2005 California Health and Safety Code Sections 1212-1220 Article 2. Administration

1212.  (a) Any person, firm, association, partnership, or
corporation desiring a license for a clinic or a special permit for
special services under the provisions of this chapter, shall file
with the department a verified application on forms prescribed and
furnished by the department, containing the following:
   (1) Evidence satisfactory to the department that the applicant is
of reputable and responsible character.  If the applicant is a firm,
association, partnership, trust, corporation, or other artificial or
legal entity, like evidence shall be submitted as to the members,
partners, trustees or shareholders, directors, and officers thereof
and as to the person who is to be the administrator of, and exercise
control, management, and direction of the clinic for which
application is made.
   (2) If the applicant is a partnership, the name and principal
business address of each partner, and, if any partner is a
corporation, the name and principal business address of each officer
and director of the corporation and name and business address of each
stockholder owning 10 percent or more of the stock thereof.
   (3) If the applicant is a corporation, the name and principal
business address of each officer and director of the corporation, and
where the applicant is a stock corporation, the name and principal
business address of each stockholder holding 10 percent or more of
the applicant's stock and, where any stockholder is a corporation,
the name and principal business address of each officer and director
of the corporate stockholder.
   (4) Evidence satisfactory to the department of the ability of the
applicant to comply with the provisions of this chapter and rules and
regulations promulgated under this chapter by the department.
   (5) The name and address of the clinic, and if the applicant is a
professional corporation, firm, partnership, or other form of
organization, evidence that the applicant has complied with the
requirements of the Business and Professions Code governing the use
of fictitious names by practitioners of the healing arts.
   (6) The name and address of the professional licentiate
responsible for the professional activities of the clinic and the
licentiate's license number and professional experience.
   (7) The class of clinic to be operated, the character and scope of
advice and treatment to be provided, and a complete description of
the building, its location, facilities, equipment, apparatus, and
appliances to be furnished and used in the operation of the clinic.
   (8) Sufficient operational data to allow the department to
determine the class of clinic that the applicant proposes to operate
and the initial license fee to be charged.
   (9) Any other information as may be required by the department for
the proper administration and enforcement of this chapter,
including, but not limited to, evidence that the clinic has a written
policy relating to the dissemination of the following information to
patients:
   (A) A summary of current state laws requiring child passenger
restraint systems to be used when transporting children in motor
vehicles.
   (B) A listing of child passenger restraint system programs located
within the county, as required by Section 27360 or 27362 of the
Vehicle Code.
   (C) Information describing the risks of death or serious injury
associated with the failure to utilize a child passenger restraint
system.
   (b) (1) No application is required where a licensed primary care
clinic adds a service that is not a special service, as defined in
Section 1203, or any regulation adopted thereunder, or remodels or
modifies an existing primary care clinic site.  However, the clinic
shall notify the department, in writing, of the change in service or
physical plant no less than 60 days prior to adding the service or
remodeling or modifying an existing primary care clinic site.
Nothing in this subdivision shall be construed to limit the authority
of the department to conduct an inspection at any time pursuant to
Section 1227, in order to ensure compliance with, or to prevent a
violation of, this chapter, or any regulation adopted under this
chapter.
   (2) Where applicable city, county, or state law obligates the
primary care clinic to obtain a building permit with respect to the
remodeling or modification to be performed by the clinic, the primary
care clinic shall provide a signed certification or statement as
described in Section 1226.3 to the department within 60 days
following completion of the remodeling or modification project
covered by the building permit.
   (c) In the course of fulfilling its obligations under Section
1221.09, the department shall ensure that any application form
utilized by a primary care clinic, requiring information of the type
specified in paragraph (1), (4), (8), or (9) of subdivision (a), is
consistent with the requirements of Section 1225, including the
requirement that rules and regulations for primary care clinics be
separate and distinct from the rules and regulations for specialty
clinics.  Nothing in this section shall be construed to require the
department to issue a separate application form for primary care
clinics.
1213.  Any person, firm, association, partnership, corporation or
other legal entity desiring a license for a clinic shall be exempt
from the requirements of Chapter 1 (commencing with Section 15000) of
Division 12.5.
