Division 10.8. Substance Abuse Treatment Funding of California Health And Safety Code >> Division 10.8.
Establishment of the Substance Abuse Treatment Trust Fund
A special fund to be known as the "Substance Abuse Treatment Trust
Fund" is created within the State Treasury and is continuously
appropriated for carrying out the purposes of this division.
Upon passage of this act, $60,000,000 shall be continuously
appropriated from the General Fund to the Substance Abuse Treatment
Trust Fund for the 2000-01 fiscal year. There is hereby continuously
appropriated from the General Fund to the Substance Abuse Treatment
Trust Fund an additional $120,000,000 for the 2001-02 fiscal year,
and an additional sum of $120,000,000 for each such subsequent fiscal
year concluding with the 2005-06 fiscal year. These funds shall be
transferred to the Substance Abuse Treatment Trust Fund on July 1 of
each of these specified fiscal years. Funds transferred to the
Substance Abuse Treatment Trust Fund are not subject to annual
appropriation by the Legislature and may be used without a time
limit. Nothing in this section precludes additional appropriations by
the Legislature to the Substance Abuse Treatment Trust Fund.
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 Health Care
Services 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 1 (commencing with Section 11970) or Article 2
(commencing with Section 11975) of Chapter 2 of Part 3 of Division
10.5, including drug treatment or probation supervision associated
with those drug treatment courts.
(a) Notwithstanding any other provision of law, when the
department allocates funds appropriated to the Substance Abuse
Treatment Trust Fund, it shall withhold from any allocation to a
county the amount of funds previously allocated to that county from
the fund that are projected to remain unencumbered, up to the amount
that would otherwise be allocated to that county. The department
shall allow a county with unencumbered funds to retain a reserve of 5
percent of the amount allocated to that county for the most recent
fiscal year in which the county received an allocation from the fund
without a reduction pursuant to this subdivision.
(b) The department shall allocate 75 percent of the amount
withheld pursuant to subdivision (a) in accordance with Section
11999.6 and any regulations adopted pursuant to that section, but
taking into account any amount withheld pursuant to subdivision (a).
(c) The department shall reserve 25 percent of the amount withheld
pursuant to subdivision (a) until all counties have submitted final
actual expenditures for the most recent fiscal year. The department
shall then allocate the funds reserved to adjust for actual rather
than projected unencumbered funds, to the extent that the amount
reserved is adequate to do so. Any balance of funds not reallocated
pursuant to this subdivision shall be allocated in accordance with
(d) If the department determines from actual expenditures that
more funds should have been withheld from any county than were
withheld pursuant to subdivision (a), it shall adjust any allocations
pursuant to subdivision (e) accordingly, to the extent possible. If
one or more counties fails to report actual expenditures in a timely
manner, the department may, in its discretion, proceed with the
available information, and may exclude any nonreporting county from
any allocations pursuant to this section.
(e) If revenues, funds, or other receipts to the Substance Abuse
Treatment Trust Fund are sufficient to create additional allocations
to counties, through reconsideration of unencumbered funds, audit
recoveries, or otherwise, the Director of Finance may authorize
expenditures for the department in excess of the amount appropriated
no earlier than 30 days after notification in writing of the
necessity therefor is provided to the chairpersons of the fiscal
committees in each house and the Chairperson of the Joint Legislative
Budget Committee, or at an earlier time that the Chairperson of the
Joint Legislative Budget Committee, or his or her designee, may in
each instance determine.
(f) The department may implement this section by All-County Lead
Agency letters or other similar instructions, and need not comply
with the rulemaking requirements of Chapter 3.5 (commencing with
Section 11340) of Division 3 of Title 2 of the Government Code.
Local Government Authority to Control Location of Drug
Notwithstanding any other provision of law, no community drug
treatment program may receive any funds from the Substance Abuse
Treatment Trust Fund unless the program agrees to make its facilities
subject to valid local government zoning ordinances and development
Any funds remaining in the Substance Abuse Treatment Trust Fund at
the end of a fiscal year may be utilized to pay for drug treatment
programs to be carried out in the subsequent fiscal year.
(a) The department shall conduct three two-year followup
studies to evaluate the effectiveness and financial impact of the
programs that are funded pursuant to the requirements of this act,
and submit those studies to the Legislature no later than January 1,
2009, January 1, 2011, and January 1, 2013, respectively. The
evaluation studies shall include, but not be limited to, a study of
the implementation process, a review of lower incarcerations costs,
reductions in crime, reduced prison and jail construction, reduced
welfare costs, the adequacy of funds appropriated, and other impacts
or issues the department can identify, in addition to all of the
(1) Criminal justice measures on rearrests, jail and prison days
averted, and crime trends.
(2) A classification, in summary form, of rearrests as having
occurred as a result of:
(A) A parole violation.
(B) A parole revocation.
(C) A probation violation.
(D) A probation revocation.
(3) A classification, in summary form, of the disposition of
crimes committed in terms of whether the person was:
(A) Retained on probation.
(B) Sentenced to jail.
(C) Sentenced to prison.
(4) Treatment measures on completion rates and quality of life
indicators, such as alcohol and drug used, employment, health, mental
health, and family and social supports.
(5) A separate discussion of the information described in
paragraphs (1) to (3), inclusive, for offenders whose primary drug of
abuse was methamphetamine or who were arrested for possession or use
of methamphetamine and, commencing with the report due on or before
January 1, 2009, the report shall include a separate analysis of the
costs and benefits of treatment specific to these methamphetamine
(b) In addition to studies to evaluate the effectiveness and
financial impact of the programs that are funded pursuant to the
requirements of this act, the department shall produce an annual
report detailing the number and characteristics of participants
served as a result of this act, and the related costs.
The department shall allocate up to 0.5 percent of the
fund's total moneys each year to fund the costs of the studies
required in Section 11999.9 by a public or private university.
Counties shall submit a report annually to the department
detailing the numbers and characteristics of clients-participants
served as a result of funding provided by this act. The department
shall promulgate a form which shall be used by the counties for the
reporting of this information, as well as any other information that
may be required by the department. The department shall establish a
deadline by which the counties shall submit their reports.
The department shall conduct periodic audits of the
expenditures made by any county that is funded, in whole or in part,
with funds provided by this act. Counties shall repay to the
department any funds that are not spent in accordance with the
requirements of this act. The department may require a corrective
action by the county in the place of repayment, as determined by the
At the end of each fiscal year, a county may retain unspent funds
received from the Substance Abuse Treatment Trust Fund and may spend
those funds, if approved by the department, on drug programs that
further the purposes of this act.