[{"_1":2,"_123":-5,"_124":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88,100,112],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6532057,"mediaKeyId","3427140-806748326396b4dbffc19c943d7d245c","parentId",3427140,"title","Public testifies as Assembly subcommittee weighs May Revision cuts to California Reducing Disparities Project and Office of Health Equity","audioSeconds",6777,"startMs",2133000,"endMs",8910000,"viewUrl","/Search/View?dp=1&key=3427140-806748326396b4dbffc19c943d7d245c&start=2133&end=8910","thumbnailUrl","https://assets.pipeline.soar.com/3427140-806748326396b4dbffc19c943d7d245c/thumbnail_2133000.jpg","articleUrl","/articles/6532057/California/Public-testifies-as-Assembly-subcommittee-weighs-May-Revision-cuts-to-California-Reducing-Disparities-Project-and-Office-of-Health-Equity","mediaUrl","https://secure.pipeline.soar.com/6532057-3c17c99f19f36535de1c8de0de826664/orig.mp4?Expires=1770818023&Signature=mJXABgHg5wLqzoemLrA4hLxl93viAWCFPzm5U-fw0ZH8wzbjKewVcXUwCzS8RxtIEPZ5m7n-0dU2FiXz-Ss3d0oCAg2bJsLGn0lUisqqDpRTHwH09JzfYxzyCaM24Sqp-OS~pVdvqohBL6eQLFjpemoaDFH3hRJk9NFD-k2kab8VCowLany7Kj6ApDL0jd4RPI12kl-q2JpeQsAVDVwIUj9XsuA7SydpTmC5hLrgrZmkmHhc1VTJ9B-dp~elHsdLNd5Dtnpq8OFycQ6BU7gWt3XNeFv0bY1DofII3up42vPdlfDVago8ejpkLwRcj3j-goeiYGfPvh9SZZKovww5Yw__&Key-Pair-Id=KUT5TJCACFTXG","author","California State Assembly","date","2025-05-20T00:00:00Z","article","The Assembly Budget Subcommittee No. 1 on Health heard extensive public opposition Wednesday after the governor's May Revision proposed reverting roughly $15,800,000 in general‑fund appropriations for the California Reducing Disparities Project (CRDP) and other Office of Health Equity programs administered by the California Department of Public Health (CDPH).

Assemblymember Reggie Zuber, who raised the issue at the start of the CDPH panel, said the 2025 May Revision appears to eliminate funding that had been authorized in prior budgets and that many CRDP grantees remain mid‑contract. \"It looks like that cut was left out of the programmatic documentation,\" Zuber said, urging staff and the administration to clarify whether the reversion is intentional.

The CRDP supports community‑defined, culturally responsive prevention and early‑intervention mental‑health services through grants to grassroots organizations serving African American, Latino/Latinx, Asian/Pacific Islander, Native American and LGBTQ+ communities. CDPH officials told the committee the program supported approximately 33 grants and nine contracts; the May Revision lists the CRDP reversion among several one‑time reversions the administration identified to reduce the state's projected shortfall.

Why it matters: CRDP grantees and researchers told the committee the program is evidence‑based and still under evaluation, and that an abrupt reversion would interrupt services and evaluations now underway. Multiple community leaders described the grant dollars as supporting mental‑health access in communities that otherwise lack culturally specific providers.

At the hearing, representatives from CRDP grantees said the cut would end programs that have enrolled thousands of participants, risked layoffs and undercut ongoing evaluations. Rachelle Chambers, a commissioner of the Behavioral Health Services Oversight and Accountability Commission, told the committee that her niece relies on a local full‑service partnership funded by the commission and that peer respite programs and early childhood grants would be immediately affected. \"This money, if cut, will impact my niece who's right now in Riverside County FSP program,\" Chambers said. \"The commission is meeting needs with maternal health that are imminent right now.\"

CDPH presented the May Revision summary and said the proposed reversions include roughly $15.8 million from CRDP, plus smaller reversions linked to LGBTQ foster‑youth services, workforce development, hepatitis C prevention and other one‑time items. CDPH characterized the package as part of the administration's broader effort to identify one‑time savings to close a multi‑billion‑dollar budget gap.

