BILL ANALYSIS Ó
SB 1558
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SENATE THIRD READING
SB 1558 (Kehoe)
As Amended March 29, 2012
2/3 vote. Urgency
SENATE VOTE :31-2
APPROPRIATIONS 12-0
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|Ayes:|Fuentes, Blumenfield, | | |
| |Bradford, Charles | | |
| |Calderon, Campos, Davis, | | |
| |Gatto, Hall, Hill, Lara, | | |
| |Mitchell, Solorio | | |
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SUMMARY : Appropriates $2.6 million ($1.3 million General Fund
(GF); $1.3 million Federal Trust Fund) to the Department of
Justice (DOJ) to pay the settlement in Darling v. Douglas, U.S.
District Court, Northern District, Case No. 4:09-cv-03798-SBA.
Any funds appropriated in excess of the amount required for the
payment of this claim shall revert to the General Fund.
FISCAL EFFECT : This bill appropriates $2.6 million ($1.3
million GF; $1.3 million Federal Trust Fund) to DOJ.
This settlement also provides for 7% interest beginning 90 days
after the effective date of the settlement, which is February
25, 2012. This amounts to about $500 per day, beginning May 25,
2012.
Any funds appropriated in excess of the amount required will
revert to the appropriate fund.
COMMENTS : This bill is one of two or three annual bills carried
by the Appropriations chairs to provide appropriation authority
for legal settlements approved by DOJ and the Department of
Finance (DOF). These settlements were entered into lawfully by
the state upon advice of counsel (DOJ). They are binding state
obligations.
The Darling v. Douglas case . The plaintiffs, participants in an
optional Medi-Cal program, Adult Day Health Care (ADHC) brought
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suit in August 2009 contending the Department of Health Care
Services (DHCS) did not have an adequate transition plan in
place prior to the elimination of ADHC. Plaintiffs did not
challenge the elimination, but contended DHCS was required to
provide replacement services before eliminating the program.
Plaintiffs asserted that the changes to the program would place
them at risk of unnecessary institutionalization, alleged their
due process rights were violated and that the restrictive new
eligibility criteria violated federal Medicaid requirements.
In November 2011, the parties agreed to a settlement. Under the
terms of the settlement agreement, a new program,
Community-Based Adult Services (CBAS), would be provided to
qualifying ADHC participants and enhanced case management would
be provided to those who do not qualify for CBAS. The
settlement provides that both programs will eventually only be
offered through managed care plans (except in areas where a plan
does not operate).
The settlement pays for attorneys' fees to plaintiffs' counsel
of $2.2 million for all work performed prior to the court's
approval of the settlement agreement and an additional $400,000
to cover any work performed regarding implementation and
compliance with the agreement for the duration of the settlement
(30 months).
Related legislation .
1)SB 730 (Kehoe), Chapter 5, Statutes of 2012, appropriated $13
million to DOJ to pay for six settlements, with interest in
two cases.
2)AB 140 (Fuentes), Chapter 180, Statutes of 2011, and SB 206
(Kehoe), Chapter 125, Statutes of 2011, appropriated funds for
state settlements last year.
Analysis Prepared by : Geoff Long / APPR. / (916) 319-2081
FN: 0003682
SB 1558
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