BILL NUMBER: SB 1014 CHAPTERED
BILL TEXT
CHAPTER 36
FILED WITH SECRETARY OF STATE JUNE 27, 2012
APPROVED BY GOVERNOR JUNE 27, 2012
PASSED THE SENATE JUNE 27, 2012
PASSED THE ASSEMBLY JUNE 27, 2012
AMENDED IN ASSEMBLY JUNE 25, 2012
INTRODUCED BY Committee on Budget and Fiscal Review
FEBRUARY 6, 2012
An act to amend Sections 11755, 11757.59, 11757.61, 11758.10,
11758.20, 11760.5, 11772, 11775, 11776, 11792, 11794.1, 11796, 11797,
11798.1, 11801, 11811.5, 11811.6, 11812, 11812.6, 11814, 11817.1,
11817.3, 11817.6, 11817.8, 11818, 11818.5, 11820, 11825, 11827,
11828, 11830.1, 11833, 11835, 11839, 11839.2, 11848.5, 11851.5,
11852.5, 11853, 11876, and 11999.6 of, to add Sections 11798.2,
11798.3, and 11803 to, to add Article 1 (commencing with Section
11970) and Article 2 (commencing with Section 11975) to Chapter 2 of
Part 3 of Division 10.5 of, to add Chapter 2.1 (commencing with
Section 11757.65) to Part 1 of Division 10.5 of, to repeal Sections
11758.12, 11758.13, 11758.23, 11758.25, 11758.29, 11760.3, 11760.4,
11817.4, 11848, 11852, 11853.5, 11860, and 11875 of, to repeal
Article 1 (commencing with Section 11840) and Article 2 (commencing
with Section 11840.1) of Chapter 11 of Part 2 of Division 10.5 of, to
repeal Article 2 (commencing with Section 11970.1) and Article 3
(commencing with Section 11970.45) of Chapter 2 of Part 3 of Division
10.5 of, to repeal Chapter 3.4 (commencing with Section 11758.40) of
Part 1 of Division 10.5 of, and to repeal and add Sections 11756.8
and 11798 of, the Health and Safety Code, and to amend Sections
4369.4, 14021, 14021.30, 14021.35, and 14021.9 of, to add Sections
10605.1, 14021.33, 14021.51, 14021.52, and 14021.53 to, and to add
Article 3.2 (commencing with Section 14124.20) to Chapter 7 of Part 3
of Division 9 of, the Welfare and Institutions Code, relating to
public social services, and making an appropriation therefor, to take
effect immediately, bill related to the budget.
LEGISLATIVE COUNSEL'S DIGEST
SB 1014, Committee on Budget and Fiscal Review. Public social
services: alcohol and drug programs.
Under existing law, the State Department of Alcohol and Drug
Programs is responsible for administering prevention, treatment, and
recovery services for alcohol and drug abuse and problem gambling.
Existing law requires the department to issue allocations of state
and federal funds available to counties to provide alcohol and other
drug programs. Existing law also requires counties that utilize these
funds to adopt and submit to the department a county plan and
negotiated net amount contract for department review and approval or
disapproval, as specified.
This bill would, among other things, provide that, effective July
1, 2013, the administrative and programmatic functions that were
previously performed by the department are transferred to departments
within the California Health and Human Services Agency. It would
also provide that the ultimate placement of these functions is
contingent upon the Budget Act of 2013 and implementing legislation.
The bill would, operative July 1, 2012, delete the county plan and
negotiated net amount contract requirements and instead require
counties that apply for funds to submit to the department a contract
for federal funding from the state to provide alcohol and other drug
prevention, treatment, and recovery services. It would declare that
the state has an interest in a specified women and children's
residential treatment services program, funded by federal grants, and
state the Legislature's intent for the department to work with
counties under the 2011 realignment to develop reporting
requirements. The bill would generally remove references to state
involvement and funding in reference to alcohol and drug abuse
prevention, treatment, and recovery services in a county. The bill
would authorize counties to establish drug courts subject to certain
requirements and state oversight. This bill would also revise
provisions pertaining to apportionment of penalties among counties.
Existing law provides for the Medi-Cal Drug Treatment Program
(Drug Medi-Cal), under which counties enter into contracts with a
department within the California Health and Human Services Agency for
the provision of various drug treatment services to Medi-Cal
recipients, or the department directly arranges for the provision of
these services if a county elects not to do so. Existing law
requires, commencing July 1, 2012, that the administrative functions
of the Drug Medi-Cal Program performed by the State Department of
Alcohol and Drug Programs be transferred to the State Department of
Health Care Services in accordance with an administrative and
programmatic transition plan.
This bill would, operative July 1, 2012, make various changes to
the statutory provisions regulating the Drug Medi-Cal program to
conform these provisions to the above-described transfer requirement.
This bill would appropriate $1,000 from the General Fund to the
State Department of Health Care Services.
This bill would declare that it is to take effect immediately as a
bill providing for appropriations related to the Budget Bill.
Appropriation: yes.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. This act shall be titled and may be cited as 2011
Realignment Legislation.
SEC. 2. Section 11755 of the Health and Safety Code is amended to
read:
11755. The department shall do all of the following:
(a) Adopt regulations pursuant to Section 11152 of the Government
Code.
(b) Employ administrative, technical, and other personnel as may
be necessary for the performance of its powers and duties.
(c) Do or perform any of the acts that may be necessary,
desirable, or proper to carry out the purpose of this division.
(d) Provide funds to counties for the planning and implementation
of local programs to alleviate problems related to alcohol and other
drug use.
(e) Review and execute contracts for drug and alcohol services
submitted for funds allocated or administered by the department.
(f) Provide for technical assistance and training to local alcohol
and other drug programs to assist in the planning and implementation
of quality services.
(g) Review research in, and serve as a resource to provide
information relating to, alcohol and other drug programs.
(h) In cooperation with the Department of Personnel
Administration, encourage training in other state agencies to assist
the agencies to recognize employee problems relating to alcohol and
other drug use that affects job performance and encourage the
employees to seek appropriate services.
(i) Assist and cooperate with the Office of Statewide Health
Planning and Development and the California Health Policy and Data
Advisory Commission in the drafting and adoption of the state health
plan to ensure inclusion of appropriate provisions relating to
alcohol and other drug problems.
(j) In the same manner and subject to the same conditions as other
state agencies, develop and submit annually to the Department of
Finance a program budget for the alcohol and other drug program,
which budget shall include expenditures proposed to be made under
this division, and may include expenditures proposed to be made by
any other state agency relating to alcohol and other drug problems,
pursuant to an interagency agreement with the department.
(k) Review and certify alcohol and other drug programs meeting
state standards pursuant to Chapter 7 (commencing with Section 11830)
and Chapter 13 (commencing with Section 11847) of Part 2.
(l) Develop standards for ensuring minimal statewide levels of
service quality provided by alcohol and other drug programs.
(m) Review and license narcotic treatment programs.
(n) Develop and implement, in partnership with the counties,
alcohol and other drug prevention strategies especially designed for
youth.
(o) Develop and maintain a centralized alcohol and drug abuse
indicator data collection system that shall gather and obtain
information on the status of the alcohol and other drug abuse
problems in the state. This information shall include, but not be
limited to, all of the following:
(1) The number and characteristics of persons receiving recovery
or treatment services from alcohol and other drug programs providing
publicly funded services or services licensed by the state.
(2) The location and types of services offered by these programs.
(3) The number of admissions to hospitals on both an emergency
room and inpatient basis for treatment related to alcohol and other
drugs.
(4) The number of arrests for alcohol and other drug violations.
(5) The number of Department of Corrections and Rehabilitation,
Division of Juvenile Facilities commitments for drug violations.
(6) The number of Department of Corrections and Rehabilitation
commitments for drug violations.
(7) The number or percentage of persons having alcohol or other
drug problems as determined by survey information.
(8) The amounts of illicit drugs confiscated by law enforcement in
the state.
(9) The statewide alcohol and other drug program distribution and
the fiscal impact of alcohol and other drug problems upon the state.
Providers of publicly funded services or services licensed by the
department to clients-participants shall report data in a manner, in
a format, and under a schedule prescribed by the department.
(p) Issue an annual report that portrays the drugs abused,
populations affected, user characteristics, crime-related costs,
socioeconomic costs, and other related information deemed necessary
in providing a problem profile of alcohol and other drug abuse in the
state.
(q) (1) Require any individual, public or private organization, or
government agency, receiving federal grant funds, to comply with all
federal statutes, regulations, guidelines, and terms and conditions
of the grants. The failure of the individual, public or private
organization, or government agency, to comply with the statutes,
regulations, guidelines, and terms and conditions of grants received
may result in the department's disallowing noncompliant costs, or the
suspension or termination of the contract or grant award allocating
the grant funds.
(2) Adopt regulations implementing this subdivision in accordance
with Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code. For the purposes of the
Administrative Procedure Act, the adoption of the regulations shall
be deemed necessary for the preservation of the public peace, health
and safety, or general welfare. Subsequent amendments to the adoption
of emergency regulations shall be deemed an emergency only if those
amendments are adopted in direct response to a change in federal
statutes, regulations, guidelines, or the terms and conditions of
federal grants. Nothing in this paragraph shall be interpreted as
prohibiting the department from adopting subsequent amendments on a
nonemergency basis or as emergency regulations in accordance with the
standards set forth in Section 11346.1 of the Government Code.
SEC. 3. Section 11756.8 of the Health and Safety Code is repealed.
SEC. 4. Section 11756.8 is added to the Health and Safety Code, to
read:
11756.8. (a) It is the intent of the Legislature to ensure that
the impacts of the 2011 realignment of alcohol and drug program
services are identified and evaluated initially and over time. It is
further the intent of the Legislature to ensure that information
regarding these impacts is publicly available and accessible and can
be utilized to support the state's and counties' effectiveness in
delivering these critical services and supports.
(b) (1) The State Department of Alcohol and Drug Programs and the
State Department of Health Care Services, which administers the Drug
Medi-Cal Program, shall annually report to the appropriate fiscal and
policy committees of the Legislature, and publicly post, 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.
(2) This report shall be submitted and posted each year by April
15 and shall contain expenditures for each county for the programs
described in clauses (i) to (iv), inclusive, of subparagraph (B) of
paragraph (16) of subdivision (f) of Section 30025 of the Government
Code.
(3) The department shall consult with legislative staff and with
stakeholders to develop a reporting format consistent with the
Legislature's desired level of outcome and expenditure reporting
detail.
SEC. 5. Section 11757.59 of the Health and Safety Code is amended
to read:
11757.59. (a) Funds distributed under this chapter shall be used
by counties to fund residential and nonresidential alcohol and other
drug treatment programs for pregnant women, postpartum women, and
their children and to fund other support services directed at
bringing pregnant and postpartum women into treatment and caring for
alcohol and other drug exposed infants. Funds may also be used to
provide case management services to alcohol and other drug abusing
women and their children and special recruitment, training, and
support services for foster care parents of substance exposed
infants.
(b) In carrying out its responsibilities under this chapter, the
office may include in its guidelines the special needs of pregnant
women and postpartum women who are chemically dependent and who are
in need of treatment services. These special needs include, but are
not limited to, the following:
(1) Provision for medical services, which may include, but not be
limited to, the following:
(A) Low-risk and high-risk prenatal care.
(B) Pediatric followup care, including preventive infant health
care.
(C) Developmental followup care.
(D) Nutrition counseling.
(E) Methadone.
(F) Testing and counseling relating to AIDS.
(G) Monthly visits with a physician and surgeon who specializes in
treating persons with chemical dependencies.
(2) Provision for nonmedical services, which may include, but not
be limited to, the following:
(A) Case management.
(B) Individual or group counseling sessions, which occur at least
once a week.
(C) Family counseling, including, but not limited to, counseling
services for partners and children of the women.
(D) Health education services, including perinatal chemical
dependency classes, addressing topics that include, but are not
limited to, the effects of drugs on infants, AIDS, addiction in the
family, child development, nutrition, self-esteem, and responsible
decisionmaking.
(E) Parenting classes.
(F) Adequate child care for participating women.
(G) Encouragement of active participation and support by spouses,
domestic partners, family members, and friends.
(H) Opportunities for a women-only treatment environment.
(I) Transportation to outpatient treatment programs.
(J) Followup services, which may include, but not be limited to,
assistance with transition into housing in a drug-free environment.
(K) Child development services.
(L) Educational and vocational services for women.
(M) Weekly urine testing.
(N) Special recruitment, training, and support services for foster
care parents of substance exposed infants.
(O) Outreach which reflects the cultural and ethnic diversity of
the population served.
SEC. 6. Section 11757.61 of the Health and Safety Code is amended
to read:
11757.61. (a) Any county that receives funds distributed under
this chapter may establish a perinatal coordinating council that
consists of persons who are experts in the areas of alcohol and other
drug treatment, client outreach and intervention with alcohol and
other drug abusing women, child welfare services, maternal and child
health services, and developmental services, and representatives from
other community-based organizations.
(b) The coordination efforts provided through the council may
include the following:
(1) The identification of the extent of the perinatal alcohol and
other drug abuse problem in the county based on existing data.
(2) The development of coordinated responses by county health and
social service agencies and departments, which responses shall
address the problem of perinatal alcohol and other drug abuse in the
county.
(3) The definition of the elements of an integrated alcohol and
other drug abuse recovery system for pregnant women, postpartum
women, and their children.