Administration and fiscal staff: Department of Finance and the Legislative Analyst's Office (LAO) were both on the record at the hearing. The LAO said it is still awaiting backup documentation on the Behavioral Health Services Fund and other accounts and could not fully evaluate the administration's proposals without that detail. Department of Finance said the May Revision is a starting point and invited the Legislature to propose alternatives.

Public comment: Dozens of representatives from community‑based grantees, academic evaluators and public‑health advocates spoke against the reversion. Testimony came from CRDP grantees, academic evaluators who said statewide cost‑benefit analyses show positive returns, tribal health organizations, LGBTQ and reproductive‑health providers, and multiple local community organizations from across California. Several speakers, including evaluators, asked the committee to preserve the last year of funding so assessments would be completed and services would not be interrupted.

Committee response and next steps: Chair Addis closed the CDPH item by noting the CRDP reversion comprises a tiny fraction of the total budget shortfall — she said the cut represents about 0.13 percent of the state's projected gap — and urged Department of Finance and CDPH to return with alternative proposals that would reduce harm to programs and communities. The subcommittee did not take a vote; members requested further fiscal detail and impact estimates from CDPH before the Legislature considers final budget action.

Clarifying details: CDPH told the committee CRDP supported roughly 33 grants and 9 contracts; the May Revision lists a $15,800,000 reversion for CRDP. CDPH also identified additional, smaller reversions affecting Office of Health Equity programs (amounts described in CDPH testimony). Several gender‑health and reproductive‑justice grants were cited by grantees as at risk, including a Reproductive Justice fund that grantees said had included Planned Parenthood affiliates.

Ending note: Subcommittee members and public commenters urged the administration to identify alternate solutions that would preserve continuity for the programs while addressing the state's fiscal shortfall. The committee requested written impact estimates from CDPH on jobs, client caseloads and the evaluation timeline.","mediaType","Video","parentTitle","Assembly Budget Subcommittee No. 1 on Health","oneSentenceSummary","The Assembly Budget Subcommittee No. 1 on Health heard extensive public opposition Wednesday after the governor's May Revision proposed reverting roughly $15.8 million in funding for the California Reducing Disparities Project and other Office of Health Equity programs administered by the California Department of Public Health.","taxTitle","California State Assembly, House, Legislative, California","taxId",17099,"location","California","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6532037,"Department of State Hospitals outlines reversion of IST infrastructure funds, position and program reductions",207,9208000,9415000,"/Search/View?dp=1&key=3427140-806748326396b4dbffc19c943d7d245c&start=9208&end=9415","https://assets.pipeline.soar.com/3427140-806748326396b4dbffc19c943d7d245c/thumbnail_9208000.jpg","/articles/6532037/California/Department-of-State-Hospitals-outlines-reversion-of-IST-infrastructure-funds-position-and-program-reductions","https://secure.pipeline.soar.com/6532037-de0cc56d3f46a528b3861542b1bbbab5/orig.mp4?Expires=1770818023&Signature=bAi5oYQcEAL8N9Cn-exb8TXyCpvjZMhMzMP4bW-4MvZSF38ggLe87cOvrPu0lZt7RNayAiklOzJj-y~G~tEHFEymutAAbDxaPdNE3~JMdCM9BpGav91Z5EnCNjoCdjycizfe3eZf8h8NPN3IYJKn76LH7zX1nIs339JNNesPzdO1olq-3pLsZOSytJOfki8ycJGlE4ICYfaxjurIYFSnkJKM~uGAdM9~qBd2fcQJAIHWjWkbm38h657~lUC~ahQ0vEIwgh49bdBMRqVOovhr5xmYaGDPeIhhWQynS-H9J2V4rPDvfbjgaJ5JNj-50Dm6vfUsPxp6P7BgBDFUN4xdwQ__&Key-Pair-Id=KUT5TJCACFTXG","The Department of State Hospitals (DSH) presented May Revision adjustments to the Assembly Budget Subcommittee No. 1 on Health that overall reduce the department's proposed budget by about $191,500,000 from the Governor's earlier proposal and include programmatic and capital‑project changes.

DSH Director Stephanie Clendenin said the May Revision reflects an additional reduction of 100.8 positions and several general‑fund solutions. Major items included:

- A proposed reversion of $232,500,000 in unused Incompetent to Stand Trial (IST) infrastructure grant funding originally appropriated in FY 2022–23 (funds had encumbrance availability through 2026–27), the department told the committee this money had not been fully utilized by counties and projects; DSH described several barriers, including project financing and long covenants required by grants.

