BILL ANALYSIS Ó
SENATE COMMITTEE ON GOVERNMENTAL ORGANIZATION
Senator Isadore Hall, III
Chair
2015 - 2016 Regular
Bill No: AB 2889 Hearing Date: 6/14/2016
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|Author: |Committee on Health |
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|Version: |2/29/2016 Introduced |
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|Urgency: |No |Fiscal: |Yes |
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|Consultant:|Felipe Lopez |
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SUBJECT: State government
DIGEST: This bill restores the Department of Public Health
(DPH) to the list of departments that may make advanced payments
to community-based private nonprofit agency contractors.
ANALYSIS:
Existing law:
1)Authorizes specified state departments and authorities, upon
determination that an advance payment is essential for the
effective implementation of a program, to advance to a
community-based private nonprofit agency with which it has
contracted for the delivery of services, funds not exceeding
25% of the annual allocation to be made to the agency during
the fiscal year.
2)Requires these specified departments and authorities to
develop a plan to establish control procedures for advance
payments.
3)Requires a plan to be approved by the Department of Finance
and to include a procedure for determining whether an advance
payment is essential for the effective implementation of a
program.
This bill restores DPH to the list of departments that may make
AB 2889 (Committee on Health)
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advanced payments to community-based private nonprofit agency
contractors.
Background
Purpose of the bill. According to the author, "DPH routinely
contracts with community-based nonprofit agencies to provide
services directly to the public. Prior to 2014, Government Code
(GC) section 11019, subdivision (b), which the bill is amending,
granted advance payment authority to the former Department of
Health Services (DHS), DPH's predecessor department. Both DPH
and the Department of Health Care Services (DHCS) continued to
utilize this advance payment statutory authority after DHS was
split, effective 2007. Clean-up legislative language to that GC
section, effective in 2014, amended the DHS advance payment
statutory reference to only include DHCS, inadvertently removing
DPH's authority."
Prior/Related Legislation
AB 383 (Wagner, Chapter 76, Statutes of 2013) made
non-substantive changes to the codes including changing the DHS
reference to DHCS thereby unintentionally removing DPH's advance
payment statutory authority.
FISCAL EFFECT: Appropriation: No Fiscal
Com.: Yes Local: No
SUPPORT:
California Department of Public Health (Source)
OPPOSITION:
None received
ARGUMENTS IN SUPPORT: The California Department of Public
Health states that, "we routinely contract with community-based
nonprofit agencies to provide various public health related
services directly to the public. Many of these agencies do not
have financial resources to enter into contracts unless DPH can
provide initial start-up funding for contracted activities.
This bill would permit DPH, once again, to make advance payments
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to a community-based nonprofit agency with which it contracts if
certain requirements are met."