TO: Board of Supervisors
FROM: Jennifer Yasumoto, Director of Health and Human Services Agency
REPORT BY: Gaby Angeles, Staff Services Analyst II
SUBJECT: Agreement No. 270116B with Sierra Health Foundation: Center for Health Program Management

RECOMMENDATION
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Approve and authorize Revenue Agreement No. 270116B with Sierra Health Foundation: Center for Health Program Management, for a revenue amount of $317,530 for the period of March 1, 2026 through March 31, 2028 for the provision of Prop 36 funding to support a wide variety of needs that exist in providing treatment and supportive services for this specific population, including treatment, coordination with the courts and justice partners, recovery housing, rental assistance, and barrier removal. (Fiscal Impact: $317,530.19 Revenue; Health and Human Services Agency Fund; Budgeted; Mandatory)
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BACKGROUND
On November 5, 2024, California voters overwhelmingly approved Proposition 36. This measure modifies provisions of Proposition 47 (2014) to increase accountability for certain drug and theft crimes. A central pillar of the initiative is the creation of a "treatment-mandated felony," a new legal process allowing prosecutors to charge individuals with a felony for drug possession if they have two or more prior drug-related convictions. The statutory intent of this framework is to create a treatment-focused court process. Individuals charged under this statute are offered the opportunity to complete court ordered drug and mental health treatment. Successful completion of the treatment program results in the dismissal of the charges, prioritizing a health-based resolution over incarceration for eligible participants. While Proposition 36 established these new legal mandates, it did not originally include a dedicated funding source. The California State Legislature included a one-time allocation in the AB 102 Budget Act of 2024. This funding is intended to support counties in establishing the necessary behavioral health infrastructure to conduct assessments, coordinate with the courts, and deliver the mandated treatment services and related supportive services including Recovery Housing.
Requested Action:
1. Approve and authorize Revenue Agreement No. 270116B with Sierra Health Foundation: Center for Health Program Management, for a revenue amount of $317,530 for the period of March 1, 2026 through March 31, 2028.
FISCAL IMPACT
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Is there a Fiscal Impact? |
Yes |
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Is it currently budgeted? |
Yes |
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Where is it budgeted? |
Health and Human Services Agency, Behavioral Health Division |
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Is it Mandatory or Discretionary? |
Mandatory |
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Is the general fund affected? |
No |
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Future fiscal impact: |
This Agreement terminates on March 31, 2028. Appropriations have been included in the approved time frame. |
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Consequences if not approved: |
If not approved, HHSA would lose out on a non-competitive funding opportunity to support Behavioral Health infrastructure. |
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Additional Information |
Strategic Initiative: Compassion & Access |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.