BILL NUMBER: SB 1392 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY JUNE 17, 2010
AMENDED IN SENATE APRIL 22, 2010
AMENDED IN SENATE APRIL 12, 2010
INTRODUCED BY Senator Steinberg
FEBRUARY 19, 2010
An act to amend Sections 50408 and 53545 of the Health
and Safety Code, relating to housing. 5713 and 5813.5
of, and to add Section 5784 to, the Welfare and Institutions Code,
relating to mental health, and making an appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 1392, as amended, Steinberg. Housing and Emergency
Shelter Trust Fund Act of 2006. Mental health:
community mental health services.
Existing law, the Bronzan-McCorquodale Act, contains provisions
governing the operation and financing of community mental health
services for the mentally disordered in every county through locally
administered and locally controlled community mental health programs.
Under existing law, the State Department of Mental Health is
allowed to advance, in equal monthly increments, up to 95% of the
annual funds due to community mental health programs.
This bill would remove the restriction to 12 monthly installments
and a maximum of 95% for advances.
Existing law, the Mental Health Services Act, an initiative
measure enacted by the voters as Proposition 63 at the November 2,
2004, statewide general election, establishes the Mental Health
Services Fund to fund various county mental health programs. The act
may be amended by the Legislature only by a 2/3 vote of both houses
and only so long as the amendment is consistent with and furthers the
intent of the act. The Legislature may clarify procedures and terms
of the act by majority vote.
Existing law requires the distribution of funds for the provision
of specified services, subject to the availability of funds in the
Mental Health Services Fund.
This bill would provide that the distribution of funds for
services provided be on a monthly basis.
Existing law establishes the Medi-Cal program, administered by the
State Department of Health Care Services, under which basic health
care services, including mental health services are provided to
qualified low-income persons. The Medi-Cal program is partially
governed and funded under federal Medicaid provisions.
This bill, as of July 1, 2011, would establish and continuously
appropriate, without regard to fiscal year, to the State Department
of Health Care Services, the Specialty Mental Health Services Federal
Trust Fund, which would consist of federal funds that may be use to
facilitate continuity of care for specialty mental health services
provided to adults who are Medi-Cal beneficiaries. The bill would
require moneys in the fund to be distributed by the State Department
of Health Services to community mental health programs based on
adjudicated claims.
Existing law establishes the Department of Housing and Community
Development within the Business, Transportation and Housing Agency,
and requires the department, on or before December 31 of each year,
to submit an annual report to the Governor and both houses of the
Legislature on the operations and accomplishments during the previous
fiscal year of the housing programs administered by the department.
Existing law also requires that, as part of the annual report, the
department include information on the expenditure and allocation of
certain funds made available pursuant to the Housing and Emergency
Shelter Trust Fund Act of 2006.
This bill would expand the scope of the department's reporting
requirement with respect to the funds made available pursuant to the
Housing and Emergency Shelter Trust Fund Act of 2006, and require the
department to include in its annual report for each program it
administers with bond act funds specified information relating to the
awarding and disbursement of these funds.
Vote: majority. Appropriation: no yes
. Fiscal committee: yes. State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature hereby finds and
declares all of the following:
(a) In recent years, community mental health services, which are
administered by the counties, have experienced sharp budget
reductions.
(b) These reductions have exacerbated emergency room overcrowding,
with mental health clients in crisis showing up in emergency rooms
instead of at mental health programs.
(c) Numerous recent audits of the state's administration of mental
health funds by the federal Centers for Medicaid and Medicare
Services, conducted in 2008 and 2010, revealed state noncompliance
with federal cost reporting requirements.
(d) Moreover, in 2007, a state audit by the Department of Finance,
Office of State Audits and Evaluations unearthed deficiencies in the
claims processing process for federal Medicare funds for mental
health.
(e) This act is necessary to facilitate the efficiency and cost
effectiveness of community mental health services and to prevent
avoidable future county budget cuts to mental health.
SEC. 2. Section 5713 of the Welfare and
Institutions Code is amended to read:
5713. Advances for funding mental health services may be made by
the Director of Mental Health from funds appropriated to the
department for local mental health programs and services
specified in the annual Budget Act. Any advances
Advances made pursuant to this section shall be made in
the form and manner the Director of Mental Health shall determine.
