Amended in Senate August 26, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 107

Introduced by Committee on Budget ( begin delete Blumenfield end delete begin insert Skinner end insert (Chair), Bloom, begin delete Bonilla, end delete begin insert Campos, end insert Chesbro, Daly, Dickinson, Gordon, Jones-Sawyer, Mitchell, Mullin, Muratsuchi, Nazarian, begin delete Rendon, end delete Stone, and Ting)

January 10, 2013

begin delete An act relating to the Budget Act of 2013. end delete begin insert An act to amend Sections 11751 and 131055.2 of the Health and Safety Code, to add Section 5848.6 to the Welfare and Institutions Code, and to amend Section 71 of Chapter 23 of the Statutes of 2013, relating to health, and making an appropriation therefor, to take effect immediately, bill related to the budget. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 107, as amended, Committee on Budget. begin delete Budget Act of 2013. end delete begin insert Health. end insert

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(1) Existing law transfers the duties, powers, purposes, functions, responsibilities, and jurisdiction of the former State Department of Alcohol and Drug Programs to the State Department of Health Care Services, except as specified.

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This bill would, until July 1, 2017, authorize the State Department of Health Care Services to liquidate the prior years’ encumbrances previously obligated by the former State Department of Alcohol and Drug Programs. The bill would require the Controller to transfer the balances of certain prior year appropriations from the former State Department of Alcohol and Drug Programs to the State Department of Health Care Services for these purposes.

end insert begin insert

(2) Existing law transfers the duties, powers, purposes, functions, responsibilities, and jurisdiction of the former State Department of Alcohol and Drug Programs as they relate to the Office of Problem and Pathological Gambling to the State Department of Public Health.

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This bill, until July 1, 2017, would authorize the State Department of Public Health to liquidate the prior years’ encumbrances previously obligated by the Office of Problem and Pathological Gambling. The bill would require the Controller to transfer the balances of certain prior year appropriations from the Office of Problem and Pathological Gambling to the State Department of Public Health for these purposes.

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(3) Existing law, the Investment in Mental Health Wellness Act of 2013, requires that funds appropriated by the Legislature to the California Health Facilities Financing Authority (authority) for the purposes of the act be made available to selected counties or counties acting jointly, except as otherwise provided, and used to increase capacity for client assistance and services in crisis intervention, crisis stabilization, crisis residential treatment, rehabilitative mental health services, and mobile crisis support teams. Among other things, the act authorizes the authority to adopt emergency regulations relating to the grants for the capital capacity and program expansion projects, including emergency regulations that define eligible costs and determine minimum and maximum grant amounts.

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This bill would require that these emergency regulations be adopted in accordance with the Administrative Procedure Act, as specified.

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(4) Existing law establishes the California Health Benefit Exchange (Exchange) within state government, specifies the powers and duties of the executive board governing the Exchange, and requires the board to facilitate the purchase of qualified health plans through the Exchange by qualified individuals and small employers by January 1, 2014. Existing law requires the board to undertake outreach and enrollment activities that seek to assist enrollees and potential enrollees with enrolling in the Exchange, and requires the board to inform individuals of eligibility requirements for the Medi-Cal program, the Healthy Families Program, or any applicable state or local public program and, if, through screening of the application by the Exchange, the Exchange determines that an individual is eligible for of those programs, to enroll that individual in the program. Existing law requires the State Department of Health Care Services to accept contributions by private foundations in specified amounts for purposes of making payments to entities and persons for Medi-Cal in-person enrollment assistance, as specified, and to provide allocations for the management and funding of Medi-Cal outreach and enrollment plans, as specified.

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This bill would establish the Healthcare Outreach and Medi-Cal Enrollment Account, consisting of non-General Fund public and private funds, in the Special Deposit Fund for purposes of outreach to and enrollment of targeted Medi-Cal populations and to compensate Medi-Cal in-person assisters. The bill would appropriate the sum of $14,000,000 from this account and the sum of $14,000,000 from the Federal Trust Fund, to the State Department of Health Care Services for purposes of compensating eligible Medi-Cal in-person assisters. The bill would appropriate the sum of $12,500,000 from the account and the sum of $12,500,000 from the Federal Trust Fund, to the State Department of Health Care Services to provide allocations for outreach and enrollment grants to eligible entities, as specified. The bill would authorize the department to use up to $500,000 of these funds for administrative activities, as specified. The bill would make these provisions inoperative on June 30, 2018, and would repeal them as of January 1, 2019. The bill would also make conforming changes related to these provisions.