1214.  Each application under this chapter for an initial license,
renewal license, license upon change of ownership, or special permit
shall be accompanied by a fee, as follows:
   (a) For all primary care clinics licensed pursuant to this
chapter, the annual fee shall be thirty dollars ($30).
   (b) For all specialty clinics licensed pursuant to this chapter,
except as provided in subdivision (c) or Section 1214.1, the annual
fee shall be two thousand dollars ($2,000).
   (c) For all rehabilitation clinics that are operated by a licensee
which is a nonprofit corporation exempt from taxation pursuant to
paragraph (3) of subsection (c) of Section 501 of the Internal
Revenue Code of 1954 as amended, or statutory successor thereof, the
annual fee shall be thirty dollars ($30).
1214.1.  Notwithstanding the provisions of Section 1214, each
application for a surgical clinic or a chronic dialysis clinic under
this chapter for an initial license, renewal license, license upon
change of ownership, or special permit shall be accompanied by an
annual fee of three hundred dollars ($300) plus an amount equal to
0.0003 times the clinic's operating cost for the last completed
fiscal year.
1214.5.  Each application under this chapter for an initial license,
renewal license, license upon change of ownership, or special permit
for a psychology clinic shall be accompanied by a fee of thirty
dollars ($30).
1215.  Each new license issued pursuant to this chapter shall expire
12 months from the date of its issuance, and each special permit
shall expire on the expiration date of the underlying license.  The
state department shall transmit to the licensee a renewal fee invoice
at least 45 days prior to the expiration date of the license.
Failure by the clinic licensee to make timely payment of the renewal
fee shall result in the expiration of the license and special permit,
if any.  A renewal license or special permit may be issued for a
period not to exceed two years if the holder of the license or
special permit has not been found to be in violation of any statutory
requirements, regulations, or standards during the preceding license
period.  In all other cases, the renewal license or special permit
shall be issued for a period not to exceed one year.  Timely
application for renewal, accompanied by the necessary fee, shall be
deemed equivalent to renewal of a license or special permit, where
the department is unable to issue a renewal license or special permit
on or before the expiration date.
1216.  (a) Every clinic holding a license shall, on or before the
15th day of February each year, file with the Office of Statewide
Health Planning and Development upon forms to be furnished by the
office, a verified report showing the following information relating
to the previous calendar year:
   (1) Number of patients served and descriptive information,
including age, gender, race, and ethnic background of patients.
   (2) Number of patient visits by type of service, including all of
the following:
   (A) Child health and disability prevention screens, treatment, and
followup services.
   (B) Medical services.
   (C) Dental services.
   (D) Other health services.
   (3) Total clinic operating expenses.
   (4) Gross patient charges by payer category, including Medicare,
Medi-Cal, the Child Health Disability Prevention Program, county
indigent programs, other county programs, private insurance,
self-paying patients, nonpaying patients, and other payers.
   (5) Deductions from revenue by payer category, bad debts, and
charity care charges.
   (6) Additional information as may be required by the office or the
department.
   (b) In the event a clinic fails to file a timely report, the
department may suspend the license of the clinic until the report is
completed and filed with the office.
   (c) In order to promote efficient reporting of accurate data, the
office shall consider the unique operational characteristics of
different classifications of licensed clinics, including, but not
limited to, the limited scope of services provided by some specialty
clinics, in its design of forms for the collection of data required
by this section.
   (d) For the purpose of administering funds appropriated from the
Cigarette and Tobacco Products Surtax Fund for support of licensed
clinics, clinics receiving those funds may be required to report any
additional data the office or the department may determine necessary
to ensure the equitable distribution and appropriate expenditure of
those funds.  This shall include, but not be limited to, information
about the poverty level of patients served and communicable diseases
reported to local health departments.
   (e) This section shall apply to all primary care clinics.
   (f) This section shall apply to all specialty clinics, as defined
in paragraph (2) of subdivision (a) of Section 1204 of the Health and
Safety Code that receive tobacco tax funds pursuant to Article 2
(commencing with Section 30121) of Chapter 2 of Part 13 of Division 2
of the Revenue and Taxation Code.
