BILL ANALYSIS                                                                                                                                                                                                    




                                                          AB 3483
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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  








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    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

  








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 Analysis prepared by:  Sarah Olsen/ abudget / (916) 445-7082




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