BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 253


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          ASSEMBLY THIRD READING


          AB  
          253 (Roger Hernández)


          As Amended  April 30, 2015


          2/3 vote


           ------------------------------------------------------------------ 
          |Committee       |Votes |Ayes                 |Noes                |
          |                |      |                     |                    |
          |                |      |                     |                    |
          |----------------+------+---------------------+--------------------|
          |Housing         |4-0   |Steinorth, Beth      |                    |
          |                |      |Gaines, Lopez,       |                    |
          |                |      |Mullin               |                    |
          |                |      |                     |                    |
          |----------------+------+---------------------+--------------------|
          |Health          |19-0  |Bonta, Maienschein,  |                    |
          |                |      |Bonilla, Burke,      |                    |
          |                |      |Chávez, Chiu, Gomez, |                    |
          |                |      |Gonzalez, Roger      |                    |
          |                |      |Hernández, Lackey,   |                    |
          |                |      |Nazarian, Patterson, |                    |
          |                |      |Ridley-Thomas,       |                    |
          |                |      |Rodriguez, Santiago, |                    |
          |                |      |Steinorth, Thurmond, |                    |
          |                |      |Waldron, Wood        |                    |
          |                |      |                     |                    |
          |----------------+------+---------------------+--------------------|
          |Appropriations  |16-1  |Gomez, Bigelow,      |Gallagher           |
          |                |      |Bonta, Calderon,     |                    |
          |                |      |Chang, Daly, Eggman, |                    |
          |                |      |Eduardo Garcia,      |                    |








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          |                |      |Gordon, Holden,      |                    |
          |                |      |Jones, Quirk,        |                    |
          |                |      |Rendon, Wagner,      |                    |
          |                |      |Weber, Wood          |                    |
          |                |      |                     |                    |
          |                |      |                     |                    |
           ------------------------------------------------------------------ 


          SUMMARY:  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 Accountability  
            Commission (MHSOAC) by requiring the Governor to appoint two  
            additional members: 


             a)   A person with knowledge and experience in reducing mental  
               health disparities; and


             b)   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. 








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          FISCAL EFFECT:  According to the Assembly Appropriations  
          Committee:


          1)No significant new costs to the Department of Housing and  
            Community Development (HCD) to award preference to specified  
            applicants.


          2)Minor and absorbable costs to reimburse for travel and lodging  
            for MHSOAC meetings (MHSA administration account).


          COMMENTS:  


          Purpose of this bill:  According to the author, "The veteran  
          population 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."   


          This bill "adds expertise to the MHSOAC in the areas of veterans'  
          mental health issues and reducing mental health disparities.  The  
          bill also requires the departments administering Proposition 41  
          [2014] funds to give a preference to applicants when the applicant  
          can demonstrate a multiyear commitment of Mental Health Services  
          Act funding."   The author points out that "[f]inancing for  
          housing projects are a compilation of various funding sources.   
          Many times the housing projects require gap financing  
          opportunities.  While the state has traditionally provided bond  
          funds for the construction and rehabilitation of housing projects,  
          the search for service funds has remained a challenge."  To that  
          end, the author notes that currently no state mechanism exists for  








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          Proposition 41 funding to leverage Proposition 63 (2004) funding.   
          This bill "remedies that issue by requiring some type of priority  
          for this type of leveraging between these two fund sources." 


          According to the author, it is also "important that the data and  
          plans submitted by counties to the state regarding their efforts  
          to plan and deliver culturally competent services are shared with  
          the Legislature and currently there is no requirement for the  
          plans to be shared."


          MHSOAC:  In 2004, California voters approved Proposition 63:  the  
          MHSA.  The MHSA imposes a 1% tax on personal earnings over $1  
          million to fund county-run mental health programs.  The MHSA also  
          established the MHSOAC to oversee the implementation of the MHSA  
          and advise the Governor or the Legislature on mental health  
          policy.  The MHSA consists of 16 voting members with specified  
          mental health knowledge and experience.  


          This bill would add two additional members to the MHSOAC:  a  
          person with knowledge and experience in reducing mental health  
          disparities and a veteran with knowledge about veteran's mental  
          health issues. Both of these members would be appointed by the  
          Governor.


          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, among  
          other things, providing for culturally competent and  
          age-appropriate services, to the extent feasible.  Mental health  
          plans must also assess the cultural competency needs of the  
          program, and must include a process to accommodate the significant  
          needs with reasonable timeliness. 










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          AB 253 would require 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.





          The VHHP:  AB 639 (John A. Pérez), Chapter 727, Statutes of 2013,  
          established the VHHP, an initiative enacted by the voters as  
          Proposition 41 at the June 3, 2014 primary election.  The VHHP  
          restructures $600 million of the $900 million in bonds approved by  
          the voters for the California Department of Veterans Affairs  
          (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 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 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.  While encouraging the  
          use of MHSA funds for VHHP supportive housing services is  
          understandable, this bill does not define the term "preference,"  








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          and it is unclear what effect this will have on non-MHSA projects  
          that, under VHHP scoring criteria, score higher than projects with  
          a commitment of MHSA funds.  The MHSA is one of a variety of  
          funding sources that may be used to provide assistance to people  
          with mental health disorders, and has its own set of funding  
          requirements.  Not all veterans, including veterans with mental  
          illness, may be eligible for MHSA funded services.  Additionally,  
          nothing in the VHHP prevents a project from also being funded by  
          the MHSA, and the VHHP already prioritizes projects that combine  
          housing and supportive services, including mental health.  This  
          prioritization is reflected in the existing scoring criteria.




          Analysis Prepared by:                                               
                          Rebecca Rabovsky / H. & C.D. / (916) 319-2085  FN:  
          0000553