BILL NUMBER: AB 1398 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 10, 1999
INTRODUCED BY Assembly Member Papan
FEBRUARY 26, 1999
An act to amend Section 14105.3 of the Welfare and
Institutions Code, relating to health. An act to add
Section 23028 to the Government Code, relating to the San Francisco
Public Utilities Commission.
LEGISLATIVE COUNSEL'S DIGEST
AB 1398, as amended, Papan. Medi-Cal: administration
San Francisco Public Utilities Commission: water
rates .
(1) Under existing law, the San Francisco Public Utilities
Commission supplies water at wholesale to various retail water
suppliers.
This bill would require the commission to prescribe rates for the
sale of water at wholesale that reflect the proportional cost of
delivering water to retail water suppliers, thereby imposing a
state-mandated local program.
(2) 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, including the creation of a State Mandates Claims Fund
to pay the costs of mandates that do not exceed $1,000,000 statewide
and other procedures for claims whose statewide costs exceed
$1,000,000.
This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
Existing law provides for the Medi-Cal program, which is
administered by the State Department of Health Services, pursuant to
which medical benefits are provided to public assistance recipients
and certain other low-income persons. Existing law relating to the
administration of the Medi-Cal program requires the department to
contract with manufacturers of single-source drugs on a negotiated
basis, and with manufacturers of multisource drugs on a bid or
negotiated basis.
This bill would make technical, nonsubstantive changes to the
above provisions.
Vote: majority. Appropriation: no. Fiscal committee:
no yes . State-mandated local program:
no yes .
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 14105.3 of the Welfare and
SECTION 1. Section 23028 is added to the Government Code, to read:
23028. The San Francisco Public Utilities Commission shall
prescribe rates for the sale of water at wholesale that reflect the
proportional cost of delivering water to retail water suppliers.
SEC. 2. Notwithstanding Section 17610 of the Government Code, if
the Commission on State Mandates determines that this act contains
costs mandated by the state, reimbursement to local agencies and
school districts for those costs shall be made pursuant to Part 7
(commencing with Section 17500) of Division 4 of Title 2 of the
Government Code. If the statewide cost of the claim for
reimbursement does not exceed one million dollars ($1,000,000),
reimbursement shall be made from the State Mandates Claims Fund.
Institutions Code is amended to read:
14105.3. (a) The department is considered to be the purchaser,
but not the dispenser or distributor, of prescribed drugs under the
Medi-Cal program for the purpose of enabling the department to obtain
from manufacturers of prescribed drugs the most favorable price for
those drugs furnished by one or more manufacturers, based upon the
large quantity of such drugs purchased under the Medi-Cal program,
and to enable the department, notwithstanding any other provision of
California law, to obtain from the manufacturers discounts, rebates,
or refunds based on quantities purchased under the program, insofar
as may be permissible under federal law. Nothing in this section
shall interfere with usual and customary distribution practices in
the drug industry.
(b) The department may enter into exclusive or nonexclusive
contracts on a bid or negotiated basis with manufacturers,
distributors, dispensers, or suppliers of appliances, durable medical
equipment, medical supplies, and other product-type health care
services and with laboratories for clinical laboratory services for
the purpose of obtaining the most favorable prices to the state and
to assure adequate quality of the product or service. This
subdivision shall not apply to pharmacies licensed pursuant to
Section 4080 of the Business and Professions Code.
(c) The department shall begin negotiation for contracts with
manufacturers of durable medical equipment and for contracts with
clinical laboratories for the provision of clinical laboratory
services not later than August 31, 1993. The department shall not
enter into a contract with a clinical laboratory unless the clinical
laboratory is licensed pursuant to California state law or certified
under Section 263a of Title 42 of the United States Code.
(d) The department shall contract with manufacturers of
single-source drugs on a negotiated basis and with manufacturers of
multisource drugs on a bid or negotiated basis.
(e) In order to achieve maximum cost savings the Legislature
hereby determines that an expedited contract process for contracts
under this section is necessary. Therefore contracts under this
section shall be exempt from Chapter 2 (commencing with Section
10290) of Part 2 of Division 2 of the Public Contract Code.
Contracts shall have no force and effect unless approved by the
Department of Finance.
(f) The department may contract with less than all manufacturers
or clinical laboratories including only one manufacturer or clinical
laboratory, on a bid or nonbid basis.