BILL NUMBER: SB 1339	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  JUNE 26, 2014
	AMENDED IN SENATE  MAY 27, 2014
	AMENDED IN SENATE  APRIL 29, 2014

INTRODUCED BY   Senator Cannella
   (Coauthors: Senators Huff and Vidak)
   (  Coauthor:   Assembly Member 
 Wilk   Coauthors:   Assembly Members
  Medina   and Wilk  )

                        FEBRUARY 21, 2014

   An act to add Section 14124.27 to the Welfare and Institutions
Code, relating to Medi-Cal.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1339, as amended, Cannella. Medi-Cal: Drug Medi-Cal Treatment
Program providers.
   Existing law provides for the Drug Medi-Cal (DMC) Treatment
Program, under which counties enter into contracts with the State
Department of Health Care Services  (DHCS)  for the
provision of various drug treatment services to Medi-Cal recipients,
or the department directly arranges for the provision of these
services if a county elects not to do so. 
   Existing law requires the DHCS to screen Medi-Cal providers and
designate each provider as "limited," "moderate," or "high"
categorical risk. Existing law requires a provider or applicant
designated as a "high" categorical risk, and a person with a 5% or
greater direct or indirect ownership interest in the provider, to
submit to the Department of Justice fingerprint images and related
information for the purpose of obtaining information as to the
existence of past criminal conduct, as specified. Existing law
requires the Department of Justice to charge a fee, to be paid by the
applicant or provider, sufficient to cover the cost of processing
the criminal background check request. 
   This bill would require  a county or the department,
before contracting with a certified DMC provider, to require a
certified DMC provider's owner and medical director to submit to the
Department of Justice (DOJ) fingerprint images and other information
required by DOJ to obtain the person's criminal history information,
as specified. The bill would require DOJ to forward the person's
fingerprint images and other information to the Federal Bureau of
Investigation to obtain federal criminal history information and
would require DOJ to report the criminal history information to the
county or department. The bill would also require the county or
department to request subsequent arrest notification for the person.
The bill would require DOJ to charge a fee sufficient to cover the
cost of processing that request and   DMC providers to
be designated as a "high" categorical risk and be subject to the
background checks described above. The bill would permit the
department to designate a DMC provider as a "limited" or "moderate"
categorical risk by executing a declaration stating the reason or
reasons that a "high" categorical risk designation is no longer
warranted. The bill  would provide that it is the responsibility
of the DMC  provider's owner or medical director to pay that
fee.   provider, or the person with a 5% or greater
direct or indirect ownership interest in the provider, to pay the fee
imposed for processing the criminal background check request, as
applicable.  The bill would prohibit, except as provided by
federal law, a DMC provider from being excluded from contracting with
a county or the department based solely on the existence of a past
criminal record of the DMC  provider's owner or medical
director.   provider or a person with a 5% or greater
direct or indirect ownership interest in the provider. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 14124.27 is added to the Welfare and
Institutions Code, to read: 
   14124.27.  (a) A county or the department, before contracting with
a certified Drug Medi-Cal (DMC) provider, shall require a certified
DMC provider's owner and medical director to submit to the Department
of Justice fingerprint images and related information required by
the Department of Justice for the purpose of obtaining information as
to the existence and content of a record of state and federal
convictions and arrests and information as to the existence and
content of a record of state and federal arrests for which the
Department of Justice establishes that the person is free on bail, or
on his or her own recognizance, pending trial or appeal.
   (b) The Department of Justice shall forward the fingerprint images
and related information received pursuant to subdivision (a) to the
Federal Bureau of Investigation and request a federal summary of
criminal information. The Department of Justice shall review the
information returned from the Federal Bureau of Investigation and
compile and disseminate a response to the county or department
pursuant to paragraph (1) of subdivision (p) of Section 11105 of the
Penal Code.
   (c) The county or department contracting with the DMC provider
shall request subsequent arrest notification service from the
Department of Justice, as provided under Section 11105.2 of the Penal
Code, for
    persons described in subdivision (a).
   (d) (1) The Department of Justice shall charge a fee sufficient to
cover the cost of processing the requests described in this section.

    14124.27.    (a) (1) Certified Drug Medi-Cal (DMC)
providers shall be designated as a "high" categorical risk pursuant
to Section 14043.38 and the provider and any person with a 5 percent
or greater direct or indirect ownership interest in the provider
shall be subject to background checks pursuant to the provisions of
that section.  
   (2) The department may designate a DMC provider as a "limited" or
"moderate" categorical risk for purposes of Section 14043.38 and
federal regulations. To designate a DMC provider as a "limited" or
"moderate" categorical risk, the department shall execute a
declaration, to be retained by the director, with a copy to be posted
on the department's Internet Web site and a copy transmitted to the
Legislature, stating the reason or reasons that a "high" categorical
risk designation for that provider is no longer warranted. 

   (2) 
    (   b)  Payment of the fee imposed pursuant to
paragraph  (1)   (5) of subdivision (d) of
Section 14043.38  shall be the responsibility of the DMC
 provider's owner or medical director, as applicable.
  provider or person with a 5 percent or greater direct
or indirect ownership interest in the provider, as applicable. 

   (e) 
    (   c)  Except as provided by federal law, a
DMC provider shall not be excluded from contracting with a county or
the department based solely on the existence of a past criminal
record of the DMC  provider's owner or medical director.
  provider or a person with 5 percent or greater direct
or indirect ownership interest in the provider.