BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 941


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          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          941 (Wood)


          As Amended  August 26, 2015


          Majority vote


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          |ASSEMBLY:  | 77-0 | (May 11,      |SENATE: |38-0  | (August 31,     |
          |           |      |2015)          |        |      |2015)            |
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          Original Committee Reference:  HEALTH


          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.


          The Senate amendments clarify that clinics operated by a tribe  
          or tribal organization may apply for a license from DPH should  
          they choose to do so, and incorporate additional changes to  
          Health and Safety Code Section 1206 proposed by AB 1130 that  
          would become operative if this bill and AB 1130 are chaptered  
          and this bill is chaptered last.


          FISCAL EFFECT:  According to the Senate Appropriations  
          Committee, pursuant to Senate Rule 28.8, negligible state costs.








                                                                     AB 941


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          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 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  








                                                                     AB 941


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          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  
          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.


          Analysis Prepared by:                                             
                          Lara Flynn / HEALTH / (916) 319-2097  FN:  
          0001851