BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 2889| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 AB 2889 Page 2 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 AB 2889 Page 3 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 **** END **** AB 2889 Page 4