of the termination of the prior group benefit plan.

(d)Prior to August 1, 1998, every insurer shall provide to all covered employees of employers subject to this article written notice containing the disclosures required by this section, or shall provide to all covered employees of employers subject to this article a new or amended evidence of coverage that includes the disclosures required by this section. Any insurer that, in the ordinary course of business, maintains only the addresses of employer group purchasers of benefits, and does not maintain addresses of covered employees, may comply with the notice requirements of this section through the provision of the notices to its employer group purchases of benefits.

(e)Every disclosure form issued, amended, or renewed on and after January 1, 1999, for a group benefit plan subject to this article shall provide a notice that, under state law, an insured may be entitled to continuation of group coverage and that additional information regarding eligibility for this coverage may be found in the evidence of coverage.