BILL ANALYSIS                                                                                                                                                                                                    



                                                                  SB 442
                                                                  Page  1

          Date of Hearing:   August 4, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   SB 442 (Ducheny) - As Amended:  August 2, 2010 

          Policy Committee:                             Health Vote:19-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable: No           

           SUMMARY  

          This bill streamlines administrative processes for community  
          clinics to apply for affiliate clinic licensure from the  
          California Department of Public Health (DPH). Specifically, this  
          bill: 

          1)Requires the affiliate clinic application be contained in a  
            simple form and specifies the contents of the application  
            form. 

          2)Establishes related definitions for terms such as "clinic  
            corporation".

          3)Requires a clinic corporation to act as the administrative  
            headquarters for communications with DPH. 

          4)Requires DPH to retain information related to clinic  
            corporations maintaining affiliate clinic licenses. Specifies  
            the information DPH is required to maintain. Specifies a  
            clinic corporation will not be required to resubmit  
            information maintained by DPH about clinic corporations when  
            applying for affiliate licensure. 

          5)Requires a clinic corporation to submit a single report of  
            change of governance for the clinic corporation and a single  
            payment for all clinic licensure renewal fees. 

           FISCAL EFFECT  

          Minor absorbable workload to DPH to continue oversight of  
          licensing and certification of health clinics and the  
          requirements of this bill. 








                                                                  SB 442
                                                                  Page  2


           COMMENTS  

           1)Rationale  . This bill is co-sponsored by the California Family  
            Health Council, the California Primary Care Association, and  
            Planned Parenthood Affiliates of California. According to the  
            author, a top concern of clinics statewide is difficulties and  
            delays in state licensing and certification. Many clinic  
            corporations operate several sites, with some operating up to  
            25 under common leadership and governance. This bill reduces  
            administrative burdens for clinics applying for affiliate  
            licensure. 

           2)Background  . Current law authorizes a primary care clinic  
            holding a license for five years to apply for an affiliate  
            license if specified eligibility criteria are met. These  
            criteria include no history of repeated or uncorrected patient  
            safety violations and no pending suspensions or revocation  
            actions.  The co-sponsors indicate current law for affiliate  
            licensure requires the submission of up to 210 pages of  
            duplicative information, with original signatures of each  
            corporate officer, board member, and clinic manager for every  
            new clinic application. 

          Required documentation includes a copy of the non-profit  
            corporation filing statement from the California Secretary of  
            State; Articles of Incorporation; corporation bylaws; the  
            Internal Revenue Service letter acknowledging tax-exempt  
            nonprofit corporation status; a list of all clinics operated  
            by the clinic corporation, including name, address, and  
            contact information; and, an applicant individual information  
            form to be completed and signed by each board member, the  
            corporation's President, the officers of the corporation, and  
            the clinic manager. The application information forms generate  
            at least six pages of material about each individual. This  
            bill proposes consolidating applicant information for the  
            purposes of affiliate licensure. 

           Analysis Prepared by  :    Mary Ader / APPR. / (916) 319-2081