BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           2221 (Beall)
          
          Hearing Date:  8/12/2010        Amended: 7/15/2010
          Consultant: Katie Johnson       Policy Vote: Health 6-0
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          BILL SUMMARY:  AB 2221 would permit 24-hour residential  
          treatment facilities that provide services to adults recovering  
          from alcohol and drug abuse that are licensed by the Department  
          of Alcohol and Drug Programs (DADP) to provide medical services  
          and would provide that such a facility would not require a  
          health facility license.
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          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
                                                                  
          DADP regulations                $130              $260  
          $255Special*

                                    2013-14               2014-15     2015-16  
          DADP ongoing oversight   up to $275 up to $300         up to  
          $300          Special*

          *Residential and Outpatient Program Licensing Fund
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          STAFF COMMENTS: SUSPENSE FILE.
          
          Until January 1, 2013, this bill would permit 24-hour  
          residential treatment facilities that provide services to adults  
          recovering from alcohol and drug abuse that are licensed by the  
          Department of Alcohol and Drug Programs (DADP) to provide  
          unspecified medical services and would provide that such a  
          facility would not require a health facility license. 

          It would take approximately 3 years, or from January 1, 2011, to  
          January 1, 2014, for DADP to draft and promulgate regulations  
          related to this bill at a cost of $130,000 in FY 2010-2011,  
          $260,000 in FY 2011-2012, $255,000 in FY 2012-2013, and $125,000  
          in FY 2013-2014 from the department's Residential and Outpatient  










          Program Licensing Fund. DADP would need statutory authority to  
          increase its licensing fees to cover the costs of the  
          regulations. These provisions sunset January 1, 2013, which is  
          prior to the reasonable date when DADP could begin to implement  
          this program. Staff recommends that the bill be amended to  
          permit a 5-year sunset, January 1, 2016, to allow for the  
          promulgation of regulations and adequate time to assess the  
          program.

          The addition of medical services to the services provided by  
          residential treatment facilities would increase the time DADP  
          could expect to spend conducting its biennial facility site  
          reviews. DADP would need up to two and a half permanent staff at  
          an annual cost of approximately $300,000 to accommodate the  
          increased site inspection time to conduct approximately 125 site  
          reviews annually commencing in FY 2013-2014.