When certified by the Director of Mental Health, advances shall be
presented to the Controller for payment. Each advance shall be
payable from the appropriation made for the fiscal year in which the
expenses upon which the advance is based are incurred. The
advance may be paid monthly in 12 equal increments but the total
amount advanced in one fiscal year shall not exceed 95 percent of the
county's total allocation for that year.
SEC. 3. Section 5784 is added to the
Welfare and Institutions Code , to read:
5784. (a) Effective July 1, 2011, the Specialty Mental Health
Services Federal Trust Fund is hereby created in the State Treasury.
Notwithstanding Section 13340 of the Government Code, the Specialty
Mental Health Services Federal Trust Fund is hereby continuously
appropriated to the State Department of Health Care Services, without
regard to fiscal year.
(b) The fund consists of federal funds that may be used to
facilitate continuity of care for specialty mental health services
provided to adults who are Medi-Cal beneficiaries.
(c) Moneys in the fund shall be distributed by the State
Department of Health Care Services to community mental health
programs based on adjudicated claims and in accordance with the
requirements of federal law and the State Department of Health Care
Services, the state's designated Medicaid entity.
SEC. 4. Section 5813.5 of the Welfare
and Institutions Code is amended to read:
5813.5. Subject to the availability of funds from the Mental
Health Services Fund, the State Department of Mental Health shall
distribute funds for the provision of services under Sections 5801,
5802 and 5806 to county mental health programs on a monthly
basis . Services shall be available to adults and seniors with
severe illnesses who meet the eligibility criteria in subdivisions
(b) and (c) of Section 5600.3 of the Welfare and Institutions Code.
For purposes of this act, seniors means older adult persons
identified in Part 3 (commencing with Section 5800) of this division.
(a) Funding shall be provided at sufficient levels to ensure that
counties can provide each adult and senior served pursuant to this
part with the medically necessary mental health services, medications
and supportive services set forth in the applicable treatment plan.
(b) The funding shall only cover the portions of those costs of
services that cannot be paid for with other funds including other
mental health funds, public and private insurance, and other local,
state and federal funds.
(c) Each county mental health programs plan shall provide for
services in accordance with the system of care for adults and seniors
who meet the eligibility criteria in subdivisions (b) and (c) of
Section 5600.3.
(d) Planning for services shall be consistent with the philosophy,
principles, and practices of the Recovery Vision for mental health
consumers:
(1) To promote concepts key to the recovery for individuals who
have mental illness: hope, personal empowerment, respect, social
connections, self-responsibility, and self-determination.
(2) To promote consumer-operated services as a way to support
recovery.
(3) To reflect the cultural, ethnic and racial diversity of mental
health consumers.
(4) To plan for each consumer's individual needs.
(e) The plan for each county mental health program shall indicate,
subject to the availability of funds as determined by Part 4.5
(commencing with Section 5890) of this division, and other funds
available for mental health services, adults and seniors with a
severe mental illness being served by this program are either
receiving services from this program or have a mental illness that is
not sufficiently severe to require the level of services required of
this program.
(f) Each county plan and annual update pursuant to Section 5847
shall consider ways to provide services similar to those established
pursuant to the Mentally Ill Offender Crime Reduction Grant Program.
Funds shall not be used to pay for persons incarcerated in state
prison or parolees from state prisons.
(g) The department shall contract for services with county mental
health programs pursuant to Section 5897. After the effective date of
this section the term grants referred to in Sections 5814 and 5814.5
shall refer to such contracts.
SECTION 1. Section 50408 of the Health and
Safety Code is amended to read:
50408. (a) On or before December 31 of each year, the department
shall submit an annual report to the Governor and both houses of the
Legislature on the accomplishments and operations during the previous
fiscal year of the housing programs administered by the department,
including, but not limited to, the Emergency Housing and Assistance
Program and Community Development Block Grant activity.
(b) The report shall include all of the following information:
(1) The number of units assisted by those programs.
(2) The number of individuals and households served and their
income levels.
(3) The distribution of units among various areas of the state.
(4) The amount of other public and private funds leveraged by the
assistance provided by those programs.
(5) Information detailing the assistance provided to various
groups of persons by programs that are targeted to assist those
groups.
(6) The information required to be reported pursuant to Section
17031.8.
