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 -1- 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 -2- 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. -3- -4-