BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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          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  
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          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  

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          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

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