AB 1113: Federally qualified health centers: mission spend ratio.

This bill requires federally qualified health centers (FQHCs) to have an annual mission spend ratio of no less than 90% and to report their total revenues to the state department of public health. The FQHC must submit an annual registration fee to fund these provisions. The department will calculate and prepare a report of each FQHC's mission spend ratio within 90 days of receiving the submission. The bill imposes penalties for failure to comply, including an administrative fine of $5,000 for the first violation and $10,000 for each subsequent month. FQHCs can abate the violation within 2 years by reaching an agreement with the department to spend the penalty on mission-directed expenses. The bill also allows FQHCs to apply for a waiver or alternative mission spend ratio due to unexpected or exceptional circumstances or economic conditions. A waiver or alternative mission spend ratio is…