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(5) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

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This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2013.

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Vote: majority. Appropriation:  begin delete no end delete begin insert yes end insert . Fiscal committee:  begin delete no end delete begin insert yes end insert . State-mandated local program: no.

The people of the State of California do enact as follows:

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begin insert SECTION 1. end insert   

end insert

begin insert Section 11751 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

11751.  

(a) Except as provided in Section 131055.2, the State
Department of Health Care Services shall succeed to and be vested
with all the duties, powers, purposes, functions, responsibilities,
and jurisdiction of the former State Department of Alcohol and
Drug Programs.

(b) Any reference in statute, regulation, or contract to the State
Department of Alcohol and Drug Programs or the State Department
of Alcohol and Drug Abuse shall refer to the State Department of
Health Care Services to the extent that they relate to the transfer
of duties, powers, purposes, functions, responsibilities, and
jurisdiction made pursuant to this section.

(c) No contract, lease, license, or any other agreement to which
the State Department of Alcohol and Drug Programs is a party
shall be made void or voidable by reason of the act that enacted
this section, but shall continue in full force and effect with the
State Department of Health Care Services assuming all of the
rights, obligations, and duties of the State Department of Alcohol
and Drug Programs with respect to the transfer of duties, powers,
purposes, functions, responsibilities, and jurisdiction made pursuant
to this section.

(d)  begin insert (1) end insert begin insert   end insert All unexpended balances of appropriations and other
funds available for use by the State Department of Alcohol and
Drug Programs in connection with any function or the
administration of any law transferred to the State Department of
Health Care Services pursuant to the act that enacted this section
shall be available for use by the State Department of Health Care
Services for the purpose for which the appropriation was originally
made or the funds were originally available.

begin insert

(2) The State Department of Health Care Services may, until
July 1, 2017, liquidate the prior years’ encumbrances previously
obligated by the former State Department of Alcohol and Drug
Programs. The Controller shall transfer the following Budget Act
appropriations from the former State Department of Alcohol and
Drug Programs to the State Department of Health Care Services
for use by the State Department of Health Care Services to
liquidate the prior years’ encumbrances previously obligated by
the former State Department of Alcohol and Drug Programs:

end insert begin insert

(A) Items 4200-001-0001, 4200-001-0139, 4200-001-0243,
4200-001-0816, 4200-001-0890, 4200-001-3113, 4200-101-0001,
4200-101-0890, 4200-102-0001, 4200-103-0001, 4200-104-0001,
and 4200-104-0890 of Section 2.00 of the Budget Act of 2011
(Chapter 33 of the Statues of 2011).

end insert begin insert

(B) Items 4200-001-0001, 4200-001-0139, 4200-001-0243,
4200-001-0816, 4200-001-0890, 4200-001-3113, 4200-101-0001,
4200-101-0890, 4200-104-0001, and 4200-104-0890 of Section
2.00 of the Budget Act of 2012 (Chapter 21 of the Statutes of 2012).

end insert

(e) All books, documents, forms, records, data systems, and
property of the State Department of Alcohol and Drug Programs
with respect to the transfer of duties, powers, purposes, functions,
responsibilities, and jurisdiction made pursuant to this section shall
be transferred to the State Department of Health Care Services.

(f) Positions filled by appointment by the Governor in the State
Department of Alcohol and Drug Programs whose principal
assignment was to perform functions transferred pursuant to this
section shall be transferred to the State Department of Health Care
Services.

(g) All employees serving in state civil service, other than
temporary employees, who are engaged in the performance of
functions transferred pursuant to this section, are transferred to the
State Department of Health Care Services pursuant to the
provisions of Section 19050.9 of the Government Code. The status,
position, and rights of those persons shall not be affected by their
transfer and shall continue to be retained by them pursuant to the
State Civil Service Act (Part 2 (commencing with Section 18500)
of Division 5 of Title 2 of the Government Code), except as to
positions the duties of which are vested in a position exempt from
civil service. The personnel records of all employees transferred
pursuant to this section shall be transferred to the State Department
of Health Care Services.

(h) Any regulation or other action adopted, prescribed, taken,
or performed by an agency or officer in the administration of a
program or the performance of a duty, power, purpose, function,
or responsibility pursuant to this division or Division 10.6
(commencing with Section 11998) in effect prior to July 1, 2013,
shall remain in effect unless or until amended, and shall be deemed
to be a regulation or action of the agency to which or officer to
whom the program, duty, power, purpose, function, responsibility,
or jurisdiction is assigned pursuant to this section.

