BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                  AB 2392|
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                                 THIRD READING


          Bill No:  AB 2392
          Author:   John A. Pérez (D), et al.
          Amended:  8/31/12 in Senate
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  6-3, 6/27/12
          AYES:  Hernandez, Alquist, De León, DeSaulnier, Rubio, Wolk
          NOES:  Harman, Anderson, Blakeslee
           
          SENATE APPROPRIATIONS COMMITTEE  :  5-2, 8/16/12
          AYES:  Kehoe, Alquist, Lieu, Price, Steinberg
          NOES:  Walters, Dutton
           
          SENATE HEALTH COMMITTEE  :  5-0, 8/23/12 (pursuant to Senate 
            Rule 29.10)
          AYES:  Hernandez, Alquist, DeSaulnier, Rubio, Wolk
          NO VOTE RECORDED:  Harman, Anderson, Blakeslee, De León
           
          ASSEMBLY FLOOR :  52-24, 5/30/12 - See last page for vote


           SUBJECT  :    Medi-Cal:  interpreter services

           SOURCE  :     Author


           DIGEST  :    This bill establishes collective bargaining for 
          CommuniCal certified medical interpreters (CCMIs).

           Senate Floor Amendments  of 8/24/12 establish collective 
          bargaining for CCMIs.

                                                           CONTINUED





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           Senate Floor Amendments  of 8/21/12 establish the State 
          Personnel Board (SPB) as the certifying body for the CCMI 
          program established by this bill, and require the 
          Department of Health Care Services (DHCS) to establish the 
          CommuniCal program to provide and reimburse for certified 
          medical interpretation services to Medi-Cal beneficiaries 
          who are limited English proficient (LEP).

           ANALYSIS  :    

          Existing law:

          1. Establishes the Medi-Cal program, which is administered 
             by DHCS, under which qualified low-income individuals 
             receive health care services.

          2. Provides, under federal law, increased federal matching 
             funding for translation and interpretation services 
             provided in connection with the enrollment, retention, 
             and use of services under Medicaid (Medicaid is known as 
             Medi-Cal in California) and the Children's Health 
             Insurance Program (CHIP is known as the Healthy Families 
             Program in California).

          3. Prohibits, under Title VI of the Civil Rights Act of 
             1964, a person in the United States, on the grounds of 
             race, color, or national origin, from being excluded 
             from participation in, denied the benefits of, or 
             subjected to discrimination under any program or 
             activity receiving federal financial assistance.

          This bill:

          1. Requires the exclusive representative of CCMIs and a 
             recognized nonprofit to partner to create and administer 
             a training program for medical interpreters in order to 
             prepare medical interpreters for the exam or other 
             certification standards established for languages of 
             lesser diffusion, and to provide continuing education 
             for those CCMIs placed on the registry.  Requires a 
             community advisory committee to be established to make 
             recommendations on interpreter certification and 
             services.








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          2. Requires that the relationship of CCMIs to all parties 
             and recipients of service is one of independent 
             contractor unless otherwise specified by law.

          3. Allows only interpreters certified under this bill to be 
             represented by the union for purposes of collective 
             bargaining authorized under this bill. 

          4. Requires CCMIs to have the right to form, join, and 
             participate in the activities of a labor organization of 
             their own choosing for purpose of representation.  The 
             state action antitrust exemption to the application of 
             federal and state antitrust laws is applicable to the 
             activities of CCMIs and their exclusive representatives 
             authorized under this bill or other applicable law.

          5. Requires CCMIs to have the right to be represented by an 
             exclusive labor organization of their own choosing for 
             the purpose of collecting bargaining with the state of 
             California on matters of mutual concern, including but 
             not limited to, a list of 10 specific provisions, 
             including development, maintenance and application of 
             the registry, the setting of reimbursements and rates 
             for state-funded medical interpreter programs.

          6. States that CCMIs are not public employees, and this 
             bill does not create an employer-employee relationship 
             between CCMIs and the state or broker. 

          7. Requires the appropriate bargaining unit for CCMIs to be 
             a statewide unit of eligible CCMIs.

          8. Requires a labor organization as referenced in this bill 
             to be a labor organization under a specified provision 
             of the Internal Revenue Code which has as its primary 
             purpose the representation of public service providers 
             in their relations with state and other public entities.

