Welfare and Institutions Code § 14199.96

14199.96.

(a) The tax assessed under this article shall become effective and operative on January 1, 2027, or the effective date, certified in writing by the director, of federal approval if such approval is necessary, whichever occurs later. When such federal approval is necessary and is secured, the director shall post the certification of federal approval on the department’s internet website and shall send a copy of the certification to the Secretary of State, the Secretary of the Senate, the Chief Clerk of the Assembly, the Legislative Counsel, the State Board of Equalization, the Department of Insurance, and the Executive Officer of the Franchise Tax Board.

(b) This article, except for Section 14199.92 to the extent not in conflict with federal law, shall cease to be operative the first day of the calendar year beginning on or after the date the director, in consultation with the Director of Finance, determines that the tax has not met the intent as outlined in Section 14199.90 or that the tax was rejected where federal approval was necessary or found out of compliance with federal law by the federal Centers for Medicare and Medicaid Services and the director determines that it is not feasible to modify the tax to achieve such federal approval or compliance. The director shall post the determination on the department’s internet website and shall send a copy of the determination to the Secretary of State, the Secretary of the Senate, the Chief Clerk of the Assembly, the Legislative Counsel, the State Board of Equalization, the Department of Insurance, the Department of Finance, and the Executive Officer of the Franchise Tax Board.

(c) This article, except for Section 14199.92 to the extent not in conflict with federal law, shall cease to be operative for any affected tax period or periods upon a final judicial determination made by any court of appellate jurisdiction, or a final determination by the United States Department of Health and Human Services or the federal Centers for Medicare and Medicaid Services, that the tax assessed pursuant to this article cannot be implemented for the affected tax period or periods, and any amount of the tax paid under this article with respect to the affected tax period or periods shall be refunded. The director shall post a notification of that final judicial or federal administrative determination on the department’s internet website and shall provide this notification to the Secretary of State, the Secretary of the Senate, the Chief Clerk of the Assembly, the Legislative Counsel, the State Board of Equalization, the Department of Insurance, the Department of Finance, and the Executive Officer of the Franchise Tax Board.

(d) Notwithstanding this section, any tax and any applicable interest and penalties imposed under this article shall continue to be due and payable to the department until the tax and any applicable interest and penalties are fully paid.

(e) Upon execution of the declaration described in subdivision (b) or (c), the director shall implement a plan, in consultation with the Department of Finance, to end the program consistent with the purpose of the article, including the recoupment of payments made under this article if required by a final judicial determination made by any court of appellate jurisdiction or a final determination made by the United States Department of Health and Human Services or the federal Centers for Medicare and Medicaid Services.