BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  SB 973
                                                                  Page  1

          Date of Hearing:   July 2, 2014

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                   SB 973 (Hernandez) - As Amended:  June 2, 2014 

          Policy Committee:                             HealthVote:17-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              No

           SUMMARY  

          This bill modifies several rules governing narcotic treatment  
          programs, including:

          1)Changing requirements related to drug testing.
          2)Removing a restriction that requires seven days elapse after a  
            withdrawal episode before treatment commences.
          3)Allowing additional circumstances where providers can offer  
            take-home doses of methadone or similar maintenance  
            medication. 

           FISCAL EFFECT  

          1)Minor costs to the Department of Health Care Services to  
            update applicable regulations, likely under $50,000 (Narcotic  
            Treatment Program Licensing Trust Fund).

          2)Likely minor, absorbable costs to county Drug Medi-Cal  
            programs (local realignment funds). The removal of the  
            seven-day restriction noted in (2), above, may slightly  
            increase demand for services from narcotic treatment programs.  
             This increase in demand is not expected to be significant.  

           COMMENTS  

           1)Purpose  . According to the author, this bill updates  
            requirements governing the provision of narcotic treatment  
            services to align with best practices and current technology.   
            The author also indicates the changes are being pursued  
            through legislation even though some of the provisions being  
            changed are specified in regulation, because narcotic  
            treatment providers have been unsuccessful petitioning DHCS  








                                                                  SB 973
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            and the former Department of Drug and Alcohol Programs (DADP)  
            to update applicable regulations for several years.  

           2)Background  . Narcotic treatment is a Medi-Cal benefit that,  
            pursuant to 2011 realignment, is provided and paid for by  
            counties as part of the realignment of Drug Medi-Cal. The  
            non-federal share of costs to provide Drug Medi-Cal benefits  
            is paid by the counties from realignment funds.  Drug Medi-Cal  
            was formerly administered by DADP, but was transferred to DHCS  
            in 2013.  Narcotic treatment includes detoxification and  
            maintenance services, which largely consists of the provision  
            of daily doses of methadone to individuals with opioid  
            addiction on an outpatient basis.   

           Analysis Prepared by  :    Lisa Murawski / APPR. / (916) 319-2081