Bill Text: CA AB2821 | 2015-2016 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Housing for a Healthy California Program.

Spectrum: Partisan Bill (Democrat 3-0)

Status: (Vetoed) 2016-09-27 - Vetoed by Governor. [AB2821 Detail]

Download: California-2015-AB2821-Amended.html
BILL NUMBER: AB 2821	AMENDED
	BILL TEXT

	AMENDED IN SENATE  AUGUST 15, 2016
	AMENDED IN SENATE  JUNE 16, 2016
	AMENDED IN SENATE  JUNE 13, 2016
	AMENDED IN ASSEMBLY  MAY 31, 2016
	AMENDED IN ASSEMBLY  APRIL 26, 2016
	AMENDED IN ASSEMBLY  MARCH 29, 2016
	AMENDED IN ASSEMBLY  MARCH 18, 2016

INTRODUCED BY   Assembly Members Chiu and Santiago
   (Principal coauthor: Assembly Member Atkins)

                        FEBRUARY 19, 2016

   An act to add  Chapter 6.9 (commencing with Section 50678)
to Part 2 of   Part 14 (commencing with Section 53570)
to  Division 31 of the Health and Safety Code, relating to
housing.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2821, as amended, Chiu. Medi-Cal Housing Program.
   Existing law establishes various housing programs directed by the
Department of Housing and Community Development (HCD), including
special housing programs to provide housing assistance for persons
with developmental and physical disabilities and persons with mental
health disorders. Existing law provides for the Medi-Cal program,
which is administered by the State Department of Health Care Services
(DHCS), under which qualified low-income individuals receive health
care services. The Medi-Cal program is, in part, governed and funded
by federal Medicaid program provisions.
   This bill would require HCD, in coordination with DHCS, to, on or
before July 1, 2017, establish the Medi-Cal Housing Program and on or
before December 1, 2017, and every year thereafter, subject to
appropriation by the Legislature, award grants on a competitive basis
to eligible grant applicants participating in a Whole Person Care
pilot program, a program under the Medi-Cal program that provides
specified entities with the option to receive support to integrate
care for a particularly vulnerable group of Medi-Cal beneficiaries,
including individuals who are experiencing or are at risk of
homelessness, that includes eligibility based on homelessness, or
with Medi-Cal managed care plans administering the Health Home
Program. The bill would provide that an applicant is eligible for a
grant under the program if the applicant meets specified
requirements, including that the applicant is a lead agency
participating in a Whole Person Care pilot or has previously
participated in a Whole Person Care pilot designed to provide
services to people experiencing homelessness or is located in a
county with Medi-Cal managed care plan or plans participating in the
Health Home Program.
   The bill would require an applicant awarded a grant to use the
funds for specified purposes, including long-term rental assistance
and interim housing. The bill would provide that a county resident is
eligible to receive assistance pursuant to a grant awarded under the
Medi-Cal Housing Program if he or she meets specified requirements,
including that the person is homeless, is a Medi-Cal beneficiary, is
eligible for Supplemental Security Income, and is eligible to receive
services under the Whole Person Care pilot or the Health Home
Program. The bill would provide that the program shall be 
funded,   funded  upon appropriation by the
Legislature, and that thereafter grants under the program are
subject to annual appropriations by the Legislature, as specified.
  Legislature.  The bill would also authorize HCD
and DHCS, for purposes of implementing these provisions, to enter
into exclusive or nonexclusive contracts on a bid or negotiated
basis, exempt from specified small business procurement, personal
service, and public contracting provisions, and exempt from the
review or approval of any division of the Department of General
Services. The bill would also prohibit HCD and DHCS from implementing
provisions developed pursuant to these provisions until necessary
federal approvals have been obtained and to the extent that other
federal financial participation is not jeopardized.  The bill
would condition implementation of these provisions upon an
appropriation provided for this purpose. 
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) Homeless beneficiaries incur disproportionate Medi-Cal costs,
particularly people experiencing chronic homelessness and people who
cycle between homelessness, emergency departments, inpatient care,
and nursing home stays. Supportive housing, which is affordable
housing with intensive services, allows people experiencing
significant barriers to housing stability to improve their health and
decrease their Medicaid costs. National studies comparing formerly
homeless Medicaid beneficiaries living in supportive housing with
homeless beneficiaries receiving usual care demonstrate Medicaid cost
savings of almost $9,000 per year after the costs of services.
   (b) In the proposal to renew California's Section 1115 Medicaid
Waiver, "Medi-Cal 2020: Key Concepts for Renewal," the State
Department of Health Care Services (DHCS) stated, "Research suggests
that individuals experiencing homelessness, particularly those
individuals with multiple chronic conditions, often struggle to
receive appropriate health care services and are disproportionately
likely to be high utilizers of the health care safety net." DHCS
proposed using Medi-Cal to fund the tools communities need to help
homeless beneficiaries gain access to and maintain housing stability,
including the costs of interim housing, recuperative/respite care,
and long-term rental subsidies.
   (c) The final Medi-Cal 2020 Waiver allows participating entities,
including counties, to create Whole Person Care pilots to address the
health, behavioral health, and social services needs of high users
of multiple systems. Participating entities will be able to use Whole
Person Care pilots to offer housing-related services to homeless
residents, form collaborations between local agencies and health
plans to address service needs of homeless beneficiaries, pool waiver
and other sources of financing to pay for services promoting housing
stability, and collect data on residents' outcomes.
   (d) Though the federal Centers for Medicare and Medicaid Services
disallowed federal financial participation in the costs of housing
interventions, the final Section 1115 Medicaid Waiver special terms
and conditions, referred to as the "Medi-Cal 2020 Waiver," allow for
state contributions to Whole Person Care "county housing pools" to
fund long-term costs of housing to achieve the goals of the Waiver
proposal. The final Waiver special terms and conditions also permit
leveraging local resources to increase access to subsidized housing
units. They may also incorporate a financing component to reallocate
or reinvest a portion of the savings from the reduced utilization of
health care services into the housing pool.
   (e) In most communities in California, a lack of housing
affordable to people experiencing homelessness is one of the greatest
barriers to exiting homelessness. Housing resources would equip
Whole Person Care counties choosing to target homeless people with
the resources to achieve the goals of the Whole Person Care Waiver
provisions, during the course of the pilot and after the pilot ends.

