BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:                    AB 253    
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          |AUTHOR:        |Roger Hernández                                |
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          |VERSION:       |April 30, 2015                                 |
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          |HEARING DATE:  |June 24, 2015  |               |               |
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          |CONSULTANT:    |Reyes Diaz                                     |
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           SUBJECT  :  Mental health.

           SUMMARY  :  Requires specified government entities responsible for  
          administering the Veterans Housing and Homeless Prevention Act  
          of 2014 (VHHP) to give preference to applicants for funding from  
          the VHHP for supportive housing projects, as specified. Requires  
          the Governor to appoint two additional members to the Mental  
          Health Services Oversight and Accountability Commission with  
          mental health experience, as specified. Requires the Department  
          of Health Care Service to post specified information from mental  
          health plans to a dedicated Internet Web page and to notify  
          appropriate committees of the Legislature, as specified. 

          Existing law:
          1)Establishes the Mental Health Services Oversight and  
            Accountability Commission (MHSOAC) to oversee the  
            implementation of the Mental Health Services Act (MHSA),  
            enacted by voters in 2004 as Proposition 63, which provides  
            funds to counties to expand services, and develop innovative  
            programs and integrated service plans, for mentally ill  
            children, adults, and seniors through a one percent income tax  
            on personal income above $1 million.

          2)Specifies that the MHSA can only be amended by a two-thirds  
            vote of both houses of the Legislature and only as long as the  
            amendment is consistent with and furthers the intent of the  
            MHSA.  Permits provisions clarifying the procedures and terms  
            of the MHSA to be added by majority vote.

          3)Requires the MHSOAC to consist of 16 voting members as  
            follows:

                  a)        The Attorney General or his or her designee;







          AB 253 (Roger Hernández)                          Page 2 of ?
          
          
                  b)        The Superintendent of Public Instruction or  
                    his or her designee;
                  c)        The Chair of the Senate Health and Human  
                    Services Committee or another member of the Senate  
                    selected by the President pro Tempore of the Senate;
                  d)        The Chair of the Assembly Health Committee or  
                    another member of the Assembly selected by the Speaker  
                    of the Assembly; and,
                  e)        12 members appointed by the Governor that  
                    include:

                        i.             Two people with a severe mental  
                         illness;
                        ii.            A family member of an adult or  
                         senior with a severe mental illness;
                        iii.           A family member of a child who has  
                         or has had a severe mental illness;
                        iv.            A physician specializing in alcohol  
                         and drug treatment;
                        v.             A mental health professional;
                        vi.            A county sheriff;
                        vii.           A superintendent of a school  
                         district;
                        viii.          A representative of a labor  
                         organization;
                        ix.            A representative of an employer  
                         with less than 500 employees;
                        x.             A representative of an employer  
                         with more than 500 employees; and,
                        xi.            A representative of a health care  
                         services plan or insurer.

          4)Establishes the VHHP, an initiative measure enacted by the  
            voters in 2014 as Proposition 41, authorizing $600 million in  
            bonds for the acquisition, construction, rehabilitation, and  
            preservation of affordable multifamily supportive housing,  
            affordable multifamily transitional housing, or related  
            facilities for veterans and their families.

          5)Requires the California Housing Finance Agency (CalHFA), the  
            Department of Housing and Community Development (HCD), and the  
            Department of Veterans Affairs (CalVet) to work  
            collaboratively to carry out the duties and functions of the  
            VHHP.









          AB 253 (Roger Hernández)                          Page 3 of ?
          
          
          6)Provides that Department of Health Care Services (DHCS) is  
            responsible for the development and implementation of mental  
            health plans for Medi-Cal beneficiaries.

          7)Requires mental health plans, whether administered by public  
            or private entities, to provide culturally competent and  
            age-appropriate services, to the extent feasible.
          
          This bill:
          1)Requires CalHFA, HCD, and CalVet to give preference to  
            applicants for funding from the VHHP for supportive housing  
            projects when the applicant can demonstrate a multi-year  
            commitment of MHSA funding for the applicant's project funding  
            plan.

