BILL ANALYSIS Ó SB 73 Page 1 SENATE THIRD READING SB 73 (Budget and Fiscal Review Committee) As Amended June 28, 2011 Majority vote. Budget Bill Appropriation Takes Effect Immediately SENATE VOTE :Vote not relevant SUMMARY : Provides the necessary statutory changes in the area of health and human services in order to make mid-year revisions to the Budget Act of 2011. Specifically, if Section 3.94 (b) of the 2011 Budget Act is operative, this bill would do the following: 1)Implements payment reductions as specified in the Medi-Cal Program pertaining to Physician soft caps, provider reimbursement, and Medi-Cal enrollee copayments for services and contracts provided under the Program of All-Inclusive Care for the Elderly (PACE), the Senior Care Action Network, and the AIDS Health Care Foundation. These contracts and services are presently exempted from these reductions. If Section 3.94 (b) of the 2011 Budget Act is implemented, it is assumed that a total reduction of $15 million General Fund (GF) would be achieved from this action. 2)Directs that if Section 3.94 (b) of the 2011 Budget Act is operative, the Department of Developmental Services may utilize input from the stakeholder workgroups as specified to develop GF savings proposals as necessary. It specifies the Legislature's intent for GF savings to be from within the overall developmental services system, including savings or reductions from state administrative support, operation of the developmental centers, and operation of the regional centers. It states that a variety of strategies may be used for purpose of identifying savings. If Section 3.94 (b) is implemented, it is assumed that up to $100 million GF would be achieved. 3)Directs that if Section 3.94 (b) of the 2011 Budget Act is operative, the Department of Social Services shall implement an across-the-board reduction in In-Home Supportive Services (IHSS) of 20%, beginning January 1, 2012, with specified notice requirements and exceptions. If Section 3.94 (b) is implemented, it is assumed that a total reduction of $100 million GF would be achieved in the 2011-12 budget year as a result. 4)Appropriates $1,000 to the Department of Health Care Services for state administration. SB 73 Page 2 5)Adds an appropriation allowing this bill to take effect immediately upon enactment. Analysis Prepared by : Daisy Gonzales, Nicole Vazquez, and Andrea Margolis / BUDGET / (916) 319-2099 FN: 0001391