  SEC. 2.    Chapter 6.9 (commencing with Section
50678) is added to Part 2 of Division 31 of the Health and Safety
Code, to read:
      CHAPTER 6.9.  MEDI-CAL HOUSING PROGRAM


   50678.  For purposes of this chapter, all of the following
definitions shall apply:
   (a) "DHCS" means the State Department of Health Care Services.
   (b)
    "HCD" means the Department of Housing and Community Development.
   (c)
    "Homeless" has the same meaning as in Section 578.3 of Title 24
of the Code of Federal Regulations. "Homeless" also includes a person
who would become homeless upon exiting a publicly-funded institution
or system of care, including a hospital, skilled nursing facility,
mental health facility, or incarceration. "Homeless" also includes
Whole Person Care pilot program homeless populations, as approved by
DHCS in the Whole Person Care pilot program application and Medi-Cal
beneficiaries served under California's Health Home Program under
Section 2703 of the federal Patient Protection and Affordable Care
Act (Public Law 111-148).
   (d)
    "Interim housing" means a safe place for a participant to live
temporarily while the participant is waiting to move into a permanent
apartment affordable to the participant with rental assistance, and
where the participant is not required to pay more than 30 percent of
his or her income toward the cost of the interim housing. "Interim
housing" may include recuperative or respite care and shall not be
funded for longer than a period of nine months.
   (e)
    "Long-term rental assistance" means a rental subsidy provided to
a housing provider, including a landlord renting in the private
market or a developer leasing affordable housing, to assist a tenant
to pay the difference between 30 percent of the tenant's income and
the costs of operating the assisted housing unit.
   (f)
    "Permanent housing" means a housing unit where the landlord does
not limit length of stay in the housing unit, the landlord does not
restrict the movements of the tenant, and the tenant has a lease and
is subject to the rights and responsibilities of tenancy, pursuant to
Chapter 2 (commencing with Section 1940) of Title 5 of Part 4 of
Division 3 of the Civil Code.
   (g)
    "Supportive housing" has the same meaning as in Section 50675.14.