(4) The identification of essential support services to be
included into the integrated recovery system defined pursuant to
paragraph (3).
(5) The promotion of communitywide understanding of the perinatal
alcohol and other drug abuse problem in the county and appropriate
responses to the problem.
(6) The communication with policymakers at both the state and
federal level about prevention and treatment needs for pregnant
women, postpartum women, and their children for alcohol and other
drug abuse that need to be addressed.
(7) The utilization of services that emphasize coordination of
treatment services with other health, child welfare, child
development, and education services.
SEC. 7. Chapter 2.1 (commencing with Section 11757.65) is added to
Part 1 of Division 10.5 of the Health and Safety Code, to read:
CHAPTER 2.1. WOMEN AND CHILDREN'S RESIDENTIAL TREATMENT
SERVICES
11757.65. (a) The Legislature hereby finds and declares both of
the following:
(1) The state has an interest in the women and children's
residential treatment services (WCRTS) program.
(2) In 2012, there are eight local WCRTS programs established
through grants from the federal Center for Substance Abuse Treatment,
Residential Women and Children, and Pregnant and Postpartum Women
Demonstration Program. WCRTS programs pursue 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 service delivery for
women and their children that can be replicated in similar
communities.
(D) Provide services to promote safe and healthy pregnancies and
perinatal outcomes.
(b) It is the intent of the Legislature for the following outcomes
to be achieved through the WCRTS program:
(1) Preserving family unity.
(2) Promoting healthy pregnancies.
(3) Enabling children to thrive.
(4) Freeing women and their families from substance abuse.
(c) It is also the intent of the Legislature for the State
Department of Alcohol and Drug Programs to work collaboratively with
counties and the eight WCRTS programs receiving funds from the Women'
s and Children's Residential Treatment Services Special Account under
the 2011 realignment to develop reporting requirements. It is the
intent of the Legislature that, to the extent that WCRTS programs
report to the counties, the counties annually report data on the
outcomes achieved by the WCRTS program to the department and for the
department to annually report to the appropriate budget committees of
the Legislature on the fiscal and programmatic status of the WCRTS
program.
(d) Any county may establish a WCRTS program designed to meet the
goals and produce the same outcomes as described in this section.
SEC. 8. Section 11758.10 of the Health and Safety Code is amended
to read:
11758.10. (a) Within 60 days after notification of the final
allocation of each fiscal year pursuant to Section 11814, the board
of supervisors of each county requesting to contract for federal
funding from the state to provide alcohol and other drug prevention,
treatment, and recovery services shall submit to the department, in
accordance with Section 11798, a contract for these services.
(b) The executed contract shall remain in effect to provide the
basis for advance payment until the next year's contract is executed.
The purpose of these county contracts shall be to provide the basis
for reimbursements pursuant to this division and to coordinate
services pursuant to Part 2 (commencing with Section 11760) in a
manner that avoids fragmentation of services and unnecessary
expenditures.
(c) A contract for alcohol and other drug abuse services shall not
become final until executed by both the contracting county and the
department. The contract shall be executed by September 30 of the
fiscal year in which the contract will be effective, and shall cover
the fiscal year period from July 1 to June 30, inclusive.
(d) The payments shall be based on appropriations made by the
Legislature, and monthly payments shall be adjusted to reflect
reductions and deletions made by the Legislature. The department
shall have the option to either terminate or amend the contract to
reflect the reduced funding. The payments shall continue at the
adjusted level until the contract is amended to reflect the final
Budget Act enacted for the fiscal year and the final allocation to
the counties.
SEC. 9. Section 11758.12 of the Health and Safety Code is
repealed.
SEC. 10. Section 11758.13 of the Health and Safety Code is
repealed.
SEC. 11. Section 11758.20 of the Health and Safety Code is amended
to read:
11758.20. (a) The department shall negotiate contracts with each
county that requests to enter into a contract to provide alcohol and
other drug abuse services.
(b) The department shall allocate funds for the purpose of
establishing a contract with each contracting county in accordance
with Sections 11814 and 11817.3.
SEC. 12. Section 11758.23 of the Health and Safety Code is
repealed.
SEC. 13. Section 11758.25 of the Health and Safety Code is
repealed.
SEC. 14. Section 11758.29 of the Health and Safety Code is
repealed.
SEC. 15. Chapter 3.4 (commencing with Section 11758.40) of Part 1
of Division 10.5 of the Health and Safety Code is repealed.
SEC. 16. Section 11760.3 of the Health and Safety Code is
repealed.
SEC. 17. Section 11760.4 of the Health and Safety Code is
repealed.
SEC. 18. Section 11760.5 of the Health and Safety Code is amended
to read:
11760.5. (a) The Legislature recognizes that alcohol and other
drug abuse should be viewed and treated as a health problem, as well
as a public safety problem. The alcohol and other drug abuse problem
has significant public impact and must, in addition to public safety,
be given community, education, social, and health attention if
prevention and amelioration are to be achieved. These approaches
should be coordinated into a multiagency and multifaceted program for
alcohol and other drug abuse control in the counties of the state.
(b) It is the intent of the Legislature that community alcohol and
other drug abuse services shall be organized through locally
administered and locally controlled community alcohol and other drug
abuse programs. The community alcohol and other drug abuse programs
shall operate under the principle that services are designed to be
equally accessible to all persons, including persons who because of
differences in language, cultural differences in language, cultural
traditions, or physical disabilities, confront barriers to knowing
about or to using the alcohol and other drug abuse services that are
offered.
SEC. 19. Section 11772 of the Health and Safety Code is amended to
read:
11772. (a) (1) The department may enter into agreements and
contracts with any person or public or private agency, corporation,
or other legal entity, including contracts to pay these entities in
advance or reimburse them for alcohol and other drug services
provided to alcohol and other drug abusers and their families and
communities.
(2) The department may make grants to public and private entities
that are necessary or incidental to the performance of its duties and
the execution of its powers. The department may pay these entities
in advance or reimburse them for services provided.
(3) The Legislature directs the department to contract with any
person or public or private agency, corporation, or other legal
entity to perform its duties whenever that expertise is available and
appropriate to utilize.
(b) Notwithstanding any other provision of this part, the
department may not contract directly for the provision of alcohol and
other drug services except as follows:
(1) For demonstration programs of limited duration and scope,
which programs, wherever possible, shall be administered through the
counties, and which shall be specifically authorized and funded by
the Budget Act or other statutes.
(2) To provide supportive services, such as technical assistance,
on a statewide basis, or management and evaluation studies to help
assure more effective implementation of this part.
(3) When a county decides not to enter into a contract to provide
alcohol and drug abuse services or programs, or both, the department
shall determine the need for the services or programs, or both, and
provide the services or programs, or both, directly or through
contract.
(c) (1) Notwithstanding the rulemaking provisions of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code, the department may implement, interpret, or
make specific the amendments to this section made by the act that
added this subdivision by means of all-county letters, plan letters,
plan or provider bulletins, or similar instructions from the
department until regulations are adopted pursuant to that chapter of
the Government Code.
(2) The department shall adopt emergency regulations no later than
July 1, 2014. The department may subsequently readopt any emergency
regulation authorized by this subdivision that is the same as or is
substantially equivalent to an emergency regulation previously
adopted pursuant to this section.
(3) The initial adoption of emergency regulations and the one
readoption of emergency regulations authorized by this subdivision
shall be deemed an emergency and necessary for the immediate
preservation of the public peace, health, safety, or general welfare.
Initial emergency regulations and the one readoption of emergency
regulations authorized by this subdivision shall be exempt from
review by the Office of Administrative Law. The initial emergency
regulations and the one readoption of emergency regulations
authorized by this subdivision shall be submitted to the Office of
Administrative Law for filing with the Secretary of State and each
shall remain in effect for no more than 180 days, by which time final
regulations may be adopted.
SEC. 20. Section 11775 of the Health and Safety Code is amended to
read:
11775. (a) Each year the department shall apply for federal block
grant funds from the federal Substance Abuse and Mental Health
Services Administration and may expend those funds only upon
appropriation of, and approval by, the Legislature pursuant to the
Budget Act.
(b) Whenever the federal Substance Abuse and Mental Health
Services Administration conditions its allocation of funds to the
department in a manner which would conflict with any provision of
this part, the department shall specifically describe the conflict in
its application for federal funds.
(c) The department may receive other federal funds and expend
them, upon appropriation by the Legislature, pursuant to this
division.
SEC. 21. Section 11776 of the Health and Safety Code is amended to
read:
11776. The department shall confer and cooperate with other state
agencies whose responsibilities include alleviating the problems
related to inappropriate alcohol use and other drug use in order to
maximize the state's effectiveness and limited resources in these
efforts. These agencies shall include, but are not limited to, the
Departments of Alcoholic Beverage Control, Corrections and
Rehabilitation, Industrial Relations, Motor Vehicles, and
Rehabilitation, the State Departments of Developmental Services,
Education, Health Care Services, Public Health, and Social Services,
the Employment Development Department, and the Office of Traffic
Safety.
SEC. 22. Section 11792 of the Health and Safety Code is amended to
read:
11792. (a) The department, in consultation with the State
Department of Public Health, shall distribute informational materials
on the care and treatment of infants under the age of six months who
have been exposed to alcohol and other drugs. The informational
materials shall include, but not be limited to, the following:
(1) The signs and symptoms of an infant who has been exposed to
alcohol and other drugs.
(2) The health problems of infants who have been exposed to
alcohol and other drugs.
(3) The special feeding needs of infants who have been exposed to
alcohol and other drugs.
(4) The special care needs of infants who have been exposed to
alcohol and other drugs, such as not overstimulating those infants
who have been exposed to cocaine.
(b) The informational materials developed pursuant to subdivision
(a) may be distributed through hospitals, public health nurses, child
protective services, alcohol and other drug facilities, educational
networks, foster parent groups, medical professional offices,
Medi-Cal programs, and county interagency task force groups, as well
as any other agency that the department selects.
SEC. 23. Section 11794.1 of the Health and Safety Code is amended
to read:
11794.1. It is the intent of the Legislature that the department,
in collaboration with the State Department of Public Health and
stakeholders in the medical and treatment provider communities, work
to identify methods for better informing medical doctors and other
health professionals of the benefits of diagnosing and treating
alcohol misuse and substance use among their patient population,
including, but not limited to, improved outreach efforts at the state
and local levels and the use of information dissemination
strategies, where appropriate.
SEC. 24. Section 11796 of the Health and Safety Code is amended to
read:
11796. (a) (1) Two or more counties may jointly establish county
alcohol and other drug programs pursuant to Article 1 (commencing
with Section 6500) of Chapter 5 of Division 7 of Title 1 of the
Government Code.
(2) Any county may, by contract, furnish alcohol and other drug
services to another county.
(b) Unless otherwise expressly provided for or required by the
context, this part relating to county alcohol and other drug programs
shall apply to alcohol and other drug programs operated jointly by
two or more counties.
SEC. 25. Section 11797 of the Health and Safety Code is amended to
read:
11797. (a) Funds allocated to the county pursuant to this part
shall be used exclusively for county alcohol and other drug services
as identified in the contract for alcohol and other drug services and
shall be separately identified and accounted for.
(b) The funds contained in each county's Behavioral Health
Subaccount of the Support Services Account of the Local Revenue Fund
2011 established pursuant to Section 30025 of the Government Code
shall be considered state funds distributed by the principle state
agency for the purposes of receipt of the federal block grant funds
for prevention and treatment of substance abuse described in
Subchapter XVII of Chapter 6A of Title 42 of the United States Code
to the extent that these funds are used for authorized alcohol and
drug prevention and treatment activities.
SEC. 26. Section 11798 of the Health and Safety Code is repealed.
SEC. 27. Section 11798 is added to the Health and Safety Code, to
read:
11798. (a) Counties that apply for funds to
provide alcohol and other drug abuse services shall prepare and
submit a contract for alcohol and other drug abuse services to the
department. The contract shall include a budget for all funds sources
to be used to provide alcohol and other drug abuse services. The
funds identified in the contract shall be used exclusively for county
alcohol and other drug abuse services to the extent that the
activities meet the requirements for receipt of the federal block
grant funds for prevention and treatment of substance abuse described
in Subchapter XVII of Chapter 6A of Title 42 of the United States
Code and shall be separately identified and accounted for. The county
shall report utilization of those funds in an annual cost report
pursuant to subdivision (b) of Section 11798.1.
(b) The contract shall include provisions to ensure both of the
following:
(1) The appropriate expenditures of funds necessary to meet the
requirements for receipt of federal block grant funds for prevention
and treatment of substance abuse described in Subchapter XVII of
Chapter 6A of Title 42 of the United States Code and other applicable
federal provisions for funds.
(2) The provision of information necessary for the department to
meet its oversight function, including, but not limited to, any
required auditing, reporting, and data collection.
(c) The contract shall specify the type, scope, and cost of the
services to be provided.
(d) The department, after consultation with county alcohol and
drug program administrators, shall develop standardized forms to be
used by the counties in the development and submission of the
contracts. The forms shall include terms and conditions relative to
county compliance with applicable laws.
(e) Net negotiated amount contracts that are in effect at the time
that the act that added this section is enacted shall be deemed
contracts for alcohol and other drug abuse services for purposes of
this section.
(f) Performance requirements shall be included within the terms of
the contract and shall include, at a minimum, all of the following:
(1) A provision for an adequate quality and quantity of service.
(2) A provision for access to services for at-risk populations.
