(a)
Gross income shall not include the qualified health care service plan income of a qualified health care service plan properly accrued with respect to enrollment or services that occur on or after July 1, 2016, and on or before June 30, 2019.
(b)
For purposes of this section, the following definitions shall apply:
(1)
“Qualified health care service plan” means a health care service plan, as defined in subdivision (k) of Section 14199.51 of the Welfare and Institutions Code, that is subject to the tax imposed under Section 14199.54 of the Welfare and Institutions Code.
(2)
“Qualified health care service plan income” means the revenue listed in subparagraphs (A) to (J), inclusive, that is associated with the operation of a qualified health care service plan and that is required to be reported to the Department of Managed Health Care pursuant to the instructions for filing financial statements and Section 1384 of the Health and Safety Code and the regulations adopted thereunder.
(A)
Premiums (commercial).
(B)
Copayments, COB, subrogation.
(C)
Title XIX Medicaid.
(D)
Point-of-service premiums.
(E)
Risk pool revenue.
(F)
Capitation payments.
(G)
Title XVIII Medicare.
(H)
Fee-for-service.
(I)
Interest.
(J)
Aggregate write-ins for other revenues, including capital gains and other investment income.
(c)
(1)No later than December 1, 2016, and annually thereafter, the State Department of Health Care Services shall provide to the Franchise Tax Board information regarding every health care service plan that is subject to the tax imposed under Section 14199.54 of the Welfare and Institutions Code. The information shall include the corporate name, address, and calendar period for which each health care service plan is subject to the tax imposed under Section 14199.54 of the Welfare and Institutions Code, and, if
applicable, the owner or owners of those health care service plans.
(2)
A qualified health care service plan with no income other than qualified health care service plan income that is excluded from gross income pursuant to this section for a taxable year shall be exempt from the minimum franchise tax imposed under Chapter 2 (commencing with Section 23101) for that taxable year.
(d)
The Franchise Tax Board may prescribe rules, guidelines, or procedures necessary or appropriate to carry out the purposes of this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code does not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.
(e)
This section shall remain in effect only until December 1, 2019, and as of June
30, 2020, is repealed.