BILL ANALYSIS                                                                                                                                                                                                    Ó




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          |SENATE RULES COMMITTEE            |                       AB 2889|
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                                       CONSENT


          Bill No:  AB 2889
          Author:   Committee on Health  
          Introduced:2/29/16  
          Vote:     21  

           SENATE GOVERNMENTAL ORG. COMMITTEE:  12-0, 6/14/16
           AYES:  Hall, Bates, Block, Gaines, Galgiani, Glazer, Hernandez,  
            Hill, Hueso, Lara, McGuire, Vidak
           NO VOTE RECORDED:  Berryhill

          SENATE APPROPRIATIONS COMMITTEE:  Senate Rule 28.8

           ASSEMBLY FLOOR:  79-0, 5/5/16 (Consent) - See last page for  
            vote

           SUBJECT:   State government


          SOURCE:    California Department of Public Health


          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  








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            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  
          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.:YesLocal:   No










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          SUPPORT:  (Verified  8/1/16)

          California Department of Public Health (source)

          OPPOSITION:  (Verified  8/1/16)

          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  
          to a community-based nonprofit agency with which it contracts if  
          certain requirements are met."


           ASSEMBLY FLOOR:  79-0, 5/5/16
           AYES: Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,  
            Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,  
            Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,  
            Cooper, Dababneh, Dahle, Daly, Dodd, Eggman, Frazier,  
            Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson,  
            Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Roger  
            Hernández, Holden, Irwin, Jones, Jones-Sawyer, Kim, Lackey,  
            Levine, Linder, Lopez, Low, Maienschein, Mathis, Mayes,  
            McCarty, Medina, Melendez, Mullin, Nazarian, Obernolte,  
            O'Donnell, Olsen, Patterson, Quirk, Ridley-Thomas, Rodriguez,  
            Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting,  
            Wagner, Waldron, Weber, Wilk, Williams, Wood, Rendon
           NO VOTE RECORDED: Beth Gaines



          Prepared by:  Felipe Lopez / G.O. / (916) 651-1530
          8/3/16 19:40:22


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