(3) A provision requiring that all funds allocated by the state
for alcohol and other drug programs shall be used exclusively for the
purpose for which those funds are distributed.
(4) A provision requiring that performance be in compliance with
applicable state and federal laws, regulations, and standards.
(5) Estimated numbers and characteristics of clients-participants
by type of service.
(g) The contract shall include a provision that allows the
department access to financial and service records of the county and
contractors of the county for the purpose of auditing the
requirements in the contract and establishing the data necessary to
meet federal auditing and reporting requirements.
(h) The contract shall include a provision for resolution of
disputed audit findings.
(i) Where two or more counties jointly establish substance use
programs or where a county contracts to provide services in another
county pursuant to Section 11796, information regarding the
arrangement shall be included in the contract for alcohol and other
drug abuse services.
(j) The contract shall include a provision requiring the county to
ensure the security of client records as required by state and
federal law.
(k) The contract shall be presented for public input, review, and
comment, and the final contract shall be posted on the county's
Internet Web site.
(l) (1) Notwithstanding the rulemaking provisions of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code, the department may implement, interpret, or
make specific this section by means of all-county letters, plan
letters, plan or provider bulletins, or similar instructions from the
department until regulations are adopted pursuant to that chapter of
the Government Code.
(2) The department shall adopt emergency regulations no later than
July 1, 2014. The department may subsequently readopt any emergency
regulation authorized by this section that is the same as or is
substantially equivalent to an emergency regulation previously
adopted pursuant to this section.
(3) The initial adoption of emergency regulations implementing
this section and the one readoption of emergency regulations
authorized by this subdivision shall be deemed an emergency and
necessary for the immediate preservation of the public peace, health,
safety, or general welfare. Initial emergency regulations and the
one readoption of emergency regulations authorized by this section
shall be exempt from review by the Office of Administrative Law. The
initial emergency regulations and the one readoption of emergency
regulations authorized by this section shall be submitted to the
Office of Administrative Law for filing with the Secretary of State
and each shall remain in effect for no more than 180 days, by which
time final regulations may be adopted.
SEC. 28. Section 11798.1 of the Health and Safety Code is amended
to read:
11798.1. (a) Counties may each develop and operate their alcohol
and other drug abuse programs that would otherwise be required under
this division, as one coordinated program in each county. Counties
may combine their alcohol and drug advisory boards, their alcohol and
other drug plans, their alcohol and drug budgets, and the submission
deadlines for alcohol and other drug budgets and cost reports
pursuant to subdivision (b), and the administration of programs at
both the county and provider levels.
(b) A county may, by resolution of its board of supervisors,
develop and operate alcohol and other drug abuse programs as one
coordinated system. In establishing coordinated systems with combined
alcohol and other drug services counties shall do all of the
following:
(1) Report all of the following to the department:
(A) Utilization of all funds allocated by the department to the
county in a combined annual cost report pursuant to state and federal
requirements.
(B) All information necessary for the department to administer
this section, including, but not limited to, information needed to
meet federal reporting requirements. This information shall be
reported on a form developed by the department in consultation with
the County Alcohol and Drug Programs Administrators Association of
California.
(2) Combine drug and alcohol administrations in performance of
alcohol and other drug program administrative duties pursuant to
Section 11801.
(3) Require combined programs, for planning and reimbursement
purposes, to assess or categorize program participants at the time of
admission and discharge with regard to whether their primary
treatment needs are related to abuse of alcohol or of other drugs.
(4) Ensure that combined programs comply with statewide program
standards developed pursuant to regulations adopted by the department
in consultation with the alcohol and drug administrators.
(c) A county operating a coordinated system under this section
shall assess or categorize a program participant at the time of
admission and discharge as having problems primarily with abuse of
either alcohol or of other drugs for purposes of federal
reimbursement as required by federal law and report information to
the department in a form consistent with existing data collection
systems.
(d) (1) Notwithstanding the rulemaking provisions of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code, the department may implement, interpret, or
make specific the amendments to this section made by the act that
added this subdivision by means of all-county letters, plan letters,
plan or provider bulletins, or similar instructions from the
department until regulations are adopted pursuant to that chapter of
the Government Code.
(2) The department shall adopt emergency regulations no later than
July 1, 2014. The department may subsequently readopt any emergency
regulation authorized by this section that is the same as or is
substantially equivalent to an emergency regulation previously
adopted pursuant to this section.
(3) The initial adoption of emergency regulations implementing
this section and the one readoption of emergency regulations
authorized by this subdivision shall be deemed an emergency and
necessary for the immediate preservation of the public peace, health,
safety, or general welfare. Initial emergency regulations and the
one readoption of emergency regulations authorized by this section
shall be exempt from review by the Office of Administrative Law. The
initial emergency regulations and the one readoption of emergency
regulations authorized by this section shall be submitted to the
Office of Administrative Law for filing with the Secretary of State
and each shall remain in effect for no more than 180 days, by which
time final regulations may be adopted.
SEC. 29. Section 11798.2 is added to the Health and Safety Code,
to read:
11798.2. (a) A county with an approved contract for alcohol and
other drug abuse services shall bear the financial risk in providing
any alcohol or other drug services to the population described and
enumerated in the approved contract.
(b) The county shall not be precluded from contracting to purchase
all or part of the delivery of alcohol and other drug services from
noncounty providers.
(c) Counties receiving funds shall submit to the department
statistical data, as required in the contract, and end-of-year cost
data no later than November 1 following the close of the fiscal year.
(d) Whenever a county receives funds under a grant program for
alcohol and other drug abuse services, as well as under the county
contract from either the federal or state government, or from any
other grantor, public or private, and fails to include that grant
program in the county budget for its alcohol and other drug program,
the director shall not thereafter approve any, or provide, advance
payment claims submitted by the county for state reimbursement under
this part until the contract and county budget for its alcohol and
other drug program has been reviewed to include that grant program,
and the revised contract and budget are approved by the director.
(e) (1) Except as provided in paragraphs (2) and (3), regulations
adopted by the State Department of Alcohol and Drug Programs pursuant
to former Section 11758.29 shall remain in effect unless amended or
repealed by regulation adopted pursuant to this section.
(2) Notwithstanding the rulemaking provisions of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code, the department may implement, interpret, or
make specific this section to the extent that this section differs
from former Section 11758.29 by means of all-county letters, plan
letters, plan or provider bulletins, or similar instructions from the
department until regulations are adopted pursuant to that chapter of
the Government Code.
(3) (A) The department shall adopt emergency regulations no later
than July 1, 2014. The department may subsequently readopt any
emergency regulation authorized by this section that is the same as
or is substantially equivalent to an emergency regulation previously
adopted pursuant to this section.
(B) The initial adoption of emergency regulations implementing the
article and the one readoption of emergency regulations authorized
by this subdivision shall be deemed an emergency and necessary for
the immediate preservation of the public peace, health, safety, or
general welfare. Initial emergency regulations and the one readoption
of emergency regulations authorized by this section shall be exempt
from review by the Office of Administrative Law. The initial
emergency regulations and the one readoption of emergency regulations
authorized by this section shall be submitted to the Office of
Administrative Law for filing with the Secretary of State and each
shall remain in effect for no more than 180 days, by which time final
regulations may be adopted.
SEC. 30. Section 11798.3 is added to the Health and Safety Code,
to read:
11798.3. The department shall review each county's contract for
alcohol and other drug abuse services to determine that the contract
complies with this division and with the standards adopted under this
division. The department shall approve a contract that is in
compliance.
SEC. 31. Section 11801 of the Health and Safety Code is amended to
read:
11801. The alcohol and drug program administrator, acting through
administrative channels designated pursuant to Section 11795, shall
do all of the following:
(a) Coordinate and be responsible for the preparation of the
county contract.
(b) Ensure compliance with applicable laws relating to
discrimination against any person because of any characteristic
listed or defined in Section 11135 of the Government Code.
(c) Submit an annual report to the board of supervisors reporting
all activities of the alcohol and other drug program, including a
financial accounting of expenditures, number of persons served, and a
forecast of anticipated needs for the upcoming year.
(d) Be directly responsible for the administration of all alcohol
or other drug program funds allocated to the county under this part,
administration of county operated programs, and coordination and
monitoring of programs that have contracts with the county to provide
alcohol and other drug services.
(e) Ensure the evaluation of alcohol and other drug programs,
including the collection of appropriate and necessary client data and
program information, pursuant to Chapter 6 (commencing with Section
11825).
(f) Ensure program quality in compliance with appropriate
standards pursuant to Chapter 7 (commencing with Section 11830).
(g) Participate and represent the county in meetings of the County
Alcohol and Drug Program Administrators' Association of California
pursuant to Section 11811.5 for the purposes of representing the
counties in their relationship with the state with respect to
policies, standards, and administration for alcohol and other drug
abuse services.
(h) Perform any other acts that may be necessary, desirable, or
proper to carry out the purposes of this part.
SEC. 32. Section 11803 is added to the Health and Safety Code, to
read:
11803. If the county has an alcohol and other drug advisory
board, the alcohol and drug program administrator, acting through
administrative channels designated pursuant to Section 11795, may do
either or both of the following:
(a) Provide reports and information periodically to the advisory
board regarding the status of alcohol and other drug programs in the
county and keep the advisory board informed regarding changes in
relevant state, federal, and local laws or regulations or
improvements in program design and services that may affect the
county alcohol and other drug program.
(b) Provide for the orientation of the members of the advisory
board, including, but not limited to, the provision of information
and materials on alcohol and other drug problems and programs,
planning, procedures, and site visits to local programs.
SEC. 33. Section 11811.5 of the Health and Safety Code is amended
to read:
11811.5. To the extent the activities meet the provisions for
receipt of the federal block grant funds for prevention and treatment
of substance abuse described in Subchapter XVII of Chapter 6A of
Title 42 of the United States Code and other applicable federal
provisions for funds, a county may also utilize funds for the
following:
(a) Planning, program development, and administration by the
county. The department shall establish uniform definitions of the
elements of county alcohol and other drug program administration and
shall set the minimum and maximum levels of administrative services,
taking into account the total funds expended pursuant to the
contract.
(b) In conducting planning, evaluation, and research activities to
develop and implement the county alcohol and other drug program,
counties may contract with appropriate public or private agencies.
(c) Actual and necessary expenses incurred by the alcohol and drug
program administrator relating to attendance at not more than four
meetings each year of the administrators, any other meetings called
by the director, and reasonable dues for any related activities and
meetings. Each administrator of a county who receives funds under
this part shall attend each quarterly meeting, unless a waiver is
provided for by the department.
SEC. 34. Section 11811.6 of the Health and Safety Code is amended
to read:
11811.6. The department shall consult with alcohol and drug
program administrators in establishing standards pursuant to Chapter
7 (commencing with Section 11830) and regulations pursuant to Chapter
8 (commencing with Section 11835), shall consult with alcohol and
drug program administrators on matters of major policy and
administration, and may consult with alcohol and drug program
administrators on other matters affecting persons with alcohol and
other drug problems. The alcohol and drug program administrators may
organize, adopt bylaws, and annually elect officers. The
administrators shall consist of all legally appointed alcohol and
drug administrators in the state as designated pursuant to
subdivision (a) of Section 11800.
SEC. 35. Section 11812 of the Health and Safety Code is amended to
read:
11812. The following conditions apply to county expenditures of
funds pursuant to this part:
(a) Where the services specified in the contract for alcohol and
other drug abuse services are provided pursuant to other general
health or social programs, only that portion of the services dealing
with alcohol and other drug problems may be financed under this part.
(b) (1) Each county shall utilize available privately operated
alcohol and other drug programs and services in the county prior to
utilizing new county-operated programs and services, or city-operated
programs and services pursuant to Section 11796.1, when the
available privately operated programs and services are as favorable
in quality and cost as are those operated by the county or city. When
these privately operated programs and services are not available,
the county shall make a reasonable effort to encourage the
development of privately operated programs and services prior to
developing county-operated or city-operated programs and services.
(2) The county alcohol and drug program administrator shall
demonstrate to the board of supervisors, and to the department, prior
to development of any new program or service, that reasonable
efforts have been made to comply with paragraph (1). All available
local public or private programs and services, as described in
paragraph (1), that are appropriate shall be utilized prior to using
services provided by hospitals.
(c) All personal information and records obtained by the county,
any program that has a contract with the county, or the department
pursuant to this section are confidential and may be disclosed only
in those instances designated in Section 5328 of the Welfare and
Institutions Code.
(1) Any person may bring an action against an individual who has
willingly and knowingly released confidential information or records
concerning that person in violation of this section, for the greater
of the following amounts:
(A) Five hundred dollars ($500).
(B) Three times the amount of actual damages, if any, sustained by
the plaintiff.
(2) (A) Any person may, in accordance with Chapter 3 (commencing
with Section 525) of Title 7 of Part 2 of the Code of Civil
Procedure, bring an action to enjoin the release of confidential
information or records in violation of this chapter, and may in the
same action seek damages as provided in this section.
(B) It is not a prerequisite to an action under this section that
the plaintiff suffer or be threatened with actual damages.
(d) The department may require that each county and any public or
private provider of alcohol and other drug services that receives any
funds under this part provide any information requested by the
department relating to any application for or receipt of federal or
other nonstate funds, including fees, donations, grants, and other
revenues, for alcohol and other drug abuse services provided by these
agencies.