(i) No suit, action, or other proceeding lawfully commenced by
or against any agency or other officer of the state, in relation to
the administration of any program or the discharge of any duty,
power, purpose, function, or responsibility transferred pursuant to
this section, shall abate by reason of the transfer of the program,
duty, power, purpose, function, or responsibility under that section.

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begin insert SEC. 2. end insert   

end insert

begin insert Section 131055.2 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

131055.2.  

(a) Commencing July 1, 2013, the State Department
of Public Health shall succeed to and be vested with all the duties,
powers, purposes, functions, responsibilities, and jurisdiction of
the former State Department of Alcohol and Drug Programs as
they relate to the Office of Problem and Pathological Gambling
(Chapter 8 (commencing with Section 4369) of Part 3 of Division
4 of the Welfare and Institutions Code).

(b) For purposes of the Office of Problem and Pathological
Gambling (Chapter 8 (commencing with Section 4369) of Part 3
of Division 4 of the Welfare and Institutions Code) and the
Gambling Addiction Program Fund (Article 12 (commencing with
Section 19950) of Chapter 5 of Division 8 of the Business and
Professions Code), references to the State Department of Alcohol
and Drug Programs shall refer to the State Department of Public
Health.

(c) All fees collected from licensees in accordance with Article
12 (commencing with Section 19950) of Chapter 5 of Division 8
of the Business and Professions Code and deposited into the
Gambling Addiction Program Fund shall be available to the State
Department of Public Health in accordance with the requirements
of that section.

(d) Notwithstanding any other law, any reference in statute,
regulation, or contract to the State Department of Alcohol and
Drug Programs or the State Department of Alcohol and Drug Abuse
shall be construed to refer to the State Department of Public Health
when it relates to the transfer of duties, powers, purposes, functions,
responsibilities, and jurisdiction made pursuant to this section.

(e) No contract, lease, license, or any other agreement to which
the State Department of Alcohol and Drug Programs is a party
shall be made void or voidable by reason of this section, but shall
continue in full force and effect with the State Department of Public
Health assuming all of the rights, obligations, and duties of the
State Department of Alcohol and Drug Programs with respect to
the transfer of duties, powers, purposes, functions, responsibilities,
and jurisdiction made pursuant to this section.

(f)  begin insert (1) end insert begin insert   end insert All unexpended balances of appropriations and other
funds available for use by the State Department of Alcohol and
Drug Programs in connection with any function or the
administration of any law transferred to the State Department of
Public Health pursuant to the act that enacted this section shall be
available for use by the State Department of Public Health for the
purpose for which the appropriation was originally made or the
funds were originally available.

begin insert

(2) The State Department of Public Health may, until July 1,
2017, liquidate the prior years’ encumbrances previously obligated
by the Office of Problem and Pathological Gambling. The
Controller shall transfer all balances of the following Budget Act
appropriations from the Office of Problem and Pathological
Gambling to the State Department of Public Health, for use by the
State Department of Public Health to liquidate any prior years’
encumbrances previously obligated by the Office of Problem and
Pathological Gambling:

end insert begin insert

(A) Items 4200-001-0367, 4200-101-0367, and 4200-001-3110
of Section 2.00 of the Budget Act of 2011 (Chapter 33 of the
Statutes of 2011).

end insert begin insert

(B) Items 4200-001-0367, 4200-101-0367, and 4200-001-3110
of Section 2.00 of the Budget Act of 2012 (Chapter 21 of the
Statutes of 2012).

end insert

(g) All books, documents, forms, records, data systems, and
property of the State Department of Alcohol and Drug Programs
with respect to the transfer of duties, powers, purposes, functions,
responsibilities, and jurisdiction made pursuant to this section shall
be transferred to the State Department of Public Health.

(h) Positions filled by appointment by the Governor in the State
Department of Alcohol and Drug Programs whose principal
assignment was to perform functions transferred pursuant to this
section shall be transferred to the State Department of Public
Health. All employees serving in state civil service, other than
temporary employees, who are engaged in the performance of
functions transferred pursuant to this section, are transferred to the
State Department of Public Health pursuant to the provisions of
Section 19050.9 of the Government Code. The status, positions,
and rights of those persons shall not be affected by their transfer
and shall continue to be retained by them pursuant to the State
Civil Service Act (Part 2 (commencing with Section 18500) of
Division 5 of Title 2 of the Government Code), except as to
positions the duties of which are vested in a position exempt from
civil service. The personnel records of all employees transferred
pursuant to this section shall be transferred to the State Department
of Public Health.

