Davis Signs Health-Related Bills Into Law
Facing an Oct. 14 deadline to sign into law bills passed in the most recent legislative session, Gov. Gray Davis (D) recently signed the following health-related legislation:
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AB 574: Sponsored by Assembly member Simon Salinas (D-Salinas), the measure allows the Department of Health Services to forgive Medi-Cal overpayments and debt interest for Good Samaritan Hospital in Kern County and Natividad County Hospital in Monterey County for services provided between Jan. 1, 1992, and Dec. 31, 1997 (Office of the Governor release, 10/10).
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AB 646: Sponsored by Assembly member Jerome Horton (D-Inglewood), the measure specifies that prescription drugs sold to clinics are exempt from sales and use tax (Office of the Governor release, 10/11).
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SB 231: Sponsored by Sen. Deborah Ortiz (D-Sacramento), the measure requires DHS to make changes to Medi-Cal to "ensure maximum federal reimbursement" for services provided to school students through the Local Educational Agency Medi-Cal Billing Option (Office of the Governor release, 10/10).
The Veto PenDavis also has vetoed the following health-related legislation:
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AB 142: Sponsored by Assembly member Keith Richman (R-Northridge), the measure would have prohibited any contract between a health plan and a health service provider issued, amended or renewed on or after July 1, 2002, from requiring or allowing the provider to accept financial risk for some medications (AB 142 text). In vetoing the bill, Davis noted that the bill "interferes" with private contractual relationships and "effectively eliminates" a health plan's purchasing power, leading to higher costs for consumers, health plans and health providers.
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AB 249: Sponsored by Assembly member Barbara Matthews (D-Tracy), the measure would have provided a partial tax exemption for certain medical devices, including lancets and glucose strips, used by people with diabetes and for certain herbal supplements used by acupuncturists (AB 249 text). In his veto message, Davis said the state's $1.1 billion budget shortfall and the current decline of the economy gives him "no choice but to oppose additional General Fund revenue losses."
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AB 1547: Sponsored by Assembly member Juan Vargas (D-San Diego), the measure would have authorized a pilot project of the San Diego Business Health Care Connection until Jan. 1, 2004. The project would provide certain employers and employees with health insurance information, resources, education and assistance and would establish an outreach program to assist with eligibility and enrollment (AB 1547 text). Davis again cited economic concerns in his veto message (Office of the Governor release, 10/10).
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AB 142: Sponsored by Assembly member Keith Richman (R-Northridge), the measure would have prohibited any contract between a health plan and a health service provider issued, amended or renewed on or after July 1, 2002, from requiring or allowing the provider to accept financial risk for some medications (AB 142 text). In vetoing the bill, Davis noted that the bill "interferes" with private contractual relationships and "effectively eliminates" a health plan's purchasing power, leading to higher costs for consumers, health plans and health providers.