BILL ANALYSIS Ó Senate Appropriations Committee Fiscal Summary Senator Kevin de León, Chair SB 509 (DeSaulnier and Emmerson) - California Health Benefit Exchange: background checks. Amended: April 22, 2013 Policy Vote: Health 8-0 Urgency: Yes Mandate: No Hearing Date: May 20, 2013 Consultant: Brendan McCarthy This bill meets the criteria for referral to the Suspense File. Bill Summary: SB 509, an urgency measure, would authorize the California Health Benefit Exchange to require fingerprint images and related information from all employees, prospective employees, contractors, subcontractors, volunteers, and vendors. The bill would authorize the Health Benefit Exchange to provide this information to the Department of Justice for background checks. Fiscal Impact: One-time costs of about $60,000 and ongoing costs of about $40,000 to perform background checks on Health Benefit Exchange employees (federal funds). One-time costs of about $1.2 million to perform background checks for volunteer "assistors" (federal funds). Background: Under the federal Patient Protection and Affordable Care Act (Affordable Care Act) states are required to establish American Health Benefit Exchanges. If a state does not create an Exchange, the federal government will do so. Within the Exchanges, individuals will be able to purchase health care coverage with standardized benefit packages and actuarial values. In addition, individuals with incomes between 100 percent and 400 percent of the federal poverty level will be eligible for subsidies for coverage purchased in the Exchanges. California has established its own California Health Benefit Exchange (sometimes referred to as "Covered California"). In order to establish eligibility for subsidies, the Exchange will operate call centers, contract with counties, and utlilize volunteer "assistors" to help consumers navigate the eligibility and enrollment process. SB 509 (DeSaulnier and Emmerson) Page 1 Federal guidance requires state-run Exchanges to screen employees, vendors, volunteers, and anyone who will have access to sensitive medical or financial information for previous criminal convictions or arrests. Proposed Law: SB 509 would authorize the California Health Benefit Exchange to require fingerprint images and related information from all employees, prospective employees, contractors, subcontractors, volunteers, and vendors. The bill would authorize the Health Benefit Exchange to provide this information to the Department of Justice for background checks. The Department of Justice would be required to forward the information to the Federal Bureau of Investigation and compile any information returned on an individual's criminal history for report back to the Exchange. This bill contains an urgency clause. Related Legislation: SB X1 4 (Emmerson) would require all employees, vendors, volunteers, and others who would have access to sensitive information to be subject to background checks. That bill is in the Senate Health Committee. AB X1 3 (Conway) is substantially similar to SB X1 4. That bill is in the Assembly. Staff Comments: The Exchange indicates that it intends to pay for the costs of conducting background checks for assisters in the first year that assistors are authorized to help consumers use the Exchange system. The cost per background check in $65. Proposed Author Amendments: Would clarify that background checks are authorized subject to compliance with federal guidance.