BILL ANALYSIS                                                                                                                                                                                                    



                                                                       



           ------------------------------------------------------------ 
          |SENATE RULES COMMITTEE            |                   SB 442|
          |Office of Senate Floor Analyses   |                         |
          |1020 N Street, Suite 524          |                         |
          |(916) 651-1520         Fax: (916) |                         |
          |327-4478                          |                         |
           ------------------------------------------------------------ 
           
                                         
                              UNFINISHED BUSINESS


          Bill No:  SB 442
          Author:   Ducheny (D), et al
          Amended:  8/12/10
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  11-0, 4/22/09
          AYES:  Alquist, Strickland, Aanestad, Cedillo, Cox,  
            DeSaulnier, Leno, Maldonado, Negrete McLeod, Pavley, Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  9-0, 1/21/10
          AYES:  Kehoe, Cox, Corbett, Denham, Leno, Liu, Price,  
            Walters, Yee

           SENATE FLOOR  :  35-0, 1/28/10
          AYES:  Aanestad, Ashburn, Calderon, Cedillo, Cogdill,  
            Corbett, Correa, Cox, Denham, DeSaulnier, Ducheny,  
            Dutton, Florez, Hancock, Harman, Hollingsworth, Kehoe,  
            Leno, Liu, Lowenthal, Maldonado, Negrete McLeod, Oropeza,  
            Padilla, Pavley, Price, Romero, Simitian, Steinberg,  
            Strickland, Wiggins, Wolk, Wright, Wyland, Yee
          NO VOTE RECORDED:  Alquist, Huff, Runner, Walters, Vacancy
           
          ASSEMBLY FLOOR  :  74-0, 8/16/10 - See last page for vote

           SENATE HEALTH COMMITTEE  :  7-0, 8/19/10
          AYES:  Alquist, Strickland, Aanestad, Cedillo, Leno,  
            Negrete McLeod, Romero
          NO VOTE RECORDED:  Pavley, Vacancy


           SUBJECT  :    Clinic corporation:  licensing

                                                           CONTINUED





                                                                SB 442
                                                                Page  
          2

           SOURCE  :     California Family Health Council
                      California Primary Care Association 
                      Planned Parenthood Affiliates of California 


           DIGEST  :    This bill streamlines administrative processes  
          for community clinics to apply for affiliate clinic  
          licensure from the Department of Public Health. 

           Assembly Amendments  delete permissive language and  
          require an affiliate clinic application to be signed by  
          an officer of the clinic corporation's board of directors  
          or the clinic corporation's chief executive officer or  
          executive director.

           ANALYSIS  :    

          Existing law:

          1. Provides for the licensing and regulation of health  
             clinics, including community and free clinics, by the  
             Department of Public Health (DPH). 

          2. Provides for a fee to be paid for an initial and annual  
             renewal license, as specified.  Estimated fees are  
             published every February 1 by DPH.

          3. Permits a primary care clinic that has held a valid,  
             unrevoked, and unsuspended license for at least the  
             preceding five years to apply to establish another  
             primary care clinic at an additional site, which is  
             referred to as an affiliate clinic. 

          4. Provides that the DPH license an affiliate clinic  
             without the necessity of first conducting an initial  
             onsite survey if specified conditions are met and within  
             30 days of receipt of a completed application or within  
             seven days of approving it. 

          This bill:

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

                                                           CONTINUED





                                                                SB 442
                                                                Page  
          3


          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. 

           Comments
           
          According to the Senate Appropriations Committee analysis:

            "CDPH [California Department of Public Health] currently  
            uses a system of 14 regional offices and a contract with  
            Los Angeles County and a database that tracks licensees  
            to oversee all of the health facilities, including  
            clinics that it licenses and certifies.  The department  
            would likely need to modify the way in which it oversees  
            clinics since clinics and mobile health care units on a  
            single consolidated license would no longer be tracked by  
            an individual license number.  Depending on the workload  
            at a given regional office, an additional program  
            technician could be needed to oversee a single  
            consolidated license and to facilitate communication  
            amongst the regional office that oversees the single  
            consolidated license and the other regional offices that  
            will directly oversee each of the clinics on the license.  
             If each of the offices and LA County needed to hire an  
            extra full-time staff member, costs could be up to  
            $600,000 in FY 2010-2011 and $1,000,000 in FY 2011-2012  
            and ongoing.

            "This bill would state that regulations would not be  

                                                           CONTINUED





                                                                SB 442
                                                                Page  
          4

            necessary to implement these provisions.  However, it is  
            likely that the CDPH would need to promulgate regulations  
            to implement these provisions where the language is not  
            explicit in its directions to the department, clinics,  
            mobile health care units, and clinic corporations.  If  
            CDPH promulgates regulations, it would need approximately  
            $75,000 in FY 2010-2011 and $125,000 in FY 2011-2012.

            "This bill would require the CDPH to annually set the fee  
            for a single consolidated license.  It is estimated that  
            the CDPH would require an additional Fee Development  
            Analyst at $60,000 in FY 2009-2010 and $100,000 ongoing  
            to set the fee annually.  Additionally, the CDPH would  
            need an additional information technology staff person to  
            modify the department's data systems to include this new  
            licensure category and create a system that would  
            accommodate the new way of tracking clinics at $60,000 in  
            FY 2010-2011 and $110,000 in FY 2011-2012.

