BILL ANALYSIS                                                                                                                                                                                                    Ó






                  SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW
                                Mark Leno, Chair
                                        
          Bill No:       AB 1474
          Author:        Committee on Budget
          As Amended:    June 25, 2012
          Consultant:    Joe Stephenshaw
          Fiscal:        Yes
          Hearing Date:  June 25, 2012
          
          Subject:  Budget Act of 2012:  Department of Alcohol and 
          Drug Programs Realignment

          Summary:  Provides the statutory changes necessary to 
          implement the Department of Alcohol and Drug Programs 
          Realignment portions of the 2012 Budget Act.

          Background:  This is the Department of Alcohol and Drug 
          Programs Realignment Trailer Bill.  It contains the 
          necessary changes to enact the budget act of 2012-13, as 
          follows:
          
           Transfer of Department of Alcohol and Drug Programs (DADP) 
          Functions
           Effective, July 1, 2013, transfers the administrative and 
          programmatic functions of DADP to departments within the 
          Health and Human Services Agency.  Requires that, in 
          consultation with stakeholders and affected departments, 
          the Health and Human Services Agency prepare a detailed 
          plan for the reorganization of DADP's functions, as 
          specified.  The plan is to be submitted to the Legislature 
          as part of the 2013-14 Governor's Budget.

           Alcohol and Drug Program Realignment  
                 Makes statutory changes necessary to implement and 
               be consistent with the 2011 Public Safety Realignment.
                 Requires the DADP and the Department of Health Care 
               Services (DHCS) to annually report a summary of 
               outcome and expenditure data that allows for 
               monitoring of changes over time and indicates the 
               degree to which programs are meeting state and 
               county-defined outcome measures.

           Drug Medi-Cal
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                  Makes programmatic changes necessary to implement 
               and be consistent with the realignment of funding for 
               the Drug Medi-Cal program and the transfer of 
               remaining state responsibility for the program to the 
               DHCS.
                 Requires the DHCS to provide quarterly updates to 
               the Legislature, stakeholders, and public on steps 
               foreseen, planned, and completed for the Drug Medi-Cal 
               transfer.
                 Establishes Legislative support for the adoption of 
               standardized and simplified forms and procedures in 
               order to promote the drug treatment of indigent 
               patients who are not eligible for Medi-Cal.

           Women and Children's Residential Treatment Services (WCRTS)  
          Declares the state's interest in the WCRTS program, 
          recognizes the eight current programs, and allows for the 
          establishment of additional programs for the purpose of 
          pursuing four primary goals:  1) demonstrate that alcohol 
          and other drug abuse treatment services delivered in a 
          residential setting and coupled with primary health, mental 
          health, and social services for women and children, can 
          improve overall treatment outcomes for women, children, and 
          the family unit as a whole; 2) demonstrate the 
          effectiveness of six-month or 12-month stays in a 
          comprehensive residential treatment program; 3) develop 
          models of effective comprehensive services delivery for 
          women and their children that can be replicated in similar 
          communities; and 4) provide services to promote safe and 
          healthy pregnancies and perinatal outcomes.

           Substance Abuse Prevention and Treatment Block Grant (SAPT) 
          - County Contracts
                  Revises various sections to eliminate a county plan 
               requirement and instead requires counties to, within 
               60 days after notice of the final allocation of SAPT 
               funds, contract for federal funding from the state to 
               provide alcohol and other drug prevention, treatment, 
               and recovery services.
                 Establishes that, when a county decides not to 
               enter into a contract to provide alcohol and drug 
               abuse services or programs, or both, the department 
               shall determine the need for the services or programs 
               and provide the services or programs directly through 
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               contract.
                 Provides that the department may implement, 
               interpret, or make amendments to various provisions by 
               means of an all-county letter, plan letters, plan or 
               provide bulletins, or similar instructions from the 
               department until regulations are adopted.  In 
               addition, provides for adoption of emergency 
               regulations by July 1, 2014, and authorizes the 
               readoption of these emergency regulations, as 
               specified.
                 Removes population cap for two or more counties to 
               jointly establish county alcohol and other drug 
               programs and removes state authorization for county to 
               county contracts for service.
                 Establishes that funds in each county's Behavioral 
               Health Subaccount of the Support Services Account of 
               the Local Revenue Fund 2011 shall be considered state 
               funds for the purposes of receipt of the federal block 
               grant.
                 Allows the director of DADP to reduce federal 
               funding, on a dollar-for-dollar basis, to a county 
               that has reduced or anticipates reducing expenditures 
               in a way that would result in a decrease in the 
               federal SAPT funds, as specified.

           Drug Courts  
          Makes amendments necessary to implement the realignment of 
          drug court funding pursuant to 2011 Public Safety 
          Realignment.

           Children and Family Services - Federal Disallowance Penalty  
          Establishes that if a federal disallowance or other 
          financial penalty is imposed on the state based on the 
          results of the federal Children and Family Services Review, 
          the Department of Social Services, in consultation with the 
          California State Association of Counties, shall develop an 
          apportionment of the total counties' share of the penalty 
          to the individual counties whose performance contributed to 
          the failure to meet the federal outcome target, as 
          specified.




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