- Rightsizing the IST program appropriation and other IST‑related adjustments that reduce funding across multiple years while DSH said it will continue to fund current service levels in early‑access stabilization, community‑based restoration and diversion programs. DSH also proposed reductions tied to utilization trends for the LA County community‑based restoration contract.

- Position and operational adjustments that include a proposed reduction of 233 total positions reflected across earlier and current proposals (DSH said vacant positions associated with closed units or historically low isolation‑unit utilization were being targeted and that the department did not plan to eliminate filled positions).

- Reappropriations and re‑scoped capital outlay changes, including requests to reappropriate funds for the electronic health record project and for construction of a fire‑alarm upgrade and a hydronic loop replacement project at Coalinga; DSH said the hydronic replacement is essential to avoid operational disruptions caused by frequent leaks in the existing system.

DSH asserted the IST restructuring was intended to align funding with current referral and contract utilization, and the department said it does not expect the May Revision adjustments to reverse the progress made in reducing the IST wait list and meeting court‑mandated timelines. Committee members asked why counties did not use IST infrastructure grants; DSH cited financing structure, 30‑year covenants and insufficient grant funding relative to construction costs as deterrents for some county applicants.

Why it matters: The IST infrastructure grant reversion is a large single‑item budget adjustment that affects county partners and planned expansion of community restoration capacity. Lawmakers raised questions about whether the reversion would slow local investments and asked DSH for further detail on county uptake barriers.

Next steps: Committee members requested additional justification and breakdowns for the reversion and asked for confirmation that service levels would be maintained. No vote was taken at the hearing.","The Department of State Hospitals told Assembly budget members its May Revision reduces its proposed budget by about $191.5 million from the Governor's prior proposal, including a $232.5 million reversion of unused IST infrastructure grant funds and operational and position adjustments.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6532046,"HCAI outlines $1.9 billion BH Connect workforce plan, CalRx changes and diaper‑access proposal in May Revision",384,10666000,11050000,"/Search/View?dp=1&key=3427140-806748326396b4dbffc19c943d7d245c&start=10666&end=11050","https://assets.pipeline.soar.com/3427140-806748326396b4dbffc19c943d7d245c/thumbnail_10666000.jpg","/articles/6532046/California/HCAI-outlines-19-billion-BH-Connect-workforce-plan-CalRx-changes-and-diaperaccess-proposal-in-May-Revision","https://secure.pipeline.soar.com/6532046-c342d17a8200a3d8ea7139273b6e380a/orig.mp4?Expires=1770818023&Signature=DZJ46p26~BmJmA--LEKHr57OszUEy1wY3lmpkWtTG5IPWvTx3E2IxlzCrhwEt~-Shcss4edhHtHBvXJIln~tDhGYYlapf3ZnGvNIgtS2zZquapfcLnvV38txt0SeBsbnkLa~Z2B7-Iin7mGm6WF0PcWkO-xfCPve7g991Tg4w3-zxPoiihak1jVVxllFuTkXNCPcxtaBQkbLH2K2FaiVLHnXneGYzP6oYGQ-hN4~-Ojv3iPYKCeqP9GFriHmDozxrNWLZ3a1-SY6PDlfIuea~dRiSVQT0dLMUnUrgiv47eW9k9payUIcW6D5I01sZQx8gYBteNvsGQ52pijnUdc-wQ__&Key-Pair-Id=KUT5TJCACFTXG","The Department of Health Care Access and Information (HCAI) presented several May Revision proposals to the Assembly Budget Subcommittee No. 1 on Health, including: a behavioral‑health workforce initiative under the BH Connect framework requiring substantial federal match and state funds; a CalRx adjustment redirecting $5,000,000 of previously deferred funds to high‑priority generic drugs while reverting $45,000,000 originally set for an in‑state insulin manufacturing facility; and a diaper access initiative that would provide an initial three‑month diaper supply for newborns under a phased rollout.

BH Connect workforce proposal: HCAI requested expenditure and reimbursement authority of up to $1,900,000,000 over five years and 57 positions to implement the BH Connect workforce initiative (including programs created under Senate Bill 326 and Proposition 1). HCAI said the package includes significant federal matching dollars; the department indicated $807,500,000 of general‑fund support is reflected in HCAI's built‑in budget assumptions and that much of the package will rely on federal reimbursements and offsets.

