BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2117| |Office of Senate Floor Analyses | | |1020 N Street, Suite 524 | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- CONSENT Bill No: AB 2117 Author: Achadjian (R) Amended: 6/18/14 in Senate Vote: 21 PRIOR VOTES NOT RELEVANT SENATE GOVERNANCE & FINANCE COMMITTEE : 6-0, 6/25/14 AYES: Wolk, Knight, Beall, DeSaulnier, Hernandez, Walters NO VOTE RECORDED: Liu SUBJECT : Santa Barbara San Luis Obispo Regional Health Authority SOURCE : CenCal Health DIGEST : This bill allows the San Luis Obispo County Board of Supervisors to order the Santa Barbara San Luis Obispo Regional Health Authority's (CenCal Health) dissolution by ordinance or resolution. This bill requires that the Santa Barbara County Board of Supervisors and the San Luis Obispo County Board of Supervisors must both order the dissolution of CenCal Health, as specified in state law, for the dissolution to become effective. ANALYSIS : CenCal Health is a public agency that is responsible for administering the Medi-Cal program for residents of Santa Barbara and San Luis Obispo Counties. Originally created in 1983 to serve only Santa Barbara County, subsequent legislation allowed CenCal Health to expand its jurisdiction to CONTINUED AB 2117 Page 2 include San Luis Obispo County (AB 417, Blakeslee, Chapter 266, Statutes of 2007). State law gives the San Luis Obispo County Board of Supervisors the power to appoint five members to CenCal Health's 13-member governing board and allows CenCal Health to exercise its powers in San Luis Obispo County. However, state law exclusively grants the Santa Barbara County Board of Supervisors the power to order CenCal Health's dissolution. This bill allows the San Luis Obispo County Board of Supervisors to order CenCal Health's dissolution by ordinance or resolution. This bill requires that the Santa Barbara County Board of Supervisors and the San Luis Obispo County Board of Supervisors must both order the dissolution of CenCal Health, as specified in state law, for the dissolution to become effective. The bill directs that the dissolution becomes effective 180 days after the date of the last adopted resolution or ordinance ordering the dissolution. Comments This bill corrects an apparent omission in the 2007 legislation that allowed CenCal Health to expand into San Luis Obispo County. AB 417 granted San Luis Obispo County similar governance powers to those that state law granted to Santa Barbara County, but made no change to the statute governing the manner in which CenCal Health could be dissolved. This bill simply ensures that the dissolution of CenCal Health cannot be ordered unilaterally by Santa Barbara County supervisors without equal participation by San Luis Obispo County officials. FISCAL EFFECT : Appropriation: No Fiscal Com.: No Local: No SUPPORT : (Verified 6/26/14) CenCal Health (source) San Luis Obispo County Board of Supervisors ARGUMENTS IN SUPPORT : According to the author, "CenCal Health is an organization that was established in 1983 to administer Medi-Cal for residents of Santa Barbara County. In 2005, San Luis Obispo County joined Santa Barbara County as an area served CONTINUED AB 2117 Page 3 by the organization. CenCal Health currently serves more than 120,000 people in both counties. "Despite being added to the service area, and also having the authority to appoint individuals to the 13 member Board of Directors, San Luis Obispo County does not have the authority to dissolve CenCal Health, should it be determined that the services provided by the organization are no longer necessary. Thus, the power lies solely with Santa Barbara County Board of Supervisors to dissolve an organization that serves both counties. "AB 2117 would grant the authority to San Luis Obispo County Board of Supervisors, along with Santa Barbara County Board of Supervisors, to dissolve CenCal Health if it was determined by both authorities that the organization was no longer needed." AB:nl 6/26/14 Senate Floor Analyses SUPPORT/OPPOSITION: SEE ABOVE **** END **** CONTINUED