BILL ANALYSIS Ó SENATE COMMITTEE ON TRANSPORTATION AND HOUSING Senator Jim Beall, Chair 2015 - 2016 Regular Bill No: AB 253 Hearing Date: 1/12/2016 ----------------------------------------------------------------- |Author: |Roger Hernández | |----------+------------------------------------------------------| |Version: |4/30/2015 | ----------------------------------------------------------------- ----------------------------------------------------------------- |Urgency: |No |Fiscal: |Yes | ----------------------------------------------------------------- ----------------------------------------------------------------- |Consultant|Alison Dinmore | |: | | ----------------------------------------------------------------- SUBJECT: Mental health DIGEST: This bill requires state agencies to give a preference to applicants for funding under the Veterans Housing and Homeless Prevention Act of 2014 that demonstrate a multiyear commitment of Mental Health Services Act (MHSA) funding for the applicant's project funding plan. This bill requires the Governor to appoint two additional members to the Mental Health Services Oversight and Accountability Commission with mental health experience, as specified. This bill also requires the Department of Health Care Services to post specified information from mental health plans to a dedicated Internet webpage and to notify appropriate committees of the Legislature, as specified. ANALYSIS: Existing law: 1)Enacts the Veterans Housing and Homeless Prevention Bond Act of 2014 (VHHP or "the Act"), also known as Proposition 41, which authorized the issuance of $600 million in general obligation bonds to provide multifamily housing to veterans pursuant to the VHHP. The VHHP required the California Housing Finance Agency (CalHFA), California Department of Housing and Community Development (HCD), and California Department of Veterans Affairs (CalVet) to establish and implement a program that focuses on veterans at risk of homelessness or experiencing temporary or chronic homelessness. This program will fund the acquisition, AB 253 (Roger Hernández) Page 2 of ? construction, rehabilitation, and preservation of affordable multifamily supportive housing, affordable transitional housing, affordable rental housing, or related facilities for veterans and their families to allow veterans to access and maintain housing stability. 2)Requires, pursuant to the VHHP, the program to do the following: a) Leverage public, private, and nonprofit funding sources. b) Prioritize projects that combine housing and supportive services, including but not limited to: job training, mental health, drug treatment, case management, care coordination, or physical rehabilitation. c) Ensure that program guidelines and terms provide requirements or scoring criteria to advance applicants that combine permanent or transitional housing, or both, with supportive services for veterans, or for partnering with housing developers or service providers that offer housing or services to veterans. 1)Defines "supportive housing" as housing occupied by the target population and that is linked to on- or off-site services that assist the resident in retaining the housing, improving his or her health status, and maximizing his or her ability to live and, when possible, work in the community. The intent is to enable residents to maintain stable lives and places no limit on the length of stay. 2)Defines "transitional housing" and "transitional housing development" as a rental housing development that operates under program requirements that call for the termination of assistance and recirculation of the assisted unit to another eligible program recipient at a predetermined future point in time, but not less than six months. 3)Establishes the Mental Health Services Oversight and Accountability Commission (MHSOAC) to oversee the implementation of the 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 1% income tax on personal income above $1 million. AB 253 (Roger Hernández) Page 3 of ? 4)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. 5)Requires the MHSOAC to consist of 16 voting members as follows: a) The Attorney General or his or her designee 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 e) 12 members appointed by the Governor that include: Two people with a severe mental illness A family member of an adult or senior with a severe mental illness A family member of a child who has or has had a severe mental illness A physician specializing in alcohol and drug treatment A mental health professional A county sheriff A superintendent of a school district A representative of a labor organization A representative of an employer with less than 500 employees A representative of an employer with more than 500 employees A representative of a health care services plan or insurer 1)Provides that Department of Health Care Services (DHCS) is responsible for the development and implementation of mental health plans for Medi-Cal beneficiaries. 2)Requires mental health plans, whether administered by public or private entities, to provide culturally competent and age-appropriate services, to the extent feasible. AB 253 (Roger Hernández) Page 4 of ? 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 multiyear 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 webpage within 30 days after the mental health plan has been submitted to DHCS for approval. DHCS must also notify the appropriate fiscal and policy committees of the Legislature once the plan is available on the Internet webpage. COMMENTS: 1)Purpose of the bill. According to the author, the state faces a conundrum as it invests Proposition 41 funding for the creation of supportive housing for the most vulnerable veterans in our homeless population: veterans with mental health issues. As a state we have money to build the housing structures but no state funds to provide the vital services. It would be like building a hospital with all the equipment but falling short by not providing doctors or nurses. Building schools without providing counselors or teachers. AB 253 bolsters the link between Proposition 41 bond funds that can only be used for the construction of housing and Proposition 63 funds which can be used for services. This important link between state and local partners is fiscally prudent and ensures our promises are kept to veterans under Proposition 41 and Proposition 63. 