BILL NUMBER: AB 1915AMENDED BILL TEXT AMENDED IN ASSEMBLY MARCH 18, 2016 INTRODUCED BY Assembly Member Santiago FEBRUARY 11, 2016 An act to add and repeal Section 11760.7 of the Health and Safety Code, relating to housing. public social services, and making an appropriation therefor. LEGISLATIVE COUNSEL'S DIGEST AB 1915, as amended, Santiago. Homelessness: affordable housing. Alcohol and drug programs: facility expansion. Under existing law, the State Department of Health Care Services is responsible for administering state alcohol and drug programs by, among other things, providing funds to counties for the planning and implementation of local programs to alleviate problems related to alcohol and other drug use and reviewing and executing contracts for drug and alcohol services submitted for state or federal funds allocated or administered by the department. This bill would, until December 31, 2018, authorize the department to establish a program for the purpose of making grants or loans to residential treatment centers that are expanding services or to substance use disorder treatment service facilities that are expanding to provide residential treatment services, as specified. The bill would establish the Residential Treatment Facility Expansion Fund, a continuously appropriated fund, as specified, and would transfer $120,000,000 from the General Fund to the Residential Treatment Facility Expansion Fund for the purpose of implementing the program. The bill would make related legislative findings and declarations. By creating a continuously appropriated fund and authorizing its expenditure, the bill would make an appropriation. Under existing law, there are programs providing assistance for, among other things, emergency housing, multifamily housing, farmworker housing, veteran housing, home ownership for very low and low-income households, and downpayment assistance for first-time homebuyers. This bill would state the intent of the Legislature to enact legislation that would reduce homelessness and increase the availability of affordable housing. Vote: majority 2/3 . Appropriation: no yes . Fiscal committee: no yes . State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. (a) The Legislature finds and declares the following: (1) There are not enough available residential treatment facilities throughout the state to meet the needs of persons suffering from substance use disorders. (2) The state has an interest in increasing the availability of residential treatment services to help ensure the state is making progress in meeting the goals and terms of the Drug Medi-Cal Organized Delivery System (DMC-ODS) demonstration waiver. (3) Staffing models and other requirements and the facility costs of providing residential treatment services present challenges for expanding capacity to deliver this level of care in the state. (4) Funds for capital investments in facility infrastructure and equipment, including the purchase, implementation, and maintenance of electronic health records systems, would enable facilities to increase the number of residential treatment beds within existing licensed and certified Drug Medi-Cal Treatment Program facilities or for new residential treatment facilities. (b) It is the intent of the Legislature to help ensure that an adequate substance abuse treatment provider network is available to eligible beneficiaries for residential treatment services provided under the Drug Medi-Cal Treatment Program as set forth in Section 14021.35 and Article 3.2 (commencing with Section 14124.20) of Chapter 7 of Part 3 of Division 9 of the Welfare and Institutions Code. SEC. 2. Section 11760.7 is added to the Health and Safety Code , to read: 11760.7. (a) The department shall establish a program for the purpose of making grants or loans to residential treatment centers that are expanding services or to substance use disorder treatment facilities that are expanding to provide residential treatment services. A loan or grant made pursuant to this section shall be made only to a county or a private nonprofit organization that operates a residential treatment center or a substance use disorder treatment facility. (b) The Residential Treatment Facility Expansion Fund is hereby established in the State Treasury for the purpose of making grants and loans pursuant to subdivision (a). Notwithstanding Section 13340 of the Government Code, all moneys in the fund are continuously appropriated, without regard to fiscal years, for the purpose of carrying out the purposes of this section. All loan payments received from previous loans and all future collections shall be deposited in the Residential Treatment Facility Expansion Fund. The Residential Treatment Facility Expansion Fund shall be invested in the Pooled Money Investment Account. Interest earned shall accrue to the Residential Treatment Facility Expansion Fund and may be made available for future residential treatment facility expansion loans or grants. (c) The department may adopt regulations as are necessary to implement this section. (d) This section shall remain in effect only until January 1, 2019, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2019, deletes or extends that date. SEC. 3. The sum of one hundred twenty million dollars ($120,000,000) is hereby transferred from the General Fund in the State Treasury to the Residential Treatment Facility Expansion Fund for the purpose of implementing Section 2 of this act. SECTION 1. It is the intent of the Legislature to enact legislation that would reduce homelessness and increase the availability of affordable housing.