BILL ANALYSIS                                                                                                                                                                                                    






                                 SENATE HEALTH
                               COMMITTEE ANALYSIS
                        Senator Deborah V. Ortiz, Chair


          BILL NO:       AB 631                                       
          A
          AUTHOR:        Leno                                         
          B
          AMENDED:       May 26, 2005
          HEARING DATE:  June 15, 2005                                
          6
          FISCAL:        Appropriations                               
          3
                                                                      
          1
          CONSULTANT:                                                
          Dunstan / ak
                                        

                                     SUBJECT
                                         
               Narcotic treatment programs:  mobile service units

                                     SUMMARY  

          This measure requires the California Department of Alcohol  
          and Drug Programs (DADP) to create a licensing category for  
          mobile narcotic treatment programs.

                                     ABSTRACT  

          Existing law:  
          1.Establishes DADP and grants them sole authority in state  
            government to license adult alcoholism or drug abuse  
            recovery or treatment facilities.

          2.Authorizes that the controlled substances methadone and  
            levoalphacetylmethadol (LAAM) are authorized for use in  
            replacement narcotic therapy by licensed narcotic  
            treatment programs.

          3.Prohibits a licensee from operating an alcoholism or drug  
            abuse recovery or treatment facility beyond the  
            conditions and limitations specified on the license.

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          4.Authorizes the director to grant exceptions to the  
            licensing regulations for pilot and demonstration  
            projects.

          5.Establishes the drug Medi-Cal program administered by  
            DADP to provide defined modes of treatment for low-income  
            persons with a drug or alcohol abuse problem.

          This bill:  
          1.Requires DADP to establish a program for the operation  
            and regulation of mobile narcotic treatment programs  
            (MNTP).  

          2.Requires a MNTP to meet one of the following conditions:   

                 Hold a primary narcotic treatment program license;  
               or,  
                 Be affiliated and associated with a primary  
               licensed narcotic treatment program.  In this case,  
               the MNTP will not be required to have a license  
               separate from its affiliated primary licensed narcotic  
               treatment program.  

          1.Provides additional criteria that DADP shall use in  
            approving a MNTP that is affiliated with a licensed  
            narcotic treatment program, including eligible patients,  
            capacity limitation, use of federal Food and Drug  
            Administration approved treatment and security protocols  
            to prevent diversion of medication.

          2.Requires DADP, in considering a MNTP application, to  
            independently weigh the treatment needs and concerns of  
            the county, city, or areas to be served by the program.  

          3.Specifies that nothing in this bill is intended to expand  
            the scope of the practice of pharmacy.  

          4.Requires the MNTPs to be located at predetermined sites  
            approved by DADP.  

                                  FISCAL IMPACT  

          According to the Assembly Appropriations Committee:

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          1.Unknown General Fund cost pressures in the Drug Medi-Cal  
            program to the extent this bill increases the number of  
            counties that start MNTPs and the number of clients  
            served by newly licensed programs.  For example, an  
            increase in 35 patients, served at a rate of $13 per day  
            would result in more than $160,000 in Drug Medi-Cal  
            costs, which are shared evenly by the federal and state  
            government.  

          2.Unknown and potentially significant savings to the extent  
            that this bill reduces societal costs in terms of  
            criminal justice and health care. 

                            BACKGROUND AND DISCUSSION  

          Purpose of the bill  
          According to the author, this bill will make services  
          offered by MNTPs eligible for Drug Medi-Cal and will expand  
          access to effective treatment services.  In illustrating  
          the need for this bill, the author cites the mobile  
          narcotic treatment pilot project in San Francisco which  
          provides narcotic treatment services to various  
          individuals.  Although 21 percent of the patients receiving  
          services from the pilot project are eligible for Medi-Cal,  
          the services are currently not reimbursed because the  
          program is not licensed by DADP.  

          In addition, the author states that locating traditional  
          methadone clinics is made difficult by community resistance  
          to the presence of treatment programs in their  
          neighborhoods.  MNTPs address this issue by providing  
          services in neighborhoods where the services are needed  
          without creating a permanent clinic site. 



          San Francisco pilot project  
          In May 2002, the San Francisco Board of Supervisors passed  
          a resolution allowing the San Francisco Department of  
          Public Health to establish a mobile medication unit pilot  
          program as an extension to the city's narcotic treatment  
          program.  To support the pilot program, federal funding was  
          granted by the Substance Abuse and Mental Health Services  
          Administration (SAMHSA).  On September 10, 2002, DADP  
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          allowed San Francisco to operate a mobile medication unit  
          pilot program to provide replacement narcotic therapy from  
          a van.  This van provides services daily at two locations  
          for up to 75 patients in each location.  The van provides  
          dispensing services, urinalysis sample collection and  
          emergency crisis counseling.  Scheduled counseling sessions  
          are provided in an office space at the community clinics  
          where the van is securely parked.  

          Narcotic treatment program (NTP)  
          In California, individuals who are addicted to heroin or  
          other opiates may be admitted to a state-approved NTP for  
          replacement narcotic therapy using the FDA-approved  
          medications, methadone and levomethadyl.  To receive these  
          medications in a licensed NTP, all patients must  
          participate in a comprehensive treatment program which  
          includes a medical evaluation and screening for diseases  
          that are disproportionately represented in the  
          opiate-addicted populations.  Patients are evaluated and  
          provided counseling for medical, alcohol, criminal and  
          psychological problems and are required to undergo regular  
          urinalysis to ensure that illicit drugs are not being used  
          during treatment.  According to DADP, methadone maintenance  
          treatment costs an average of $11 per day.  

          Licensing requirement  
          The NTP licensing branch at DADP is responsible for  
          licensing NTPs and regulating the delivery of replacement  
          narcotic therapy services to patients.  DADP ensures that  
          patients enrolled in NTP programs receive therapeutic care  
          and ensure the health and safety of each patient is upheld.  
           Annual inspections monitor NTPs for compliance with state  
          and federal laws and regulations.  In addition, programs  
          are required to be certified by SAMHSA and to obtain a Drug  
          Enforcement Administration (DEA) registration prior to  
          licensure.  For purposes of the San Francisco mobile  
          medication unit pilot program, DEA required the NTP to  
          equip the van with a Global Positioning System and a  
          security system that provides security for the safe that  
          stores the medication, panic buttons throughout the van and  
          a monitoring device which allows a security company to  
          monitor the interior of the van in an emergency.  


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          Drug Medi-Cal 
          Drug Medi-Cal services provide medically necessary alcohol  
          and other drug treatment to eligible Medi-Cal recipients.   
          DADP receives Medi-Cal funding from the Department of  
          Health Services for Drug Medi-Cal.  Drug Medi-Cal benefits  
          are optional Medi-Cal benefits that the state has chosen to  
          offer.  

          Arguments in support
          The sponsor, the City and County of San Francisco points  
          out that at $13 per day, methadone treatment is a  
          cost-effective alternative to incarceration or  
          hospitalization.  Some studies indicate that savings accrue  
          at a rate of $7 in the future to every $1 spent on  
          addiction treatment in the present. 

                                  PRIOR ACTIONS

           Assembly Floor:          72 - 7  Pass
          Assembly Appropriations: 17 - 1  Do Pass as Amended
          Assembly Health:         12 - 0  Do Pass

                                    POSITIONS  
                                        
          Support:  San Francisco City and County (sponsor)
                    California Medical Association
                    California Opioid Maintenance Providers
                    Drug Policy Alliance Network

          Oppose:None received






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