(7) The information required to be reported pursuant to Section
53545.
SEC. 2. Section 53545 of the Health and Safety
Code is amended to read:
53545. The Housing and Emergency Shelter Trust Fund of 2006 is
hereby created in the State Treasury. The Legislature intends that
the proceeds of bonds deposited in the fund shall be used to fund the
housing-related programs described in this chapter over the course
of the next decade. The proceeds of bonds issued and sold pursuant to
this part for the purposes specified in this chapter shall be
allocated in the following manner:
(a) (1) One billion five hundred million dollars ($1,500,000,000)
to be deposited in the Affordable Housing Account, which is hereby
created in the fund. Notwithstanding Section 13340 of the Government
Code, the money in the account shall be continuously appropriated in
accordance with the following schedule:
(A) (i) Three hundred forty-five million dollars ($345,000,000)
shall be transferred to the Housing Rehabilitation Loan Fund to be
expended for the Multifamily Housing Program authorized by Chapter
6.7 (commencing with Section 50675) of Part 2. The priorities
specified in Section 50675.13 shall apply to the expenditure of funds
pursuant to this clause.
(ii) Fifty million dollars ($50,000,000) shall be transferred to
the Housing Rehabilitation Loan Fund to be expended under the
Multifamily Housing Program authorized by Chapter 6.7 (commencing
with Section 50675) of Part 2 for housing meeting the definitions in
paragraphs (2) and (3) of subdivision (e) of Section 11139.3 of the
Government Code. The department may provide higher per-unit loan
limits as necessary to achieve affordable housing costs to the target
population. Any funds not encumbered for the purposes of this clause
by July 31, 2011, shall revert for general use in the Multifamily
Housing Program unless the department determines that funds should
revert sooner due to diminished demand.
(B) One hundred ninety-five million dollars ($195,000,000) shall
be transferred to the Housing Rehabilitation Loan Fund to be expended
for the Multifamily Housing Program authorized by Chapter 6.7
(commencing with Section 50675) of Part 2, to be used for supportive
housing for individuals and households moving from emergency shelters
or transitional housing or those at risk of homelessness. The
Department of Housing and Community Development shall provide for
higher per-unit loan limits as reasonably necessary to achieve
housing costs affordable to those individuals and households. For
purposes of this subparagraph, "supportive housing" means housing
with no limit on length of stay, that is occupied by the target
population, as defined in subdivision (d) of Section 53260, and that
is linked to onsite or offsite services that assist the tenant to
retain the housing, improve his or her health status, maximize his or
her ability to live, and, when possible, work in the community. The
criteria for selecting projects shall give priority to:
(i) Supportive housing for people with disabilities who would
otherwise be at high risk of homelessness where the applications
represent collaboration with programs that meet the needs of the
person's disabilities.
(ii) Projects that demonstrate funding commitments from local
governments for operating subsidies or services funding, or both, for
five years or longer.
(C) One hundred thirty-five million dollars ($135,000,000) shall
be transferred to the fund created by subdivision (b) of Section
50517.5 to be expended for the programs authorized by Chapter 3.2
(commencing with Section 50517.5) of Part 2.
(D) Three hundred million dollars ($300,000,000) shall be
transferred to the Self-Help Housing Fund created by Section 50697.1.
These funds shall be available to the Department of Housing and
Community Development, to be expended for the purposes of enabling
households to become or remain homeowners pursuant to the CalHome
Program authorized by Chapter 6 (commencing with Section 50650) of
Part 2, except ten million dollars ($10,000,000) shall be expended
for construction management under the California Self-Help Housing
Program pursuant to subdivision (b) of Section 50696.
(E) Two hundred million dollars ($200,000,000) shall be
transferred to the Self-Help Housing Fund created by Section 50697.1.
These funds shall be available to the California Housing Finance
Agency, to be expended for the purposes of the California Homebuyer's
Downpayment Assistance Program authorized by Chapter 11 (commencing
with Section 51500) of Part 3. Up to one hundred million dollars
($100,000,000) of these funds may be expended pursuant to subdivision
(b) of Section 51504.
