BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 989
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          Date of Hearing:   April 13, 2011

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                   AB 989 (Mitchell) - As Amended:  March 21, 2011 

          Policy Committee:                              HealthVote:15-1
                        Human Services                  Vote: 6-0

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              No

           SUMMARY  

          This bill specifies transition-age foster youth as a population 
          that must be provided services through local programs funded 
          through Mental Health Services Act (MHSA) dollars.  
          Specifically, this bill requires that programs described in 
          county MHSA plans, which are currently required to include 
          services to address the needs of transition-age youth, also 
          include services to address the needs of transition-age foster 
          youth. 

           FISCAL EFFECT  

          Negligible net state fiscal impact. To the extent that counties 
          must divert MHSA funding from existing local priorities to new 
          services for transition-age foster youth, this bill has the 
          potential to reduce MHSA spending on services for other target 
          populations.

          Depending on how counties interpret and apply these provisions 
          and the extent to which counties are currently providing 
          services for transition-age foster youth, this bill could result 
          in unknown cost shifts. Potential cost shifts would likely not 
          exceed the low millions of dollars.  

           COMMENTS  

           1)Rationale  . According to the author, transition-age foster 
            youth between the ages of 16 and 25 have high rates of mental 
            illness.  The author argues the state has a responsibility to 
            address the needs of transition-age foster youth, given their 
            significant incidence of mental illness and unique status as 








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            "children of the state." The author notes that while the MHSA 
            directly references the need to fund programs that ensure that 
            transition age youth ages 16-25 achieve self-sufficiency 
            successfully, transition age foster youth are a subgroup of 
            this population that warrants special treatment and elevated 
            priority because they have uniquely acute mental health needs 
            that separate them from their peers. 
           
          2)Mental Health Services Act (Proposition 63)  . In November 2004, 
            California voters approved Proposition 63, also known as the 
            MHSA. The MHSA provides state funding for community mental 
            health programs through a personal income tax surcharge of 1 % 
            on the portion of a taxpayer's taxable income in excess of $1 
            million.   This bill amends a provision of the MHSA which 
            specified that MHSA-funded programs shall address the needs of 
            transition age youth by further specifying that the programs 
            address the needs for transition-age foster youth.  The bill 
            includes a statement that the Legislature finds and declares 
            that this measure clarifies procedures and terms of the act.  
            Such a clarification can be accomplished by a majority vote of 
            each house of the Legislature.
           
          3)Changes to MHSA Planning Process Recently Codified  . Currently, 
            counties are required to develop three-year plans that 
            describe the programs and services they intend to offer.  As 
            part of the 2011-12 budget, AB 100 (Budget Committee), Chapter 
            5, Statutes of 2011 made changes to Section 5847 of the 
            Welfare and Institutions Code.   Specifically, AB 100 removed 
            the requirement that DMH evaluate and approve a county's MHSA 
            expenditure plan.  This bill, as currently drafted, reflects 
            the version of Section 5847 as it existed prior to these 
            changes.  The author stated intent is not to modify the 
            provisions relating to plan approval.  Technical amendments 
            would be required in order to remove the unintended changes.
           
          4)Concerns  . The California Mental Health Directors Association 
            (CMHDA) notes that transition-age foster youth are part of the 
            target population for MHSA programs, but they indicate that 
            programs and services should be developed based on 
            community-identified priority and need.  They indicate that 
            they would support this bill if it was made voluntary for 
            counties to include services to transition-age foster youth. 

           Analysis Prepared by  :    Lisa Murawski / APPR. / (916) 319-2081 









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