(i) Any regulation, order, or other action adopted, prescribed,
taken, or performed by an agency or officer in the administration
of a program or the performance of a duty, power, purpose,
function, or responsibility pursuant to the Office of Problem and
Pathological Gambling (Chapter 8 (commencing with Section
4369) of Part 3 of Division 4 of the Welfare and Institutions Code)
and the Gambling Addiction Program Fund (Article 12
(commencing with Section 19950) of Chapter 5 of Division 8 of
the Business and Professions Code) in effect prior to July 1, 2013,
shall remain in effect unless or until amended, readopted, or
repealed, or until they expire by their own terms, and shall be
deemed to be a regulation or action of the agency to which or
officer to whom the program, duty, power, purpose, function,
responsibility, or jurisdiction is assigned pursuant to this section.

(j) No suit, action, or other proceeding lawfully commenced by
or against any agency or other officer of the state, in relation to
the administration of any program or the discharge of any duty,
power, purpose, function, or responsibility transferred pursuant to
this section, shall abate by reason of the transfer of the program,
duty, power, purpose, function, or responsibility under this section.

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begin insert SEC. 3. end insert   

end insert

begin insert Section 5848.6 is added to the end insert begin insert Welfare and Institutions
Code end insert begin insert , to read: end insert

begin insert

begin insert 5848.6. end insert   

Any emergency regulations that may be adopted by
the California Health Facilities Financing Authority, as described
in paragraph (8) of subdivision (d) of Section 5848.5, shall be
adopted in accordance with the Administrative Procedure Act
(Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code). The adoption of
these regulations shall be deemed to be an emergency and
necessary for the immediate preservation of the public peace,
health and safety, or general welfare.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 71 of Chapter 23 of the Statutes of 2013 is
amended to read: end insert

SEC. 71.  

(a) (1) The State Department of Health Care Services
shall accept funding from private foundations in the amount of at
least $12.5 million to provide allocations for the management and
funding of Medi-Cal outreach and enrollment plans specific to the
provisions contained in this section.

(2) The department shall seek necessary federal approval for
purposes of obtaining federal funding for activities conducted
under this section.

(3) Notwithstanding any other law, and in a manner that the
Director of Health Care Services shall provide, the department
may make allocations to fund Medi-Cal outreach and enrollment
activities as described in this section.

(b) (1) Funds appropriated by the Legislature to the department
for the purposes of this section shall be made available to selected
counties, counties acting jointly, and the County Medical Services
Program Governing Board pursuant to Section 16809 of the
Welfare and Institutions Code.

(2) Selected counties, counties acting jointly, and the County
Medical Services Program Governing Board may partner with
community-based organizations as applicable to conduct outreach
and enrollment to the target population as contained in subdivision
(d).

(3) The director may, at his or her discretion, also give
consideration to community-based organizations in an area or
region of the state if a county, or counties acting jointly do not
seek an allocation or funds are made available.

(4) For purposes of this section only, “county” shall be defined
as county, city and county, a consortium of counties serving a
region consisting of more than one county, the County Medical
Services Program Governing Board, or a health authority.

(c) (1) The allocations shall be apportioned geographically, by
the entities identified in subdivision (b), according to the estimated
number of persons who are eligible but not enrolled in Medi-Cal
and who will be newly Medi-Cal eligible as of January 1, 2014.

(2) The department may determine the number of allocations
and the application process. The director may consult or obtain
technical assistance from private foundations in implementation
of the application and allocation process.

(3) The department shall coordinate and partner with the
California Health Benefit Exchange on certified application assister
and outreach, enrollment, and marketing activities related to the
federal Patient Protection and Affordable Care Act.

(d) Notwithstanding any other law, the department shall develop
selection criteria to allocate funds for the Medi-Cal outreach and
enrollment activities with special emphasis targeting all of the
following populations:

(1) Persons with mental health disorder needs.

(2) Persons with substance use disorder needs.

(3) Persons who are homeless.

(4) Young men of color.

(5) Persons who are in county jail, in state prison, on state
parole, on county probation, or under postrelease community
supervision.