(F) One hundred million dollars ($100,000,000) shall be
transferred to the Affordable Housing Innovation Fund, which is
hereby created in the State Treasury, to be administered by the
Department of Housing and Community Development. Funds shall be
expended for competitive grants or loans to sponsoring entities that
develop, own, lend, or invest in affordable housing and used to
create pilot programs to demonstrate innovative, cost-saving
approaches to creating or preserving affordable housing. Specific
criteria establishing eligibility for and use of the funds shall be
established in statute as approved by a 2/3 vote of each house of the
Legislature. Any funds not encumbered for the purposes set forth in
this subparagraph within 30 months of availability shall revert to
the Self-Help Housing Fund created by Section 50697.1 and shall be
available for the purposes described in subparagraph (D).
(G) One hundred twenty-five million dollars ($125,000,000) shall
be transferred to the Building Equity and Growth in Neighborhoods
Fund to be used for the Building Equity and Growth in Neighborhoods
(BEGIN) Program pursuant to Chapter 14.5 (commencing with Section
50860) of Part 1. Any funds not encumbered for the purposes set forth
in this subparagraph by November 17, 2011, shall revert for general
use in the CalHome Program unless the department determines that
funds should revert sooner due to diminished demand.
(H) Fifty million dollars ($50,000,000) shall be transferred to
the Emergency Housing and Assistance Fund to be distributed in the
form of capital development grants under the Emergency Housing and
Assistance Program authorized by Chapter 11.5 (commencing with
Section 50800) of Part 2 of Division 31. The funds shall be
administered by the Department of Housing and Community Development
in a manner consistent with the restrictions and authorizations
contained in Provision 3 of Item 2240-105-0001 of the Budget Act of
2000, except that any appropriations in that item shall not apply.
The competitive system used by the department shall incorporate
priorities set by the designated local boards and their input as to
the relative merits of submitted applications from within the
designated local board's county in relation to those priorities. In
addition, the funding limitations contained in this section shall not
apply to the appropriation in that budget item.
(2) The Legislature may, from time to time, amend the provisions
of law related to programs to which funds are, or have been,
allocated pursuant to this subdivision for the purpose of improving
the efficiency and effectiveness of the program, or for the purpose
of furthering the goals of the program.
(3) The Bureau of State Audits shall conduct periodic audits to
ensure that bond proceeds are awarded in a timely fashion and in a
manner consistent with the requirements of this subdivision, and that
awardees of bond proceeds are using funds in compliance with
applicable provisions of this subdivision. The first audit shall be
conducted no later than one year from voter approval of this part.
(b) Eight hundred fifty million dollars ($850,000,000) shall be
deposited in the Regional Planning, Housing, and Infill Incentive
Account, which is hereby created in the fund. Funds in the account
shall be available, upon appropriation by the Legislature, and
subject to such other conditions and criteria as the Legislature may
provide in statute, for the following purposes:
(1) For infill incentive grants for capital outlay related to
infill housing development and other related infill development,
including, but not limited to, all of the following:
(A) No more than two hundred million dollars ($200,000,000) for
park creation, development, or rehabilitation to encourage infill
development.
(B) Water, sewer, or other public infrastructure costs associated
with infill development.
(C) Transportation improvements related to infill development
projects.
(D) Traffic mitigation.
(2) For brownfield cleanup that promotes infill housing
development and other related infill development consistent with
regional and local plans.
(c) Three hundred million dollars ($300,000,000) to be deposited
in the Transit-Oriented Development Account, which is hereby created
in the fund, for transfer to the Transit-Oriented Development
Implementation Fund, for expenditure, upon appropriation by the
Legislature, pursuant to the Transit-Oriented Development
Implementation Program authorized by Part 13 (commencing with Section
53560).
(d) Two hundred million dollars ($200,000,000) shall be deposited
in the Housing Urban-Suburban-and-Rural Parks Account, which is
hereby created in the fund. Funds in the account shall be available
upon appropriation by the Legislature for housing-related parks
grants in urban, suburban, and rural areas, subject to the conditions
and criteria that the Legislature may provide in statute.
(e) (1) In its annual report to the Legislature, the department
shall include, for each program it administers with funds pursuant to
this section, both of the following:
(A) The amount of funds that were awarded in the prior year on a
per-project and aggregate basis.
(B) The amount of funds that were disbursed in the prior year on a
per-project and aggregate basis.
(2) The department shall make the report available to the public
on its Internet Web site.