COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager’s Office

DATE:

June 18, 2010

BOARD MEETING DATE:

June 29, 2010

SPECIAL NOTICE/HEARING:

None

VOTE REQUIRED:

Majority

TO:

Honorable Board of Supervisors

FROM:

David S. Boesch, County Manager

SUBJECT:

County Manager’s Report #7

A.

Assembly Bill 155 (Mendoza), Local government bankruptcy proceedings

RECOMMENDATION:

Adopt a resolution in opposition to Assembly Bill 155 (Mendoza), Local government: bankruptcy proceedings.

BACKGROUND:

Under Chapter 9 of the Federal Bankruptcy Code, a municipality receiving protection is shielded from creditor claims while it works out a plan of adjustment with its creditors. The plan of adjustments can involve a reduction to amount owed, an extension of debt repayment of debt payments, or refinancing of debt.

Assembly Bill 155 (Mendoza) would require local agencies to obtain approval from the California Debt and Investment Advisory Commission (CDIAC) prior to seeking bankruptcy protection in Federal court. The measure would also authorize CDIAC to limit the nature and extent of relief that a bankruptcy court may provide.

The CDIAC’s current role is to provide information, education, and technical assistance on debt issuance and public fund investments to local public agencies. The Commission consists of nine members, including the State Treasurer, the Governor or the Director of Finance, the State Controller, two Senators, two Assembly Members, and two local government finances officials. The State Treasurer serves as the Chairperson and appoints two local government officials. The Speaker of the Assembly appoints the Assembly representatives and the Senate Rules Committee appoints the Senate representatives. Appointed members serve four-year terms, or at the pleasure of their appointing power.

Approval of this resolution contributes to the Shared Vision of 2015 of a Collaborative Community by ensuring that fiscal control of a local public entities’ bankruptcy filings remains with the local entity, which is directly responsible to the voters of the local community. The Resolution has been reviewed and approved as to form by County Counsel.

Performance Measure(s):

Measure

FY 2008-09
Actual

FY 2009-10
Projected

Federal/State Measures analyzed and acted on

25

35

FISCAL IMPACT:

Unknown.

B.

Senate Bill 900 (Alquist and Steinberg), California Health Benefits Exchange

RECOMMENDATION:

Adopt a resolution in support of Senate Bill 900 (Alquist and Steinberg), Emergency medical services regulation.

BACKGROUND:

Existing state law establishes the Managed Risk Medical Insurance Program (MRMIP), which administers the Healthy Families Program, the Major Risk Medical Insurance Program, and the Access for Infants and Mothers Program, under which it has authority to contract with health plans. Existing federal law, the federal Patient Protection and Affordable Care Act, requires each state to, by January 1, 2014, establish an American health Benefit Exchange that makes available qualified health plans to qualified individuals and qualified employers.

Senate Bill 900 (Alquist and Steinberg) would establish the California Health Benefits Exchange (CHBE), within the California Health and Human Services Agency (CHHS), with an appointed governing board to purchase health insurance on behalf of Californians up to 400 percent of the federal poverty level and employees of small businesses. It would be required to negotiate and enter into contracts with health plans seeking to participate in the Exchange, it would require that incentives be established for health plans that encourage the use of cost-effective, high-quality delivery systems, and it would be required to offer a choice of health plans in each region of the state of the five levels of coverage (platinum, gold, silver, bronze, and catastrophic) contained in federal law. The bill would also require the CHHS to apply for federal funds that are provided for in federal health care reform for the purposes of establishing and administering the Exchange.

Approval of this resolution contributes to the Shared Vision of 2025 of a Healthy Community by ensuring that greater numbers of County residents not currently covered by health insurance have access to quality health care and seamless services. The Resolution has been reviewed and approved as to form by County Counsel.

Performance Measure(s):

Measure

FY 2008-09
Actual

FY 2009-10
Projected

Federal/State Measures analyzed and acted on

25

35

FISCAL IMPACT:

Potentially significant as approximately 43,000 San Mateo County residents with incomes 400 percent below the federal poverty level will be purchasing insurance through the State established Exchange. Some of these individuals currently receive subsidized healthcare through the County’s ACE program.

C.

Assembly Bill 1602 (Perez), Health care coverage

RECOMMENDATION:

Adopt a resolution in support of Assembly Bill 1602 (Perez), Health care coverage.

BACKGROUND:

Existing federal law, the federal Patient Protection and Affordable Care Act, requires each state to, by January 1, 2014, establish an American health Benefit Exchange that makes available qualified health plans to qualified individuals and qualified employers.

Assembly Bill 1602 (Perez) would conform state law to several consumer protections in the federal health reform bill that would take affect within six months. Specifically, the bill would prohibit carriers from establishing lifetime limits or unreasonable annual limits on benefits; require providers to provide minimum coverage for specified preventative services; prohibit carriers from imposing preexisting condition exclusions for enrollees under 19 years of age; prohibit the limiting age for dependent health care coverage to be less than 26 years of age; and creates the California Health Trust Fund in the State Treasury for the purpose of this bill.

Approval of this resolution contributes to the Shared Vision of 2025 of a Healthy Community by ensuring that State law conforms to the Federal Patient Protection and Affordable Care Act of 2010, which establishes consumer protections for all individuals participating in the State established Exchange. The Resolution has been reviewed and approved as to form by County Counsel.

Performance Measure(s):

Measure

FY 2008-09
Actual

FY 2009-10
Projected

Federal/State Measures analyzed and acted on

25

35

FISCAL IMPACT:

Potentially significant as approximately 43,000 San Mateo County residents with incomes 400 percent below the federal poverty level will be purchasing insurance through the state established Exchange. Some of these individuals currently receive subsidized healthcare through the County’s ACE program.