Bill Text: CA SB172 | 2013-2014 | Regular Session | Introduced
Bill Title: In-home supportive services: sales tax.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2014-02-03 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB172 Detail]
Download: California-2013-SB172-Introduced.html
BILL NUMBER: SB 172 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Beall
FEBRUARY 5, 2013
An act to amend Section 6151 of the Revenue and Taxation Code, and
to amend Section 12306.6 of the Welfare and Institutions Code,
relating to public social services, and declaring the urgency
thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 172, as introduced, Beall. In-home supportive services: sales
tax.
Existing law, the Sales and Use Tax Law, imposes a sales tax on
retailers for the privilege of selling tangible personal property at
retail, measured by the gross receipts from the sale of tangible
personal property sold at retail in this state. A violation of
specified provisions of this law is a crime. Existing law similarly
imposes a sales tax on providers of support services, for the
privilege of selling support services at retail, measured by the
gross receipts from the sale of those services in this state at a
specified rate of those gross receipts.
Existing law creates the Personal Care IHSS Quality Assurance
Revenue Fund in the State Treasury, and requires the revenue from the
tax, less refunds, to be deposited in the fund. The fund is
continuously appropriated to the State Department of Social Services
for purposes of providing specified supplementary payments to
providers of in-home supportive services. Existing law requires the
IHSS provider tax and related supplementary payments to be
implemented no earlier than January 1, 2012 and further provides for
these provisions to become operative only if a specified federal
approval is granted.
This bill would make a technical, nonsubstantive change by
extending the earliest implementation date for the provider tax and
supplementary payment provisions from January 1, 2012, to July 1,
2012.
This bill would declare that it is to take effect immediately as
an urgency statute.
Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 6151 of the Revenue and Taxation Code is
amended to read:
6151. (a) Beginning on the date for which the federal Centers for
Medicare and Medicaid Services approves implementation of the state
plan amendment described in subdivision (c) of Section 12306.6 of the
Welfare and Institutions Code, but no earlier than January
July 1, 2012, for the privilege of selling
support services at retail, the sales tax is hereby extended to all
providers at the rate, as described in subdivision (b), of the gross
receipts of any provider from the sale of all support services sold
at retail in this state.
(b) The rate extended by subdivision (a) is the rate, as may be
amended from time to time, imposed by Article 1 (commencing with
Section 6051) plus the rate imposed by Section 35 of Article XIII of
the California Constitution for the privilege of selling tangible
personal property at retail in this state.
(c) Notwithstanding the implementation date of this article as
provided for in subdivision (a), no tax shall be collected pursuant
to this article prior to the receipt of approval by the federal
Centers for Medicare and Medicaid Services of the implementation of
Section 12306.6 of the Welfare and Institutions Code.
SEC. 2. Section 12306.6 of the Welfare and Institutions Code, as
amended by Section 36 of Chapter 47 of the Statutes of 2012, is
amended to read:
12306.6. (a) (1) Notwithstanding any other provision of
law, beginning on the date for which the federal Centers
for Medicare and Medicaid Services authorizes commencement of the
implementation of this section, but no earlier than January
July 1, 2012, and concurrent with the collection
of the sales tax extended to support services pursuant to Article 4
(commencing with Section 6150) of Chapter 2 of Part 1 of Division 2
of the Revenue and Taxation Code, a provider of in-home supportive
services shall receive a supplementary payment under this article
equal to a percentage, as set forth in paragraph (2), of the gross
receipts, as defined in subdivision (b) of Section 6150 of the
Revenue and Taxation Code, of the provider for the sale of in-home
supportive services, plus an amount described in paragraph (3) if
applicable. If the underlying payment for in-home supportive services
that is being supplemented is a Medi-Cal payment, then the
supplementary payment shall also be a Medi-Cal payment. Supplementary
payments shall be made only to those providers from whom the tax
imposed pursuant to Section 6151 of the Revenue and Taxation Code has
been collected.
(2) The percentage applicable to the supplementary payment
required by paragraph (1) shall equal the rate described in
subdivision (b) of Section 6151 of the Revenue and Taxation Code and
shall only be applied to services provided under this article,
including personal care option services reimbursable under the
Medi-Cal program.
(3) The supplementary payment of an individual provider whose
payroll withholding required for federal income tax purposes and for
purposes of taxation for the Social Security and Medicare programs is
increased due to the supplementary payment, in comparison to the
amounts for those purposes that would be withheld without the
supplementary payment, shall be increased by an additional amount
that is equal to the amount of this additional federal withholding.
