BILL ANALYSIS                                                                                                                                                                                                    



                                                                     AB 847


                                                                    Page  1





          Date of Hearing:  May 13, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          847 (Mullin) - As Amended April 30, 2015


           ----------------------------------------------------------------- 
          |Policy       |Health                         |Vote:|19 - 0       |
          |Committee:   |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
          |-------------+-------------------------------+-----+-------------|
          |             |                               |     |             |
          |             |                               |     |             |
          |             |                               |     |             |
           ----------------------------------------------------------------- 


          Urgency:  Yes State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill requires the Department of Health Care Services (DHCS)  
          to apply to the United States Secretary of Health and Human  
          Services for a specified federal planning grant, for the purpose  
          of developing proposals to improve mental health services  








                                                                     AB 847


                                                                    Page  2





          provided by certified community behavioral health clinics to  
          Medi-Cal beneficiaries.


          FISCAL EFFECT:


          Administrative costs to DHCS estimated at under $100,000  
          (GF/federal) to apply for the planning grant.  This is subject  
          to uncertainty, as the grant application has not yet been  
          released.  If this grant is received, federal planning grant  
          funds would pay for the development of the demonstration project  
          grant.


          COMMENTS:


          1)Purpose.  According to the author, receiving the federal  
            demonstration project grant, for which planning funds are  
            sought through this bill, would nearly double federal funds to  
            support community mental health and alcohol and drug services,  
            with no additional state or county cost. The law allows for  
            eight states to be selected for two years to have the federal  
            share of costs increased for outpatient behavioral health  
            services. The author contends it would also reduce costs for  
            hospitalization and incarceration.


          2)Background. Federal law authorizes the Protecting Access to  
            Medicare Act of 2014 (H.R. 4302) (Act) to establish an  
            eight-state demonstration project that creates criteria for  
            "Certified Community Behavioral Health Clinics," facilities  
            designed to serve individuals with serious mental illnesses  
            and substance use disorders.  The Act provides $25 million  
            that will be available to states as planning grants to develop  
            applications, and the National Conference of State  
            Legislatures indicates federal cost estimates for the actual  
            demonstration project are $600 million nationally over five  








                                                                     AB 847


                                                                    Page  3





            years.  This Act also directs the secretary to award planning  
            grants to states for the development of demonstration  
            proposals by January 1, 2016, and to select states to  
            participate in the demonstration program by September 1, 2017.  
             


          3)Related Legislation. AB 861 (Maienschein), also on today's  
            agenda, is very similar to this bill. 


          


          Analysis Prepared by:Lisa Murawski / APPR. / (916)  
          319-2081