HomeMy WebLinkAboutMINUTES - 02271996 - C60 TO: BOARD OF SUPERVISORS Contra
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FROM: PHIL BATCHELOR, COUNTY ADMINISTRATOR Costa
County
DATE: February 20, 1996
ACKNOWLEDGE SPONSORSHIP OF AB 2138 (Campbell) TO ALLOW
SUBJECT: THE CONTRA COSTA HEALTH PLAN MORE TIME WITHIN WHICH TO
SUBMIT ITS ANNUAL AUDITED FINANCIAL STATEMENT
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
ACKNOWLEDGE that the Board of Supervisors is the SPONSOR of AB 2138 by
Assemblyman Robert Campbell, which would provide the Contra Costa Health Plan
additional time within which to submit its annual audited financial statement to the
State Department of Corporations.
BACKGROUND:
The Board of Supervisors included in its 1996 Legislative Program Item #7, an
amendment to the Health and Safety Code to provide more time for the Contra
Costa Health Plan to produce its audited financial statement and submit it to the
Department of Corporations.
Under current law, the CCHP is required to submit its audited statement for a fiscal
year within 120 days of the end of the fiscal year, or by approximately October 31
for the prior fiscal year. The problem with this is that the County's books have often
not been closed on the prior fiscal year in time to produce an audited financial
statement by that date. The Health Services Department is therefore seeking
legislation which would allow this audited statement to be submitted within 180 days
of the end of the fiscal year.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
JL RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S): &g" �
ACTION OF BOARD ON rwwy-� APPROVED AS RECOMMENDED X OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
X UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
ATTESTED FEBRUARY 27, 1996
Conta%'�ee Page 2 PHIL BATCHELOR,CLERK OF THE BOARD OF
CC: SUPERVISORS AND COUNTY ADMINISTRATOR
BY DEPUTY
Assemblyman Campbell has agreed to author this legislation and has introduced AB
2138 for this purpose. As introduced, AB 2138 would allow publicly sponsored
HMO's up to 180 days, rather than 120 days, within which to submit its annual
audited financial statement to the State Department of Corporations. As a result, we
are recommending that the Board of Supervisors acknowledge that it is the sponsor
of AB 2138.
cc: County Administrator
Health Services Director
Executive Director, Contra Costa Health Plan
Auditor-Controller
County Counsel
Les Spahnn; Heim, Noack, Kelly & Spahnn
1121 L Street, Suite 100
Sacramento, CA 95814
-2-
. tPo
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CALIFORNIA LEGISLATURE-1995-96 REGULAR SESSION
ASSEMBLY BILL No. 2138
_ Introduced by Assembly Member Campbell
February 5, 1996
An act to amend Section 1384 of the Health and Safety Code,
relating to health care service plans.
LEGISLATIVE COUNSEL'S DIGEST
AB 2138, as introduced, Campbell. Health care service
plans: financial statements: governmental.entities.
Existing law requires a health care service plan to submit
financial statements prepared as of the close of its fiscal year
within 120 days after the close of the year.
This bill would require submission 180 days after the close
of the fiscal year for public entities or political subdivisions of
the state.
Vote: majority. Appropriation: no. Fiscal committee: no.
State-mandated local program: no.
The people of the State of California do enact as follows-
1 SECTION 1. Section 1384 of the Health and Safety
2 Code is amended to read:
3 1384. (a) Within 90 days after receipt of a request
4 from the commissioner, a plan or other person subject to
5 this chapter shall submit to the commissioner an audit
6 report containing audited financial statements covering
7 the 12-calendar months next preceding the month of
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AB 2138 — 2 -
1 receipt of the request, or another period as the
2 commissioner may require.
3 (b) On or before 105 days after the date of a notice of
4 surrender or order of revocation, a plan shall file with the
5 commissioner a closing audit report containing audited
6 financial statements. The reporting period for the closing
7 audit report shall be the 12-month period preceding the
8 date of the notice of surrender or order of revocation, or
9 for another period as the commissioner may specify. This
10 report shall include other relevant information as
11 specified by rule of the commissioner. The commissioner
12 shall not consent to a surrender and an order of
13 revocation shall not be considered final until the closing
14 audit report has been filed with the commissioner and all
15 concerns raised by the commissioner therefrom have
16 been resolved by the plan, as determined by the
17 commissioner. For good cause, the commissioner may
18 waive the requirement of a closing audit report.
19 (c) Eaeh Except as otherwise provided in this
20 subdivision, each plan shall submit financial statements
21 prepared as of the close of its fiscal year within 120 days
22 after the close of sueh the fiscal year. The financial
23 statements referred to in this subdivision and in
24 subdivisions (a) and (b) of this section shall be
25 accompanied by a report, certificate, or opinion of an
26 independent certified public accountant or independent
27 public accountant. The audits shall be conducted in
28 accordance with generally accepted auditing standards
29 and the rules and regulations of the commissioner.
30 However, financial statements from public entities or
31 political subdivisions of the state shall be submitted
32 within 180 days after the close of the fiscal year and need
33 not include a report, certificate, or opinion by an
34 independent certified public accountant or an
35 independent public accountant, and the audit shall be
36 conducted in accordance with governmental auditing
37 standards.
38 (d) A plan, solicitor, or solicitor firm shall make any
39 special reports to the commissioner as the commissioner
40 may from time to time require.
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- 3 — AB 2138
the 1 (e) For good cause and upon written request, the
2 commissioner may extend the time for compliance with
of 3 subdivisions (a) , (b), and (h) of this section.
:he 4 (f) A plan, solicitor, or solicitor firm shall, when
:ed 5 requested by the commissioner, for good cause, submit its
ing 6 unaudited financial statement, prepared in accordance
:he 7 with generally accepted accounting principles and
or 8 consisting of at least a balance sheet and statement of
his 9 income as of the date and for the period specified by the
as 10 commissioner. The commissioner may require the
ler 11 submission of these reports on a monthly or other periodic
of 12 basis.
ng 13 (g) If the report, certificate, or opinion of the
all 14 independent accountant referred to in subdivision (c) is
.ve 15 in any way qualified, the commissioner may require the
:he 16 plan to take any action as the commissioner deems
lay 17 appropriate to permit an independent accountant to
18 remove the qualification from the report, certificate, or
his 19 opinion.
rits 20 (h) The commissioner may reject any financial
Y
s 21 statement, report, certificate, or opinion filed pursuant to
!ial 22 this section by notifying the plan, solicitor, or solicitor
in 23 firm required to make this filing of its rejection and the
be 24 cause thereof. Within 30 days after the receipt of the
an 25 notice, sok the person shall correct the deficiency, and
.nt 26 the failure so to do shall be deemed a violation of this
in 27 chapter. The commissioner shall retain a copy of all filings
-ds 28 so rejected.
er. 29 (i) The commissioner may make rules and regulations
or 30 specifying the form and content of the reports and
ed 31 financial statements referred to in this section, and may
ed 32 require that these reports and financial statements be
an 33 verified by the plan or other person subject to this chapter
an 34 in a manner as the commissioner may prescribe.
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