(6) Families of mixed-immigration status.

(7) Persons with limited English proficiency.

(e) (1) The funds allocated under this section shall be used only
for the Medi-Cal outreach and enrollment activities and may
supplement, but shall not supplant, existing local, state, and
foundation funding of county outreach and enrollment activities.

(2) Notwithstanding Section 10744 of the Welfare and
Institutions Code, the department may recoup or withhold all or
part of an allocation for failure to comply with any requirements
or standards set forth by the department for the purposes of this
section.

(f) The department shall begin the payment for the outreach and
enrollment allocation program no later than February 1, 2014.

(g) Under the terms of the approved allocation for the outreach
and enrollment program, funded entities under this section shall
not receive payment for in-person assister payments for assisting
potential Medi-Cal enrollees.

(h) The department shall require progress reports, in a manner
as determined by the department, from those receiving allocations
under this section.

(i) To the extent federal funding is received for the services
specified in this section, reimbursements for costs incurred under
the approved allocations shall be made in compliance with federal
law.

(j) Notwithstanding Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code,
the department may implement, interpret, or make specific this
section by means of all-county letters, provider bulletins, or similar
instructions.

begin delete

(k) The department may use a portion of the private foundation
funding pursuant to paragraph (a) to carry out the activities under
this section.

end delete

begin insert

begin insert SEC. 5. end insert   

end insert begin insert

(a) The Healthcare Outreach and Medi-Cal
Enrollment Account is hereby created in the Special Deposit Fund
within the State Treasury in order to collect and allocate
non-General Fund public or private grant funds, to be expended
upon appropriation by the Legislature, for the purposes of outreach
to and enrollment of targeted Medi-Cal populations and to
compensate Medi-Cal in-person assisters, as specified in Sections
70 and 71 of Chapter 23 of the Statutes of 2013.

end insert begin insert

(b) There is hereby appropriated to the State Department of
Health Care Services the following sums to compensate eligible
Medi-Cal in-person assisters as specified in Section 70 of Chapter
23 of the Statues of 2013:

end insert begin insert

(1) The sum of fourteen million dollars ($14,000,000) from the
Healthcare Outreach and Medi-Cal Enrollment Account, to be
available for encumbrance or expenditure until June 30, 2016.

end insert begin insert

(2) The sum of fourteen million dollars ($14,000,000) from the
Federal Trust Fund, to be available for encumbrance or
expenditure until June 30, 2016.

end insert begin insert

(c) There is hereby appropriated to the State Department of
Healthcare Services the following sums to provide allocations for
outreach and enrollment grants to eligible entities as specified in
Section 71 of Chapter 23 of the Statutes of 2013:

end insert begin insert

(1) The sum of twelve million five hundred thousand dollars
($12,500,000) from the Healthcare Outreach and Medi-Cal
Enrollment Account, to be available for encumbrance or
expenditure until June 30, 2016.

end insert begin insert

(2) The sum of twelve million five hundred thousand dollars
($12,500,000) from the Federal Trust Fund, to be available for
encumbrance or expenditure until June 30, 2016.

end insert begin insert

(d) Of the amounts appropriated in subdivisions (b) and (c), the
State Department of Health Care Services may expend in aggregate
up to five hundred thousand dollars ($500,000) annually in fiscal
years 2013-14, 2014-15, and 2015-16, inclusive, to administer
the activities described in Sections 70 and 71 of Chapter 23 of the
Statutes of 2013, including funding for four three-year limited-term
positions, which are hereby authorized to be established. Any
private foundation funding expended by the department to
administer the activities under Sections 70 and 71 of Chapter 23
of the Statutes of 2013 shall be expended only for filled positions
and administrative expenses directly related to these sections.

end insert begin insert

(e) This section shall become inoperative on June 30, 2018,
and, as of January 1, 2019, is repealed, unless a later enacted
statute, that becomes operative on or before January 1, 2019,
deletes or extends the dates on which it becomes inoperative and
is repealed.

end insert

begin insert

begin insert SEC. 6. end insert   

end insert begin insert

This act is a bill providing for appropriations related
to the Budget Bill within the meaning of subdivision (e) of Section
12 of Article IV of the California Constitution, has been identified
as related to the budget in the Budget Bill, and shall take effect
immediately.

end insert

begin delete

SECTION 1.  

It is the intent of the Legislature to enact statutory
changes relating to the Budget Act of 2013.

end delete