BILL NUMBER: AB 564	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JUNE 10, 2010
	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 
programs  :  prohibition of excessive salaries.
  restrictions on compensation. 
   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   provides for substance abuse
 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 substance abuse
treatment facility may receive from public sources, not to exceed a
certain federal compensation limitation, and  would 
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   majority  . 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.   SECTION 1.   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 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.