          2)Requires the Governor to appoint two additional members to the  
            MHSOAC: a) a person with knowledge and experience in reducing  
            mental health disparities and b) a person who is a veteran  
            with knowledge about veteran's mental health issues.

          3)Requires DHCS to post the cultural competence plan component  
            of each mental health plan on a dedicated Internet Web page  
            within 30 days after the mental health plan has been submitted  
            to DHCS for approval. Requires DHCS to notify the appropriate  
            fiscal and policy committees of the Legislature once the plan  
            is available on the Internet Web page.

           FISCAL  
          EFFECT  :  According to the Assembly Appropriations Committee,  
          this bill has no significant new costs to HCD to award  
          preference to specified applicants, and there are minor and  
          absorbable costs to reimburse for travel and lodging for MHSOAC  
          meetings (MHSA administration account).
           PRIOR  
          VOTES  :  
          
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          |Assembly Floor:                     |79 - 0                      |
          |------------------------------------+----------------------------|
          |Assembly Appropriations Committee:  |16 - 1                      |
          |------------------------------------+----------------------------|
          |Assembly Housing and Community      |4 - 0                       |
          |Development Committee:              |                            |
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          AB 253 (Roger Hernández)                          Page 4 of ?
          
          
          COMMENTS  :
          1)Author's statement. According to the author, AB 253  
            strengthens the expertise of the MHSOAC and bolsters the link  
            between bond funds that can be used for constructing housing  
            for veterans and service dollars that can assist in providing  
            services for veterans in those supportive housing projects. AB  
            253 adds two additional members to the MHSOAC to include a  
            veteran with knowledge about veterans' mental health issues  
            and a person with knowledge and expertise in reducing mental  
            health disparities. Doing so will help tackle these challenges  
            in these communities. The importance of making sure mental  
            health services and outreach are available to underserved  
            communities continues to be a challenge at the local level.  
            The information from the California Reducing Disparities  
            Project indicates communities are not receiving culturally  
            appropriate services. In fact, in some instances, they are not  
            being reached at all because they might require different  
            approaches to bring them into the system. Many speak about how  
            much they want to help veterans, and all of us are grateful  
            for their service. AB 253 is an opportunity for the  
            Legislature to make it easier to help our veterans.

          2)MHSA. The MHSA provides funding for programs within five  
            components:

               a)     Community Services and Supports (CSS): provides  
                 direct mental health services to the severely and  
                 seriously mentally ill, such as mental health treatment,  
                 cost of health care treatment, and housing supports. CSS  
                 requires counties to direct the majority of its funds to  
                 full-service partnerships, which are county-coordinated  
                 plans, in collaboration with the client and the family to  
                 provide the full spectrum of community services. These  
                 services consist of mental health services and supports,  
                 such as peer support and crisis intervention services,  
                 and nonmental health services and supports, such as food,  
                 clothing, housing, and the cost of medical treatment;
               b)     Prevention and Early Intervention: provides services  
                 to mental health clients in order to help prevent mental  
                 illness from becoming severe and disabling;
               c)     Innovation: provides services and approaches that  
                 are creative, in an effort to address mental health  
                 clients' persistent issues, such as improving services  
                 for underserved or unserved populations within the  
                 community;








          AB 253 (Roger Hernández)                          Page 5 of ?
          
          
               d)     Capital Facilities and Technological Needs: creates  
                 additional county infrastructure, such as additional  
                 clinics and facilities, and/or development of a  
                 technological infrastructure for the mental health  
                 system, such as electronic health records for mental  
                 health services; and;
               e)     Workforce Education and Training: provides training  
                 for existing county mental health employees, outreach and  
                 recruitment to increase employment in the mental health  
                 system, and financial incentives to recruit or retain  
                 employees within the public mental health system.

            The MHSA requires each county mental health department to  
            prepare and submit a three-year plan to DHCS that must be  
            updated each year and approved by DHCS after review and  
            comment by the MHSOAC. In their three-year plans, counties are  
            required to include a list of all programs for which MHSA  
            funding is being requested and that identifies how the funds  
            will be spent and what populations will be served. Counties  
            must submit their plans for approval to the MHSOAC before the  
            counties may spend certain categories of funding.