          9. Requires, upon request by a labor organization that is 
             signed by 20% of CCMIs, the certifying body to furnish 
             to the labor organization a list of all CCMIs, including 
             full names, telephone numbers, email addresses, and 
             mailing or home addresses within five days of the 
             request.







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          10.Requires the Public Employment Relations Board (PERB), 
             upon application by petition, authorization cards, or 
             union membership cards of a labor organization 
             adequately showing that a majority of CCMIs in the state 
             desire to be represented exclusively by that labor 
             organization and no other, to certify and grant 
             exclusive representation to the labor organization.  
             Requires, if less than a majority but at least 30% of 
             CCMIs to be represented exclusively by that labor 
             organization, the matter to be set for a mail ballot 
             election.

          11.Requires any representation election to be a mail ballot 
             election.

          12.Establishes requirements for a preelection conference 
             between the state and the labor organization, prohibits 
             other labor organizations from being allowed to 
             intervene in an election unless the intervening labor 
             organization shows at least 30% of the CCMIs desire to 
             be represented exclusively by the intervening labor 
             organization, and require PERB to initiate a mail ballot 
             election.

          13.Requires a labor organization certified by PERB as 
             receiving a majority of all valid votes cast to be the 
             exclusive representative of all CCMIs in the state, and 
             requires all CCMIs who are eligible for the bargaining 
             unit after the certification to be part of the 
             bargaining unit and represented by the labor 
             organization.

          14.Requires discussions and collective bargaining between 
             the certified labor organization and the state and its 
             designated agents in the Department of Personnel 
             Administration (DPA) and the DHCS to commence within 30 
             days upon certification and at any time thereafter upon 
             request of the labor organization.

          15.Establishes requirements for agreements resulting from 
             collective bargaining, and for dues or service fee 
             reductions, and fair share service fees. Requires the 
             state, after certification of the labor organization, to 







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             approve and have deducted appropriate reimbursement or 
             other payments to the monthly amount of dues or service 
             fees.  Requires the state to approve and have deducted 
             from the appropriate reimbursement or other payments to 
             nonmembers a reasonable fair share service fee.

          16.Requires the state, through its designated agents in DPA 
             and DHCS, to meet and collectively bargain in good faith 
             with representatives of a certified labor organization 
             and to fully consider the proposals made by the labor 
             organization on behalf of CCMIs.

          17.Prohibits the state from interfering with, intimidating, 
             restraining, coercing or discriminating against CCMIs 
             due to the exercise of their rights, and requires a 
             complaint alleging a violation of this provision to be 
             processed as an unfair practice charge.

          18.Permits any charging party, respondent or intervenor 
             aggrieved by a final decision or order of PERB in an 
             unfair practice case to petition for a writ of 
             extraordinary relief from that decision or order.

          19.Requires that execution of a valid written agreement 
             between the state and the certified labor organization 
             to bar the filing of an application or petition for 
             certification of a majority representative for the 
             length of the agreement except as otherwise provided in 
             this bill.

          20.Prohibits the state from encouraging or discouraging 
             membership in a labor organization or discriminating 
             against any CCMI on specified basis, including, but not 
             limited to, union activity, union membership, age, sex, 
             race, or religious beliefs.

          21.Permits the state to adopt reasonable rules and 
             regulations after consultation in good faith with 
             representatives of a certified labor organization for 
             administration of CCMIs under this bill.

          22.Requires the quality standards that are required to be 
             adopted by this bill to include, but not be limited to, 
             maintaining patient confidentiality and familiarity or 







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             experience working with medical terminology.

          23.Permits the certifying body to remove the name of a 
             person from the CCMI registry if the person fails to 
             meet the quality standards and medical certification 
             requirements established under this bill.

          24.Requires DHCS to adopt policies to prohibit duplicate 
             payments to CCMIs and Medi-Cal Managed Care 
             Organizations (MMCO) for beneficiaries enrolled in an 
             MMCO.

