BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, 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 23, 2013      Consultant: Brendan McCarthy
          
          SUSPENSE FILE. AS PROPOSED TO BE AMDED.
          
          
          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 and  
          clarify who would be subject to a background check.