BILL ANALYSIS Ó AB 253 Page 1 Date of Hearing: May 27, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 253 (Roger Hernández) - As Amended April 30, 2015 ----------------------------------------------------------------- |Policy |Housing and Community |Vote:|4 - 0 | |Committee: |Development | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | |Health | |19 - 0 | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: No State Mandated Local Program: NoReimbursable: No SUMMARY: This bill makes specified changes to the Mental Health Services Act (MHSA), the Veterans Housing and Homeless Prevention (VHHP) Bond Act of 2014, and mental health plan requirements. Specifically, this bill: 1)Expands the Mental Health Services Oversight and AB 253 Page 2 Accountability Commission (Commission) by requiring the Governor to appoint two additional members, including a person with knowledge and experience in reducing mental health disparities, and a veteran with knowledge about veteran's mental health issues. 2)Requires the departments administering the VHHP to give a preference to applicants for supportive housing projects who can demonstrate a multiyear commitment of MHSA funding for the applicant's housing project funding plan. 3)Requires the Department of Health Care Services (DHCS) to post the cultural competence plan component of each mental health plan for Medi-Cal beneficiaries on their website within 30 days of DHCS receiving the plan, and to notify the Legislature when it is available. FISCAL EFFECT: 1)No significant new costs to the Department of Housing and Community Development to award preference to specified applicants. 2)Minor and absorbable costs to reimburse for travel and lodging for Commission meetings (MHSA administration account). COMMENTS: 1)Purpose. According to the author, "The veteran population AB 253 Page 3 continues to experience high levels of mental health issues. It is important that every effort is made to better understand how to provide services to this population. As California's demographics continue to change, it's clear that mental health outreach must be done in culturally knowledgeable ways to be effective." The author notes that the State must create opportunities to better leverage the investment of Proposition 63 with other voter approved funding sources that share the same policy mission and goals. According to the author, this is especially important as Proposition 41 projects are usually in need of gap financing and service dollars to successfully implement the projects. Background. a) Proposition 41. Passed by the voters in 2014, Proposition 41 established the VHHP. The VHHP restructures $600 million of the $900 million in bonds approved by the voters for the CalVet Home Loan Program in 2008, and uses them instead to fund the acquisition, construction, rehabilitation, and preservation of affordable multifamily supportive housing, affordable multifamily transitional housing, or related facilities for veterans and their families. The VHHP tasks HCD with administering the new funding program in collaboration with CalVet and explicitly restricts the use of bond proceeds to those housing units designated for veterans and their families. The focus of the program is on housing for AB 253 Page 4 veterans who are homeless, or at risk for homelessness, and in need of services such as mental health counseling, substance abuse treatment, job training, and physical therapy to address injuries. HCD released the first VHHP Program Notice of Funding Availability on February 20, 2015, announcing the availability of approximately $75 million in VHHP funding. The anticipated award date will be in June 2015. This bill would require departments administering the VHHP to give preference to applicants who have a multiyear commitment of MHSA funding for their housing project funding plan. b) MHSA. In 2004, California voters approved the MHSA as Proposition 63.The MHSA imposes a 1% tax on personal earnings over $1 million to fund county-run mental health programs. The MHSA also established the Commission to oversee implementation and advise the Governor and the Legislature on mental health policy. The Commission consists of 16 voting members with specified mental health knowledge and experience. This bill would add two members to the Commission, one of which is a veteran with knowledge about veterans' mental health issues. c) Mental Health Plans. DHCS is responsible for the development and implementation of mental health plans for Medi-Cal beneficiaries. Mental health plans, whether administered by public or private entities, are governed by specified guidelines, including providing for culturally competent and age-appropriate services, to the extent feasible. Mental health plans must also assess the cultural AB 253 Page 5 competency needs of the program, and must include a process to accommodate the significant needs with reasonable timeliness. This bill requires DHSC to submit the cultural competence plan component to the Legislature to better inform their decisions. 1)Related Legislation. AB 745 (Chau) requires the Governor to appoint an additional member to the Commission who has experience providing supportive housing to persons with a severe mental illness. AB 745 is currently pending in the Senate Health Committee. 2)Previous Legislation. AB 639 (Perez), Chapter 727, Statutes of 2013, establishes the VHHP. Analysis Prepared by:Jennifer Swenson / APPR. / (916) 319-2081 AB 253 Page 6