          25.Makes the state action antitrust exemption to the 
             application of federal and state antitrust laws 
             applicable to the activities of CCMIs and their 
             exclusive representatives authorized under this bill or 
             other applicable law.

          26.Requires the base Medi-Cal reimbursement rate for CCMIs 
             to be determined through collective bargaining under 
             this bill and to include the cost of the broker.  
             Permits reimbursement to be adjusted for factors such as 
             geography, language spoken, availability of 
             interpreters, level of certification, and travel time.

          27.States, for purposes of the CommuniCal program, CCMIs 
             are not state employees.  Requires that CCMIs are 
             independent contractors of the state.

           Background
           
           Enhanced federal matching funds for translation and 
          interpretation services  .  Children's Health Insurance 
          Program Reauthorization Act of 2009 (CHIPRA), Public Law 
          111-3, enacted on February 4, 2009, contains provisions 
          that affect both CHIP and Medicaid.  In July 2010, the 
          Centers for Medicare and Medicaid Services (CMS) provided 
          guidance on the implementation of Section 201(b) of CHIPRA, 
          which provides increased administrative funding for 
          translation or interpretation services provided under CHIP 
          and Medicaid.  Under Medicaid, increased federal funding 
          for translation and interpretation services available under 
          CHIPRA is limited to children and family members of those 
          children.  Under CHIP, increased federal funding for 







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          translation and interpretation services is not just limited 
          to children, and includes pregnant women receiving CHIP 
          coverage.

          Prior to CHIPRA, states could claim federal matching funds 
          for translation or interpretation costs as either an 
          administration expense or as a medical assistance-related 
          expense, and were reimbursed at the standard Federal 
          Medical Assistance Percentage (regular FMAP) rate (which is 
          typically 50% in California for Medi-Cal and 65% for the 
          Healthy Families Program). 

          CHIPRA provides increased federal matching funding for 
          translation or interpretation services provided to eligible 
          individuals for whom English is not their primary language. 
           The increased federal match for translation or 
          interpretation services differs for Medicaid and CHIP.  For 
          Medicaid, the increased match is 75% of allowable 
          expenditures.  For CHIP, the increased match is 75%, or the 
          state's enhanced FMAP plus 5%, whichever is higher (in 
          California, it would be 75%).  However, the increased 
          federal match is only available for eligible expenditures 
          claimed as administration of the Medicaid or CHIP plan, not 
          expenditures claimed for benefits (which are matched at the 
          state's usual FMAP rate of 50% for Medi-Cal and 65% for 
          CHIP).  In addition, the expenditures that qualify for the 
          increased match under CHIP are subject to the 10% cap on 
          administrative expenditures.

           Federal anti-discrimination law  .  Title VI of the Civil 
          Rights Act of 1964 and its implementing regulations provide 
          that no person shall be subject to discrimination on the 
          basis of race, color, or national origin under any program 
          or activity that receives federal financial assistance.  
          Each federal department has a civil rights office that is 
          charged with ensuring that its programs are free of 
          discrimination.  The federal Department of Health and Human 
          Services (HHS) Office for Civil Rights (OCR) 
          responsibilities include enforcing the Civil Rights Act, 
          the Americans with Disabilities Act, and the Age 
          Discrimination Act.  Any organization or individual who 
          receives monies through HHS-health departments, health 
          plans, social service agencies, nonprofits, hospitals, 
          clinics, and physicians-is subject to OCR oversight.  The 







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          OCR has the authority to investigate complaints related to 
          linguistic barriers, to initiate its own reviews, and to 
          withhold federal funds for noncompliance. 

           OCR policy guidance  .  CMS issued a State Medicaid Director 
          letter on August 31, 2000, that informed states of the 
          policy guidance that the OCR had issued on the prohibition 
          against national origin discrimination as it affects 
          persons with LEP, pursuant to Title VI of the Civil Rights 
          Act of 1964. 

