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The department shall have the authority:
(a) To establish eligibility criteria, notwithstanding Section 15884, and determine the eligibility of applicants.
(b) To determine the major risk medical coverage to be provided to program subscribers.
(c) To research and assess the needs of persons not adequately covered by existing private and public health care delivery systems and promote means of assuring the availability of adequate health care services.
(d) To approve subscriber contributions, and plan rates, and establish program contribution amounts.
(e) To provide major risk medical coverage for subscribers or to contract with a participating health plan or plans or other vendor to provide or administer major risk medical coverage for subscribers.
(f) To authorize expenditures from the fund to pay program expenses which exceed subscriber contributions.
(g) To contract for administration of the program or any portion thereof with any public agency, including any agency of state government, or with any private entity.
(h) (1) To issue rules and regulations to carry out the purposes of this chapter.
(2) Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the department, without taking any further regulatory action, shall implement, interpret, or make specific this section and any applicable federal waivers and state plan amendments by means of plan letters, plan or provider bulletins, or similar instructions until the time regulations are adopted. Thereafter, the department shall adopt regulations in accordance with the requirements of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. Beginning six months after the effective date of this section, and notwithstanding Section 10231.5 of the Government Code, the department shall provide a status report to the Legislature pursuant to Section 9795 of the Government Code on a semiannual basis until regulations have been adopted.