   (g) Specialty clinics that are not required to report pursuant to
subdivision (f) shall report data as directed in Section 1216 as it
existed prior to the enactment of Chapter 1331 of the Statutes of
1989 and Chapter 51 of the Statutes of 1990.
1217.  (a) An applicant for a license to operate a primary care
clinic, as specified in subdivision (a) of Section 1204 that meets
all requirements for licensure under this chapter, except that it
proposes to operate its clinic out of an existing facility that does
not satisfy all of the applicable building requirements for the
physical plant, other than fire and life safety requirements, shall
be issued a license by the state department if both of the following
requirements are met:
   (1) The applicant establishes, by evidence satisfactory to the
state department, that, where possible and feasible, the applicable
building requirements have been met.
   (2) The applicant submits a plan of modernization acceptable to
the state department that sets forth the proposed changes to be made,
during a period not to exceed three years from the date of initial
licensure, to bring the applicant's facility into substantial
conformance with applicable building requirements.
   (b) Failure to complete the plan of modernization as approved and
within the time allowed shall constitute a basis for revocation or
nonrenewal of the applicant's license unless the applicant earlier
applies for and obtains a waiver from the department.  The director
shall waive building requirements for primary care clinics where he
or she determines all of the following conditions are met:
   (1) That the requirements cannot be met by an applicant, or that
they can be met only at an unreasonable and prohibitive cost.
   (2) That the requirements are not essential to protect the health
and safety of the clinic staff or the public it serves.
   (3) That the granting of the waiver applied for is in the public
interest.
1218.  Upon the filing of an application for a license or for a
special permit, or for renewal of a license or special permit, the
state department shall investigate the facts set forth in the
application and, if the state department finds that the statements
contained in the application are true, that the establishment or the
continued operation of the clinic and any special services it
provides are in conformity with the intent and purpose of this
chapter, and that the applicant is in compliance with the provisions
of this chapter and the rules and regulations of the state
department, the state department shall issue to the applicant the
license or special permit, or renewal thereof, applied for.  However,
if the director finds that the statements contained in the
application are not true, or that the establishment or the continued
operation of the clinic, or its special services, is not in
conformity with the intent and purpose of this chapter, or that
applicant is not in compliance with the provisions of this chapter
and the rules and regulations promulgated hereunder, he shall deny
the applicant the license or special permit or renewal thereof
applied for.  The state department shall either grant or deny a
license or special permit within 100 days of the filing of a
completed application for such license or special permit.
1218.1.  (a) A primary care clinic that has held a valid, unrevoked,
and unsuspended license for at least the immediately preceding five
years, with no demonstrated history of repeated or uncorrected
violations of this chapter or any regulation adopted under this
chapter that pose immediate jeopardy to a patient, as defined in
subdivision (d), and that has no pending action to suspend or revoke
its license, may file an application under this section to establish
a primary care clinic at an additional site, which shall hereafter be
referred to as the affiliate clinic.  The department, upon receipt
of the completed application, shall approve a license for the
affiliate clinic, without the necessity of first conducting an
initial onsite survey, if all of the following conditions are met:
   (1) The existing primary care clinic, which shall hereafter be
referred to as the parent clinic, has submitted a completed
application for licensure for the affiliate clinic and the associated
application fee.
   (2) The parent and affiliate clinics' corporate officers, as
specified in Section 5213 of the Corporations Code, are the same.
   (3) The parent and affiliate clinics are both owned and operated
by the same nonprofit organization with the same board of directors.
   (4) The parent clinic has submitted evidence to the department
establishing compliance with the minimum construction standards of
adequacy and safety of the affiliate clinic's physical plant pursuant
to subdivision (b) of Section 1226.
   (b) The department shall issue a license under this section within
30 days of receipt of a completed application.  If approved, a
license shall be issued within seven days of approval.  If the
department determines that an applicant does not meet the conditions
stated in subdivision (a), it shall identify, in writing and with
particularity, the grounds for that determination, and shall instead
process the application in accordance with the time specified in
Section 1218.
   (c) Nothing in this section shall prohibit the department from
conducting a licensing inspection at any time after receipt of the
completed application.
