BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1428
                                                                  Page  1

          Date of Hearing:   July 3, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                    AB 1428 (Conway) - As Amended:  June 26, 2013 

          Policy Committee:                              HealthVote:18-0

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

           SUMMARY  

          This bill amends recently enacted background check requirements,  
          applicable to specified employees and contractors of the  
          California Health Benefit Exchange (known as Covered  
          California), by inserting a reference to Minimum Risk Standards  
          for Exchanges (MARS-E), a specific federal document relating to  
          health exchange privacy and security standards.  

           FISCAL EFFECT  

          Negligible state costs.

           COMMENTS  

           1)Rationale  . This bill is intended as a companion measure to SB  
            509 (DeSaulnier), Chapter 10, Statutes of 2013.  SB 509 was  
            chaptered on June 17, 2013 as an urgency statute so Covered  
            California could begin hiring call center employees.  As SB  
            509 moved through the legislative process, its provisions did  
            not mention the MARS-E but instead referenced "federal  
            guidance applicable to state-based exchanges." Covered  
            California's board determined compliance with the MARS-E was  
            important but because SB 509's proponents did not want to  
            delay call center hiring, SB 509 moved forward with an  
            agreement that clarifying language, including specific  
            reference to the MARS-E, would follow in this bill.  

           2)Covered California Call Centers  . Ongoing efforts to prepare  
            for full implementation of the federal Affordable Care Act  
            (ACA) on January 1, 2014 include opening Covered California on  
            October 1 of this year to begin marketing health coverage.   
            Covered California selected call center sites in Fresno and  








                                                                  AB 1428
                                                                  Page  2

            Rancho Cordova, and sought passage of SB 509 to comply with  
            recent federal privacy and security guidelines.  These  
            guidelines require state health exchanges to perform  
            background checks on personnel whose duties include access to  
            personal health or financial information for Exchange  
            applicants and enrollees.  This bill and SB 509 ensure  
            compliance with background check requirements.     

           Analysis Prepared by  :    Debra Roth / APPR. / (916) 319-2081