BILL ANALYSIS Ó AB 861 Page 1 Date of Hearing: May 13, 2015 ASSEMBLY COMMITTEE ON APPROPRIATIONS Jimmy Gomez, Chair AB 861 (Maienschein) - As Amended April 30, 2015 ----------------------------------------------------------------- |Policy |Health |Vote:|19 - 0 | |Committee: | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | |-------------+-------------------------------+-----+-------------| | | | | | | | | | | | | | | | ----------------------------------------------------------------- Urgency: Yes State Mandated Local Program: NoReimbursable: No SUMMARY: This bill, as proposed to be amended, requires Department of Health Care Services (DHCS), in conjunction with, and contingent on, an application for a specified federal demonstration grant, to do the following: identify the unmet need for the covered AB 861 Page 2 services; estimate the number of individuals who will need housing assistance; and include a plan for counties to redirect potential county savings for behavioral health services to provide increased housing opportunities for individuals with severe mental illnesses. FISCAL EFFECT: Minor and absorbable costs to DHCS to ensure a grant application, if the department applies, meets the criteria. COMMENTS: 1)Purpose. According to the author, receiving the federal demonstration project, 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. 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 years. The 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. AB 861 Page 3 3)Related Legislation. AB 847 (Mullin), also on today's agenda, requires DHCS to apply for a planning grant for the demonstration project discussed above. Analysis Prepared by:Lisa Murawski / APPR. / (916) 319-2081