   (d) For purposes of this section, "immediate jeopardy to a patient"
means a situation in which the clinic's noncompliance with one or
more requirements of licensure has caused, or is likely to cause,
serious injury, harm, impairment, or death to a patient.
1218.2.  Notwithstanding any other provision of law, two or more
primary care clinics that are operated by a single nonprofit
corporation shall be entitled to consolidate their administrative
functions within the State of California without first obtaining the
approval of the department.  The department shall have access to
offsite records.  Upon request for access by the department, offsite
records shall either be transferred to a clinic or administrative
site or be available at the offsite facility within 48 hours.  The
administrative functions are limited to the following:
   (a) Offsite storage and maintenance of patient medical records
that have been inactive for at least three years.
   (b) Offsite storage and maintenance of personnel records, except
that copies of specific records documenting the employees' date of
hire, general qualifications, proof of current licensure if
applicable, training, and annual health checks shall be kept at the
site at which the employee provides all or a majority of his or her
services.
   (c) Billing and related financial functions.
   (d) Purchasing functions.
1219.  (a) If a clinic or an applicant for a license has not been
previously licensed, the state department may only issue a
provisional license to the clinic as provided in this section.
   (b) A provisional license to operate a clinic shall terminate six
months from the date of issuance.
   (c) Within 30 days prior to the termination of a provisional
license, the state department shall give the clinic a full and
complete inspection, and, if the clinic meets all applicable
requirements for licensure, a regular license shall be issued.  If
the clinic does not meet the requirements for licensure but has made
substantial progress towards meeting such requirements, as determined
by the state department, the initial provisional license shall be
renewed for six months.
   (d) If the state department determines that there has not been
substantial progress towards meeting licensure requirements at the
time of the first full inspection provided by this section, or, if
the state department determines upon its inspection made within 30
days of the termination of a renewed provisional license that there
is a lack of full compliance with such requirements, no further
license shall be issued.
   (e) If an applicant for a provisional license to operate a clinic
has been denied by the state department, the applicant may contest
the denial by filing a statement of issues, as provided in Section
11504 of the Government Code.  The proceedings to review the denial
shall be conducted pursuant to the provisions of Chapter 5
(commencing with Section 11500) of Part 1 of Division 3 of Title 2 of
the Government Code.
1219.1.  (a) The state department may issue a provisional license to
a clinic if:
   (1) The clinic and the applicant for licensure substantially meet
the standards specified by this chapter and regulations adopted
pursuant to this chapter.
   (2) No violation of this chapter or regulations adopted under this
chapter exists in the clinic which jeopardizes the health or safety
of patients.
   (3) The applicant has adopted a plan for correction of any
existing violations which is satisfactory to the state department.
   (b) A provisional license issued under this section shall expire
not later than six months after the date of issuance, or at such
earlier time as determined by the state department at the time of
issuance, and may not be renewed.
1220.  Immediately upon the denial of any application for a license
or special permit or a renewal thereof, the state department shall
notify the applicant in writing.  Within 15 days after the state
department mails the notice, the applicant may present his written
petition for a hearing to the state department.  Upon receipt by the
state department of the petition in proper form, such petition shall
be set for hearing.  The proceedings shall be conducted in accordance
with Chapter 5 (commencing with Section 11500) of Part 1 of Division
3 of Title 2 of the Government Code, and the state department has
all powers granted therein.
   The director may issue a temporary license to operate a community
clinic or free clinic when the director determines that the facility
is in compliance with the provisions of this chapter, except that the
facility has applied for but not yet been granted an exemption from
federal taxation as required by subdivision (a) of Section 1204.  In
such cases, the prospective licensee shall submit to the director a
copy of its application for exemption from federal taxation which it
has sent to the federal Internal Revenue Service.  The director shall
request the Franchise Tax Board to review the application and to
render an opinion regarding whether it is likely that the exemption
will be granted.  If the Franchise Tax Board so determines, the
director may proceed to issue a temporary license.  Such temporary
license shall expire 12 months from the date of its issuance or upon
the facility being granted such exemption from federal taxation.  The
director shall issue no more than three successive temporary
licenses to one facility.