BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 253


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          Date of Hearing:  May 27, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          253 (Roger Hernández) - As Amended April 30, 2015


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          |Policy       |Housing and Community          |Vote:|4 - 0        |
          |Committee:   |Development                    |     |             |
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          |             |Health                         |     |19 - 0       |
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          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  








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            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  








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            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  








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          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  








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               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

















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