SEC. 36. Section 11812.6 of the Health and Safety Code is amended
to read:
11812.6. (a) In addition to any other services authorized under
this chapter, the department shall urge the county to develop within
existing resources specific policies and procedures to address the
unique treatment problems presented by persons who are both mentally
disordered and chemically dependent. Priority may be given to
developing policies and procedures that relate to the diagnosis and
treatment of homeless persons who are mentally disordered and
chemically dependent.
(b) The director shall consult with the Director of Health Care
Services in developing guidelines for county mental health and
alcohol and drug treatment programs in order to comply with this
section.
SEC. 37. Section 11814 of the Health and Safety Code is amended to
read:
11814. (a) The department shall issue allocations to contracting
counties for alcohol and other drug programs.
(b) In issuing allocations to contracting counties, it is the
intent of the Legislature that counties shall allocate all funds
received pursuant to state and federal laws and regulations.
(c) The department shall estimate an allocation of federal funds
available for each county to use as the basis for submission of the
contract. In making allocations, the department shall base its
allocations on the population of each county. However, the department
shall ensure that each small population county receives a minimum
amount of funds to provide adequate alcohol and other drug services.
The department may take into account other factors in making the
allocations, including, but not limited to, factors that relate to
the level of alcohol and other drug problems in the county. No later
than 45 days after introduction of the Budget Bill, the department
shall notify each county regarding its preliminary allocation under
this division and estimated amount of the federally required
maintenance of effort statewide expenditure levels on authorized
activities, as defined in the federal Substance Abuse Prevention and
Treatment Block Grant funds (42 U.S.C. Sec. 300x-30), pending
enactment of the Budget Bill. The 1984-85 fiscal year shall establish
the base funding for the county alcohol and drug allocation for
local programs. Beginning with the 1985-86 fiscal year,
cost-of-living adjustments, if granted, shall be considered as tied
to the base allocation established in the 1984-85 fiscal year, plus
any subsequent cost-of-living adjustments. The department shall
notify each county regarding its final allocation after enactment of
the Budget Bill.
(d) (1) Notwithstanding any other provision in this section, the
director may reduce federal funding allocations, 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 Substance Abuse Prevention and Treatment Block Grant funds
(42 U.S.C. Sec. 300x-30).
(2) Prior to making any reductions pursuant to this subdivision,
the director shall notify all counties that county underspending will
reduce the federal Substance Abuse Prevention and Treatment Block
Grant maintenance of effort (MOE). Upon receipt of notification, a
county may submit a revision to the county budget initially submitted
pursuant to subdivision (a) of Section 11798 in an effort to
maintain the statewide Substance Abuse Prevention and Treatment Block
Grant MOE.
(3) Pursuant to subdivision (b) of Section 11798.1, a county shall
notify the department in writing of proposed local changes to the
county's expenditure of funds. The department shall review and may
approve the proposed local changes depending on the level of
expenditures needed to maintain the statewide Substance Abuse
Prevention and Treatment Block Grant MOE.
(e) (1) Notwithstanding the rulemaking provisions of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code, the department may implement, interpret, or
make specific the amendments to this section made by the act that
added this subdivision by means of all-county letters, plan letters,
plan or provider bulletins, or similar instructions from the
department until regulations are adopted pursuant to that chapter of
the Government Code.
(2) The department shall adopt emergency regulations no later than
July 1, 2014. The department may subsequently readopt any emergency
regulation authorized by this section that is the same as or is
substantially equivalent to an emergency regulation previously
adopted pursuant to this section.
(3) The initial adoption of emergency regulations implementing the
amendments to this section and the one readoption of emergency
regulations authorized by this subdivision shall be deemed an
emergency and necessary for the immediate preservation of the public
peace, health, safety, or general welfare. Initial emergency
regulations and the one readoption of emergency regulations
authorized by this section shall be exempt from review by the Office
of Administrative Law. The initial emergency regulations and the one
readoption of emergency regulations authorized by this section shall
be submitted to the Office of Administrative Law for filing with the
Secretary of State and each shall remain in effect for no more than
180 days, by which time final regulations may be adopted.
SEC. 38. Section 11817.1 of the Health and Safety Code is amended
to read:
11817.1. The department may reallocate among counties any
unexpended federal funds that occur during the fiscal year in
programs or services or any allocations either not applied for by a
county or not in compliance with this part. Reallocations may be made
to counties by amendment to their county contracts.
SEC. 39. Section 11817.3 of the Health and Safety Code is amended
to read:
11817.3. (a) There shall be an appropriation from the Budget Act
to the department to fund programs and services to alleviate problems
related to inappropriate alcohol use or other drug use as provided
for in this part. However, if the state receives additional funds
from the federal government after the enactment of the Budget Act,
which funds may be
augmented by the Director of Finance to the appropriation described
in this section in accordance with the Budget Act, then the
department shall determine the amount of those funds to be used for
allocation to counties, and shall allocate that amount to counties
through amendments to executed contracts, within 90 days of receipt
of the additional funds to support programs and services to alleviate
alcohol-related and other drug-related problems as described in this
subdivision. The allocation of all funds pursuant to this
subdivision shall comply with federal requirements and with any
requirements pursuant to Section 28.00 of the Budget Act.
(b) The requirement set forth in subdivision (a) that the
department determine the amount of additional funds to be used for
allocation to counties and allocate that amount to counties within 90
days, shall be waived when the 90-day period does not allow
sufficient time for completion of the notification period pursuant to
Section 28.00 of the Budget Act.
SEC. 40. Section 11817.4 of the Health and Safety Code is
repealed.
SEC. 41. Section 11817.6 of the Health and Safety Code is amended
to read:
11817.6. Payments or advances of funds to counties or other state
agencies, which are properly chargeable to appropriations to the
department may be made by a Controller's warrant drawn against funds
appropriated to the department or funds administered by the
department.
SEC. 42. Section 11817.8 of the Health and Safety Code is amended
to read:
11817.8. (a) It is the intent of the Legislature that the state
and the counties work together to minimize audit exceptions. Audit
findings as contained in the department audit reports may be appealed
by counties directly to the department. Counties may retain disputed
audit amounts while an audit appeal is pending and then only to the
extent that the audit appeal is resolved in favor of the county and
the amount is in the county's favor.
(b) The department shall audit the expenditures of counties,
direct contractors, and county subcontractors. The department shall
develop an annual audit plan that will identify the counties, direct
contractors, and county subcontractors funded in whole or in part
with the funds administered by the department. The annual audit plan
shall consist of a sufficient number of audits and financial reviews
to provide reasonable assurance that federal and state funds have
been used for their intended purpose in accordance with applicable
funding requirements and restrictions contained in statutes,
regulations, and contracts.
(c) The department may conduct investigations, audits, and
financial related reviews on other than a routine basis of any
county, direct contractor, or county subcontractor funded in whole or
in part with funds administered by the department, as the department
deems necessary and appropriate.
(d) Counties may audit the expenditures of organizations funded in
whole or in part with funds administered by the department.
(e) A county shall repay to the department amounts of state and
federal funds found, as a result of an audit, not to have been
expended in accordance with the requirements set forth in this part,
federal block grant law, federal or state regulations pertaining to
alcohol or other drug abuse services, and the conditions set forth in
any contract for alcohol and other drug abuse services or an
interagency agreement. For organizations or services and the
conditions set forth in any combination of state, federal, or other
public funds, where a clear audit trail shows that the source and
application of these funds is not maintained, repayment shall be
determined by prorating audit findings between each funding source.
(f) For those audits conducted by the department, the director
shall administratively establish policies and procedures for the
resolution of disputed audit findings. The department shall consult
with county administrators when proposing changes in the procedures
for the resolution of disputed audit findings.
(g) There is established in the State Treasury an Audit Repayment
Trust Fund. The money in the fund shall be available upon
appropriation by the Legislature.
(h) The department may deny or withhold payments or advances of
funds to a county if the department finds, by audit or otherwise,
that a program is not in compliance with this part or the contract.
(i) Notwithstanding subdivision (a) of Section 53134 of the
Government Code, audits performed pursuant to this section shall be
conducted by qualified state or local government auditors or
independent public accountants in accordance with generally accepted
governing auditing standards, as prescribed by Government Auditing
Standards, issued by the Comptroller General of the United States.
These audits shall be completed no later than six months after the
completion of the audit fieldwork.
(j) (1) Notwithstanding the rulemaking provisions of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code, the department may implement, interpret, or
make specific the amendments to this section made by the act that
added this subdivision by means of all-county letters, plan letters,
plan or provider bulletins, or similar instructions from the
department until regulations are adopted pursuant to that chapter of
the Government Code.
(2) The department shall adopt emergency regulations no later than
July 1, 2014. The department may subsequently readopt any emergency
regulation authorized by this section that is the same as or is
substantially equivalent to an emergency regulation previously
adopted pursuant to this section.
(3) The initial adoption of emergency regulations implementing the
amendments to this section and the one readoption of emergency
regulations authorized by this subdivision shall be deemed an
emergency and necessary for the immediate preservation of the public
peace, health, safety, or general welfare. Initial emergency
regulations and the one readoption of emergency regulations
authorized by this section shall be exempt from review by the Office
of Administrative Law. The initial emergency regulations and the one
readoption of emergency regulations authorized by this section shall
be submitted to the Office of Administrative Law for filing with the
Secretary of State and each shall remain in effect for no more than
180 days, by which time final regulations may be adopted.
SEC. 43. Section 11818 of the Health and Safety Code is amended to
read:
11818. (a) (1) Expenditures made by a county and a county's
provider that may be reimbursed using appropriated funds include
salaries of personnel, approved facilities and services provided
through contract, operation, maintenance, and service costs,
depreciation of county facilities as established in the State of
California's Auditing Standards and Procedures for Counties, lease of
facilities where there is no intention to, nor option to, purchase,
and other expenditures that may be approved by the director.
(2) Expenditures made by a county and a county's provider that may
not be paid using appropriated funds include expenditures for
initial capital improvement, the purchase or construction of
buildings, except for equipment items and remodeling expenses as may
be provided in regulations of the department, compensation to members
of a local advisory board on drug programs, except actual and
necessary expenses incurred in the performance of official duties,
and expenditures for a purpose for which state reimbursement is
claimed under any other law.
(b) (1) Except as provided in Chapter 3 (commencing with Section
11758.10), the cost of services specified in the county contract
shall be based upon reimbursement of actual costs as determined with
standard accounting practices. The county may enter into contracts
with providers at actual cost or a negotiated rate. The provider
shall make available to the county information on prior years' actual
cost of providing the services and actual revenues.
(2) (A) Providers that receive a combination of Medi-Cal funding
and other federal or state funding for the same service element and
location shall be reimbursed for actual costs as limited by Medi-Cal
reimbursement requirements, as specified in Title XIX of the federal
Social Security Act (42 U.S.C. Sec. 1396 et seq.), the Medicaid state
plan, subdivisions (c) and (d) of Section 51516 of Title 22 of the
California Code of Regulations, except that reimbursement for
non-Medi-Cal reimbursable services shall not be limited by Medi-Cal
rate requirements or customary charges to privately paying clients.
(B) For those providers who operate under a negotiated rate for
non-Medi-Cal reimbursable services, the rates shall be treated as
provisional rates, subject to yearend settlement of actual costs.
SEC. 44. Section 11818.5 of the Health and Safety Code is amended
to read:
11818.5. (a) Counties shall submit a cost report reflecting the
expenditure of funds expended pursuant to the county contract. An
annual cost report for the fiscal year ending June 30 shall be
submitted to the department by November 1.
(b) Each county shall be responsible for reviewing its contracts
with providers of services and the department may audit these
contracts. The cost reports shall be reviewed by the department and
interim settlements of claims shall be made expeditiously with each
county. Final settlement shall be made at the time of audit, which
shall be completed within three years of the date the cost report was
accepted for interim settlement by the department. If the audit is
not completed within three years, the interim settlement shall be
considered as the final settlement.
(c) Counties shall report estimated numbers and characteristics of
clients-participants by type of service and shall report actual
numbers and characteristics of clients-participants served by type of
service with the annual cost report. The department shall specify
forms and procedures to be followed in reporting this information.
The fiscal reporting system established pursuant to this section
shall supersede the requirements of paragraph (2) of subdivision (b)
of Section 16366.7 of the Government Code for a quarterly fiscal
reporting system.
SEC. 45. Section 11820 of the Health and Safety Code is amended to
read:
11820. The Legislature recognizes the potential positive impact
that federal, state, and local agencies can have on the alleviation
of alcohol and other drug problems through better coordinated
planning and utilization of limited health resources. The Legislature
encourages persons concerned with alcohol and other drug problems to
become involved as much as possible in providing advice and comments
on health plans of those agencies.
SEC. 46. Section 11825 of the Health and Safety Code is amended to
read:
11825. The department may establish reasonable criteria to
evaluate the performance of programs and services that are described
in the county contract for alcohol and other drug abuse services.
SEC. 47. Section 11827 of the Health and Safety Code is amended to
read:
11827. The Legislature recognizes that local program
effectiveness may be evaluated in a variety of ways, but should
reflect the needs and priorities of the local community and attempt
to measure the achievement of objectives determined through the
planning process described in this part. The Legislature further
recognizes that the conducting of these evaluations is essential to
holding county alcohol and other drug programs accountable for their
use of funds and increasing program effectiveness. The Legislature
recognizes the beneficial results of the local evaluation process to
those participating in this process.