          3)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 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.

          4)Mental health plan requirements. 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  








          AB 253 (Roger Hernández)                          Page 6 of ?
          
          
            specified guidelines, including, but not limited to, how a  
            plan will establish appropriate care standards, how a plan  
            will provide specialty mental health services to eligible  
            adults and children, and other requirements. 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. 

          5)Data on mental illness and homelessness. In the "Current  
            Statistics on the Prevalence and Characteristics of People  
            Experiencing Homelessness in the United States," last updated  
            in July 2011 by the federal Substance Abuse and Mental Health  
            Services Administration, data from 2010 shows that,  
            nationally, on a given night 407,966 individuals were homeless  
            in shelters, transitional housing programs, or on the streets  
            (not including those who were sleeping at the homes of family  
            or friends), and 109,812 individuals were chronically homeless  
            (a one percent decrease from the previous year). Of these  
            individuals, 26.2% had a severe mental illness, and 34.7% of  
            adults had chronic substance use disorders. Over the course of  
            that year, data shows that a total of 1,593,150 individuals  
            experienced homelessness.

            According to HCD's Web site, California is home to nearly 1.8  
            million veterans, the largest veteran population in the  
            nation. Nearly 15,000 California veterans experience  
            homelessness on a given night, representing nearly 26% of the  
            nation's homeless veterans. Homeless veterans are  
            overrepresented in the homeless population, and veteran status  
            is associated with a higher risk of homelessness. Of the  
            state's extremely low-income veteran renter households, 79%  
            have a severe cost burden, spending more than 50% of their  
            income on housing.

          6)Double referral. This bill is double referred.  Should it pass  
            out of this committee, it will be referred to the Senate  
            Committee on Transportation and Housing.

          7)Related legislation. AB 745 (Chau) requires the Governor to  
            appoint an additional member to the MHSOAC who has experience  
            providing supportive housing to persons with a severe mental  
            illness. AB 745 is pending in the Senate Appropriations  
            Committee.
          
          8)Prior legislation. AB 1929 (Chau, Chapter 674, Statutes of  








          AB 253 (Roger Hernández)                          Page 7 of ?
          
          
            2014), allowed county mental health departments to deposit  
            MHSA funding with CalHFA, as specified, and allowed CalHFA to  
            use those funds for special housing needs for those with  
            mental illness. Required counties to dedicate funds to provide  
            housing assistance to those with serious mental illness who  
            are homeless or to the mentally ill at risk of being homeless.
            
            AB 639 (Pérez, Chapter 727, Statutes of 2013), established the  
            VHHP.
            
          9)Support. Supporters of this bill, including veterans'  
            organizations and mental health advocates, argue that this  
            bill would establish a more cooperative effort between state  
            and county behavioral health departments and private  
            nonprofits to obtain targeted funding for housing for veterans  
            with mental health conditions. Supporters further argue that  
            increasing the availability of housing for veterans, in  
            conjunction with giving them a voice on mental health plans,  
            offers the best chance for stability and reduced homelessness.  


           SUPPORT AND OPPOSITION  :
          Support:  California Association of Veteran Service Agencies  
                    (co-sponsor)
                    Racial and Ethnic Mental Health Disparities Coalition  
                    (co-sponsor)
                    Steinberg Institute (co-sponsor)
                    American Legion-Department of California
                    AMVETS-Department of California
                    California Association of County Veteran Service  
                    Officers
                    California Chapter of the National Association of  
                    Social Workers
                    California Military Officer Association of America
                    California Pan-Ethnic Health Network
                    California State Commanders Veterans Council
                    Disability Rights California
                    Little Hoover Commission
                    Mental Health America of California
                    VFW-Department of California
                    Vietnam Veterans of America-California State Council
                    
          Oppose:   None received.










          AB 253 (Roger Hernández)                          Page 8 of ?
          
          

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