CalRx and priority drugs: HCAI said the May Revision retains $5,000,000 from a previously deferred $50,000,000 CalRx insulin appropriation and redirects that amount to immediate public‑health priorities — HCAI cited school albuterol access as an initial target and said it will issue a request for information to identify additional high‑impact drugs at risk of market failure. The administration is proposing to revert the remaining $45,000,000 that had been earmarked for an in‑state insulin manufacturing facility; HCAI and GoBiz concluded the proposed California manufacturing plant was not feasible within the timeline and costs originally anticipated.

Diaper access initiative: HCAI described a phased, universal‑approach diaper initiative, giving newborns a three‑month supply of diapers — $7.5 million in FY 2025–26 and $12.5 million in FY 2026–27 in the May Revision. HCAI said it issued an RFI to solicit comments on distribution approaches, and that hospitals and existing diaper banks were among stakeholders contacted. HCAI said preliminary feedback indicated storage constraints at hospitals would need to be addressed in program design.

Federal reporting and program adjustments: HCAI also requested funding to support new federal data reporting requirements for long‑term care staffing and to continue work on the Health Care Payments Data (HPD) program (the state's all‑payer claims database). HCAI said the HPD collects prescription data from payers but the May Revision includes adjustments to account for implementation timing and funding sources.

Legislative Analyst Office and members' questions: The LAO advised that substantial policy proposals with limited immediate budget impacts — such as PBM reforms (discussed elsewhere at the hearing) — are often better considered through the policy process, and it encouraged the committee to evaluate diaper policy alternatives that rely on existing networks (diaper banks, CalWORKs) as possible lower‑cost or more targeted approaches. Members asked HCAI how the diaper proposal would interact with existing diaper‑bank funding and how hospitals would participate; HCAI said the RFI is intended to resolve operational questions and that the department would coordinate with other agencies as needed.

Why it matters: The workforce request would be the state's largest direct behavioral health workforce investment in recent years and depends on multi‑year federal match; the CalRx adjustment closes an expensive feasibility gap in building local insulin manufacturing capacity while retaining funding for other drug‑market interventions; the diaper initiative attempts to address infant and maternal health burdens tied to diaper affordability.

Next steps: Committee members asked for further detail on program design, the RFI results for diapers, and the federal matching assumptions that underpin BH Connect. The subcommittee did not take final action and requested that HCAI and administration staff return with clarifying documentation.","The Department of Health Care Access and Information told an Assembly Budget Subcommittee it seeks authority for a $1.9 billion BH Connect workforce initiative (federal match plus state funding), will reallocate $5 million from a deferred CalRx insulin appropriation for immediate drug‑supply projects and proposed a phased diaper‑access pilot in the May Revision.",{"_33":101,"_35":36,"_37":38,"_39":102,"_41":103,"_43":104,"_45":105,"_47":106,"_49":107,"_51":108,"_53":109,"_55":56,"_57":58,"_59":110,"_61":62,"_63":64,"_65":111,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6532051,"Commission on Behavioral Health warns $20 million Mental Health Wellness Act cut would halt key grants",518,2712000,3230000,"/Search/View?dp=1&key=3427140-806748326396b4dbffc19c943d7d245c&start=2712&end=3230","https://assets.pipeline.soar.com/3427140-806748326396b4dbffc19c943d7d245c/thumbnail_2712000.jpg","/articles/6532051/California/Commission-on-Behavioral-Health-warns-20-million-Mental-Health-Wellness-Act-cut-would-halt-key-grants","https://secure.pipeline.soar.com/6532051-3fbb01f874099da4f06e69ff73fab63f/orig.mp4?Expires=1770818023&Signature=OUZ3vRD8W1900Pe7MtQ9Y-VR25mONCbVhep38DtjPAIpRVOz-B7V6pBMqnWIIpRU~LlnF~V~ZX~llbQyuZaYU9rCb6Ia8UNz1SI6MW-E~NP-Jkm29S6NgCoX2u7DNRm7Z9uGYcG9X3BYGk4AiScMm2OyKmNLsptADpI7sAgSaD8X3pLs-nPHCnQASTC9lXCbpox7Q8H0jBe3~qYB7Fn5JlMVP27YWgUuMlIalGjGTWm6jmWmGZc7YJjAcPggJOMFXMH4OfXaimu5aJpeHQ7Cu8e5haDa43YtP2vDITbdvD6asv0VREPxYNoyaaowpS7OTGQsAq4hLyTbqyyvuh1yOw__&Key-Pair-Id=KUT5TJCACFTXG","The Commission on Behavioral Health told the Assembly Budget Subcommittee No. 1 on Health that the governor's May Revision proposal to eliminate $20,000,000 in Mental Health Wellness Act funding would immediately derail multiple near‑launch grants and, if sustained, could effectively end most of the commission's grantmaking capacity after the five‑year Innovation Partnership Fund sunsets.