The Legislature desires to encourage experimentation and diversity
in the methods utilized by counties to evaluate the county alcohol
and other drug programs' achievement of their objectives, including,
but not limited to, evaluations of individuals' progress, changes in
utilization rates, changes in community attitudes, and measurement of
specific programmatic goals in order to advance our knowledge about
the effectiveness of programs in alleviating alcohol and other drug
problems.
SEC. 48. Section 11828 of the Health and Safety Code is amended to
read:
11828. Each county shall ensure the evaluation of all funded
programs to determine whether they have achieved their objectives as
determined in the planning process. In addition, recognizing the
difficulty and expense of conducting effective county alcohol and
other drug program evaluation, the department may assist counties in
developing evaluation designs for implementation by counties to
measure progress of alcohol or other drug users, changes in community
attitudes toward inappropriate alcohol use and other drug problems,
changes in the incidence and prevalence of alcohol and other drug
problems within the county, or other objectives identified in the
planning process. The department, in cooperation with counties that
choose to participate, may assist and fund counties to implement the
evaluation designs developed. Counties may contract with public or
private agencies and utilize funds allocated under this part for
purposes of conducting the evaluations.
SEC. 49. Section 11830.1 of the Health and Safety Code is amended
to read:
11830.1. In order to ensure quality assurance of alcohol and
other drug programs and expand the availability of funding resources,
the department shall implement a program certification procedure for
alcohol and other drug treatment recovery services. The department,
after consultation with the County Alcohol and Drug Program
Administrators Association of California, and other interested
organizations and individuals, shall develop standards and
regulations for the alcohol and other drug treatment recovery
services describing the minimal level of service quality required of
the service providers to qualify for and obtain state certification.
The standards shall be excluded from the rulemaking requirements of
the Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code). Compliance with these standards shall be voluntary on the part
of programs. For the purposes of Section 2626.2 of the Unemployment
Insurance Code, certification shall be equivalent to program review.
SEC. 50. Section 11833 of the Health and Safety Code is amended to
read:
11833. The department shall have the sole authority in state
government to determine the qualifications, including the appropriate
skills, education, training, and experience of personnel working
within alcoholism or drug abuse recovery and treatment programs
licensed, certified, or funded under this part.
SEC. 51. Section 11835 of the Health and Safety Code is amended to
read:
11835. (a) The purposes of any regulations adopted by the
department shall be to implement, interpret, or make specific the
provisions of this part and shall not exceed the authority granted to
the department pursuant to this part. To the extent possible, the
regulations shall be written in clear and concise language and
adopted only when necessary to further the purposes of this part.
(b) Except as provided in this section and Sections 11772, 11798,
11798.2, 11814, 11817.8, 11852.5, the department may adopt
regulations in accordance with the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of the Title 2 of the Government Code)
necessary for the proper execution of the powers and duties granted
to and imposed upon the department by this part. However, these
regulations may be adopted only upon the following conditions:
(1) Prior to adoption of regulations, the department shall consult
with county alcohol and drug program administrators and may consult
with any other appropriate persons relating to the proposed
regulations.
(2) If an absolute majority of the designated county alcohol and
drug program administrators who represent counties that have
submitted county contracts, vote at a public meeting called by the
department, for which 45 days' advance notice shall be given by the
department, to reject the proposed regulations, the department shall
refer the matter for a decision to a committee, consisting of a
representative of the county alcohol and drug program administrators,
the director, the secretary, and one designee of the secretary. The
decision shall be made by a majority vote of this committee at a
public meeting convened by the department. Upon a majority vote of
the committee recommending adoption of the proposed regulations, the
department may then adopt them. Upon a majority vote recommending
that the department not adopt the proposed regulations, the
department shall then consult again with the county alcohol and drug
program administrators and resubmit the proposed regulations to the
administrators for a vote pursuant to this subdivision.
(3) In the voting process described in paragraph (2), no proxies
shall be allowed nor may anyone other than the designated county
alcohol and drug program administrator, director, secretary, and
secretary's designee vote at the meetings.
SEC. 52. Section 11839 of the Health and Safety Code is amended to
read:
11839. The department, with the approval of the Secretary of
California Health and Human Services, may contract with any public or
private agency for the performance of any of the functions vested in
the department by this chapter. Any department of the state is
authorized to enter into a contract described in this section.
SEC. 53. Section 11839.2 of the Health and Safety Code is amended
to read:
11839.2. The following controlled substances are authorized for
use in replacement narcotic therapy by licensed narcotic treatment
programs:
(a) Methadone.
(b) Levoalphacetylmethadol (LAAM) as specified in paragraph (10)
of subdivision (c) of Section 11055.
(c) Buprenorphine products or combination of products approved by
the federal Food and Drug Administration for maintenance or
detoxification of opioid dependence.
(d) Any other federally approved, controlled substances used for
the purpose of narcotic replacement treatment.
SEC. 54. Article 1 (commencing with Section 11840) of Chapter 11
of Part 2 of Division 10.5 of the Health and Safety Code is repealed.
SEC. 55. Article 2 (commencing with Section 11840.1) of Chapter 11
of Part 2 of Division 10.5 of the Health and Safety Code is
repealed.
SEC. 56. Section 11848 of the Health and Safety Code is repealed.
SEC. 57. Section 11848.5 of the Health and Safety Code is amended
to read:
11848.5. (a) Once the negotiated rate with service providers has
been approved by the county, all participating governmental funding
sources, except the Medi-Cal program (Chapter 7 (commencing with
Section 14000) of Part 3 of Division 9 of the Welfare and
Institutions Code), shall be bound to that rate as the cost of
providing all or part of the total county alcohol and other drug
program as described in the county contract for each fiscal year to
the extent that the governmental funding sources participate in
funding the county alcohol and other drug program. Where the State
Department of Health Services adopts regulations for determining
reimbursement of alcohol and other drug program services formerly
allowable under the Short-Doyle program and reimbursed under the
Medi-Cal Act, those regulations shall be controlling only as to the
rates for reimbursement of alcohol and other drug program services
allowable under the Medi-Cal program and rendered to Medi-Cal
beneficiaries. Providers under this section shall report to the
department and the county any information required by the department
in accordance with the procedures established by the director of the
department.
(b) The Legislature recognizes that alcohol and other drug abuse
services differ from mental health services provided through the
State Department of Health Care Services and therefore should not
necessarily be bound by rate determination methodology used for
reimbursement of those services formerly provided under the
Short-Doyle program and reimbursed under the Medi-Cal Act.
SEC. 58. Section 11851.5 of the Health and Safety Code is amended
to read:
11851.5. In addition to those expenditures authorized under
Section 11851, expenditures shall include expenses incurred by
members of the local advisory board on alcohol and other drug
programs in providing alcohol and other drug program services through
the implementation of an executed county contract. Payment shall be
made of actual and necessary expenses of members incurred incident to
the performance of their official duties and may include travel,
lodging, and meals while on official business.
SEC. 59. Section 11852 of the Health and Safety Code is repealed.
SEC. 60. Section 11852.5 of the Health and Safety Code is amended
to read:
11852.5. (a) Charges shall be made for services rendered to each
person under a county contract in accordance with this section.
Charges for the care and treatment of each client receiving service
under a county contract shall not exceed the actual cost thereof as
determined by the director in accordance with standard accounting
practices. The fee requirement shall not apply to prevention and
early intervention services. The director is not prohibited from
including the amount of expenditures for capital outlay or the
interest thereon, or both, in his or her determination of actual
cost. The responsibility of a client, his or her estate, or his or
her responsible relatives to pay the charges shall be determined in
accordance with this section.
(b) Each county shall determine the liability of clients rendered
services under a county contract, and of their estates or responsible
relatives, to pay the charges according to ability to pay. Each
county shall collect the charges. The county shall establish and
maintain policies and procedures for making the determinations of
liability and collections, by collecting third-party payments and
from other sources to the maximum extent practicable. The written
criteria shall be a public record and shall be made available to the
department or any individual. Fees collected shall be retained at the
local level and be applied toward the purchase of additional drug
services.
(c) Services shall not be denied because of a client's ability or
inability to pay. County-operated and contract providers of treatment
services shall set and collect fees using methods approved by the
county alcohol and drug program administrator. All approved fee
systems shall conform to all of the following guidelines and
criteria:
(1) The fee system used shall be equitable.
(2) The fee charged shall not exceed actual cost.
(3) Systems used shall consider the client's income and expenses.
(4) Each provider fee system shall be approved by the county
alcohol and drug program administrator. A description of each
approved system shall be on file in the county board office.
(d) To ensure an audit trail, the county or provider, or both,
shall maintain all of the following records:
(1) Fee assessment schedules and collection records.
(2) Documents in each client's file showing client's income and
expenses, and how each was considered in determining fees.
(e) Each county shall furnish the director with a cost report of
information the director shall require to enable the director to
maintain a cost-reporting system of the costs of alcohol and other
drug program services in the county funded in whole or in part by
funds identified in the county contract with the department. The
cost-reporting system established pursuant to this section shall
supersede the requirements of paragraph (2) of subdivision (b) of
Section 16366.7 of the Government Code for a quarterly fiscal
reporting system. An annual cost report, for the fiscal year ending
June 30, shall be submitted to the department by November 1.
(f) The Legislature recognizes that alcohol and other drug
programs may provide a variety of services described in this part,
which services will vary depending on the needs of the communities
that the programs serve. In devising a system to ensure that a county
has expended its funds pursuant to an approved county contract,
including the budget portions of the contract, the department shall
take into account the flexibility that a county has in the provision
of services and the changing nature of alcohol and other drug
programs in responding to the community's needs.
(g) The department shall maintain a reporting system to ensure
that counties have budgeted and expended their funds pursuant to
their approved contracts.
(h) (1) Notwithstanding the rulemaking provisions of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code, the department may implement, interpret, or
make specific the amendments to this section made by the act that
added this subdivision by means of all-county letters, plan letters,
plan or provider bulletins, or similar instructions from the
department until regulations are adopted pursuant to that chapter of
the Government Code.
(2) The department shall adopt emergency regulations no later than
July 1, 2014. The department may subsequently readopt any emergency
regulation authorized by this section that is the same as or is
substantially equivalent to an emergency regulation previously
adopted pursuant to this section.
(3) The initial adoption of emergency regulations implementing the
amendments to this section and the one readoption of emergency
regulations authorized by this subdivision shall be deemed an
emergency and necessary for the immediate preservation of the public
peace, health, safety, or general welfare. Initial emergency
regulations and the one readoption of emergency regulations
authorized by this section shall be exempt from review by the Office
of Administrative Law. The initial emergency regulations and the one
readoption of emergency regulations authorized by this section shall
be submitted to the Office of Administrative Law for filing with the
Secretary of State and each shall remain in effect for no more than
180 days, by which time final regulations may be adopted.
SEC. 61. Section 11853 of the Health and Safety Code is amended to
read:
11853. Counties are encouraged to contract with providers for the
provision of alcohol and drug abuse services. Counties shall comply
with the regulations of the department for the management of
contracts with community organizations.
SEC. 62. Section 11853.5 of the Health and Safety Code is repealed.
SEC. 63. Section 11860 of the Health and Safety Code is repealed.
SEC. 64. Section 11875 of the Health and Safety Code is repealed.
SEC. 65. Section 11876 of the Health and Safety Code is amended to
read:
11876. The department shall inspect programs dispensing
controlled substances described in subdivision (c) of Section 11839.2
to ensure that the programs are operating in compliance with
applicable federal statutes and regulations, including the provisions
of Part 8 of Title 42 of the Code of Federal Regulations.
SEC. 66. Article 2 (commencing with Section 11970.1) of Chapter 2
of Part 3 of Division 10.5 of the Health and Safety Code is repealed.
SEC. 67. Article 1 (commencing with Section 11970) is added to
Chapter 2 of Part 3 of Division 10.5 of the Health and Safety Code,
to read:
Article 1. Comprehensive Drug Court Implementation Act of 1999
11970. (a) This article shall be known and may be cited as the
Comprehensive Drug Court Implementation Act of 1999.
(b) The State Department of Alcohol and Drug Programs shall
provide oversight of this article.
(c) The department and the Judicial Council shall design and
implement this article through the Drug Court Partnership Executive
Steering Committee established under the former Drug Court
Partnership Act of 1998 pursuant to former Section 11970, for the
purpose of funding cost-effective local drug court systems for
adults, juveniles, and parents of children who are detained by, or
are dependents of, the juvenile court.
11971. (a) (1) At its option, a county may provide a program
authorized by this article. A county that chooses to provide a
program shall ensure that any funds used for the program are used in
compliance with the requirements for receipt of federal block grant
funds for prevention and treatment of substance abuse described in
Subchapter XVII of Chapter 6A of Title 42 of the United States Code
and other federal provisions governing the receipt of federal funds.
(2) The funds contained in each county's Behavioral Health
Subaccount of the Support Services Account of the Local Revenue Fund
2011 may be used to fund the cost of drug court treatment programs
for the purpose of applying for federal grant funds from the federal
Substance Abuse and Mental Health Services Administration as
described in Section 11775.
(b) If a county chooses to provide a drug court program, a county
alcohol and drug program administrator and the presiding judge in the
county shall develop, as part of the contract for alcohol and other
drug abuse services, a plan for the operation of drug court program
that shall include the information necessary for the state to ensure
a county's compliance with the provisions for receipt of the federal
block grant funds for prevention and treatment of substance abuse
found at Subchapter XVII of Chapter 6A of Title 42 of the United
States Code and other applicable federal provisions for funds.
