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HomeWelfare and Institutions CodeDiv. 9Pt. 3.3Ch. 1§ 15803 Health Care Contract Exemptions

§ 15803 Health Care Contract Exemptions

Welfare and Institutions Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 15803 Health Care Contract Exemptions

Key Takeaways

  • •The state can make special deals with companies or groups without asking others for permission first.
  • •These deals don’t have to follow the usual rules for buying things or hiring people.
  • •The state doesn’t have to say exactly how much money each deal will cost ahead of time.
  • •The total money spent on these deals can’t be more than what the state set aside for the program.

Example

The state wants to hire a company to help people sign up for healthcare.

Normally, the state has to ask many companies to bid and pick the cheapest one. But with this law, they can just pick a company they like without all the extra steps. They also don’t have to say exactly how much they’ll pay upfront, as long as the total doesn’t go over the budget.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 15803 Health Care Contract Exemptions

(a) To implement this part and clause (ii) of subparagraph (A) of paragraph (6) of subdivision (a) of Section 12693.70 of the Insurance Code, the State Department of Health Care Services may contract with public or private entities. Contracts entered into under this part may be on a noncompetitive bid basis and are exempt from the following: (1) Part 2 (commencing with Section 10100) of Division 2 of the Public Contract Code and any policies, procedures, or regulations authorized by that part. (2) Article 4 (commencing with Section 19130) of Chapter 5 of Part 2 of Division 5 of Title 2 of the Government Code. (3) Review or approval of contracts by the Department of General Services. (b) During the transition of the programs to the department, the department shall also be exempt from the review or approval of feasibility study reports and the requirements of Sections 4819.35 to 4819.37, inclusive, and 4920 to 4928, inclusive, of the State Administrative Manual. (c) For contracts entered into under this part, the State Department of Health Care Services shall not be required to specify the amounts encumbered for each contract, but may allocate funds to each contract based on the projected or actual subscriber enrollments to a total amount not to exceed the amount appropriated for the program including family contributions. (Amended by Stats. 2014, Ch. 31, Sec. 61. (SB 857) Effective June 20, 2014.)

Last verified: January 23, 2026

Key Terms

State Department of Health Care Servicesnoncompetitive bid basisfeasibility study reportssubscriber enrollments

Related Statutes

  • § 10506 Budget Assumption Submission Deadlines
  • § 11026 Public Assistance Data Sharing
  • § 15801 Aim-Linked Infants Program Rules
  • § 15802 Health Care Services Regulations
  • § 15802.5 Employee Transfer To Health Agencies

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Welfare and Institutions Code. Section 15803.
View Official Source