Brenda Greilish, executive director of the commission, said the May Revision reduces the commission's local‑assistance resources and would eliminate three projects that were \"just about ready to launch\": a $20,000,000 grant focused on children ages 0‑5 to six community‑based organizations and a technical‑assistance provider; a $20,000,000 full‑service partnerships (FSP) grant to support performance‑based contracting; and a $20,000,000 peer‑respite grant.

Greilish told the committee that the commission's Mental Health Wellness Act grants are distinct from the Proposition 1 Innovation Partnership Fund scheduled to begin in 2026–27, and that the latter is time‑limited to five years and requires demonstration of \"innovation\" and the ability to compete with public and private entities. \"If this cut is enacted, then by fiscal year '30–'31, the Commission will no longer have any permanent ongoing grant programming,\" Greilish said, citing the commission's reliance on ongoing grant funds to support local crisis prevention and early‑intervention services.

Commissioner Rachelle Chambers, who spoke as a consumer representative, described local impact and personal experience: she said the funding supports peer respite and maternal mental‑health services and that the loss of the Wellness Act funds could not readily be replaced by the Innovation Partnership Fund because of scope and timing differences.

Department of Finance said the May Revision proposal is part of an administration package of general‑fund solutions to address a multi‑billion‑dollar deficit and noted the commission will receive up to $20,000,000 in Innovation Partnership Fund resources beginning in 2026–27 under statute. The Legislative Analyst's Office noted it was still evaluating the broader fiscal picture and requested further detail.

Why it matters: The commission's grants are targeted at local, unmet behavioral‑health needs and at pilot programs the commission says are not easily substituted by other programs. Commission witnesses warned that losing the short‑term Mental Health Wellness Act grants would interrupt services for small community partners and reduce capacity for equity‑focused, peer‑led and early‑intervention programs.

Public comment: Dozens of community groups and behavioral‑health advocates joined the CDPH comment period earlier and associated concerns about behavioral‑health funding cuts; several speakers referenced the commission's programs when describing gaps in local care.

Committee response: Subcommittee members pressed the Department of Finance on whether alternatives existed to protect these discretionary grants and asked for additional analysis of service‑level impacts and possible funding offsets. No final appropriation decisions were made at the hearing.

Clarifying details: The commission described three specific near‑launch grants each at $20,000,000 (children 0–5, FSP performance contracting, peer respites). The Innovation Partnership Fund established by Proposition 1 is limited to five years of funding and carries different statutory scope requirements than the Wellness Act grants.

