BILL ANALYSIS                                                                                                                                                                                                    





                                                                  AB 369

                                                                  Page  1


          GOVERNOR'S VETO
          AB 369 (Yamada)
          As Amended August 24, 2009
          2/3 vote

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          |ASSEMBLY:  |78-0 |(June 3, 2009)  |SENATE: |35-0 |(September 2,  |
          |           |     |                |        |     |2009)          |
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          |ASSEMBLY:  |77-0 |(September 8,   |        |     |               |
          |           |     |2009)           |        |     |               |
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          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 



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