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