            "In total, depending on department workload, costs for  
            regulations, ongoing district office administration, and  
            database management and clinic tracking would be up to  
            approximately $800,000 in FY 2010-2011 and $1,300,000 FY  
            2011-2012, and $1,200,000 ongoing.  All costs would be  
            offset by initial and annual single consolidated license  
            fees."

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  Yes

          According to the Senate Appropriations Committee:

                          Fiscal Impact (in thousands)

           Major Provisions       2010-11     2011-12      2012-13      Fund  

          DPH administration   up to $800           up to $1,300up to  
          $1,200               Special*

          Initial clinic licensing/      unknown, but likely to  
          provide sufficient   Special*
          annual renewal fee revenue     funds to cover ongoing  
          program costs


                                                           CONTINUED





                                                                SB 442
                                                                Page  
          5

          * DPH Licensing and Certification Program Fund

           SUPPORT  :   (Verified  1/25/10) (Unable to reverify)

          California Family Health Council (co-source)
          California Primary Care Association (co-source)
          Planned Parenthood Affiliates of California (co-source)
          Alliance Medical Center 
          Alliance for Rural Community Health
          Alta Med Health Services
          Anderson Valley Health Center
          Central Valley Health Network
          Chinatown Service Center
          Clinicas del Camino Real, Incorporated
          Clinica de Salud del Valle de Salinas
          Clinica Sierra Vista
          Community Clinic Association of Los Angeles County
          East Community Health Center, Inc.
          Eisner Pediatric and Family Medical Center
          Family HealthCare Network
          Family Health Centers of San Diego
          Imperial Beach Health Center
          LifeLong Medical Care
          Long Valley Health Center
          MayView Community Health Center
          Mendocino Coast Clinics, Inc.
          Mendocino Community Health Clinics, Inc.
          Neighborhood Healthcare
          North Coast Clinics Network
          North County Health Services
          Northeast Valley Health Corporation
          Open Door Community Health Centers
          Petaluma Health Center
          Planned Parenthood Mar Monte 
          Planned Parenthood of San Diego and Riverside Counties
          Planned Parenthood of Santa Barbara, Ventura and San Luis  
          Obispo
          Planned Parenthood:  Shasta-Diablo
          Potter Valley Community Health Center
          Redwood Coast Medical Services
          Saban Free Clinic
          Salud Para La Gente
          Shasta Community Health Center
          Shasta Consortium of Community Health Centers

                                                           CONTINUED





                                                                SB 442
                                                                Page  
          6

          Shingletown Medical Center
          Six Rivers Planned Parenthood
          Southern Trinity Health Services
          UMMA Community Clinic
          Venice Family Clinic
          West County Health Centers, Inc.

           ARGUMENTS IN SUPPORT  :    The California Primary Care  
          Association (CPCA) states that this bill eliminates  
          unnecessary administrative barriers to increasing access to  
          care by allowing primary care clinics to operate multiple  
          sites under one consolidated license.  CPCA states that  
          moving to a consolidated licensure will streamline the  
          licensing process, reduce duplication, and promote  
          administrative efficiency, and thereby maximize the ability  
          of safety net providers to meet the growing health care  
          needs of individuals and families in their communities.

          Planned Parenthood Affiliates of California (PPAC) states  
          that each time a clinic corporation applies for a new  
          clinic, numerous documents must be submitted to DPH, many  
          of which are duplications of paperwork already filed with  
          the department.  PPAC states that significant time and  
          money is expended on these cumbersome licensing activities  
          that take away from the critical services clinic staff  
          should be providing.  PPAC states that this bill  
          streamlines and modernizes the current overly burdensome  
          processes and eliminate duplication.


           ASSEMBLY FLOOR  :
          AYES:  Adams, Ammiano, Anderson, Arambula, Beall, Tom  
            Berryhill, Block, Blumenfield, Bradford, Brownley,  
            Buchanan, Caballero, Carter, Chesbro, Conway, Cook, Coto,  
            De La Torre, De Leon, DeVore, Eng, Evans, Feuer,  
            Fletcher, Fong, Fuentes, Fuller, Furutani, Gaines,  
            Galgiani, Garrick, Gatto, Gilmore, Hagman, Hall, Harkey,  
            Hayashi, Hernandez, Hill, Huber, Huffman, Jeffries,  
            Jones, Knight, Lieu, Logue, Bonnie Lowenthal, Ma,  
            Mendoza, Miller, Monning, Nava, Nestande, Niello,  
            Nielsen, Norby, V. Manuel Perez, Portantino, Ruskin,  
            Salas, Saldana, Silva, Skinner, Smyth, Solorio, Audra  
            Strickland, Swanson, Torlakson, Torres, Torrico, Tran,  
            Villines, Yamada, John A. Perez

                                                           CONTINUED





                                                                SB 442
                                                                Page  
          7

          NO VOTE RECORDED:  Bass, Bill Berryhill, Blakeslee, Charles  
            Calderon, Davis, Vacancy


          CTW:mw  8/19/10   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

                                ****  END  ****




































                                                           CONTINUED