Amended in Assembly August 27, 2013

Senate BillNo. 101


Introduced by Committee on Budget and Fiscal Review

January 10, 2013


begin delete An act relating to the Budget Act of 2013.end deletebegin 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

SB 101, as amended, Committee on Budget and Fiscal Review. begin deleteBudget Act of 2013.end deletebegin insert Health.end insert

begin insert

(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.

end insert
begin insert

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.

end insert
begin insert

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.

end insert
begin insert

(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.

end insert
begin insert

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

end insert
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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.

end insert
begin delete

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

end delete

Vote: majority. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

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

P3    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 11751 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
2amended to read:end insert

3

11751.  

(a) Except as provided in Section 131055.2, the State
4Department of Health Care Services shall succeed to and be vested
5with all the duties, powers, purposes, functions, responsibilities,
6and jurisdiction of the former State Department of Alcohol and
7Drug Programs.

8(b) Any reference in statute, regulation, or contract to the State
9Department of Alcohol and Drug Programs or the State Department
10of Alcohol and Drug Abuse shall refer to the State Department of
11Health Care Services to the extent that they relate to the transfer
12of duties, powers, purposes, functions, responsibilities, and
13jurisdiction made pursuant to this section.

14(c) No contract, lease, license, or any other agreement to which
15the State Department of Alcohol and Drug Programs is a party
16shall be made void or voidable by reason of the act that enacted
P4    1this section, but shall continue in full force and effect with the
2State Department of Health Care Services assuming all of the
3rights, obligations, and duties of the State Department of Alcohol
4and Drug Programs with respect to the transfer of duties, powers,
5purposes, functions, responsibilities, and jurisdiction made pursuant
6to this section.

7(d) begin insert(1)end insertbegin insertend insert All unexpended balances of appropriations and other
8funds available for use by the State Department of Alcohol and
9Drug Programs in connection with any function or the
10administration of any law transferred to the State Department of
11Health Care Services pursuant to the act that enacted this section
12shall be available for use by the State Department of Health Care
13Services for the purpose for which the appropriation was originally
14made or the funds were originally available.

begin insert

15(2) The State Department of Health Care Services may, until
16July 1, 2017, liquidate the prior years’ encumbrances previously
17obligated by the former State Department of Alcohol and Drug
18Programs. The Controller shall transfer the following Budget Act
19appropriations from the former State Department of Alcohol and
20Drug Programs to the State Department of Health Care Services
21for use by the State Department of Health Care Services to
22liquidate the prior years’ encumbrances previously obligated by
23the former State Department of Alcohol and Drug Programs:

end insert
begin insert

24(A) Items 4200-001-0001, 4200-001-0139, 4200-001-0243,
254200-001-0816, 4200-001-0890, 4200-001-3113, 4200-101-0001,
264200-101-0890, 4200-102-0001, 4200-103-0001, 4200-104-0001,
27and 4200-104-0890 of Section 2.00 of the Budget Act of 2011
28(Chapter 33 of the Statues of 2011).

end insert
begin insert

29(B) Items 4200-001-0001, 4200-001-0139, 4200-001-0243,
304200-001-0816, 4200-001-0890, 4200-001-3113, 4200-101-0001,
314200-101-0890, 4200-104-0001, and 4200-104-0890 of Section
322.00 of the Budget Act of 2012 (Chapter 21 of the Statutes of 2012).

end insert

33(e) All books, documents, forms, records, data systems, and
34property of the State Department of Alcohol and Drug Programs
35with respect to the transfer of duties, powers, purposes, functions,
36responsibilities, and jurisdiction made pursuant to this section shall
37be transferred to the State Department of Health Care Services.

38(f) Positions filled by appointment by the Governor in the State
39Department of Alcohol and Drug Programs whose principal
40assignment was to perform functions transferred pursuant to this
P5    1section shall be transferred to the State Department of Health Care
2Services.

3(g) All employees serving in state civil service, other than
4temporary employees, who are engaged in the performance of
5functions transferred pursuant to this section, are transferred to the
6State Department of Health Care Services pursuant to the
7provisions of Section 19050.9 of the Government Code. The status,
8position, and rights of those persons shall not be affected by their
9transfer and shall continue to be retained by them pursuant to the
10State Civil Service Act (Part 2 (commencing with Section 18500)
11of Division 5 of Title 2 of the Government Code), except as to
12positions the duties of which are vested in a position exempt from
13civil service. The personnel records of all employees transferred
14pursuant to this section shall be transferred to the State Department
15of Health Care Services.