   (h)
    "Whole Person Care pilot" has the same meaning as described in
the Medi-Cal 2020 Waiver Special Terms and Conditions (STCs),
Sections 110-126, as approved by the federal Centers for Medicare and
Medicaid Services, on December 30, 2015, or in any subsequent
amendment to the STCs.
   50678.1.  HCD in coordination with DHCS, shall do all of the
following:
   (a) On or before July 1, 2017, establish the Medi-Cal Housing
Program.
   (b) On or before July 1, 2017, draft guidelines for stakeholder
comment to fund competitive grants to pay for interim and long-term
rental assistance under the Medi-Cal Housing Program. The guidelines
shall detail competitive scoring criteria that includes, but is not
limited to, scoring that awards points based upon all of the
following:
   (1) Need, which includes consideration of the number of
individuals experiencing homelessness and the impact of housing costs
in the applicant's geographic area.
   (2) Ability of the applicant to administer a program offering
interim and long-term rental assistance to people experiencing
homelessness.
   (3) The applicant's documented partnerships with affordable and
supportive housing providers in the applicant's geographic area.
   (4) The applicant's partnerships with Medi-Cal managed care plans
in the applicant's geographic area and the percentage of Medi-Cal
beneficiaries assigned to those partnering Medi-Cal managed health
plans.
   (5) A comprehensive plan to connect interim housing, long-term
rental assistance, and project-based supportive housing resources
made available under the Medi-Cal Housing Program with services made
available through the Whole Person Care pilot and the Health Home
Program.
   (6) Coordination with (A) community-based housing and homeless
service providers, (B) behavioral health providers, (C) and safety
net providers, including community health centers.
   (c) On or before December 1, 2017, and every year thereafter,
subject to appropriation by the Legislature, award grants on a
competitive basis to eligible grant applicants participating in a
Whole Person Care pilot that includes eligibility based on
homelessness or a partnership with Medi-Cal managed care plans
administering the Health Home Program. If appropriations are made
available in future years, counties shall compete for each round of
five-year grants.
   (d) Midyear and annually, collect data from the Medi-Cal Housing
Program grantees or from the Medi-Cal managed care plan partnering
with applicants, as well as other Medi-Cal data available from DHCS,
as appropriate.
   (e) No later than January 1, 2018, contract with an independent
evaluator to analyze data collected pursuant to Section 50678.3 to
determine changes in health care costs associated with services
provided under the Medi-Cal Housing Program. HCD shall provide, on a
regular basis as needed, collected data to the evaluator.
   (f) (1) By March 31, 2019, for grants awarded in 2017, and in
subsequent years thereafter in which the Medi-Cal Housing Program is
allocated additional funds, report data collected to the Assembly
Committee on Budget, the Senate Committee on Budget and Fiscal
Review, the Assembly and Senate committees on health, the Assembly
Committee on Housing and Community Development, and the Senate
Committee on Transportation and Housing.
   (2) A report to be submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government Code.
   50678.2.  An applicant shall be eligible for a Medi-Cal Housing
Program grant if the applicant meets the requirements of this
section. Eligibility does not create an entitlement to grant funds
and is subject to availability of funds. The applicant shall meet all
of the following requirements:
   (a) Satisfies one or more the following:
   (1) Is a lead agency participating in a Whole Person Care pilot
designed to provide services to people experiencing homelessness.
   (2) Is a lead agency that previously participated in a Whole
Person Care pilot that has expired and the applicant has decided to
continue to provide services to homeless people under the structures
developed in the Whole Person Care pilot.
   (3) Is located in a county with a Medi-Cal managed care plan or
plans participating in the Health Home Program.
   (b) Has identified a source of funding for Housing Transition
Services and Tenancy Sustaining Services, as defined in the Centers
for Medicare and Medicaid Services' Informational Bulletin regarding
Housing-Related Activities and Services for People with Disabilities,
issued June 26, 2015. Funding for these services shall include one
