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Accept Proposition 36 Community-Based Substance Use Treatment Expansion grant award of $665,150, from the California Department of Health Care Services as administered through a revenue agreement with Sierra Health Foundation: Center for Health Program Management, to expand access to community-based substance use treatment, recovery supports, care coordination, and related implementation activities for eligible individuals, for the current period through March 31, 2028; Delegate authority to the County Administrator to execute the agreement and any related documents necessary to receive and administer the grant funding; and Approve a $407,818 Appropriation Transfer Request to increase appropriations and recognize unanticipated revenue (4/5 vote required)
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Published Notice Required? Yes ___ No X _
Public Hearing Required? Yes ___ No X _
DEPARTMENTAL RECOMMENDATION:
The Department of Health and Social Services recommends that the Board of Supervisors:
1. Accept Proposition 36 Community-Based Substance Use Treatment Expansion grant award of $665,150, from the California Department of Health Care Services as administered through a revenue agreement with Sierra Health Foundation: Center for Health Program Management, to expand access to community-based substance use treatment, recovery supports, care coordination, and related implementation activities for eligible individuals, for the current period through March 31, 2028;
2. Delegate authority to the County Administrator to execute the agreement and any related documents necessary to receive and administer the grant funding; and
3. Approve a $407,818 Appropriation Transfer Request to increase appropriations and recognize unanticipated revenue (4/5 vote required).
SUMMARY:
Proposition 36 created a treatment-mandated felony process for certain individuals with repeated drug possession offenses, allowing eligible individuals to receive court-ordered substance use disorder and, when appropriate, mental health treatment in lieu of traditional sentencing, with potential dismissal of charges upon successful completion.
The California Department of Health Care Services (DHCS) is providing one-time funding to counties, authorized through AB 102, to support local planning, capacity building, and treatment-related services necessary to implement Proposition 36. DHCS is utilizing Sierra Health Foundation: Center for Health Program Management as an intermediary in the provision of funding to counties.
Solano County Health and Social Services (H&SS), Behavioral Health Division, will use the grant to support local implementation infrastructure and services, including coordination with Solano Superior Court, Probation, treatment providers, housing partners, and workforce partners. The funding will support activities intended to reduce incarceration, increase treatment engagement, improve recovery outcomes, and create the local reporting and case-tracking infrastructure necessary to meet State requirements.
FINANCIAL IMPACT:
The total grant award is $665,150 for the period ending March 31, 2028. This is one-time State funding provided by DHCS and administered through Sierra Health Foundation: Center for Health Program Management.
An Appropriation Transfer Request is needed to increase appropriations and recognize revenue in the Department’s FY2026/27 Working Budget. There is no impact to the County General Fund.
DISCUSSION:
The County will implement Proposition 36 through three primary activities. First, H&SS Behavioral Health will strengthen system coordination by providing support to the Court to track Proposition 36 referrals, monitor compliance, coordinate with justice partners, produce quarterly and annual reports, support bi-monthly coordination meetings, and help customize the County’s case management and reporting systems. This infrastructure is necessary to track cases, services, outcomes, participant notifications, and State-required data elements.
Second, the County will develop dedicated recovery housing capacity for Proposition 36 participants. This work may include identifying appropriate housing sites, issuing a Request for Proposals to contract with qualified providers, establishing program guidelines, and coordinating referrals and placements with Behavioral Health, community partners, the courts, and Probation. Recovery housing will support treatment engagement and stability for individuals who cannot successfully participate in treatment without a safe and structured living environment.
Third, the County will expand Individual Placement and Support (IPS) services through a contract with Caminar Inc., for eligible participants by integrating supported employment into Proposition 36 treatment planning, developing referral and reporting workflows, and coordinating with behavioral health providers, workforce agencies, and employers. Supported employment services will help participants pursue recovery, stability, and long-term community reintegration.
DHCS Community Services Division, Prevention & Youth Branch, oversees the State’s Proposition 36 behavioral health implementation funding. Sierra Health Foundation: Center for Health Program Management serves as DHCS’s administrative entity and fiscal intermediary for this funding, including contract processing, payment administration, communication with counties, collection of statewide program data, monitoring of deliverables, and support for DHCS reporting requirements.
These Prop 36 activities will allow Solano County to build a more coordinated and accountable Proposition 36 implementation model, while using the grant primarily for planning, capacity building, recovery supports, and infrastructure needed to reduce incarceration and improve treatment outcomes.
ALTERNATIVES:
The Board could choose to decline the State Proposition 36 allocation. This is not recommended, as Proposition 36 funds will assist Solano County with delivering a broad array of supportive substance use prevention services to behavioral health clients.
OTHER AGENCY INVOLVEMENT:
H&SS, Behavioral Health Division, and Solano Superior Court.
CAO RECOMMENDATION:
APPROVE DEPARTMENTAL RECOMMENDATION