16(h) Any regulation or other action adopted, prescribed, taken,
17or performed by an agency or officer in the administration of a
18program or the performance of a duty, power, purpose, function,
19or responsibility pursuant to this division or Division 10.6
20(commencing with Section 11998) in effect prior to July 1, 2013,
21shall remain in effect unless or until amended, and shall be deemed
22to be a regulation or action of the agency to which or officer to
23whom the program, duty, power, purpose, function, responsibility,
24or jurisdiction is assigned pursuant to this section.

25(i) No suit, action, or other proceeding lawfully commenced by
26or against any agency or other officer of the state, in relation to
27the administration of any program or the discharge of any duty,
28power, purpose, function, or responsibility transferred pursuant to
29this section, shall abate by reason of the transfer of the program,
30duty, power, purpose, function, or responsibility under that section.

31begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 131055.2 of the end insertbegin insertHealth and Safety Codeend insertbegin insert is
32amended to read:end insert

33

131055.2.  

(a) Commencing July 1, 2013, the State Department
34of Public Health shall succeed to and be vested with all the duties,
35powers, purposes, functions, responsibilities, and jurisdiction of
36the former State Department of Alcohol and Drug Programs as
37they relate to the Office of Problem and Pathological Gambling
38(Chapter 8 (commencing with Section 4369) of Part 3 of Division
394 of the Welfare and Institutions Code).

P6    1(b) For purposes of the Office of Problem and Pathological
2Gambling (Chapter 8 (commencing with Section 4369) of Part 3
3of Division 4 of the Welfare and Institutions Code) and the
4Gambling Addiction Program Fund (Article 12 (commencing with
5Section 19950) of Chapter 5 of Division 8 of the Business and
6Professions Code), references to the State Department of Alcohol
7and Drug Programs shall refer to the State Department of Public
8Health.

9(c) All fees collected from licensees in accordance with Article
1012 (commencing with Section 19950) of Chapter 5 of Division 8
11of the Business and Professions Code and deposited into the
12Gambling Addiction Program Fund shall be available to the State
13Department of Public Health in accordance with the requirements
14of that section.

15(d) Notwithstanding any other law, any reference in statute,
16regulation, or contract to the State Department of Alcohol and
17Drug Programs or the State Department of Alcohol and Drug Abuse
18shall be construed to refer to the State Department of Public Health
19when it relates to the transfer of duties, powers, purposes, functions,
20responsibilities, and jurisdiction made pursuant to this section.

21(e) No contract, lease, license, or any other agreement to which
22the State Department of Alcohol and Drug Programs is a party
23shall be made void or voidable by reason of this section, but shall
24continue in full force and effect with the State Department of Public
25Health assuming all of the rights, obligations, and duties of the
26State Department of Alcohol and Drug Programs with respect to
27the transfer of duties, powers, purposes, functions, responsibilities,
28and jurisdiction made pursuant to this section.

29(f) begin insert(1)end insertbegin insertend insert All unexpended balances of appropriations and other
30funds available for use by the State Department of Alcohol and
31Drug Programs in connection with any function or the
32administration of any law transferred to the State Department of
33Public Health pursuant to the act that enacted this section shall be
34available for use by the State Department of Public Health for the
35purpose for which the appropriation was originally made or the
36funds were originally available.

begin insert

37(2) The State Department of Public Health may, until July 1,
382017, liquidate the prior years’ encumbrances previously obligated
39by the Office of Problem and Pathological Gambling. The
40Controller shall transfer all balances of the following Budget Act
P7    1appropriations from the Office of Problem and Pathological
2Gambling to the State Department of Public Health, for use by the
3State Department of Public Health to liquidate any prior years’
4encumbrances previously obligated by the Office of Problem and
5Pathological Gambling:

end insert
begin insert

6(A) Items 4200-001-0367, 4200-101-0367, and 4200-001-3110
7of Section 2.00 of the Budget Act of 2011 (Chapter 33 of the
8Statutes of 2011).

end insert
begin insert

9(B) Items 4200-001-0367, 4200-101-0367, and 4200-001-3110
10of Section 2.00 of the Budget Act of 2012 (Chapter 21 of the
11Statutes of 2012).

end insert

12(g) All books, documents, forms, records, data systems, and
13property of the State Department of Alcohol and Drug Programs
14with respect to the transfer of duties, powers, purposes, functions,
15responsibilities, and jurisdiction made pursuant to this section shall
16be transferred to the State Department of Public Health.

17(h) Positions filled by appointment by the Governor in the State
18Department of Alcohol and Drug Programs whose principal
19assignment was to perform functions transferred pursuant to this
20section shall be transferred to the State Department of Public
21Health. All employees serving in state civil service, other than
22temporary employees, who are engaged in the performance of
23functions transferred pursuant to this section, are transferred to the
24State Department of Public Health pursuant to the provisions of
25Section 19050.9 of the Government Code. The status, positions,
26and rights of those persons shall not be affected by their transfer
27and shall continue to be retained by them pursuant to the State
28Civil Service Act (Part 2 (commencing with Section 18500) of
29Division 5 of Title 2 of the Government Code), except as to
30positions the duties of which are vested in a position exempt from
31civil service. The personnel records of all employees transferred
32pursuant to this section shall be transferred to the State Department
33of Public Health.

