BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           733 (Leno)
          
          Hearing Date:  01/21/2010           Amended: 01/11/2010
          Consultant:  Jacqueline Wong-HernandezPolicy Vote: Public Safety  
          7-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY: This bill requires the Victims Compensation and  
          Government Claims Board (VCGCB) to administer a grant program  
          for trauma recovery centers that provide victims services in the  
          areas of: mental health; community outreach; and coordination  
          among medical personnel, mental health care providers, law  
          enforcement and social services. VCGCB would be authorized to  
          award grants of up to $3,000,000, from the Restitution Fund.  
          This bill makes legislative findings and declarations regarding  
          the importance of providing treatment and services to crime  
          victims. 
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12      2012-13     Fund
           Restitution Fund grants      up to $3,000     up to $3,000       
          up to $3,000      Special*

          Program Administration        ***Unknown, likely minor costs***   
                              Special*           
          (VCGCB)                
                                                        
          *Restitution Fund
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: SUSPENSE FILE
          
          This bill requires the VCGCB to administer a new grant program  
          for trauma recovery centers. VCGCB would receive applications  
          and award grants totaling no more $3,000,000, to one or more  
          centers. The board may award grants funding for up to three  
          years. This bill makes a substantial appropriation, but to the  
          degree that the trauma recovery centers receiving grants are  
          successful, the state will likely have some cost savings. These  
          cost savings will, however, be at least somewhat offset by the  










          increased number of victims served under this program.

          Trauma recovery centers that would be eligible for the grants  
          described in this bill, would be very similar to the San  
          Francisco Trauma Recovery Center (TRC) in services provided. By  
          all measures, TRC has been very successful at providing victim's  
          services more cost effectively than individual reimbursements to  
          victims for seeking their own mental health and medical  
          services. In addition to the cost containment for each  
          individual victim that occurs when TRC as the provider is paid  
          by VCGCB (because it seeks to serve as many people as possible,  
          as opposed to a victim potentially incurring more expensive  
          services elsewhere) TRC has served seven times as many victims  
          in need of mental health services as the entire panel of San  
          Francisco fee-for-service providers. TRC provides services more  
          efficiently, and is able to reach more people (which often  
          mitigates cost savings).  If these services are needed, however,  
          there may be additional long term savings by providing them to  
          victims who would not seek them otherwise and would have a  
          slower recovery period.
          Page 2
          SB 733 (Leno)

          The $3,000,000 appropriation that will fund the grant program  
          may only come from the Restitution Fund, which is designed to  
          fund victims' services. The current system largely relies on  
          individual victims seeking mental and physical medical services,  
          and then applying to the VCGCB for reimbursement, which can take  
          several months.

          Requiring VCGCB to administer a new grant program will increase  
          existing workload, and it is unclear if new staff would be  
          required. A Bureau of State Audits (BSA) report from December  
          2008 criticized the size of the VCGCB administration relative to  
          services provided and the efficiency of reimbursement  
          processing. The BSA report also criticized VCGCB outreach,  
          contending that many victims are completely unaware of its  
          existence and program. The LAO estimates that in 2006-07, VCGCB  
          administrative costs accounted for $39,000,000 - about 31% of  
          the annual funding for that year. It is possible that the VCGCB  
          could absorb the administration and evaluation of this program  
          within existing resources.