BILL NUMBER: AB 564	AMENDED
	BILL TEXT

	AMENDED IN SENATE  SEPTEMBER 1, 2009
	AMENDED IN SENATE  JULY 23, 2009
	AMENDED IN SENATE  JUNE 26, 2009
	AMENDED IN ASSEMBLY  MAY 14, 2009
	AMENDED IN ASSEMBLY  MAY 5, 2009

INTRODUCED BY   Assembly Members Portantino and Bonnie Lowenthal

                        FEBRUARY 25, 2009

   An act to add Division 10.75 (commencing with Section 11999.3.1)
to the Health and Safety Code, relating to substance abuse.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 564, as amended, Portantino. Substance abuse treatment:
prohibition of excessive salaries.
   Existing law, the Substance Abuse and Crime Prevention Act of
2000, was enacted by the voters at the November 2000 general
election. Amendment of the act by the Legislature requires a 2/3 vote
of both houses of the Legislature. The act requires all amendments
to further the act and be consistent with its purposes. The act
creates a Substance Abuse Treatment Trust Fund to provide moneys to
cover county costs associated with drug treatment programs, as
specified. The act also requires annual and long-term effectiveness
and financial impact studies on the programs funded by the act as
well as periodic audits of the expenditures. Existing law places
certain conditions on the allocation of state funds to entities,
whether public or private, for drug- or alcohol-related programs and
requires state agencies that distribute state funds to these entities
to establish and provide guidelines and procedures for these
entities to use to ensure compliance with those conditions.
   This bill would establish a limitation on the amount of
compensation a director, officer, or employee of a  nonprofit
 substance abuse treatment facility may receive from public
sources, not to exceed a certain federal compensation limitation,
and establish specified compensation requirements for any director,
officer, or employee who collects rent from a drug treatment
facility.  The bill would require these restrictions on
compensation to be terms of any contract entered into in the state to
provide drug treatment if, under that contract, public funds are to
be used to provide the drug treatment.  Because this bill would
establish restrictions on the distribution of funds from the
Substance Abuse Treatment Trust Fund, it would amend the Substance
Abuse and Crime Prevention Act of 2000 and therefore  would 
require a 2/3 vote of both houses of the Legislature.
   Vote: 2/3. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  It is the intent of Legislature in enacting this act to
reinforce the goals of Proposition 36 of the November 2000 statewide
general election by ensuring that money directed by the voters for
drug treatment should be used for that purpose and not to provide
large salaries to the executives of large drug treatment facilities.
  SEC. 2.  Division 10.75 (commencing with Section 11999.3.1) is
added to the Health and Safety Code, to read:

      DIVISION 10.75.  Compensation of Substance Abuse Treatment
Providers


   11999.3.1.  The following restrictions shall apply to the
compensation of any director, officer, or employee of any 
nonprofit  corporation providing substance abuse treatment
in the state  , and shall be required terms of any contract
entered into in the state to provide drug treatment if, under that
contract, public funds are to be used to provide the drug treatment
 :
   (a) The maximum amount of public funds that may be used for
compensation for a full-time director, officer, or employee shall not
exceed the salary limitation established by the federal government
on awards made by the federal Substance Abuse and Mental Health
Services Administration (SAMHSA). This amount shall be prorated for
any person working less than full time.
   (b) Public funds shall not be used for compensation for any
director, officer, or employee who collects rent from a substance
abuse treatment facility unless that person certifies that he or she
is in compliance with the federal Office of Management and Budget
Circular A-122, relating to cost principles for nonprofit
organizations.