34(i) Any regulation, order, or other action adopted, prescribed,
35taken, or performed by an agency or officer in the administration
36of a program or the performance of a duty, power, purpose,
37function, or responsibility pursuant to the Office of Problem and
38Pathological Gambling (Chapter 8 (commencing with Section
394369) of Part 3 of Division 4 of the Welfare and Institutions Code)
40and the Gambling Addiction Program Fund (Article 12
P8    1(commencing with Section 19950) of Chapter 5 of Division 8 of
2the Business and Professions Code) in effect prior to July 1, 2013,
3shall remain in effect unless or until amended, readopted, or
4repealed, or until they expire by their own terms, and shall be
5deemed to be a regulation or action of the agency to which or
6officer to whom the program, duty, power, purpose, function,
7responsibility, or jurisdiction is assigned pursuant to this section.

8(j) No suit, action, or other proceeding lawfully commenced by
9or against any agency or other officer of the state, in relation to
10the administration of any program or the discharge of any duty,
11power, purpose, function, or responsibility transferred pursuant to
12this section, shall abate by reason of the transfer of the program,
13duty, power, purpose, function, or responsibility under this section.

14begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 5848.6 is added to the end insertbegin insertWelfare and Institutions
15Code
end insert
begin insert, to read:end insert

begin insert
16

begin insert5848.6.end insert  

Any emergency regulations that may be adopted by
17the California Health Facilities Financing Authority, as described
18in paragraph (8) of subdivision (d) of Section 5848.5, shall be
19adopted in accordance with the Administrative Procedure Act
20(Chapter 3.5 (commencing with Section 11340) of Part 1 of
21Division 3 of Title 2 of the Government Code). The adoption of
22these regulations shall be deemed to be an emergency and
23necessary for the immediate preservation of the public peace,
24health and safety, or general welfare.

end insert
25begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 71 of Chapter 23 of the Statutes of 2013 is
26amended to read:end insert

27

SEC. 71.  

(a) (1) The State Department of Health Care Services
28shall accept funding from private foundations in the amount of at
29least $12.5 million to provide allocations for the management and
30funding of Medi-Cal outreach and enrollment plans specific to the
31provisions contained in this section.

32(2) The department shall seek necessary federal approval for
33purposes of obtaining federal funding for activities conducted
34under this section.

35(3) Notwithstanding any other law, and in a manner that the
36Director of Health Care Services shall provide, the department
37may make allocations to fund Medi-Cal outreach and enrollment
38activities as described in this section.

39(b) (1) Funds appropriated by the Legislature to the department
40for the purposes of this section shall be made available to selected
P9    1counties, counties acting jointly, and the County Medical Services
2Program Governing Board pursuant to Section 16809 of the
3Welfare and Institutions Code.

4(2) Selected counties, counties acting jointly, and the County
5Medical Services Program Governing Board may partner with
6community-based organizations as applicable to conduct outreach
7and enrollment to the target population as contained in subdivision
8(d).

9(3) The director may, at his or her discretion, also give
10consideration to community-based organizations in an area or
11region of the state if a county, or counties acting jointly do not
12seek an allocation or funds are made available.

13(4) For purposes of this section only, “county” shall be defined
14as county, city and county, a consortium of counties serving a
15region consisting of more than one county, the County Medical
16Services Program Governing Board, or a health authority.

17(c) (1) The allocations shall be apportioned geographically, by
18the entities identified in subdivision (b), according to the estimated
19number of persons who are eligible but not enrolled in Medi-Cal
20and who will be newly Medi-Cal eligible as of January 1, 2014.

21(2) The department may determine the number of allocations
22and the application process. The director may consult or obtain
23technical assistance from private foundations in implementation
24of the application and allocation process.

25(3) The department shall coordinate and partner with the
26California Health Benefit Exchange on certified application assister
27and outreach, enrollment, and marketing activities related to the
28federal Patient Protection and Affordable Care Act.

29(d) Notwithstanding any other law, the department shall develop
30selection criteria to allocate funds for the Medi-Cal outreach and
31enrollment activities with special emphasis targeting all of the
32following populations:

33(1) Persons with mental health disorder needs.

34(2) Persons with substance use disorder needs.

35(3) Persons who are homeless.

36(4) Young men of color.

37(5) Persons who are in county jail, in state prison, on state
38parole, on county probation, or under postrelease community
39supervision.

40(6) Families of mixed-immigration status.

