HB2554 - 472R - House Bill Summary

House of Representatives

HB 2554

alcohol tax; substance abuse treatment

Sponsor: Representative Anderson

Dpa	Committee on Human Services
DPA	Committee on Appropriations B
X	Caucus and COW
	As Engrossed and As Passed the House

HB 2554 creates the Substance Abuse Treatment Fund (SATF) to fund drug and alcohol abuse services and prevention programs through Regional Behavioral Health Authorities (RBHAs).

History

Last year, the Arizona Department of Health Services (ADHS), Division of Behavioral Health Services contracted with five RBHAs to deliver substance abuse and mental health treatment services throughout Arizona. During 2005, ADHS admitted 59,661 adolescents and adults for behavioral health services who reported an alcohol or drug related treatment concern. The most frequently used substance reported was alcohol, with nearly 45% of treatment participants assessed as suffering alcoholism. The second largest category was stimulant drugs (methamphetamine, cocaine, and crack cocaine) with 26% reporting a primary stimulant drug problem. Titles XIX and XXI of the Social Security Act provide federal funding to assist states in the operation of medical assistance programs. Individuals and families eligible under Title XIX and XXI receive all medically necessary covered services for substance abuse through the RBHAs. Behavioral health services for Arizonans not eligible under Title XIX and XXI are based on available funding.

The alcohol portion of the luxury tax provides monies for several existing funds. The remaining portion of the revenue is deposited in the General Fund (GF). The Joint Legislative Budget Committee projects that the alcohol portion of the luxury tax will generate approximately $63.3 million in revenues in fiscal year 2007. Currently, 70% of those revenues are deposited in the GF.

HB 2554 creates the SATF to fund drug and alcohol abuse services and prevention programs through RBHAs with monies from the alcohol portion of the luxury tax.

Provisions

· Establishes the SATF to fund drug and alcohol abuse services and prevention programs through RBHAs and to be administered by the Director of the Department of Health Services (DHS).

· Provides funds for the SATF by depositing a percentage of the alcohol portion of the luxury tax into the SATF.

· Allows the Director of DHS to accept and spend other funds from the federal government or private sources to supplement the SATF’s purposes.

· Stipulates any federal government or private source funding will not revert to the GF at the end of the fiscal year.

· Specifies that all monies deposited in the SATF are in addition to appropriated funds and other funding sources, and are not to replace those funds.

· Exempts funds in the SATF from lapsing and indicates funds are to be continuously appropriated.

· Empowers the Director of DHS to instruct the state treasurer to invest or divest monies in the SATF, and deposit monies earned from investment in the SATF.

· Requires the Director of DHS to spend SATF monies through RBHAs as follows:

-58% for rural detoxification programs and related follow-up services

-25% for substance abuse treatment services for pregnant women and working parents and their families.

-17% for developing, implementing, and operating an outcome based service effectiveness reporting system to be administered by a third party

· Exempts SATF monies from the normal administrative withholdings imposed by DHS and the RBHAs.

· Stipulates that all funds generated by the luxury tax that are not allocated to the SATF or other funds established in statute revert to the GF.

· Requires a percentage of the alcohol portion of the luxury tax to be deposited in the SATF up to $12 million.

Amendment

Human Services:

· Renames the Substance Abuse Treatment Fund to the Addiction Reduction and Recovery Fund (ARRF).

· Allocates 15% of the alcohol portion of the luxury tax to the ARRF.

Appropriations B:

· Renames the Substance Abuse Treatment Fund to the ARRF.

· Eliminates the alcohol portion of the luxury tax as the source of the monies in the fund.

· Requires the monies in the fund to be subject to legislative appropriation instead of continuously appropriated.

· Eliminates funding for substance abuse treatment services for pregnant women and working parents and their families.

· Eliminates funding for implementing an outcome based service effectiveness reporting system.

· Adds funding for substance abuse and addiction prevention programs, and requires the RBHAs to make efforts to partner with community and faith-based organizations in implementing these prevention programs.

· Appropriates $3.5 million from the GF in fiscal year 2006-2007 to the ARRF.

· Appropriates $2.5 million from the ARRF to ADHS for rural detoxification programs and related follow-up services to be administered through the RBHAs.

· Appropriates $1 million from the ARRF to ADHS for substance abuse and addiction prevention programs to be administered through the RBHAs.

· Appropriates $6 million from the GF in fiscal year 2006-2007 to the Department of Public Safety, $5 million of which is to be used for increased methamphetamine interdiction, and $1 million of which is to be used for tip lines that receive information on methamphetamine activities.

· Appropriates $2.5 million from the GF in fiscal year 2006-2007 to the Department of Economic Security for substance abuse treatment services through the Arizona Families F.I.R.S.T. program.

· Includes a purpose clause describing the intent of the bill as an effort to stem the growth of methamphetamine and other substance abuse.

· ---------- DOCUMENT FOOTER ---------

· Forty-seventh Legislature