or more of the following:
   (1) County general funds.
   (2) Whole Person Care pilot program funds.
   (3) The Health Home Program.
   (c) Agrees to contribute funding for interim and long-term rental
assistance through one or more of the following sources:
   (1) County general funds.
   (2) Flexible housing pools created through a Whole Person Care
pilot.
   (3) A county or partnering housing authority's set-aside of at
least 15 percent turn-over federal Housing Choice Vouchers to
residents experiencing homelessness and who are eligible to receive
Whole Person Care pilot or Health Home Program services.
   (d) Has designated a process for administering grant funds through
agencies administering housing programs.
   (e) Agrees to collect and report data, as described in Section
50678.3, to HCD and DHCS.
   50678.3.  (a) HCD shall coordinate with DHCS to identify a process
for collecting and providing Medi-Cal data regarding changes in
health care costs associated with services provided under the
Medi-Cal Housing Program to the extent that information is available,
up to 12 months prior to each participant's move into permanent
housing, as well as changes in costs after each participant's move
into permanent housing.
   (b) An applicant awarded grant funds shall, at annual and midyear
intervals, report all of the following data to HCD and DHCS:
   (1) Data specified by HCD necessary to measure the costs described
in subdivision (a).
   (2) The number of participants and the type of interventions
offered through grant funds.
   (3) The number of participants living in supportive housing or
other permanent housing.
   (c) HCD shall collaborate with DHCS to provide available
fee-for-service data to the evaluator.
   50678.4.  An applicant shall use grants awarded pursuant to this
chapter for one or more of the following, which may be administered
through a housing pool, as defined in the Whole Person Care pilot:
   (a) Long-term rental assistance for periods up to five years.
   (b) A capitalized operating reserve for up to 15 years to pay for
operating costs of an apartment or apartments within a development
receiving public funding to provide supportive housing to people
experiencing homelessness.
   (c) Interim housing.
   (d) A county's administrative costs for up to 3 percent of the
total grant awarded.
   50678.5.  A county resident is eligible to receive assistance
pursuant to a grant awarded under the Medi-Cal Housing Program if he
or she meets all of the following requirements:
   (a) Is homeless upon initial eligibility.
   (b) Is a Medi-Cal beneficiary.
   (c) Is eligible for Supplemental Security Income.
   (d) Is eligible to receive services under either the Whole Person
Care pilot or the Health Home Program, whichever is operative in the
participating county or region.
   (e) Is likely to improve his or her health conditions with
supportive housing.
   50678.6.  The Medi-Cal Housing Program shall be funded, upon
appropriation by the Legislature. The funding of grants under the
program is subject to annual appropriations by the Legislature. The
Legislature shall consider the impact that housing and supportive
services have had in changing utilization and health care costs, as
identified in the evaluation described in Section 50678.1, of moving
eligible participants into supportive housing.
   50678.7.  HCD shall reimburse DHCS for the costs of collaborating
in the design and implementation of the program. HDC shall use no
more than 5 percent of the funds appropriated for the Medi-Cal
Housing Program for purposes of administering the program.
   50678.8.  (a) For purposes of implementing this chapter, HCD or
DHCS may enter into exclusive or nonexclusive contracts on a bid or
negotiated basis. Contracts entered into or amended pursuant to this
subdivision shall be exempt from Chapter 6 (commencing with Section
14825) of Part 5.5 of Division 3 of Title 2 of the Government Code,
Section 19130 of the Government Code, and Part 2 (commencing with
Section 10100) of Division 2 of the Public Contract Code and shall be
exempt from the review or approval of any division of the Department
of General Services.
   (b) HCD and DHCS shall implement the provisions developed pursuant
to this chapter only after all necessary federal approvals have been
obtained for the Health Home Program and to the extent that other
federal financial participation is not jeopardized. 
   SEC. 2.    Part 14 (commencing with Section 53570) is
added to Division 31 of the   Health and Safety Code 
 , to read:  

