BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 1014
                                                                  Page  1


          SENATE THIRD READING
          SB 1014 (Budget and Fiscal Review Committee)
          As Amended  June 25, 2012
          Majority vote.  Budget Bill Appropriation Takes Effect 
          Immediately  

           SENATE VOTE  :Vote not relevant  
           
           SUMMARY  :  Contains the necessary changes to enact the Budget Act 
          of 2012-13 related to the Department of Alcohol and Drug 
          Programs (DADP) Programmatic Realignment.  Specifically,  this 
          bill  :
          
          1)Makes statutory changes necessary to implement the realignment 
            of funds for Substance Use Disorder services to counties, 
            consistent with 2011 Public Safety Realignment.

          2)Requires the DADP and the Department of Health Care Services 
            (DHCS) to annually report a summary of outcome and expenditure 
            data that allows for monitoring of changes over time and 
            indicates the degree to which programs are meeting state and 
            county-defined outcome measures.

          3)Makes programmatic changes necessary to implement and 
            consistent with the realignment of funding for the Drug 
            Medi-Cal program and the transfer of remaining state 
            responsibility for the program to the DHCS.

          4)Requires the DHCS to provide quarterly updates to the 
            Legislature, stakeholders, and public on steps foreseen, 
            planned, and completed for the Drug Medi-Cal transfer.

          5)Establishes legislative support for the adoption of 
            standardized and simplified forms and procedures in order to 
            promote the drug treatment of indigent patients who are not 
            eligible for Medi-Cal.

          6)Transfers, effective, July 1, 2013, the administrative and 
            programmatic functions of DADP to departments within the 
            Health and Human Services Agency.  Requires that, in 
            consultation with stakeholders and affected departments, the 
            Health and Human Services Agency prepare a detailed plan for 
            the reorganization of DADP's functions, as specified.  The 
            plan is to be submitted to the Legislature as part of the 








                                                                  SB 1014
                                                                  Page  2


            2013-14 Governor's Budget and the ultimate placement of 
            functions pursuant to the transfer is contingent upon the 
            Budget Act of 2013 and implementing legislation.

          7)Declares the state's interest in the Women and Children's 
            Residential Treatment Services program, recognizes the eight 
            current programs, and allows for the establishment of 
            additional programs for the purpose of pursuing the following 
            four primary goals: 

             a)   Demonstrate that alcohol and other drug abuse treatment 
               services delivered in a residential setting and coupled 
               with primary health, mental health, and social services for 
               women and children, can improve overall treatment outcomes 
               for women, children, and the family unit as a whole; 

             b)   Demonstrate the effectiveness of six-month or 12-month 
               stays in a comprehensive residential treatment program;

             c)   Develop models of effective comprehensive services 
               delivery for women and their children that can be 
               replicated in similar communities; and, 

             d)   Provide services to promote safe and healthy pregnancies 
               and perinatal outcomes.

          8)Revises various sections to eliminate a county plan 
            requirement and instead requires counties to, within 60 days 
            after notice of the final allocation of  Federal Substance 
            Abuse Prevention and Treatment (SAPT) Block Grant Funds, 
            contract for federal funding from the state to provide alcohol 
            and other drug prevention, treatment, and recovery services.

          9)Establishes that, when a county decides not to enter into a 
            contract to provide alcohol and drug abuse services or 
            programs, or both, DADP shall determine the need for the 
            services or programs and provide the services or programs 
            directly through contract.

          10)Provides that DADP may implement, interpret, or make 
            amendments to various provisions by means of an all-county 
            letter, plan letters, plan or provide bulletins, or similar 
            instructions from the department until regulations are 
            adopted.  In addition, provides for adoption of emergency 








                                                                  SB 1014
                                                                  Page  3


            regulations by July 1, 2014, and authorizes the re-adoption of 
            these emergency regulations, as specified.

          11)Removes population cap for two or more counties to jointly 
            establish county alcohol and other drug programs and removes 
            state authorization for county-to-county contracts for 
            service.

          12)Establishes that funds in each county's Behavioral Health 
            Subaccount of the Support Services Account of the Local 
            Revenue Fund 2011 shall be considered state funds for the 
            purposes of receipt of the federal block grant.

          13)Allows the director of DADP to reduce federal funding, on a 
            dollar-for-dollar basis, to a county that has reduced or 
            anticipates reducing expenditures in a way that would result 
            in a decrease in the federal SAPT funds, as specified.

          14)Makes amendments necessary to implement the realignment of 
            drug court funding pursuant to 2011 Public Safety Realignment.

          15)Establishes that if a federal disallowance or other financial 
            penalty is imposed on the state based on the results of the 
            federal Children and Family Services Review, the Department of 
            Social Services, in consultation with the California State 
            Association of Counties, shall develop an apportionment of the 
            total counties' share of the penalty to the individual 
            counties whose performance contributed to the failure to meet 
            the federal outcome target, as specified.

          16)Contains an appropriation allowing this bill to take effect 
            immediately upon enactment. 


           Analysis Prepared by  :    Nicole Vazquez / BUDGET / (916) 
          319-2099


                                                                FN: 0004195