BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                          AB 826 (Atkins)
          
          Hearing Date: 8/15/2011         Amended: 6/21/2011
          Consultant: Katie Johnson       Policy Vote: Public Safety 6-1
          _________________________________________________________________
          ____
          BILL SUMMARY:  AB 826 would permit the California Department of 
          Corrections and Rehabilitation (CDCR) to create an Integrated 
          Services for Mentally Ill Parolees (ISMIP) program, as 
          specified, which would provide varied levels of care, supportive 
          and transitional housing, and an array of mental health 
          rehabilitative services that would assist with the development 
          of independent living.
          _________________________________________________________________
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2011-12      2012-13       2013-14     Fund
           Cost pressure to       likely in the tens of millions to 
          hundreds               General
          increase ISMIP caseloadof millions of dollars annually  

          Potential DOJ litigation          up to $1,000 - $2,000 
          annuallySpecial*

          *Legal Services Revolving Fund    
          _________________________________________________________________
          ____

          STAFF COMMENTS: This bill meets the criteria for referral to the 
          Suspense File.
          
          Existing law, as a condition of disbursing prison construction 
          funds, AB 900 (Solorio), Chapter 7, Statutes of 2007, requires 
          the California Department of Corrections and Rehabilitation 
          (CDCR) to serve at least 300 parolees in day treatment or crisis 
          care centers. In order to comply with AB 900, CDCR 
          administratively established the Integrated Services for 
          Mentally Ill Parolees (ISMIP) program to serve approximately 300 
          mentally ill parolees. This bill would authorize CDCR to 
          establish an ISMIP program, as specified. 

          The existing program serves between 290 and 340 parolees at any 








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          point in time at a cost of approximately $30,000 per parolee. 
          ISMIP participants are referred to the program by prison 
          outpatient clinic (OPC) staff, the clinic system that provides 
          mental health services for parolees, and prior to parole based 
          on an offender pre-release assessment. CDCR contracts with local 
          ISMIP service providers who provide case management to 
          participants and focus on connecting them to housing, food, and 
          clothing, as well as to vocational education, job placements, 
          and medical care.

          This bill would codify ISMIP and would set forth eligibility 
          criteria. To the extent that CDCR chose to implement ISMIP, an 
          inmate would be eligible and would qualify for ISMIP if all of 
          the following conditions are met:
             1)   He or she participates in the Enhanced Outpatient 
               Program, the Correctional Clinical Case Management System, 
               or receives a higher level of mental health care while in 
               prison;
             2)   He or she voluntarily chooses to participate in the 
               ISMIP program;
             3)   He or she is assigned a date of release within 60 to 180 
               days.

          This bill would require CDCR to prioritize ISMIP eligibles that 
          are likely to become homeless upon release, as defined.
          This bill would require ISMIP service providers to provide all 
          of the following services:
             1)   Case management;
             2)   Coordination of mental health, medical, and substance 
               abuse treatment services;
             3)   Parole discharge planning;
             4)   Housing location services;
             5)   Rental subsidies;
             6)   Linkage to other services, as needed.

          At least 60 days prior to the release of an ISMIP participant 
          from prison, an ISMIP provider selected by CDCR would draft a 
          discharge plan with the participant related to housing placement 
          and would assist the participant in obtaining identification and 
          benefits for which he or she is eligible. This bill would 
          require ISMIP to prioritize housing opportunities that are 
          supported by the Mental Health Services Act, the Mental Health 
          Services Act Housing Program, or other funding sources for 
          housing for individuals with mental illness. ISMIP providers 








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          would be required to report specified data to CDCR. CDCR would 
          be required to report annually to the Legislature commencing by 
          February 1, 2013, and every February 1 thereafter, on the ISMIP 
          program. 

          Cost Pressure to Increase ISMIP Participation
          To the extent that these eligibility criteria make more than 300 
          individuals eligible for ISMIP, the current program capacity, 
          there would be increased cost pressure to serve each eligible 
          individual in an amount of approximately $30,000 per individual 
          annually. This bill would specify that this act would only be 
          operative when the Legislature appropriates moneys for ISMIP in 
          the Budget Act for each fiscal year.

          On October 1, 2011, CDCR will begin to realign non-violent 
          offenders from state prisons to county jails in an effort to 
          reduce California's state prison population. It is unknown how 
          realignment would interact with this bill and how it would 
          affect ISMIP eligibility since it is likely that many 
          individuals who would have been eligible for this program prior 
          to realignment would no longer be on parole and would be 
          ineligible for this program.

          The following is an estimate of the number of parolees that 
          would meet the ISMIP eligibility criteria set forth in this bill 
          post-realignment implementation. An inmate would be eligible and 
          would qualify for ISMIP if he or she participates in the 
          Enhanced Outpatient Program (EOP), the Correctional Clinical 
          Case Management System (CCCMS), or receives a higher level of 
          mental health care while in prison.

          Current EOP population is 4,600 - 4,900 and 4,400 - 4,600 in 
          prison and on parole, respectively. Approximately 300 EOP 
          participants parole each month. However, 71 percent of the 
          monthly EOP releases are serving a revocation term. With 
          realignment, parole revocations would be served in county jails, 
          not in state prisons. Thus, with realignment, approximately 87 
          EOP participants would parole each month, or 1,044 annually.

          Current CCCMS population is 31,000 and 18,000 in prison and on 
          parole, respectively. Approximately 1,600 CCCMS participants are 
          paroled monthly. Approximately 67 percent of those that parole 
          are serving a revocation term. Thus, with realignment, 
          approximately 528 CCCMS participants would parole each month, or 








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          6,336 annually.

          CDCR averages 22,000 mentally ill parolees. Of the monthly 
          average release of 10,800 inmates per month, approximately 1,900 
          are mentally ill-300 EOP and 1,600 CCCMS participants.

          Therefore, post-realignment, about 1,044 EOP and 6,336 CCCMS 
          participants would be eligible to receive ISMIP services 
          annually pursuant to this bill. After factoring in the 300 
          existing ISMIP participation slots, there would be cost pressure 
          to serve 7,080 additional parolees at an annual cost of $212 
          million General Fund. Actual cost pressure would depend on the 
          number of eligible parolees post-realignment implementation and 
          the number that opted to receive ISMIP services upon release.

          Staff notes that this bill lacks a definition for "a higher 
          level of mental health care" and that the author may wish to 
          consider defining the term in order to narrow the scope of 
          program eligibility to reduce caseload and cost.

          If this program were to effectively reduce the recidivism rate, 
          there could be potential long term savings to the correctional 
          system.

          Interaction with Existing Lawsuits
          To the extent that this bill would require that CDCR provide 
          mental-health care to parolees, it would expand the scope of the 
          existing Coleman class action lawsuit as well as increase the 
          litigation in the Valdivia class action case concerning 
          parolees. The increased litigation would likely span five or 
          more years. While the costs of litigation are unknown, it is 
          estimated that they would be approximately $600,000 annually and 
          necessary staffing would likely be up to $1 million annually 
          from the Legal Services Revolving Fund.