(c) The plan shall do all of the following:
(1) Describe existing programs that serve substance abusing
adults, juveniles, and parents of children who are detained by, or
are dependents of, the juvenile court.
(2) Provide a local action plan for implementing cost-effective
drug court systems, including any or all of the following drug court
systems:
(A) Drug courts operating pursuant to Sections 1000 to 1000.5,
inclusive, of the Penal Code.
(B) Drug courts for juvenile offenders.
(C) Drug courts for parents of children who are detained by, or
are dependents of, the juvenile court.
(D) Drug courts for parents of children in family law cases
involving custody and visitation issues.
(E) Other drug court systems that are approved by the Drug Court
Partnership Executive Steering Committee.
(3) Develop information-sharing systems to ensure that county
actions are fully coordinated, and to provide data for measuring the
success of the local action plan in achieving its goals.
(4) Identify outcome measures that will determine the cost
effectiveness of the local action plan.
11972. It is the intent of the Legislature that drug court
programs be designed and operated in accordance with the document
entitled "Defining Drug Courts: The Key Components," developed by the
National Association of Drug Court Professionals and Drug Court
Standards Committee (reprinted 2004). It is the intent of the
Legislature that the key components of the programs include:
(a) Integration by drug courts of alcohol and other drug treatment
services with justice system case processing.
(b) Promotion of public safety, while protecting participants' due
process rights, by prosecution and defense counsel using a
nonadversarial approach.
(c) Early identification of eligible participants and prompt
placement in the drug court program.
(d) Access provided by drug courts to a continuum of alcohol,
drug, and other related treatment and rehabilitation services.
(e) Frequent alcohol and other drug testing to monitor abstinence.
(f) A coordinated strategy to govern drug court responses to
participants' compliance.
(g) Ongoing judicial interaction with each drug court participant
is essential.
(h) Monitoring and evaluation to measure the achievement of
program goals and gauge effectiveness.
(i) Continuing interdisciplinary education to promote effective
drug court planning, implementation, and operations.
(j) Forging partnerships among drug courts, public agencies, and
community-based organizations to generate local support and enhance
drug court program effectiveness.
11973. (a) It is the intent of the Legislature that dependency
drug courts be funded unless an evaluation of cost avoidance as
provided in this section with respect to child welfare services and
foster care demonstrates that the program is not cost effective.
(b) The State Department of Social Services, in collaboration with
the State Department of Alcohol and Drug Programs and the Judicial
Council, shall conduct an evaluation of cost avoidance with respect
to child welfare services and foster care pursuant to this section.
These parties shall do all of the following:
(1) Consult with legislative staff and at least one representative
of an existing dependency drug court program who has experience
conducting an evaluation of cost avoidance, to clarify the elements
to be reviewed.
(2) Identify requirements, such as specific measures of cost
savings and data to be evaluated, and methodology for use of control
cases for comparison data.
(3) Whenever possible, use existing evaluation case samples to
gather the necessary additional data.
11974. (a) Notwithstanding the rulemaking provisions of Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code, the department may implement, interpret, or
make specific the amendments to this article made by the act that
added this section by means of all-county letters, plan letters, plan
or provider bulletins, or similar instructions from the department
until regulations are adopted pursuant to that chapter of the
Government Code.
(b) The department shall adopt emergency regulations no later than
July 1, 2014. The department may subsequently readopt any emergency
regulation authorized by this section that is the same as or is
substantially equivalent to an emergency regulation previously
adopted pursuant to this section.
(c) The initial adoption of emergency regulations implementing
this article and the one readoption of emergency regulations
authorized by this section shall be deemed an emergency and necessary
for the immediate preservation of the public peace, health, safety,
or general welfare. Initial emergency regulations and the one
readoption of emergency regulations authorized by this section shall
be exempt from review by the Office of Administrative Law. The
initial emergency regulations and the one readoption of emergency
regulations authorized by this section shall be submitted to the
Office of Administrative Law for filing with the Secretary of State
and each shall remain in effect for no more than 180 days, by which
time final regulations may be adopted.
SEC. 68. Article 3 (commencing with Section 11970.45) of Chapter 2
of Part 3 of Division 10.5 of the Health and Safety Code is
repealed.
SEC. 69. Article 2 (commencing with Section 11975) is added to
Chapter 2 of Part 3 of Division 10.5 of the Health and Safety Code,
to read:
Article 2. Drug Court Partnership Act of 2002
11975. (a) This article shall be known and may be cited as the
Drug Court Partnership Act of 2002.
(b) The Drug Court Partnership Program, as provided for in this
article, shall be administered by the State Department of Alcohol and
Drug Programs for the purpose of providing assistance to drug courts
that accept only defendants who have been convicted of felonies. The
department and the Judicial Council shall design and implement this
program through the Drug Court Systems Steering Committee as
originally established by the department and the Judicial Council to
implement the former Drug Court Partnership Act of 1998 (Article 3
(commencing with Section 11970).
(c) (1) The department shall require counties that participate in
the Drug Court Partnership Program to submit a revised multiagency
plan that is in conformance with the Drug Court Systems Steering
Committee's recommended guidelines. Revised multiagency plans that
are reviewed and approved by the department and recommended by the
Drug Court Systems Steering Committee shall be funded for the 2002-03
fiscal year under this article. The department, without a renewal of
the Drug Court Systems Steering Committee's original recommendation,
may disburse future year appropriations to the grantees.
(2) The multiagency plan shall identify the resources and
strategies for providing an effective drug court program exclusively
for convicted felons who meet the requirements of this article and
the guidelines adopted thereunder, and shall set forth the basis for
determining eligibility for participation that will maximize savings
to the state in avoided prison costs.
(3) The multiagency plan shall include, but not be limited to, all
of the following components:
(A) The method by which the drug court will ensure that the target
population of felons will be identified and referred to the drug
court.
(B) The elements of the treatment and supervision programs.
(C) The method by which the grantee will provide the specific
outcomes and data required by the department to determine state
prison savings or cost avoidance.
(D) Assurance that funding received pursuant to this article will
be used to supplement, rather than supplant, existing programs.
(d) Funds shall be used only for programs that are identified in
the approved multiagency plan. Acceptable uses may include, but shall
not be limited to, any of the following:
(1) Drug court coordinators.
(2) Training.
(3) Drug testing.
(4) Treatment.
(5) Transportation.
(6) Other costs related to substance abuse treatment.
(e) The department shall identify and design a data collection
instrument to determine state prison cost savings and avoidance from
this program.
SEC. 70. Section 11999.6 of the Health and Safety Code is amended
to read:
11999.6. Moneys deposited in the Substance Abuse Treatment Trust
Fund shall be distributed annually by the Secretary of California
Health and Human Services through the State Department of Alcohol and
Drug Programs to counties to cover the costs of placing persons in
and providing drug treatment programs under this act, and vocational
training, family counseling, and literacy training under this act.
Additional costs that may be reimbursed from the Substance Abuse
Treatment Trust Fund include probation department costs, court
monitoring costs, and any miscellaneous costs made necessary by the
provisions of this act other than drug testing services of any kind.
Incarceration costs cannot be reimbursed from the fund. Those moneys
shall be allocated to counties through a fair and equitable
distribution formula that includes, but is not limited to, per capita
arrests for controlled substance possession violations and substance
abuse treatment caseload, as determined by the department as
necessary to carry out the purposes of this act. The department may
reserve a portion of the fund to pay for direct contracts with drug
treatment service providers in counties or areas in which the
director of the department has determined that demand for drug
treatment services is not adequately met by existing programs.
However, nothing in this section shall be interpreted or construed to
allow any entity to use funds from the Substance Abuse Treatment
Trust Fund to supplant funds from any existing fund source or
mechanism currently used to provide substance abuse treatment. In
addition, funds from the Substance Abuse Treatment Trust Fund shall
not be used to fund in any way the drug treatment courts established
pursuant to Article 2 (commencing with Section 11970.1) or Article 3
(commencing with Section 11970.4) of Chapter 2 of Part 3 of Division
10.5, including drug treatment or probation supervision associated
with those drug treatment courts.
SEC. 71. Section 4369.4 of the Welfare and Institutions Code is
amended to read:
4369.4. All state agencies, including, but not limited to, the
California Horse Racing Board, the California Gambling Control
Commission, the Department of Justice, and any other agency that
regulates casino gambling or cardrooms within the state, and the
Department of Corrections and Rehabilitation, the State Department of
Alcohol and Drug Programs, the State Department of Health Care
Services, and the California State Lottery, shall coordinate with the
office to ensure that state programs take into account, as much as
practicable, problem and pathological gamblers. The office shall also
coordinate and work with other entities involved in gambling and the
treatment of problem and pathological gamblers.
SEC. 71.5. Section 10605.1 is added to the Welfare and
Institutions Code, to read:
10605.1. (a) 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 pursuant to Section 1320a-2a of Title 42
of the United States Code, the department, in consultation with the
California State Association of Counties, shall develop an
apportionment of the total counties' share of the penalty pursuant to
paragraph (3) of subdivision (e) of Section 30026.5 of the
Government Code to the individual counties whose performance
contributed to the failure to meet the federal outcome target upon
which the federal disallowance or other financial penalty is based.
(b) The apportionment of the total counties' share of the penalty
to the appropriate individual counties shall include, but not be
limited to, the following:
(1) For individual counties subject to a share of the federal
disallowance or other financial penalty pursuant to this section that
did not expend in the fiscal year upon which the federal
disallowance or financial penalty is based an amount equivalent to 90
percent of that which the county would have had to spend in the
2011-12 fiscal year in the absence of 2011 Realignment Legislation to
access the augmentation funding pursuant to Section 10609.9, as that
section read prior to the enactment of 2011 Realignment Legislation,
on services that were previously funded from the General Fund from
with Child Welfare Services Allocation prior to the enactment of 2011
Realignment Legislation, an increased share of the federal
disallowance or other financial penalty as calculated in paragraph
(2). The determination of whether a county expended the amount
necessary to be eligible for the allocation pursuant to this
subdivision shall be made based on claims for that fiscal year
received by the department as of August 1 of the subsequent fiscal
year to the fiscal year in which the federal disallowance or
financial penalty is based.
(2) For every percentage point below the 90 percent expenditure
level pursuant to paragraph (1), the individual county's share of the
federal disallowance or other financial penalty shall be increased
by 2 percentage points. Percentages shall be rounded up or down to
the nearest full percentage for purposes of this paragraph.
(3) Small counties, defined as those counties with a population of
50,000 or fewer pursuant to demographic information released each
year by the Department of Finance, are exempt from the minimum
expenditure requirement and the increased share of penalties pursuant
to paragraphs (1) and (2).
(4) The increased share of federal disallowances or other
financial penalties pursuant to paragraph (2) shall not be imposed on
any county if the revenues received pursuant to Sections 6051.15 and
6201.15 and allocated to the county's Protective Services Subaccount
within the Support Services Account in the fiscal year upon which
the federal disallowance or other financial penalty is based do not
equal the maximum level of funds allocated to the county's Protective
Services Subaccount within the Support Services Account in any
fiscal year prior to the fiscal year upon which the federal
disallowance or other financial penalty is based plus additional
amounts if necessary to fully fund foster care assistance and
Adoption Assistance Program payments in the fiscal year upon which
the federal disallowance or other financial penalty is based.
(5) The director is authorized to waive the additional county
share of federal disallowances or other financial penalties.
SEC. 72. Section 14021 of the Welfare and Institutions Code is
amended to read:
14021. Notwithstanding any other provision of this chapter,
health care shall include the following mental health and substance
use disorder services:
(a) Mental health services provided by a county or a city.
(b) Mental health services provided in a community mental health
service or in a community mental health center organized under the
federal Community Mental Health Centers Act of 1963. No amount shall
be paid for that portion of the total costs of care and services in a
federally funded community mental health center which may be
compensated by the United States government under the federal
Community Mental Health Centers Act of 1963. No amount shall be paid
to a community mental health service or a federally funded community
mental health center unless the community mental health service or
the federally funded community mental health center participates in a
county or city mental health performance contract pursuant to
Section 5650.
(c) Drug Medi-Cal outpatient substance use disorder services under
the jurisdiction of the department provided by a county provider
certified under this chapter or a private provider certified under
this chapter which has an approved contract with the county or with
the department to provide covered substance use disorder services.
(d) Inpatient hospital services in an institution for mental
diseases to persons of all ages, provided that the institution for
mental diseases is certified as a psychiatric hospital under Title
XVIII of the federal Social Security Act and regulations issued
thereunder.
Notwithstanding Section 14157, no money in the State Health Care
Deposit Fund shall be expended for the purposes of this section
unless the Legislature specifically appropriates money for the
purposes of this section.
The amendment of this subdivision enacted at the 1972 Regular
Session of the Legislature does not constitute a change in, but is
declaratory of, the preexisting law.
(e) (1) Other diagnostic, screening, preventive, or remedial
rehabilitative services for the maximum restoration of an individual
to the best possible functional level.
(2) Paragraph (1) includes any medical or remedial services
provided in a facility, home, or other setting, that are recommended
by a physician or other licensed practitioner of the healing arts
within the scope of his or her practice under state law.
SEC. 73. Section 14021.30 of the Welfare and Institutions Code is
amended to read:
14021.30. (a) It is the intent of the Legislature to transfer to
the State Department of Health Care Services, no later than July 1,
2012, the administration of the Drug Medi-Cal program from the State
Department of Alcohol and Drug Programs. It is further the intent of
the Legislature that this transfer should happen efficiently and
effectively, with no unintended interruptions in service delivery.