P10   1(7) Persons with limited English proficiency.

2(e) (1) The funds allocated under this section shall be used only
3for the Medi-Cal outreach and enrollment activities and may
4supplement, but shall not supplant, existing local, state, and
5foundation funding of county outreach and enrollment activities.

6(2) Notwithstanding Section 10744 of the Welfare and
7Institutions Code, the department may recoup or withhold all or
8part of an allocation for failure to comply with any requirements
9or standards set forth by the department for the purposes of this
10 section.

11(f) The department shall begin the payment for the outreach and
12enrollment allocation program no later than February 1, 2014.

13(g) Under the terms of the approved allocation for the outreach
14and enrollment program, funded entities under this section shall
15not receive payment for in-person assister payments for assisting
16potential Medi-Cal enrollees.

17(h) The department shall require progress reports, in a manner
18as determined by the department, from those receiving allocations
19under this section.

20(i) To the extent federal funding is received for the services
21specified in this section, reimbursements for costs incurred under
22the approved allocations shall be made in compliance with federal
23law.

24(j) Notwithstanding Chapter 3.5 (commencing with Section
2511340) of Part 1 of Division 3 of Title 2 of the Government Code,
26the department may implement, interpret, or make specific this
27section by means of all-county letters, provider bulletins, or similar
28instructions.

begin delete

29(k) The department may use a portion of the private foundation
30funding pursuant to paragraph (a) to carry out the activities under
31this section.

end delete
32begin insert

begin insertSEC. 5.end insert  

end insert
begin insert

(a) The Healthcare Outreach and Medi-Cal
33Enrollment Account is hereby created in the Special Deposit Fund
34within the State Treasury in order to collect and allocate
35non-General Fund public or private grant funds, to be expended
36upon appropriation by the Legislature, for the purposes of outreach
37to and enrollment of targeted Medi-Cal populations and to
38compensate Medi-Cal in-person assisters, as specified in Sections
3970 and 71 of Chapter 23 of the Statutes of 2013.

end insert
begin insert

P11   1(b) There is hereby appropriated to the State Department of
2 Health Care Services the following sums to compensate eligible
3Medi-Cal in-person assisters as specified in Section 70 of Chapter
423 of the Statues of 2013:

end insert
begin insert

5(1) The sum of fourteen million dollars ($14,000,000) from the
6Healthcare Outreach and Medi-Cal Enrollment Account, to be
7available for encumbrance or expenditure until June 30, 2016.

end insert
begin insert

8(2) The sum of fourteen million dollars ($14,000,000) from the
9Federal Trust Fund, to be available for encumbrance or
10expenditure until June 30, 2016.

end insert
begin insert

11(c) There is hereby appropriated to the State Department of
12Healthcare Services the following sums to provide allocations for
13outreach and enrollment grants to eligible entities as specified in
14Section 71 of Chapter 23 of the Statutes of 2013:

end insert
begin insert

15(1) The sum of twelve million five hundred thousand dollars
16($12,500,000) from the Healthcare Outreach and Medi-Cal
17Enrollment Account, to be available for encumbrance or
18expenditure until June 30, 2016.

end insert
begin insert

19(2) The sum of twelve million five hundred thousand dollars
20($12,500,000) from the Federal Trust Fund, to be available for
21encumbrance or expenditure until June 30, 2016.

end insert
begin insert

22(d) Of the amounts appropriated in subdivisions (b) and (c), the
23State Department of Health Care Services may expend in aggregate
24up to five hundred thousand dollars ($500,000) annually in fiscal
25years 2013-14, 2014-15, and 2015-16, inclusive, to administer
26the activities described in Sections 70 and 71 of Chapter 23 of the
27Statutes of 2013, including funding for four three-year limited-term
28positions, which are hereby authorized to be established. Any
29private foundation funding expended by the department to
30administer the activities under Sections 70 and 71 of Chapter 23
31of the Statutes of 2013 shall be expended only for filled positions
32and administrative expenses directly related to these sections.

end insert
begin insert

33(e) This section shall become inoperative on June 30, 2018,
34and, as of January 1, 2019, is repealed, unless a later enacted
35statute, that becomes operative on or before January 1, 2019,
36deletes or extends the dates on which it becomes inoperative and
37is repealed.

end insert
38begin insert

begin insertSEC. 6.end insert  

end insert
begin insert

This act is a bill providing for appropriations related
39to the Budget Bill within the meaning of subdivision (e) of Section
4012 of Article IV of the California Constitution, has been identified
P12   1as related to the budget in the Budget Bill, and shall take effect
2immediately.

end insert
begin delete
3

SECTION 1.  

It is the intent of the Legislature to enact statutory
4changes relating to the Budget Act of 2013.

end delete


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