      PART 14.  Medi-Cal Housing Program


   53570.  For purposes of this part, all of the following
definitions shall apply:
   (a) "DHCS" means the State Department of Health Care Services.
   (b) "Fair market rent" means the rent, including the cost of
utilities, as established by the United States Department of Housing
and Urban Development pursuant to Parts 888 and 982 of Title 24 of
the Code of Federal Regulations, as those parts read on January 1,
2017, for units by number of bedrooms, that must be paid in the
market area to rent privately owned, existing, decent, safe, and
sanitary rental housing of nonluxury nature with suitable amenities.
   (c) "HCD" means the Department of Housing and Community
Development.
   (d) "Homeless" has the same meaning as in Section 578.3 of Title
24 of the Code of Federal Regulations, as that section read on
January 1, 2017. "Homeless" also includes a person who would become
homeless upon exiting a publicly funded institution or system of
care, including a hospital, skilled nursing facility, mental health
facility, or incarceration. "Homeless" also includes Whole Person
Care pilot program homeless populations, as approved by DHCS in the
Whole Person Care pilot program application and Medi-Cal
beneficiaries served under California's Health Home Program under
Section 2703 of the federal Patient Protection and Affordable Care
Act (Public Law 111-148).
   (e) "Interim housing" means a safe place for a participant to live
temporarily while the participant is waiting to move into a
permanent apartment affordable to the participant with rental
assistance, and where the participant is not required to pay more
than 30 percent of his or her income toward the cost of the interim
housing. "Interim housing" may include recuperative or respite care
and shall not be funded for longer than a period of nine months.
   (f) "Long-term rental assistance" means a rental subsidy provided
to a housing provider, including a landlord renting in the private
market or a developer leasing affordable housing, to assist a tenant
to pay the difference between 30 percent of the tenant's income and
fair market rent.
   (g) "Permanent housing" means a housing unit where the landlord
does not limit length of stay in the housing unit, the landlord does
not restrict the movements of the tenant, and the tenant has a lease
and is subject to the rights and responsibilities of tenancy,
pursuant to Chapter 2 (commencing with Section 1940) of Title 5 of
Part 4 of Division 3 of the Civil Code.
   (h) "Supportive housing" has the same meaning as in Section
50675.14.
   (i) "Whole Person Care pilot" has the same meaning as described in
the Medi-Cal 2020 Waiver Special Terms and Conditions (STCs),
Sections 110-126, as approved by the federal Centers for Medicare and
Medicaid Services, on December 30, 2015, or in any subsequent
amendment to the STCs.
   53571.  HCD, in coordination with DHCS, shall do all of the
following:
   (a) On or before July 1, 2017, establish the Medi-Cal Housing
Program.
   (b) On or before July 1, 2017, draft guidelines for stakeholder
comment to fund competitive grants to pay for interim and long-term
rental assistance under the Medi-Cal Housing Program. The guidelines
shall detail competitive scoring criteria that includes, but is not
limited to, scoring that awards points based upon all of the
following:
   (1) Need, which includes consideration of the number of
individuals experiencing homelessness and the impact of housing costs
in the applicant's geographic area.
   (2) Ability of the applicant to administer a program offering
interim and long-term rental assistance to people experiencing
homelessness.
   (3) The applicant's documented partnerships with affordable and
supportive housing providers in the applicant's geographic area.
   (4) The applicant's partnerships with Medi-Cal managed care plans
in the applicant's geographic area and the percentage of Medi-Cal
beneficiaries assigned to those partnering Medi-Cal managed health
plans.
   (5) A comprehensive plan to connect interim housing, long-term
rental assistance, and project-based supportive housing resources
made available under the Medi-Cal Housing Program with services made
available through the Whole Person Care pilot and the Health Home
Program.
   (6) Coordination with (A) community-based housing and homeless
service providers, (B) behavioral health providers, and (C), safety
net providers, including community health centers.
   (c) On or before December 1, 2017, and every year thereafter,
subject to appropriation by the Legislature, award grants on a
competitive basis to eligible grant applicants participating in a
Whole Person Care pilot that includes eligibility based on
homelessness or a partnership with Medi-Cal managed care plans
administering the Health Home Program. If appropriations are made
available in future years, applicants shall compete for each round of
five-year grants.
   (d) Midyear and annually, collect data from the Medi-Cal Housing
Program grantees or from the Medi-Cal managed care plan partnering
with applicants, as well as other Medi-Cal data available from DHCS,
as appropriate.
   (e) No later than January 1, 2018, contract with an independent
evaluator to analyze data collected pursuant to Section 53573 to
determine changes in health care costs associated with services
provided under the Medi-Cal Housing Program. HCD shall provide, on a
regular basis as needed, collected data to the evaluator.
   (f) (1) By March 31, 2019, for grants awarded in 2017, and in
subsequent years thereafter in which the Medi-Cal Housing Program is
allocated additional funds, report data collected to the Assembly
Committee on Budget, the Senate Committee on Budget and Fiscal
Review, the Assembly and Senate committees on health, the Assembly
Committee on Housing and Community Development, and the Senate
