BILL ANALYSIS Ó AB 253 Page 1 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, | | AB 253 Page 2 | | |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. AB 253 Page 3 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 AB 253 Page 4 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. AB 253 Page 5 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," AB 253 Page 6 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