(b) (1) All revenues deposited in the Personal Care IHSS Quality
Assurance Revenue Fund established pursuant to Section 6168 of the
Revenue and Taxation Code shall be used solely for purposes of the
In-Home Supportive Services program, including, but not limited to,
those services provided under the Medi-Cal program. All supplementary
payments required by this section shall be paid from the Personal
Care IHSS Quality Assurance Revenue Fund.
(2) The Director of Finance shall determine the sum required to be
deposited in the Personal Care IHSS Quality Assurance Revenue Fund
to fund the initial supplementary payments from the fund. As soon
thereafter as reasonably possible, this sum shall be transferred, in
the form of a loan, from the General Fund to the Personal Care IHSS
Quality Assurance Revenue Fund. At the time sufficient revenues have
been deposited in the Personal Care IHSS Quality Assurance Revenue
Fund pursuant to Section 6168 of the Revenue and Taxation Code to
sustain the continued operation of the fund for that portion of the
supplementary payment described in paragraph (2) of subdivision (a)
plus an additional amount equal to the General Fund loan made
pursuant to this paragraph, plus interest, the sum transferred from
the General Fund, including interest, shall be repaid to the General
Fund. Subsequent supplementary payments pursuant to this section
shall be made from revenue deposited in the Personal Care IHSS
Quality Assurance Revenue Fund pursuant to Section 6168 of the
Revenue and Taxation Code.
(3) The Department of Finance, on an ongoing basis, shall
determine the amount necessary to implement paragraph (3) of
subdivision (a), and subdivision (c) of Section 12302.2, and
immediately transfer this amount from the General Fund to the
Personal Care IHSS Quality Assurance Revenue Fund.
(c) (1) The Director of Health Care Services shall seek all
federal Medicaid approvals necessary to implement this section,
including using the revenues obtained pursuant to Article 4
(commencing with Section 6150) of Chapter 2 of Part 1 of Division 2
of the Revenue and Taxation Code as the nonfederal share for
supplementary payments. As part of that request for approval, the
director shall seek to make the supplementary payments effective as
of January July 1, 2012.
(2) This section shall become operative only if the federal
Centers for Medicare and Medicaid Services grants Medicaid approvals
sought pursuant to paragraph (1).
(3) If Medicaid approval is granted pursuant to paragraph (2),
within 10 days of that approval the Director of Health Care Services
shall notify the State Board of Equalization and the appropriate
fiscal and policy committees of the Legislature of the approval.
(d) If Article 4 (commencing with Section 6150) of Chapter 2 of
Part 1 of Division 2 of the Revenue and Taxation Code becomes
inoperative pursuant to subdivision (b) of Section 6170 of the
Revenue and Taxation Code, supplementary payments shall cease to be
made pursuant to subdivision (a) when all moneys in the fund have
been expended.
(e) (1) Notwithstanding the rulemaking provisions of the
Administrative Procedure Act, Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code, the
department and the State Department of Health Care Services may
implement and administer this section through all-county letters or
similar instruction from the department and the State Department of
Health Care Services until regulations are adopted. The department
and the State Department of Health Care Services shall adopt
emergency regulations implementing this section no later than 12
months following the initial effective date of the supplementary
payments. The department and the State Department of Health Care
Services may readopt any emergency regulation authorized by this
section that is the same as or substantially equivalent to an
emergency regulation previously adopted under this section.
(2) The initial adoption of emergency regulations implementing
this section and the one readoption of emergency regulations
authorized by this subdivision shall be deemed an emergency and
necessary for the immediate preservation of the public peace, health,
safety, or general welfare. Initial emergency regulations and the
one readoption of emergency regulations authorized by this section
shall be exempt from review and approval by the Office of
Administrative Law. The initial emergency regulations and the one
readoption of emergency regulations authorized by this section shall
be submitted to the Office of Administrative Law for filing with the
Secretary of State and each shall remain in effect for no more than
180 days, by which time final regulations may be adopted.
(f) This section shall remain in effect only until the January 1
following the date supplementary payments cease to be made pursuant
to subdivision (d), and as of that date is repealed.
SEC. 3. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to improve public health by maximizing federal funding
for the Medi-Cal program at the earliest time possible, it is
necessary for this act to take effect immediately.
