BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 861 (Maienschein) - Mental health:  community-based services
          
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          |Version: May 12, 2015           |Policy Vote: HEALTH 9 - 0       |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: July 6, 2015      |Consultant: Brendan McCarthy    |
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          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  







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          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. 








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