This transfer is intended to do all of the following:
(1) Improve access to alcohol and drug treatment services,
including a focus on recovery and rehabilitation services.
(2) More effectively integrate the financing of services,
including the receipt of federal funds.
(3) Improve state accountability and outcomes.
(4) Provide focused, high-level leadership for behavioral health
services.
(b) Effective July 1, 2012, the administrative functions for the
Drug Medi-Cal program that were previously performed by the State
Department of Alcohol and Drug Programs are transferred to the
department.
(c) Notwithstanding subdivision (b), the department and the State
Department of Alcohol and Drug Programs may conduct transition
activities prior to July 1, 2012, that are necessary to ensure the
efficient and effective transfer of Drug Medi-Cal program functions
by that date in accordance with the transition plan described in
Section 14021.31.
(d) After July 1, 2012, and through the quarter ending June 30,
2014, the department shall provide quarterly updates to the
Legislature, key stakeholders, and the public on the steps foreseen,
planned, and completed for the Drug Medi-Cal transfer, noting areas
of concern, delay, or disruption, as the program fully transitions to
the State Department of Health Care Services. These updates shall
include information on continuity of care for beneficiaries and any
access issues to care that arise as a result of or within the Drug
Medi-Cal transfer. The State Department of Health Care Services shall
convene meetings with interested stakeholders, including legislative
representatives, either in preparation for or at the release of
these quarterly updates. The first of these quarterly updates shall
be released no later than October 1, 2012.
SEC. 74. Section 14021.33 is added to the Welfare and Institutions
Code, to read:
14021.33. A regulation or order concerning the Drug Medi-Cal
Treatment Program adopted by the State Department of Alcohol and Drug
Programs pursuant to former Chapter 3.4 (commencing with Section
11758.40) of Part 1 of Division 10.5 of the Health and Safety Code,
as in effect preceding the effective date of the act that added this
section, shall remain in effect and shall be fully enforceable,
unless and until the readoption, amendment, or repeal of the
regulation or order by the department, or until it expires by its own
terms.
SEC. 75. Section 14021.35 of the Welfare and Institutions Code is
amended to read:
14021.35. (a) The department shall prepare and submit amendments
to the Medicaid state plan and apply for any necessary waivers in
order to obtain federal financial participation to implement Drug
Medi-Cal Treatment Program provisions contained in Section 14124.24.
(b) Upon federal approval for federal financial assistance, the
department, in consultation with the State Department of Alcohol and
Drug Programs, shall define the Drug Medi-Cal services, as needed,
shall establish the standards under which those services qualify as
Drug Medi-Cal reimbursable services, and shall develop appropriate
rates of reimbursement for those services, subject to utilization
controls.
SEC. 76. Section 14021.51 is added to the Welfare and Institutions
Code, to read:
14021.51. (a) For purposes of this chapter, "LAAM" means
levoalphacetylmethadol.
(b) (1) The department shall establish a narcotic replacement
therapy dosing fee for methadone and LAAM.
(2) In addition to the narcotic replacement therapy dosing fee
provided for pursuant to paragraph (1), narcotic treatment programs
shall be reimbursed for the ingredient costs of methadone or LAAM
dispensed to Medi-Cal beneficiaries. These costs may be determined on
an average daily dose of methadone or LAAM, as set forth by the
department.
(c) Reimbursement for narcotic replacement therapy dosing and
ancillary services provided by narcotic treatment programs shall be
based on a per capita uniform statewide daily reimbursement rate for
each individual patient, as established by the department. The
uniform statewide daily reimbursement rate for narcotic replacement
therapy dosing and ancillary services shall be based upon, where
available and appropriate, all of the following:
(1) The outpatient rates for the same or similar services under
the fee-for-service Medi-Cal program.
(2) Cost report data.
(3) Other data deemed reliable and relevant by the department.
(4) The rate studies completed pursuant to Section 54 of Chapter
197 of the Statutes of 1996.
(d) The uniform statewide daily reimbursement rate for ancillary
services shall not exceed, for individual services or in the
aggregate, the outpatient rates for the same or similar services
under the fee-for-service Medi-Cal program.
(e) The uniform statewide daily reimbursement rate shall be
established after consultation with narcotic treatment program
providers and county alcohol and drug program administrators.
(f) Reimbursement for narcotic treatment program services shall be
limited to those services specified in state law and state and
federal regulations governing the licensing and administration of
narcotic treatment programs. These services shall include, but are
not limited to, all of the following:
(1) Admission, physical evaluation, and diagnosis.
(2) Drug screening.
(3) Pregnancy tests.
(4) Narcotic replacement therapy dosing.
(5) Intake assessment, treatment planning, and counseling
services. Frequency of counseling or medical psychotherapy, outcomes,
and rates shall be addressed through regulations adopted by the
department. For purposes of this paragraph, these services include,
but are not limited to, substance abuse services to pregnant and
postpartum Medi-Cal beneficiaries.
(g) Reimbursement under this section shall be limited to claims
for narcotic treatment program services at the uniform statewide
daily reimbursement rate for these services. These rates shall be
exempt from the requirements of Section
14021.6.
(h) (1) Reimbursement to narcotic treatment program providers
shall be limited to the lower of either the uniform statewide daily
reimbursement rate, pursuant to subdivision (c), or the provider's
usual and customary charge to the general public for the same or
similar service.
(2) (A) Reimbursement paid by a county to a narcotic treatment
program provider for services provided to any person subject to
Section 1210.1 or 3063.1 of the Penal Code, and for which the
individual client is not liable to pay, does not constitute a usual
and customary charge to the general public for the purposes of this
section.
(B) Subparagraph (A) does not constitute a change in, but is
declaratory of, existing law.
(i) No program shall be reimbursed for services not rendered to or
received by a patient of a narcotic treatment program.
(j) Reimbursement for narcotic treatment program services provided
to substance abusers shall be administered by the department and
counties electing to participate in the program. Utilization and
payment for these services shall be subject to federal Medicaid and
state utilization and audit requirements.
SEC. 77. Section 14021.52 is added to the Welfare and Institutions
Code, to read:
14021.52. (a) (1) The Legislature finds and declares all of the
following:
(A) Medical treatment for indigent patients who are not eligible
for Medi-Cal is essential to protecting the public health.
(B) The Legislature supports 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.
(C) Providers should not be required by the state to subsidize the
medical treatment provided to indigent patients who are not eligible
for Medi-Cal.
(D) The Legislature supports the therapeutic value of indigent
patients who are not eligible for Medi-Cal contributing some level of
fees for drug treatment services in order to support the goals of
those drug treatment services.
(2) It is the intent of the Legislature in enacting this section
to encourage narcotic treatment program providers to serve indigent
patients who are not eligible for Medi-Cal. It is also the intent of
the Legislature that the department allow narcotic treatment program
providers to charge therapeutic fees for providing drug treatment to
indigent patients who are not eligible for Medi-Cal if the providers
establish a fee scale that complies with the documentation
requirements established pursuant to this section and federal law.
(b) (1) The Legislature recognizes that narcotic treatment program
providers are reimbursed for controlled substances provided under
the Drug Medi-Cal Treatment Program, also known as Drug Medi-Cal, and
pursuant to federal law at a rate that is the lower of the per
capita uniform statewide daily reimbursement or Drug Medi-Cal rate,
or the provider's usual and customary charge to the general public
for the same or similar services.
(2) It furthers the intent of the Legislature to ensure that
narcotic treatment programs in the state are able to serve indigent
clients and that there is an exception to the reimbursement
requirements described in paragraph (1), as the federal law has been
interpreted by representatives with the federal Centers for Medicare
and Medicaid Services. Pursuant to this exception, if a narcotic
treatment program provider that is serving low-income non-Drug
Medi-Cal clients complies with a federal requirement for the
application of a sliding indigency scale, the reduced charges under
the sliding indigency scale shall not lower the provider's usual and
customary charge determination for purposes of Medi-Cal
reimbursement.
(c) A licensed narcotic treatment program provider that serves
low-income non-Drug Medi-Cal clients shall be deemed in compliance
with federal and state law, for purposes of the application of the
exception described in paragraph (2) of subdivision (b), and avoid
audit disallowances, if the provider implements a sliding indigency
scale that meets all of the following requirements:
(1) The maximum fee contained in the scale shall be the provider's
full nondiscounted, published charge and shall be at least the rate
that Drug Medi-Cal would pay for the same or similar services
provided to Drug Medi-Cal clients.
(2) The sliding indigency scale shall provide for an array of
different charges, based upon a client's ability to pay, as measured
by identifiable variables. These variables may include, but need not
be limited to, financial information and the number of dependents of
the client.
(3) Income ranges shall be in increments that result in a
reasonable distribution of clients paying differing amounts for
services based on differing abilities to pay.
(4) A provider shall obtain written documentation that supports an
indigency allowance under the sliding indigency scale established
pursuant to this section, including a financial determination. In
cases where this written documentation cannot be obtained, the
provider shall document at least three attempts to obtain this
written documentation from a client.
(5) The provider shall maintain all written documentation that
supports an indigency allowance under this section, including, if
used, the financial evaluation form set forth in Section 14021.53.
(6) Written policies shall be established and maintained that set
forth the basis for determining whether an indigency allowance may be
granted under this section and establish what documentation shall be
requested from a client.
(d) In developing the sliding indigency scale, a narcotic
treatment program provider shall consider, but need not include, any
or all of the following components:
(1) Vertically, the rows would reflect increments of family or
household income. There would be a sufficient number of increments to
allow for differing charges, such as a six hundred dollar ($600)
increase per interval.
(2) Horizontally, the columns would provide for some other
variable, such as family size, in which case, the columns would
reflect the number of people dependent on the income, including the
client.
(3) Each row, except the first and last rows, would contain at
least two different fee amounts and each of the columns, four or more
in number, would contain at least six different fee amounts.
(4) The cells would contain an array of fees so that no fee would
be represented in more than 25 percent of the cells.
(e) A narcotic treatment program provider that uses the financial
evaluation form instructions and financial form set forth in Section
14021.53 in obtaining written documentation that supports an
indigency allowance as required under paragraph (4) of subdivision
(c) shall be deemed in compliance with that paragraph.
SEC. 78. Section 14021.53 is added to the Welfare and Institutions
Code, to read:
14021.53. A narcotic treatment program provider may use the
following instructions and financial evaluation form to comply with
the requirements of paragraph (4) of subdivision (c) of Section
14021.52:
FINANCIAL EVALUATION FORM INSTRUCTIONS
MONTHLY INCOME DATA--This data should specify the source and the
amount and be supported by sufficient documentation. Income data may
include, but are not limited to, income received as a paid employee,
unemployment benefits, disability benefits, pension payments, family
income, savings income, or other sources.
MONTHLY EXPENSES DATA--This data is not required unless there is
no evidence or documentation of income data. Expense data may
include, but are not limited to, any known expenses related to the
following:
(1) Court-ordered payments, such as child support, fines, debts,
restitution, or other payments.
(2) Housing-related expenses, such as rent, mortgage, insurance,
utilities, or other obligations.
(3) Transportation costs, such as any related expenses, including
automobile payments or automobile insurance payments.
(4) Insurance coverage should also be noted if it produces either
an expense or benefit to the client.
CLIENT MONTHLY TREATMENT FEE--The following applies to this data:
(1) The amount box indicates the client's fee according to his or
her location on the sliding scale.
(2) The adjusted client monthly fee box is to be filled only if
the fee to be charged differs from the fee indicated by the client's
location on the sliding scale.
(3) If the fee is adjusted from what the sliding scale would
indicate, a reason for the adjustment must be provided. (Valid
reasons might include extraordinary medical expenses for a client
suffering from HIV/AIDS, etc.)
PLEASE NOTE--The documentation for this form requires that the
provider make at least three documented attempts to collect
documentation from a client. Any questions on this form may be
directed to the department at (____).
SEC. 79. Section 14021.9 of the Welfare and Institutions Code is
amended to read:
14021.9. (a) Notwithstanding any other law, for the 2009-10
fiscal year, a 10-percent reduction shall be applied to rates for
Drug Medi-Cal services developed by the State Department of Alcohol
and Drug Programs pursuant to Section 11758.42 of the Health and
Safety Code and Sections 14021.35, 14021.5, and 14021.6.
(b) For the 2010-11 and 2011-12 fiscal years, rates for Drug
Medi-Cal services shall be the lower of the following:
(1) The rates developed by the State Department of Alcohol and
Drug Programs pursuant to Section 11758.42 of the Health and Safety
Code and Sections 14021.35, 14021.5, and 14021.6.
(2) The rates applicable in the 2009-10 fiscal year pursuant to
subdivision (a), adjusted for the cumulative growth in the Implicit
Price Deflator for the Costs of Goods and Services to Governmental
Agencies, as reported by the Department of Finance.
(c) For the 2012-13 fiscal year and each fiscal year thereafter,
rates for Drug Medi-Cal reimbursable services shall be the lower of
the following:
(1) The rates developed pursuant to Sections 14021.35, 14021.51,
and 14021.6.
(2) The rates applicable in the 2009-10 fiscal year pursuant to
subdivision (a), adjusted for the cumulative growth in the Implicit
Price Deflator for the Costs of Goods and Services to Governmental
Agencies, as reported by the Department of Finance.