Ending note: The commission and some legislators urged the administration to reconsider the proposed elimination or provide a phased approach that avoids mid‑contract interruptions.","The Commission on Behavioral Health told the Assembly Budget Subcommittee No. 1 on Health the governor's May Revision proposal to eliminate $20 million in Mental Health Wellness Act grants would stop three imminent projects and could end most ongoing state commission grantmaking after 2030.",{"_33":113,"_35":36,"_37":38,"_39":114,"_41":115,"_43":116,"_45":116,"_47":117,"_49":118,"_51":119,"_53":120,"_55":56,"_57":58,"_59":121,"_61":62,"_63":64,"_65":122,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6532041,"Assembly panel hears joint HCAI/DMHC plan to license PBMs and require drug‑supply reporting",0,12351000,"/Search/View?dp=1&key=3427140-806748326396b4dbffc19c943d7d245c&start=12351&end=12351","https://assets.pipeline.soar.com/3427140-806748326396b4dbffc19c943d7d245c/thumbnail_12351000.jpg","/articles/6532041/California/Assembly-panel-hears-joint-HCAIDMHC-plan-to-license-PBMs-and-require-drugsupply-reporting","https://secure.pipeline.soar.com/6532041-a1d0f8105b64307a3ef710d18af8e56f/orig.mp4?Expires=1770818023&Signature=Hvvm~A5dZPTPPOjo-ZrpNXL89qTHhUR9C5EeOIwnhcE1i14gsErbF6KFyz0~YNs1wJVB5l11kbMYAODXrvKBIoz3MQLvCCtxS5yzkYOrup5uykBQW9Ej5eClhf4yePs1MxEVyJ8ZwOw6vqU6JTxL2LM~o3D046JXhvrIahUR9MYHewzrFC4I8nRs6bRE458VdPEWybApTicyHzRHgGZlQT4M4WK-TjqvxSetm7qkIJZ51kAk53DFa4IF66ksMGYMd6XE2e30khouRItzZQ6~P5Cq59ZN74i79mFlhDbsKORxZ62aTQF1SPhGTehwvAuP3OF4VGQRhXPPmDl50eHNDg__&Key-Pair-Id=KUT5TJCACFTXG","The Department of Managed Health Care (DMHC) and the Department of Health Care Access and Information (HCAI) told the Assembly Budget Subcommittee No. 1 on Health that the May Revision proposes replacing current pharmacy benefit manager (PBM) registration with a licensure requirement and expanding data reporting to HCAI's Health Care Payments Data (HPD) program.

DMHC Director Mary Watanabe summarized the proposal: PBMs that contract with a DMHC‑licensed health plan or a California Department of Insurance‑regulated insurer would need to obtain a DMHC license, submit quarterly financial statements and other information, be subject to DMHC audits for compliance, and pay annual assessments to fund regulatory work. HCAI would use PBM submissions to augment its all‑payer data holdings with PBM‑level price, rebate and payment information to support policy analysis on prescription‑drug pricing.

HCAI Director Elizabeth Landsberg and DMHC staff said the PBM data would include national drug codes, therapeutic categories, wholesale acquisition cost, average wholesale price, member counts, fees and rebates, and would be grouped by whether pharmacies are owned by the PBM. HCAI said it already collects many payer and manufacturer data but lacks direct PBM information needed to evaluate the impacts of vertical integration and rebate and spread‑pricing practices.

Implementation resources: DMHC requested six positions and funding authority (amounts shown in the May Revision) to implement licensure and enforcement functions; HCAI requested its own positions for data intake and analysis. DMHC noted the proposal is not funded from the general fund; the department would finance work through assessments on licensed PBMs.

Policy process and oversight: The LAO recommended deferring major policy initiatives with limited bucketed budget impact to the policy process so the Legislature can fully examine statutory trade‑offs and regulatory design. Legislators asked whether licensing and data reporting must occur together; DMHC and HCAI said the enforcement authority associated with licensure is critical to ensuring PBMs submit the legally required data.

Why it matters: PBMs are central to prescription‑drug distribution and finance. The proposed licensure and data reporting would create new regulatory scrutiny and allow the state to analyze rebates, manufacturer fees and pricing across the supply chain. The LAO urged lawmakers to weigh policy choices about the scope of reporting and consequences for market participants.

Next steps: Committee members requested more detailed cost and implementation information and suggested the Legislature consider trailer‑bill language and reporting requirements to enable legislative oversight. The subcommittee did not vote on the proposal at the hearing.","The Department of Managed Health Care and HCAI presented a joint May Revision proposal to require licensure of pharmacy benefit managers contracting with California insurers and to mandate PBM data reporting to HCAI; the DMHC would gain audit and enforcement authority and both agencies would seek positions to implement the new requirements.","actionData","errors"]

Article not found

Public testifies as Assembly subcommittee weighs May Revision cuts to California Reducing Disparities Project and Office of Health Equity

Department of State Hospitals outlines reversion of IST infrastructure funds, position and program reductions

HCAI outlines $1.9 billion BH Connect workforce plan, CalRx changes and diaper‑access proposal in May Revision

Commission on Behavioral Health warns $20 million Mental Health Wellness Act cut would halt key grants

Assembly panel hears joint HCAI/DMHC plan to license PBMs and require drug‑supply reporting