Bill Text: CA AB2456 | 2013-2014 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Health care.

Spectrum: Partisan Bill (Republican 7-0)

Status: (Introduced - Dead) 2014-06-04 - From committee without further action pursuant to Joint Rule 62(a). [AB2456 Detail]

Download: California-2013-AB2456-Introduced.html

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BILL NUMBER: AB 2456	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Melendez

                        FEBRUARY 21, 2014

   An act to add Section 13335.1 to the Government Code, relating to
the state budget.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2456, as introduced, Melendez. Health care.
   The California Constitution requires the Governor to submit
annually to the Legislature a budget itemizing state expenditures and
estimating state revenues and requires the Legislature to pass the
Budget Bill by midnight on June 15. Under existing law, a state
agency for which an appropriation is made is generally required to
submit to the Department of Finance for approval a complete and
detailed budget setting forth all proposed expenditures and estimated
revenues for the ensuing fiscal year.
   Under the federal Patient Protection and Affordable Care Act
(PPACA), each state is required to, by January 1, 2014, establish an
American Health Benefit Exchange that makes available qualified
health plans to qualified individuals and small employers. Existing
state law establishes the California Health Benefit Exchange
(Exchange) within state government, specifies the powers and duties
of the board governing the Exchange, and requires the board to
facilitate the purchase of qualified health plans through the
Exchange by qualified individuals and small employers by January 1,
2014.
   The bill would require the Exchange to submit to the department
and the Legislative Analyst's Office a complete and detailed budget
utilizing performance-based budgeting, as defined, that sets forth
all proposed expenditures and estimated revenues for the ensuing
fiscal year. The bill would require the Exchange to, if necessary,
develop a process for consulting with contractors or other
responsible entities and stakeholders to develop information related
to performance standards and program performance. The bill would
require the department to include specified performance-based
budgeting information for the Exchange in the Governor's Budget and
to post that information on the department's Internet Web site. The
bill would also require the Legislative Analyst's Office to review
the adequacy of performance metrics and progress toward targeted
outcomes in preparing its review of the Governor's Budget as it
relates to the Exchange.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) State government must focus on the outcomes of public policy
decisions and public programs to ensure opportunities are available
for all Californians to achieve a high quality of life.
   (b) The Legislature must ensure that policymakers, public program
administrators, and rank-and-file state workers have access to
relevant and timely information so that they can make informed
decisions in the design and delivery of public programs.
   (c) The focus of that information must be on the goals of those
public programs and the performance of the public agencies in
administering those programs.
   (d) Goal and performance information should be widely available,
relevant, and timely for informing budget, policy, and oversight
decisions.
   (e) In order to identify performance measurements relevant to
budget, policy, and oversight decisionmaking, public agencies must
consult with the public, rank-and-file state workers, supervisors,
and other officials responsible for the delivery of public programs.
   (f) Performance measurements, including information on outcomes
and other metrics relevant to improving those outcomes, should be
designed to ensure that limited public resources are well spent.
   (g) Establishing goal, performance, and outcome information for
public programs should be part of a systematic review of the
effectiveness and efficiency of those programs.
   (h) Goal, performance, and outcome information should be made
widely available to the public.
   (i) Goal, performance, and outcome information should be used in
the annual budget and policymaking process to inform fiscal and
policy decisions and by the Legislature to enhance oversight of
public programs and to ensure results-based accountability.
   (j) As a component of legislative oversight, goal, performance,
and outcome information should be used to identify programs that
require fundamental reforms to improve outcomes and programs subject
to elimination because they are ineffective.
  SEC. 2.  Section 13335.1 is added to the Government Code, to read:
   13335.1.  (a) As used in this article, the following definitions
shall apply:
   (1) "Exchange" means the California Health Benefit Exchange
established pursuant to Title 22 (commencing with Section 100500) of
the Government Code.
   (2) "Performance-based budgeting" means a system of budgeting that
uses information on performance to inform resource allocation
decisions, thereby establishing clear accountability.
   (b) The purpose of performance-based budgeting is to inform
policy, fiscal, and oversight decisions by the Governor and Members
of the Legislature; to focus managers, supervisors, and rank-and-file
workers on achieving desired goals; and to communicate to the public
the value of public programs, progress toward desired results, and
the choices available to improve the expenditure of public funds.
   (c) The Exchange shall submit to the department and the
Legislative Analyst's Office a complete and detailed budget at the
time and in the form prescribed by the department that sets forth all
proposed expenditures and estimated revenues for the ensuing fiscal
year.
   (d) The budget submitted pursuant to subdivision (c) shall use
performance-based budgeting to make clear to policymakers and the
public the value and results of existing operations and proposed
changes.
   (e) The budget submitted pursuant to subdivision (c) using
performance-based budgeting shall identify and update all of the
following:
   (1) The mission and goals of the Exchange.
   (2) The activities and programs focused on achieving those goals.
   (3) Performance metrics that reflect desired outcomes for existing
and proposed activities and a targeted performance level for the
following year.
   (4) Prior year performance data and an explanation of deviation
from previous year targets.
   (5) Proposed changes in statute, including the creation of
incentives or elimination of disincentives that could improve
outcomes or hold down costs.
   (6) A description of the impacts and consequences to parties
affected by an activity or program proposed for modification or
elimination.
   (7) A five-year projection of estimated assessment levels on
health plans to pay for Exchange expenditures.
   (f) Performance-based budgeting shall be used by the Exchange and
shall allow the public and policymakers to understand the
effectiveness and efficiency of the Exchange. The Exchange shall, if
necessary, develop a process for consulting with contractors or other
responsible entities, and stakeholders to develop information
related to performance standards and program performance.
   (g) The department shall include performance-based budgeting
information for the Exchange in the Governor's Budget in both printed
and electronic formats if prepared, and post the information on its
Internet Web site where the department routinely posts budget
information. That information shall include, but not be limited to,
information on all of the following:
   (1) The mission and goals of the Exchange's provided spending
authority in the Governor's Budget.
   (2) The activities and programs focused on achieving those goals.
   (3) Performance metrics that reflect desired outcomes for existing
and proposed activities and a targeted performance level for the
following year.
   (4) Prior year performance data and an explanation of deviation
from previous year targets.
   (5) A description of the impacts and consequences to parties
affected by an activity or program proposed for modification or
elimination.
   (h) The Legislative Analyst's Office shall review the adequacy of
performance metrics and progress toward targeted outcomes in
preparing its review of the Governor's Budget as it relates to the
Exchange.