BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 941


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          ASSEMBLY THIRD READING


          AB  
          941 (Wood)


          As Introduced  February 26, 2015


          Majority vote


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          |Committee       |Votes |Ayes                 |Noes              |
          |                |      |                     |                  |
          |                |      |                     |                  |
          |----------------+------+---------------------+------------------|
          |Health          |19-0  |Bonta, Maienschein,  |                  |
          |                |      |Bonilla, Burke,      |                  |
          |                |      |Chávez, Chiu, Gomez, |                  |
          |                |      |Gonzalez, Roger      |                  |
          |                |      |Hernández, Lackey,   |                  |
          |                |      |Nazarian, Patterson, |                  |
          |                |      |                     |                  |
          |                |      |                     |                  |
          |                |      |                     |                  |
          |                |      |Ridley-Thomas,       |                  |
          |                |      |Rodriguez, Santiago, |                  |
          |                |      |Steinorth, Thurmond, |                  |
          |                |      |Waldron, Wood        |                  |
          |                |      |                     |                  |
          |----------------+------+---------------------+------------------|
          |Appropriations  |16-0  |Gomez, Bigelow,      |                  |
          |                |      |Bloom, Bonta,        |                  |
          |                |      |Calderon, Chang,     |                  |
          |                |      |Daly, Eggman,        |                  |
          |                |      |Eduardo Garcia,      |                  |
          |                |      |Holden, Jones,       |                  |








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          |                |      |Quirk, Rendon,       |                  |
          |                |      |Wagner, Weber, Wood  |                  |
          |                |      |                     |                  |
          |                |      |                     |                  |
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          SUMMARY:  Exempts clinics operated by a tribe or tribal  
          organization, regardless of location, from obtaining a license  
          from the Department of Public Health (DPH), and requires, to  
          qualify for the exemption, the clinic operate under a contract  
          with the United States pursuant to the Indian Self Determination  
          and Education Assistance Act.
          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee, minor annual revenue loss to DPH, to the extent tribal  
          clinics no longer pay approximately $700 per facility in licensing  
          fees.  DPH oversight workload will be reduced commensurately with  
          any reduction in licensure fees.


          COMMENTS:  According to the author, the majority of California  
          tribal health clinics (tribal clinics) are located in rural areas  
          of the state and oftentimes, it is challenging to meet unmet needs  
          when providing healthcare services over large geographic areas.   
          Tribal clinics cannot always establish new clinics on Indian land,  
          as oftentimes, the Indian land in question is not available in an  
          area where many tribal clinic patients may reside.  This results  
          in opening new tribal clinics on non-Indian land in order to  
          provide adequate access of care to patients.  The author notes,  
          tribal clinics may only place new sites within the federal  
          statutorily defined service areas based on the population of the  
          tribal communities they serve.  The federal, tribal, and state  
          standards requirements have to be met in order to create a new  
          tribal clinic; and these standards are comprehensive and coherent.  
           When abiding by the federal, tribal, and state standards, the  
          administrative process becomes very duplicative when applying for  
          a license to operate a tribal clinic on non-Indian land.  The  
          author concludes, this bill will streamline the state clinic  
          licensing exemptions and exempt tribal clinics on non-Indian land  








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          from DPH's state facility license. 


          Background.  There are approximately 1,000 primary care clinics  
          currently licensed in California.  In order to obtain a license, a  
          primary care clinic must submit an application and fee to DPH and  
          pass an initial licensure survey conducted by DPH.  Clinics exempt  
          from state licensing do have to apply to the Department of Health  
          Care Services (DHCS) if they want to enroll as a Medi-Cal  
          provider.  DHCS has a specific application process for exempt  
          clinics, including obtaining a certification by DPH or a specified  
          nonprofit entity that inspects the clinics and ensures they meet  
          minimum requirements.


          Tribal Health Services.  The Indian Health Service (IHS) oversees  
          health programs over portions of the state.  By federal law, the  
          area is limited to the 38 counties with American Indian trust  
          lands, generally meaning a reservation or rancheria.  Within the  
          included counties there is a service population of approximately  
          130,000 eligible American Indians.  The IHS divides their service  
          area in California into smaller administrative units called  
          services units.  These services units have responsibility for  
          planning, managing, and evaluating the health programs in its  
          jurisdiction.  They are focused on a specific geographic area and  
          are usually centered on a single federal reservation.  It is  
          within these services units that a tribe or consortium of tribes  
          can operate clinics under contract with the federal government.   
          Although the clinics are established to provide services to  
          specified American Indians they are open to all.  The proportion  
          of non-Indians using these clinics varies dramatically.  In some  
          smaller rural areas without many health care facilities, the  
          proportion of non-Indians can be quite significant accounting for  
          about half the patients seen.  In other clinics, Indians comprise  
          the overwhelming majority.  According to the California Rural  
          Indian Health Board, of the 30 existing tribal health clinics in  
          the state, this bill will apply to approximately five.  All  
          IHS-funded health care is tied to American Indian and Alaska  
          Native user populations.  In California there are eight urban  








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          Indian clinics in cities.  The exemption proposed by this bill  
          would not apply to them, and their funding and federal statutory  
          authority is distinct and separate from the funding and authority  
          for tribal health programs.


          Support.  The California Rural Indian Health Board, Inc., numerous  
          Tribes and Rancherias, and the California Pan-Ethnic Health  
          Network support this bill stating it will create a much needed  
          single standard for clinic licensure for federal Tribal Health  
          Programs (THP).  Supporter's note, regardless of where a THP is  
          located, it is required to adhere to all federal IHS operating  
          requirements in order to maintain its status as a federal  
          contractor.  Supporters also contend the THPs' governing bodies  
          have established compliance services that detect, prevent, and  
          appropriately respond to violations of law or company policy, and  
          many THPs are accredited by the Accreditation Association for  
          Ambulatory Health Care or the Joint Commission on Accreditation of  
          Health Care Organizations.


          Opposition.  The California Nurses Association (CNA) is opposed to  
          this bill because it will exclude Tribal Health Clinics from  
          California licensing and safety provisions outside of federally  
          designated tribal lands.  CNA notes, without licensing, clinics  
          would not have to comply with state building or state professional  
          standards which assure minimal protections for employees working  
          in clinics who may or may not be tribal members.  CNA concludes  
          the exemption proposed by this bill does not assure any state  
          minimum standards of care for tribal clinics operating within  
          California but not on tribal land.




          Analysis Prepared by:                                               
          Lara Flynn / HEALTH / (916) 319-2097  FN: 0000355










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