2)VHHP guidance about mental health services. On October 13, 2015, the implementing departments adopted their revised VHHP program guidelines based upon feedback from interested stakeholders following the first round of funding. Among other things, the guidelines: 1) prioritize projects that combine housing and supportive services, and 2) establish application selection criteria that integrate prioritization AB 253 (Roger Hernández) Page 5 of ? criteria expressed through preference-point weighting. Under these guidelines, applications are rated with a maximum total score of 133 points for projects including supportive housing or transitional housing, or both, and 80 points for other projects. Projects that have supportive housing or transitional housing, or both, must comply with the following relevant requirements: a) Provide case-management services on-site, providing direct services to residents. b) Provide the following minimum services, either directly or through commitment letters or formal agreements with other agencies: Intensive case management to engage with each veteran and jointly develop an individual service plan Benefits counseling and advocacy, including assistance in enrolling in Medi-Cal and obtaining other mainstream services, as well as Veterans Affairs (VA) system navigation and assistance in obtaining discharge upgrade and veterans benefits Mental health care, such as assessment, crisis counseling, individual and group therapy, and support groups Substance use services, such as treatment, relapse prevention, and support groups Additionally, supportive housing or transitional housing projects must prepare a Supportive Services Plan that is appropriate for the target populations and a budget to show that the funding is adequate (i.e., a line-item budget with supporting documentation and services staffing charts.). 1)Flexibility to applicants. The guidelines currently give preference to projects that can demonstrate that services are adequately funded. If the guidelines were to give preference to one funding source over another, projects that have experience providing services using another funding source or sources would be ranked lower. If this bill were enacted, a project using MHSA funding would be given preference over another project that has traditionally utilized local or federal funding sources, even though the other projects may score higher in accordance with the existing guidelines. AB 253 (Roger Hernández) Page 6 of ? Adding such a preference could inadvertently preclude a worthy project from receiving funding from the VHHP program. Presently, the guidelines do not preclude an applicant from utilizing MHSA funding; in fact, one project in the first round did so. The guidelines as drafted give equal weight to different funding sources with the intent of providing flexibility to applicants to develop an application and program based upon the most appropriate funds available to them. 2)Is there a problem to solve? VHHP requires HCD, CalHFA, and CalVet to establish and implement a program that, among other things, leverage public (federal, state, and local), private, and nonprofit services, including mental health and drug treatment; promote public and private partnerships; and foster innovative financing opportunities. Additionally, the guidelines provide flexibility to utilize MHSA funds and the departments have received applications and funded projects that utilize MHSA funds. The committee may wish to consider whether this bill is an answer in search of a problem. 3)Too soon? The VHHP program recently received applications for the second round of funding and likely will not make the awards until the second quarter of this year. This second round of funding followed a public process of receiving input from stakeholders on experience from the first round. Generally, with new programs such as this, it takes applicants a couple of funding rounds to fully understand the requirements that a state agency or agencies puts in place. This program in particular places novel requirements that applicants have not seen or experienced before. On January 5, 2016, during a joint Senate oversight hearing on covering the progress of the program, Senators of this committee heard from some stakeholders that they were holding off applying until the third round to fully understand the requirements in the current guidelines. Making changes to the statute will require the departments to make changes to the guidelines and undergo the public review process, which could lead to uncertainty for those seeking funding and further delay the awarding of funding. 4)Double-referral. This bill was double-referred. It was heard in the Senate Health Committee on June 24, 2015, and approved 8-0. AB 253 (Roger Hernández) Page 7 of ? Assembly votes: Floor: 79-0 Appr: 16-1 Health: 19-0 H&CD: 4-0 Related Legislation: SB 384 (Leyva) - requires on or after January 1, 2017, that a percentage of the state funds under the VHHP be reserved for underserved veterans. This bill is currently in this Committee. SB 689 (Huff) - requires state agencies to prioritize projects under the VHHP that, for the purposes of providing mental health and drug services, either: 1) accept only residents that are prequalified to receive services from the VA, or 2) if they accept residents who receive services from agencies other than the VA, employ on staff or contract for a qualified mental health professional with at least two years' full-time relevant experience providing services to veterans. This bill is currently in this Committee. AB 639 (Perez, Chapter 727, Statutes of 2013) - created the VHHP and allows for $600 million in bonds to be used for housing homeless and low-income veterans. FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No POSITIONS: (Communicated to the committee before noon on Wednesday, January 6, 2016.) SUPPORT: California Association of Veteran Service Agencies (co-sponsor) The Racial and Ethnic Mental Health Disparities Coalition (co-sponsor) The Steinberg Institute (co-sponsor) American Legion - Department of California AMVETS - Department of California California Association of County Veteran Service Officers AB 253 (Roger Hernández) Page 8 of ? California Pan-Ethnic Health Network California State Commanders of Veterans Council, VFW - Department of California Disability Rights California The Little Hoover Commission Mental Health America of California Military Officer Association of America, California Council of Chapters Vietnam Veterans of America - California State Council OPPOSITION: California Department of Veterans Affairs California Housing Finance Agency ARGUMENTS IN SUPPORT: Supporters of this bill state that veterans are overrepresented in the homeless population and often struggle to receive adequate mental health services. County Mental Health systems are financially strapped and some mentally ill homeless veterans are ineligible for mental health care through the federal VA. AB 253 would establish a more cooperative effort between the state and county behavioral health departments and private non-profits to obtain targeted funding for housing veterans with mental-health conditions. ARGUMENTS IN OPPOSITION: The opposition states that by providing priority points for projects that include Proposition 63 funding, qualified programs that utilize other funding and service structures, such as grants from the federal government or services provided by the federal VA, would be put at a competitive disadvantage in the scoring process. Additionally, this program already has a clause built into the statute that would "prioritize projects that combine housing and supportive services, including but not limited to, job training, mental health and drug treatment, case management, care coordination, or physical rehabilitation." This bill is therefore unnecessary because mental health is already a priority factor to be considered under the guidelines required by the program. -- END -- AB 253 (Roger Hernández) Page 9 of ?