BILL ANALYSIS AB 3483 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 3483 (Friedman) As Amended July 7, 1996 2/3 vote. Urgency ASSEMBLY: 60-15 (July 1, 1996) SENATE: 29-4(July 7, 1996) Original Committee Reference: BUDGET SUMMARY: Makes various changes in public health, primary care, Medi-Cal, family planning, mental health and developmental disability programs related to implementation of the Conference Report on SB 1393 (the 1996 Budget Bill). The Senate amendments delete the Assembly version of the bill, and, among other things, make the following major changes to various programs: 1) Establish a program to develop emergency medical services for children, under the direction of the Emergency Medical Services Authority. 2) Extend the current public water system regulatory program from January 1, 1997 to January 1, 2002, and caps the Department of Health Services' fee authority under the program with respect to large water systems. 3) Extend $2 of the current $3 surcharge on vital records to January 1, 1999, and require that the state and local entities use these funds for vital records modernization, and improvement in collection and analysis of vital records information. 4) Require pharmaceutical manufacturers to pay a rebate in order to have their products included on the AIDS Drug Assistance Program (ADAP) formulary. Authorize, but does not require, the department to remove drugs from the ADAP formulary for failure of the manufacturer to pay the required rebate. 5) Provide for continued Medi-Cal eligibility without a share of cost for SSI/SSP recipients who would otherwise have a share of cost as a result of reductions in SSI/SSP payment standards. 6) Extend by 12 months, if federal financial participation is available, the current program of continued transitional eligibility for Medi-Cal when an AFDC family loses eligibility for AFDC as a result of employment and income. 7) Reduce the Drug Medi-Cal trigger from $60 million in 1995-96 to $45 million in 1996-97, and revise rate methodologies for certain drug treatment services. 8) Extend the current Medi-Cal drug contracting and formulary AB 3483 Page 2 program from January 1, 1997 to January 1, 1999, and extend, with certain modifications, the 10% Supplemental Drug Rebate Program, which sunset on July 7, 1996 to January 1, 1997. 9) Permanently cap at $20 million the amount of public hospital funding retained by the Medi-Cal program under the Targeted Case Management Program. 10) Reduce by $10 million annually the amount of Disproportionate Share Hospital funding retained by the state for use in supporting the state's Medi-Cal program. 11) Establish a new program of state-funded family planning services, under the state's Medi-Cal program, for men, women and adolescents with family incomes below 200% of the federal poverty level, regardless of their categorical eligibility for Medi-Cal. 12) Establish a new Community Challenge Grant Program to provide funding to local entities and groups to address problems of unwed and teen pregnancy, and fatherlessness. 13) Make various changes in the intake and assessment program for persons with developmental disabilities, and revises statutory direction to the department and the regional centers in the event that unallocated budget reductions are necessary in any fiscal year. 14) Extend the current sunset date on the state's Traumatic Brain Injury program from January 1, 1997 to January 1, 2000. FISCAL EFFECT: Net increased General Fund costs roughly on the order of $40 million in 1996-97, and approximately $80 million annually thereafter. Increased special fund revenues of approximately $7 million annually to fully offset continued special fund costs. All costs are reflected in the Conference Report on SB 1393 (the 1996 state budget vehicle). EXISTING LAW provides for various public health, primary care, and mental health programs, and provides for various Medi-Cal services to categorically eligible individuals and families. AS PASSED BY THE ASSEMBLY, this bill was a spot bill for legislative changes necessary to implement the 1996 Budget Act with respect to Medi-Cal. BACKGROUND: This bill is necessary to implement the spending plan contained in the Conference Report on SB 1393. ARGUMENTS IN SUPPORT: None ARGUMENTS IN OPPOSITION: None AB 3483 Page 3 Analysis prepared by: Sarah Olsen/ abudget / (916) 445-7082 FN 026380