(a) Deductions may be requested by a certified provider organization from the subsidy payments of its provider members, and the Department of Human Resources or Governor’s designee shall ensure that those requests are honored. The State Department of Education, the State Department of Social Services, contractors or subcontractors of state agencies and departments, and any political subdivisions of the state shall assist the Department of Human Resources or the Governor’s designee in ensuring these requests are honored. The deductions may include membership dues, initiation fees, general assessments, and payment of any other membership benefit program sponsored by the certified provider organization.

(b) If the deduction of membership dues or other voluntary deductions from a provider’s subsidy payments requires action by more than one agency, department, political subdivision of the state, contractor, or subcontractor, the certified provider organization shall establish reasonable procedures to ensure that the total amount deducted does not exceed the total dues and other voluntary deductions owed by that provider.

(c) The state, its agencies and departments, their contractors and subcontractors, and any political subdivisions of the state shall not be liable in any action by a provider seeking recovery of, or damage for, improper calculation or use of dues or other voluntary deductions.

(d) An entity that makes subsidy payments to providers, as described in subdivision (a), shall do all of the following:

(1) Rely on a certification from the certified provider organization requesting a deduction or reduction that it has and will maintain an authorization, signed by the individual provider from whose subsidy the deduction or reduction is to be made. A certified provider organization that certifies that it has and will maintain individual provider authorizations shall not be required to provide a copy of an individual authorization to the entity unless a dispute arises about the existence or terms of the authorization. The certified provider organization shall indemnify the state, its agencies and departments, and their contractors and subcontractors, and any political subdivisions of the state, for any claims made by the provider for deductions made in reliance on that certification.

(2) Direct provider requests to cancel or change deductions for a certified provider organization to the certified provider organization, rather than to the entity that makes subsidy payments. The entity that makes subsidy payments shall rely on information provided by the certified provider organization regarding whether deductions for the certified provider organization were properly canceled or changed, and the certified provider organization shall indemnify the state, its agencies and departments, and their contractors and subcontractors, and any political subdivisions of the state, for any claims made by the provider for deductions made in reliance on that information. Deductions may be revoked only pursuant to the terms of the provider’s written authorization.

(3) After receiving notification from a certified provider organization that it possesses authorization for deduction, commence the first deduction in the next pay period after the entity receives the notification.

(Added by Stats. 2019, Ch. 385, Sec. 18. (AB 378) Effective January 1, 2020.)