BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 861 (Maienschein) - Mental health: community-based services ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: May 12, 2015 |Policy Vote: HEALTH 9 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: July 6, 2015 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- This bill meets the criteria for referral to the Suspense File. Bill Summary: AB 861 would require the Department of Health Care Services to apply for a specified federal demonstration grant program, provided that the Department receives an initial planning grant related to the demonstration grant program. Fiscal Impact: One-time costs likely from $1 million to $2 million to develop an application for the demonstration grant program by the Department of Health Care Services (federal funds). Background: Federal law authorizes a demonstration program that would allow certified community behavioral health clinics in selected states to receive enhanced federal matching funds for services provided to Medicaid beneficiaries (Medi-Cal in California). The program includes an initial grant process under which states can apply for planning grants, in order to develop their applications for the larger demonstration grant program. The Department of Health Care Services is in the process of AB 861 (Maienschein) Page 1 of ? developing its application for a planning grant. According to the Department, if it is successful in receiving a planning grant, the grant amount is likely to be $1 million to $2 million and should be sufficient to pay for the costs to develop an application to participate in the demonstration grant program. Proposed Law: AB 861 would require the Department of Health Care Services to apply for a specified federal demonstration grant program, provided that the Department receives an initial planning grant related to the demonstration grant program. The bill would require the Department to work with counties and other stakeholders to identify unmet needs for services and estimate the number of individuals that will need housing services in the development of the application for a demonstration grant. The bill would also require the demonstration grant proposal to include provisions for the use of county funds currently used to draw down federal matching funds that will be freed up by the additional federal funding that would be available under the demonstration grant program. Related Legislation: AB 847 (Mullin) would require the Department of Health Care Services to apply for a planning grant under the federal grant program addressed by this bill. That bill is in this committee. Staff Comments: The Department of Health Care Services is currently in the process of developing their application for a planning grant, under this federal program. If the Department is awarded a planning grant, it is likely that the Department would apply for the larger demonstration grant. However, the Department does not believe that it would be obligated to do so by federal law. This bill would require the Department to apply for the demonstration grant. If successfully awarded a demonstration grant, the state would receive an unknown amount of additional federal funding to provide mental health and behavioral health services to Medi-Cal beneficiaries. AB 861 (Maienschein) Page 2 of ? -- END --