Amended in Senate August 27, 2013

Amended in Assembly June 26, 2013

Amended in Assembly June 11, 2013

California Legislature—2013–14 Regular Session

Assembly BillNo. 1428


Introduced by Assembly Member Conway

(Coauthors: Assembly Members Bigelow, Dahle, Hagman, Harkey, Morrell, Patterson, Wagner, Waldron, and Wilk)

April 30, 2013


An act to amend Section 1043 to the Government Code, relating to health care coverage, and declaring the urgency thereof, to take effect immediately.

LEGISLATIVE COUNSEL’S DIGEST

AB 1428, as amended, Conway. California Health Benefit Exchange: employees and contractors.

Under the federal Patient Protection and Affordable Care Act (PPACA), each state is required, by January 1, 2014, to establish an American Health Benefit Exchange that makes available qualified health plans to qualified individuals and small employers. Existing state law establishes the California Health Benefit Exchange (Exchange) within state government, specifies the powers and duties of the board governing the Exchange, and requires the board to facilitate the purchase of qualified health plans through the Exchange by qualified individuals and small employers by January 1, 2014. Existing law requires the board to employ necessary staff and authorizes the board to enter into contracts.

Existing law requires the board, consistent with federal guidance applicable to state-based exchanges, to submit to the Department of Justice fingerprint images and related information of specified individuals whose duties include or would include access to confidential information, personal identifying information, personal health information, federal tax information, financial information, or any other information as required by federal law or guidance applicable to state-based exchanges for the purposes of obtaining information as to the existence and content of a record of state or federal convictions and information as to the existence and content of a record of state or federal arrests for which the Department of Justice establishes that the person is free on bail or on his or her recognizance pending trial or appeal.

This bill would revise these provisions to require that the fingerprint images and related information be submitted to the Department of Justice consistent with the federal Centers for Medicare and Medicaid Services (CMS), Catalog of Minimum Acceptable Risk Standards for Exchanges (MARS-E), Exchange Reference Architecture Supplement version 1.0, issued on August 12, 2012, or further updates, guidance, or regulationsbegin delete. The bill would provide that the fingerprint images and related information submitted to the Department of Justice include those of the specified individuals whose duties include or would include access to any information contained in the information systems and devices of the Exchange.end deletebegin insert, for those individuals whose duties include or would include access to the specified information contained in the information systems and devices of the Exchange.end insert

This bill would declare that it is to take effect immediately as an urgency statute.

Vote: 23. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

P2    1

SECTION 1.  

Section 1043 of the Government Code is amended
2to read:

3

1043.  

(a) (1) The executive board of the California Health
4Benefit Exchange, as established by Section 100500, shall,
5consistent with the federal Centers for Medicare and Medicaid
6Services (CMS), Catalog of Minimum Acceptable Risk Standards
7for Exchanges (MARS-E), Exchange Reference Architecture
8Supplement version 1.0, issued on August 12, 2012, or further
P3    1updates, guidance, or regulations, submit to the Department of
2 Justice fingerprint images and related information required by the
3Department of Justice of all employees, prospective employees,
4contractors, subcontractors, volunteers, or vendors, whose duties
5include or would include access tobegin delete any information contained in
6the information systems and devices of the Exchange, including,
7but not limited to,end delete
confidential information, personal identifying
8information, personal health information, federal tax information,
9begin insert orend insert financial informationbegin insert contained in the information systems and
10devices of the Exchangeend insert
, or any other information as required by
11federal law or guidance applicable to state-based exchanges for
12the purposes of obtaining information as to the existence and
13content of a record of state or federal convictions and also
14information as to the existence and content of a record of state or
15federal arrests for which the Department of Justice establishes that
16the person is free on bail or on his or her recognizance pending
17trial or appeal.

18(2) The board shall require any services contract, interagency
19agreement, or public entity agreement that includes or would
20include access to information described in paragraph (1), and
21entered into, renewed, or amended on or after the effective date
22of this section, to include a provision requiring the contractor to
23agree to criminal background checks on its employees, contractors,
24agents, or subcontractors who will have access to information
25described in paragraph (1) as part of their services contract,
26interagency agreement, or public entity agreement with the board.

27(b) The Department of Justice shall forward to the Federal
28 Bureau of Investigation requests for federal summary criminal
29history information received pursuant to paragraph (1) of
30subdivision (a). The Department of Justice shall review the
31information returned from the Federal Bureau of Investigation and
32compile and disseminate a response to the board.

33(c) The Department of Justice shall provide a state or federal
34level response to the board pursuant to subdivision (p) of Section
3511105 of the Penal Code.

36(d) The board shall request from the Department of Justice
37subsequent notification service, as provided pursuant to Section
3811105.2 of the Penal Code, for persons listed in paragraph (1) of
39subdivision (a).

P4    1(e) The Department of Justice shall charge a fee sufficient to
2 cover the cost of processing requests pursuant to this section.

3

SEC. 2.  

This act is an urgency statute necessary for the
4immediate preservation of the public peace, health, or safety within
5the meaning of Article IV of the Constitution and shall go into
6immediate effect. The facts constituting the necessity are:

7In order to protect and safeguard customers from the
8unauthorized and illegal access to, or disclosure of, their personal
9identifying information, personal health information, or federal
10tax information when the California Health Benefit Exchange
11begins enrolling customers into health care plans for coverage
12beginning as early as January 1, 2014, it is necessary that this act
13take effect immediately.



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