(d) The rate reductions applicable for the 2009-10 fiscal year
pursuant to subdivision (a) shall be applied retroactively to July 1,
2009.
SEC. 80. Article 3.2 (commencing with Section 14124.20) is added
to Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions
Code, to read:
Article 3.2. Drug Medi-Cal Treatment Program
14124.20. (a) The department may enter into a Drug Medi-Cal
Treatment Program contract with each county for the provision of
alcohol and drug use services within the county service area.
(b) A county that has multiple contracts with the department for
the provision of multiple alcohol and drug use services may enter
into a single contract with the department.
14124.21. (a) If a county decides to not enter a Drug Medi-Cal
Treatment Program contract with the department, the county shall
notify the department of this decision in writing by the May 20
preceding the fiscal year in which, or at least 60 days before, the
contract would have become effective.
(b) (1) To the extent that a county decides not to enter into or
terminates its Drug Medi-Cal Treatment Program contract with the
department, the department shall contract for Drug Medi-Cal Treatment
services in the county as necessary to ensure beneficiary access to
these services. The contract shall be made in accordance with federal
Medicaid and state Medi-Cal laws and in accordance with the federal
court order and any future action in the case of Sobky v. Smoley
(E.D.Cal 1994) 855 F.Supp. 1123.
(2) The department may enter into contracts for the provision of
Drug Medi-Cal Treatment Program services with certified Drug Medi-Cal
providers directly or through qualifying individual counties,
counties acting jointly, county consortia, and with qualified
individuals, organizations, or nongovernmental entities.
(c) The department and the Department of Finance shall determine
how much funding is necessary to provide the necessary services in a
county and notify the Controller.
14124.22. (a) In addition to narcotic treatment program services,
a narcotic treatment program provider who is also enrolled as a
Medi-Cal provider may provide medically necessary medical treatment
of concurrent health conditions within the scope of the provider's
practice, to Medi-Cal beneficiaries who are not enrolled in managed
care plans. Medi-Cal beneficiaries enrolled in managed care plans
shall be referred to those plans for receipt of medically necessary
medical treatment of concurrent health conditions.
(b) Diagnosis and treatment of concurrent health conditions of
Medi-Cal beneficiaries not enrolled in managed care plans by a
narcotic treatment program provider may be provided within the
Medi-Cal coverage limits. When the services are not part of the
substance use disorder treatment reimbursed pursuant to Section
14021.51, services shall be reimbursed in accordance with the
Medi-Cal program. Services reimbursable under this section shall
include, but are not limited to, all of the following:
(1) Medical treatment visits.
(2) Diagnostic blood, urine, and X-rays.
(3) Psychological and psychiatric tests and services.
(4) Quantitative blood and urine toxicology assays.
(5) Medical supplies.
(c) A narcotic treatment provider, who is enrolled as a Medi-Cal
fee-for-service provider, shall not seek reimbursement from a
beneficiary for substance abuse treatment services, if services for
treatment of concurrent health conditions are billed to the Medi-Cal
fee-for-service program.
14124.23. The department may enter into contracts for the
procurement of services to assist the department in administering the
Drug Medi-Cal Treatment Program.
14124.24. (a) For purposes of this section, "Drug Medi-Cal
reimbursable services" means the substance use disorder services
described in the California State Medicaid Plan and includes, but is
not limited to, all of the following services, administered by the
department, and to the extent consistent with state and federal law:
(1) Narcotic treatment program services, as set forth in Section
14021.51.
(2) Day care rehabilitative services.
(3) Perinatal residential services for pregnant women and women in
the postpartum period.
(4) Naltrexone services.
(5) Outpatient drug-free services.
(6) Other services upon approval of a federal Medicaid state plan
amendment or waiver authorizing federal financial participation.
(b) (1) While seeking federal approval for any federal Medicaid
state plan amendment or waiver associated with Drug Medi-Cal
services, the department shall consult with the counties and
stakeholders in the development of the state plan amendment or
waiver.
(2) Upon federal approval of a federal Medicaid state plan
amendment authorizing federal financial participation in the
following services, and subject to appropriation of funds, "drug
Medi-Cal services" shall also include the following services,
administered by the department, and to the extent consistent with
state and federal law:
(A) Notwithstanding subdivision (a) of Section 14132.90, day care
habilitative services, which, for purposes of this paragraph, are
outpatient counseling and rehabilitation services provided to persons
with alcohol or other drug abuse diagnoses.
(B) Case management services, including supportive services to
assist persons with alcohol or other drug abuse diagnoses in gaining
access to medical, social, educational, and other needed services.
(C) Aftercare services.
(c) (1) The nonfederal share for Drug Medi-Cal services shall be
funded through a county's Behavioral Health Subaccount of the Support
Services Account of the Local Revenue Fund 2011, and any other
available county funds eligible under federal law for federal
Medicaid reimbursement. The funds contained in each county's
Behavioral Health Subaccount of the Support Services Account of the
Local Revenue Fund 2011 shall be considered state funds distributed
by the principal state agency for the purposes of receipt of the
federal block grant funds for prevention and treatment of substance
abuse found at Subchapter XVII of Chapter 6A of Title 42 of the
United States Code. Pursuant to applicable federal Medicaid law and
regulations including Section 433.51 of Title 42 of the Code of
Federal Regulations, counties may claim allowable Medicaid federal
financial participation for Drug Medi-Cal services based on the
counties certifying their actual total funds expenditures for
eligible Drug Medi-Cal services to the department.
(2) (A) If the director determines that a county's provision of
Drug Medi-Cal treatment services are disallowed by the federal
government or by state or federal audit or review, the impacted
county shall be responsible for repayment of all disallowed federal
funds. In addition to any other recovery methods available,
including, but not limited to, offset of Medicaid federal financial
participation funds owed to the impacted county, the director may
offset these amounts in accordance with Section 12419.5 of the
Government Code.
(B) A county subject to an action by the director pursuant to
subparagraph (A) may challenge that action by requesting a hearing in
writing no later than 30 days from receipt of notice of the
department's action. The proceeding shall be conducted in accordance
with Chapter 5 (commencing with Section 11500) of Part 1 of Division
3 of Title 2 of the Government Code, and the director has all the
powers granted therein. Upon a county's timely request for hearing,
the county's obligation to make payment as determined by the director
shall be stayed pending the county's exhaustion of administrative
remedies provided herein but no longer than will ensure the
department's compliance with Section 1903(d)(2)(C) of the federal
Social Security Act (42 U.S.C. Sec. 1396b).
(d) Drug Medi-Cal services are only reimbursable to Drug Medi-Cal
providers with an approved Drug Medi-Cal contract.
(e) Counties shall negotiate contracts only with providers
certified to provide Drug Medi-Cal services.
(f) The department shall develop methods to ensure timely payment
of Drug Medi-Cal claims.
(g) (1) A county or a contracted provider, except for a provider
to whom subdivision (h) applies, shall submit accurate and complete
cost reports for the previous fiscal year by November 1, following
the end of the fiscal year. The department may settle Drug Medi-Cal
reimbursable services, based on the cost report as the final
amendment to the approved county Drug Medi-Cal contract.
(2) Amounts paid for services provided to Drug Medi-Cal
beneficiaries shall be audited by the department in the manner and
form described in Section 14170.
(3) Administrative appeals to review grievances or complaints
arising from the findings of an audit or examination made pursuant to
this section shall be subject to Section 14171.
(h) Certified narcotic treatment program providers that are
exclusively billing the state or the county for services rendered to
persons subject to Section 1210.1 or 3063.1 of the Penal Code or
Section 14021.52 of this code shall submit accurate and complete
performance reports for the previous state fiscal year by November 1
following the end of that fiscal year. A provider to which this
subdivision applies shall estimate its budgets using the uniform
state daily reimbursement rate. The format and content of the
performance reports shall be mutually agreed to by the department,
the County Alcohol and Drug Program Administrators' Association of
California, and representatives of the treatment providers.
(i) Contracts entered into pursuant to this section shall be
exempt from the requirements of Chapter 1 (commencing with Section
10100) and Chapter 2 (commencing with Section 10290) of Part 2 of
Division 2 of the Public Contract Code.
(j) Annually, the department shall publish procedures for
contracting for Drug Medi-Cal services with certified providers and
for claiming payments, including procedures and specifications for
electronic data submission for services rendered.
14124.25. Service providers may assist Medi-Cal beneficiaries,
upon request, to file a fair hearing request in accordance with
Chapter 7 (commencing with Section 10950) of Part 2, or may inform
Medi-Cal beneficiaries enrolled in Medi-Cal managed care plans about
the Department of Managed Health Care's toll-free telephone number
for health care service plan members or the department's ombudsman
for Medi-Cal beneficiaries enrolled in a Medi-Cal managed care plan.
14124.26. (a) Except as provided in subdivisions (b) and (c),
regulations adopted by the State Department of Alcohol and Drug
Programs pursuant to former Sections 11758.40 to 11758.47, inclusive,
of the Health and Safety Code shall remain in effect unless amended
or repealed by regulation adopted pursuant to this article.
(b) Notwithstanding the rulemaking provisions of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code, for purposes of the Drug Medi-Cal Treatment
Program, the department may implement, interpret, or make specific
this article to the extent that this article differs from former
Sections 11758.40 to 11758.47, inclusive, of the Health and Safety
Code by means of all-county letters, plan letters, plan or provider
bulletins, or similar instructions from the department until
regulations are adopted pursuant to that chapter of the Government
Code.
(c) (1) The department shall adopt emergency regulations no later
than July 1, 2014. The department may subsequently readopt any
emergency regulation authorized by this section that is the same as
or is substantially equivalent to an emergency regulation previously
adopted pursuant to this section.
(2) The initial adoption of emergency regulations implementing
this article and the one readoption of emergency regulations
authorized by this subdivision shall be deemed an emergency and
necessary for the immediate preservation of the public peace, health,
safety, or general welfare. Initial emergency regulations and the
one readoption of emergency regulations authorized by this section
shall be exempt from review by the Office of Administrative Law. The
initial emergency regulations and the one readoption of emergency
regulations authorized by this section shall be submitted to the
Office of Administrative Law for filing with the Secretary of State
and each shall remain in effect for no more than 180 days, by which
time final regulations may be adopted.
SEC. 81. (a) It is the intent of the Legislature that the
administrative and programmatic functions of the State Department of
Alcohol and Drug Programs be transferred to other departments
effective July 1, 2013. It is further the intent of the Legislature
that this transfer occur in a manner that best achieves the following
goals:
(1) Improves access to alcohol and drug treatment services for
consumers, including a focus on recovery and rehabilitative services.
(2) Effectively integrates the implementation and financing of
services, including the coordination of licensing and certification
functions for providers, implementation of realignment pursuant to
2011 realignment, and in the receipt and management of federal funds.
(3) Ensures appropriate state and county accountability through
oversight and outcome measurement strategies, including, but not
limited to, monitoring of county programs and services.
(4) Provides focused, high-level leadership within state
government for alcohol and drug treatment services.
(b) Effective July 1, 2013, the administrative and programmatic
functions that were previously performed by the State Department of
Alcohol and Drug Programs are transferred to departments within the
Health and Human Services Agency. In consultation with system
stakeholders and affected departments, the California Health and
Human Services Agency shall prepare a detailed plan for a
reorganization of administrative and programmatic functions of the
State Department of Alcohol and Drug Programs. This plan shall
include the following components:
(1) A detailed rationale for the transfer of administrative and
programmatic function or functions, including program and policy
changes necessitated by the proposed transfer.
(2) A cost and benefit analysis for each transfer and for the
proposal as a whole, if more than one transfer is involved, showing
fiscal and programmatic impacts of the changes.
(3) A detailed assessment of how the transfer will affect
continuity of service for providers, consumers, county counterparts,
and other major stakeholders.
(4) If function transfers are proposed to more than one receiving
department, a detailed explanation of the following:
(A) How preparation will occur to maximize a smooth transition
across departments.
(B) How ongoing program and policy functions will be coordinated
across departments after the transfer is implemented.
(5) A detailed description of the stakeholder process, including,
but not limited to:
(A) A description of stakeholder participants which shall include,
at a minimum, consumers, family members, providers, counties, and
representatives of the Legislature.
(B) A schedule of stakeholder meetings convened, and other
activities conducted to provide maximum stakeholder input prior to
production of a draft plan and to review the draft plan prior to
submission to the Legislature.
(C) A discussion of significant concerns raised by stakeholders
and how they were or were not addressed in the plan.
(D) A description of an ongoing stakeholder process that will
provide continued assessment of and recommendations for improvement
to the delivery of alcohol and drug treatment services in California.
(c) The plan developed under this section shall be submitted to
the Legislature as part of the 2013-14 Governor's Budget. The budget
shall identify the transfer of administrative and programmatic
functions that were previously performed by the State Department of
Alcohol and Drug Programs. The ultimate placement of these functions
is contingent upon the Budget Act of 2013 and implementing
legislation.
SEC. 82. The sum of one thousand dollars ($1,000) is hereby
appropriated from the General Fund to the State Department of Health
Care Services for administration.
SEC. 83. Sections 1
to 81, inclusive, of this act shall become operative on July 1, 2012.
SEC. 84. This act is a bill providing for appropriations related
to the Budget Bill within the meaning of subdivision (e) of Section
12 of Article IV of the California Constitution, has been identified
as related to the budget in the Budget Bill, and shall take effect
immediately.