BILL ANALYSIS AB 369 Page 1 GOVERNOR'S VETO AB 369 (Yamada) As Amended August 24, 2009 2/3 vote ----------------------------------------------------------------- |ASSEMBLY: |78-0 |(June 3, 2009) |SENATE: |35-0 |(September 2, | | | | | | |2009) | ----------------------------------------------------------------- ----------------------------------------------------------------- |ASSEMBLY: |77-0 |(September 8, | | | | | | |2009) | | | | ----------------------------------------------------------------- Original Committee Reference: HEALTH SUMMARY : Exempts two new publicly financed Adult Day Health Centers (ADHCs) serving California veterans from the existing moratorium on new Medi-Cal certified ADHCs. The Senate amendments : 1)Delete the criteria for a new exemption from the moratorium and instead specifically add to the list of applicants exempt from the ADHC moratorium two facilities by name: the William J. Pete Knight Veterans' Home of California in Lancaster, and the Veterans' Home of California in Ventura. 2)Make technical changes and add Assemblymembers Jones and Knight as co-authors. EXISTING LAW : 1)Establishes the California ADHC Act which requires licensure and regulation of ADHC centers with administrative responsibility shared between the State Department of Public Health, the California Department of Aging, and the Department of Health Care Services (DHCS) pursuant to an interagency agreement. AB 369 Page 2 2)Authorizes DHCS to implement one year moratoriums on new ADHC certification and enrollment in the Medi-Cal program on a statewide or regional basis, with certain statutory exceptions, and to extend the moratorium, as specified. AS PASSED BY THE ASSEMBLY , this bill created an exemption to the Medi-Cal ADHC moratorium for a state-owned and operated property for which facility planning began during or before 2002, if funded by state bonds and federal grants to serve veterans residing in California. FISCAL EFFECT : According to the Senate Appropriations Committee, if the California Department of Veterans' Affairs claimed Medi-Cal reimbursement, about $76 per day, for the approximately 20 eligible veterans in these two facilities, costs would be: $90,000 General Fund (GF), $150,000 federal funds annually prior to December 31, 2010, and $120,000 GF, $120,000 federal funds each year after January 1, 2011. GOVERNOR'S VETO MESSAGE : "This measure is premature and would add new General Fund costs to the Medi-Cal program when significant reductions are currently being implemented. Furthermore, the new facilities are still under construction and not scheduled to provide services until at least July 2011. "I encourage the author to examine ways to provide these services in the most cost-effective manner and propose them through the annual budget process." Analysis Prepared by: Marjorie Swartz / HEALTH / (916) 319-2097 FN: 0003397