Committee on Transportation and Housing.
   (2) A report to be submitted pursuant to paragraph (1) shall be
submitted in compliance with Section 9795 of the Government Code.
   53572.  An applicant shall be eligible for a Medi-Cal Housing
Program grant if the applicant meets the requirements of this
section. Eligibility does not create an entitlement to grant funds
and is subject to availability of funds. The applicant shall meet all
of the following requirements:
   (a) Satisfies one or more the following:
   (1) Is a lead agency participating in a Whole Person Care pilot
designed to provide services to people experiencing homelessness.
   (2) Is a lead agency that previously participated in a Whole
Person Care pilot that has expired and the applicant has decided to
continue to provide services to homeless people under the structures
developed in the Whole Person Care pilot.
   (3) Is located in a county with a Medi-Cal managed care plan or
plans participating in the Health Home Program.
   (b) Has identified a source of funding for Housing Transition
Services and Tenancy Sustaining Services, as defined in the Centers
for Medicare and Medicaid Services' Informational Bulletin regarding
Housing-Related Activities and Services for People with Disabilities,
issued June 26, 2015. Funding for these services shall include one
or more of the following:
   (1) County general funds.
   (2) Whole Person Care pilot program funds.
   (3) The Health Home Program.
   (c) Agrees to contribute funding for interim and long-term rental
assistance through one or more of the following sources:
   (1) County general funds.
   (2) Flexible housing pools created through a Whole Person Care
pilot.
   (3) A county or partnering housing authority's set-aside of at
least 15 percent Housing Choice Vouchers to residents experiencing
homelessness and who are eligible to receive Whole Person Care pilot
or Health Home Program services.
   (d) Has designated a process for administering grant funds through
agencies administering housing programs.
   (e) Agrees to collect and report data, as described in Section
53573, to HCD and DHCS.
   53573.  (a) HCD shall coordinate with DHCS to identify a process
for collecting and providing Medi-Cal data regarding changes in
health care costs associated with services provided under the
Medi-Cal Housing Program to the extent that information is available,
up to 12 months prior to each participant's move into permanent
housing, as well as changes in costs after each participant's move
into permanent housing.
   (b) An applicant awarded grant funds shall, at annual and midyear
intervals, report all of the following data to HCD and DHCS:
   (1) Data specified by HCD necessary to measure the costs described
in subdivision (a).
   (2) The number of participants and the type of interventions
offered through grant funds.
   (3) The number of participants living in supportive housing or
other permanent housing.
   (c) HCD shall collaborate with DHCS to provide available
fee-for-service data to the evaluator.
        53574.  An applicant shall use grants awarded pursuant to
this part for one or more of the following, which may be administered
through a housing pool, as defined in the Whole Person Care pilot:
   (a) Long-term rental assistance for periods of up to five years.
   (b) A capitalized operating reserve for up to 15 years to pay for
operating costs of an apartment or apartments within a development
receiving public funding to provide supportive housing to people
experiencing homelessness.
   (c) Interim housing.
   (d) A county's administrative costs for up to 3 percent of the
total grant awarded.
   53575.  A county resident is eligible to receive assistance
pursuant to a grant awarded under the Medi-Cal Housing Program if he
or she meets all of the following requirements:
   (a) Is homeless upon initial eligibility.
   (b) Is a Medi-Cal beneficiary.
   (c) Is eligible for Supplemental Security Income.
   (d) Is eligible to receive services under either the Whole Person
Care pilot or the Health Home Program, whichever is operative in the
participating county or region.
   (e) Is likely to improve his or her health conditions with
supportive housing.
   53576.  The Medi-Cal Housing Program shall be funded upon
appropriation by the Legislature. The Legislature shall consider the
impact that housing and supportive services have had in changing
utilization and health care costs, as identified in the evaluation
described in Section 53571, of moving eligible participants into
supportive housing.
   53577.  HCD shall reimburse DHCS for the costs of collaborating in
the design and implementation of the program. HCD shall use no more
than 5 percent of the funds appropriated for the Medi-Cal Housing
Program for purposes of administering the program.
   53578.  (a) For purposes of implementing this part, HCD or DHCS
may enter into exclusive or nonexclusive contracts on a bid or
negotiated basis. Contracts entered into or amended pursuant to this
subdivision shall be exempt from Chapter 6 (commencing with Section
14825) of Part 5.5 of Division 3 of Title 2 of the Government Code,
Section 19130 of the Government Code, and Part 2 (commencing with
Section 10100) of Division 2 of the Public Contract Code and shall be
exempt from the review or approval of any division of the Department
of General Services.
   (b) HCD and DHCS shall implement the provisions developed pursuant
to this part only after all necessary federal approvals have been
obtained for the Health Home Program and to the extent that other
federal financial participation is not jeopardized.
   53579.  Implementation of this part shall be contingent on an
appropriation provided for this purpose in the annual Budget Act or
other measure.                     
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