BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 2117
                                                                  Page  1

          Date of Hearing:  August 13, 2014

                       ASSEMBLY COMMITTEE ON LOCAL GOVERNMENT
                           K.H. "Katcho" Achadjian, Chair
                  AB 2117 (Achadjian) - As Amended:  August 4, 2014
          
          SUBJECT  :  Santa Barbara San Luis Obispo Regional Health  
          Authority.

           SUMMARY  :  Adds the San Luis Obispo County Board of Supervisors  
          to the existing statutory dissolution process of the Santa  
          Barbara San Luis Obispo Regional Health Authority, now known as  
          CenCal Health.  

           The Senate amendments  delete the Assembly version of this bill,  
          and instead:  

          1)Add the San Luis Obispo County Board of Supervisors to the  
            existing dissolution process for CenCal Health.

          2)Require both Santa Barbara County and San Luis Obispo County  
            Boards of Supervisors to order the dissolution of CenCal  
            Health, by ordinance or resolution, in order for the  
            dissolution to become effective. 

          3)Specify the dissolution to become effective 180 days after the  
            date of the later adopted resolution or ordinance ordering the  
            dissolution.  

           EXISTING LAW  :  

          1)Establishes the Santa Barbara San Luis Obispo Regional Health  
            Authority Act.  

          2)Authorizes the Santa Barbara Board of Supervisors to order the  
            formation of the Santa Barbara Regional Health Authority.   
            Allows the San Luis Obispo Board of Supervisors to authorize  
            the provision of medical services by the Santa Barbara  
            Regional Health Authority and to participate on the board of  
            directors of the Santa Barbara Regional Health Authority.  

          3)Establishes the membership of the board of directors to  
            include appointments by both Santa Barbara and San Luis Obispo  
            Counties.  









                                                                  AB 2117
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          4)Authorizes the Santa Barbara County Board of Supervisors to  
            order the dissolution of the health authority, known as CenCal  
            Health.  Requires the dissolution to be effective 180 days  
            after the date of adoption of the resolution or ordinance  
            ordering the dissolution.  

          5)Requires Santa Barbara County to be the successor for the  
            purpose of winding down the affairs of the dissolved  
            authority.  

           AS PASSED BY THE ASSEMBLY  , this bill deleted the authority for  
          the defunct Office of Noise Control to establish guidelines for  
          the noise element, and instead, gave this authority to the  
          Governor's Office of Planning and Research.
           
          FISCAL EFFECT  :  None

           COMMENTS  :   

          1)Background and previous legislation.  AB 1223 (Hart) of 1982,  
            established the Santa Barbara Regional Health Authority to  
            administer the Medi-Cal program for residents of Santa Barbara  
            County.  AB 417 (Blakeslee), Chapter 266, Statutes of 2007,  
            authorized San Luis Obispo County to join the existing Santa  
            Barbara Regional Health Authority and revised the membership  
            of the board of directors to include directors appointed by  
            the San Luis Obispo County Board of Supervisors.  AB 417  
            renamed the Santa Barbara Regional Health Authority the Santa  
            Barbara San Luis Obispo Regional Health Authority, now known  
            as CenCal Health.  AB 417, however, did not include San Luis  
            Obispo County in the dissolution process outlined in existing  
            law.  

          2)Purpose of this bill.  This bill makes changes to the  
            dissolution process in existing law to include San Luis Obispo  
            County ensuring that Santa Barbara County cannot unilaterally  
            act to dissolve CenCal Health which serves both counties.   
            Under this bill both the Santa Barbara County and the San Luis  
            Obispo County Boards of Supervisors would need to adopt an  
            ordinance or resolution calling for the dissolution of CenCal  
            Health in order for the dissolution to become effective.  This  
            bill also clarifies that the dissolution would occur 180 days  
            after the last adopted ordinance or resolution.  

          3)Author's statement.  According to the author, "Despite being  








                                                                  AB 2117
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            added to the service area, and also having the authority to  
            appoint individuals to the 13 member Board of Directors, 
          San Luis Obispo County does not have the authority to dissolve  
            CenCal Health, should 
          it be determined that the services provided by the organization  
            are no longer necessary.  Thus, the power lies solely with  
            Santa Barbara County Board of Supervisors to dissolve an  
            organization that serves both counties."  

          4)Arguments in support.  Supporters argue that this bill grants  
            equal authority to the San Luis Obispo Board of Supervisors  
            and Santa Barbara County Board of Supervisors should, in the  
            unlikely event, both counties determine that CenCal Health  
            should be dissolved.  

          5)Arguments in opposition.  None

          6)Substantially amended.  The subject matter of this bill has  
            not been heard in any Assembly policy committee this  
            legislative session.  

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          CenCal Health [SPONSOR]
          San Luis Obispo County Board of Supervisors

           Opposition 
           
          None on file

           Analysis Prepared by  :    Misa Yokoi-Shelton / L. GOV. / (916)  
          319-3958