          OCR Policy Guidance requires recipients of federal 
          assistance to take reasonable steps to ensure meaningful 
          access to their programs and activities by LEP persons.  
          The Guidance explains that the obligation to provide 
          meaningful access is fact-dependent and starts with an 
          individualized assessment that balances four factors:  (1) 
          the number or proportion of LEP persons eligible to be 
          served or likely to be encountered by the program or 
          grantee; (2) the frequency with which LEP individuals come 
          into contact with the program; (3) the nature and 
          importance of the program, activity or service provided by 
          the recipient to its beneficiaries; and (4) the resources 
          available to the grantee/recipient and the costs of 
          interpretation/ translation services.  CMS states there is 
          no "one size fits all" solution for Title VI compliance 
          with respect to LEP persons, and what constitutes 
          "reasonable steps" for large providers may not be 
          reasonable where small providers are concerned.

           Data on language in California  .  According to the U.S. 
          Census' 2010 American Community Survey, 43.7% of 
          Californians over the age of five speak a language other 
          than English, and 19.9% of Californians over the age of 
          five speak English "less than very well."  According to the 
          California Health Interview Survey, of the 3.5 million 
          adults in the Medi-Cal program, about 281,000 (8.1%) had 
          difficulty understanding their doctor and/or needed another 
          person to help them understand their doctor.  Among the 
          parents of 1.8 million children under age 12 in the 
          Medi-Cal program, about 135,000 (7.4%) had difficulty 
          understanding the child's doctor and/or needed another 
          person's help to understand the doctor.








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           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes   
          Local:  No

           SUPPORT  :   (Verified  6/27/12)(per Senate Health Committee 
          analysis)

          AFSCME, AFL-CIO
          California Academy of Family Physicians
          California Communities United Institute
          California Pan-Ethnic Health Network (in concept)
          Children Now
          Children's Defense Fund - California
          Congress of California Seniors
          Disability Rights California
          Health Access California
          Latino Coalition for a Healthy California
          National Association of Social Workers - California Chapter
          The Children's Partnership
          Western Center on Law and Poverty

           ARGUMENTS IN SUPPORT  :    Western Center on Law and Poverty 
          states this bill assists California in drawing down 
          additional federal funds for the interpreter services 
          Medi-Cal providers and plans are required to provide.  
          While Medi-Cal managed care plan rates include funds for 
          interpreter services and some providers draw down federal 
          funds for language services (such as hospitals), California 
          is leaving federal dollars on the table that it could use 
          to provide these critical services. 

          AFSCME, AFL-CIO writes that, with the expansion of Medi-Cal 
          and the implementation of the California Health Benefit 
          Exchange under federal health care reform, the state has a 
          clear opportunity to create an interpreters' program that 
          will allow patients and providers to clearly communicate 
          with each other.  AFSCME states that, during these 
          difficult fiscal times, the state should seek to maximize 
          all federal dollars to help the Medi-Cal program, and 
          matching funds for health care interpretation will help our 
          state respond to the needs of LEP Californians. 

          Health Access California writes that professional 
          interpreters trained in medical interpretation are critical 
          as medical terminology is not readily translated, cultural 







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          sensitivity is lost, and avoidable medical errors occur.


           ASSEMBLY FLOOR  :  52-24, 5/30/12
          AYES:  Alejo, Allen, Ammiano, Atkins, Beall, Block, 
            Blumenfield, Bonilla, Bradford, Brownley, Buchanan, 
            Butler, Charles Calderon, Campos, Carter, Cedillo, 
            Chesbro, Dickinson, Eng, Feuer, Fong, Fuentes, Furutani, 
            Galgiani, Gatto, Gordon, Hall, Hayashi, Roger Hernández, 
            Hill, Huber, Hueso, Huffman, Lara, Bonnie Lowenthal, Ma, 
            Mendoza, Mitchell, Monning, Nestande, Pan, Perea, V. 
            Manuel Pérez, Portantino, Skinner, Solorio, Swanson, 
            Torres, Wieckowski, Williams, Yamada, John A. Pérez
          NOES:  Achadjian, Bill Berryhill, Conway, Cook, Donnelly, 
            Beth Gaines, Garrick, Gorell, Grove, Hagman, Harkey, 
            Jeffries, Jones, Knight, Logue, Mansoor, Miller, Morrell, 
            Nielsen, Norby, Olsen, Silva, Smyth, Wagner
          NO VOTE RECORDED:  Davis, Fletcher, Halderman, Valadao


          CTW:k  8/31/12   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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