BILL ANALYSIS Ó
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|SENATE RULES COMMITTEE | AB 1618|
|Office of Senate Floor Analyses | |
|(916) 651-1520 Fax: (916) | |
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THIRD READING
Bill No: AB 1618
Author: Committee on Budget
Amended: 6/23/16 in Senate
Vote: 27
PRIOR VOTES NOT RELEVANT
SENATE BUDGET & FISCAL REVIEW COMMITTEE: 13-3, 6/27/16
AYES: Leno, Allen, Beall, Block, Glazer, Hancock, Mitchell,
Monning, Moorlach, Nguyen, Pan, Pavley, Roth
NOES: Nielsen, Anderson, Stone
NO VOTE RECORDED: Wolk
SUBJECT: Mental health services
SOURCE: Author
DIGEST: This bill establishes the No Place Like Home Program to
further the development of permanent supportive housing for
persons who are in need of mental health services and are
homeless, chronically homeless, or at risk of homelessness.
ANALYSIS: This bill includes the following key changes:
1) Establishes the No Place Like Home Program to be
administered by the Department of Housing and Community
Development (HCD), in consultation with an advisory committee
with a specified membership, to distribute $2 billion among
the counties to finance capital costs, including acquisition,
design, construction, rehabilitation or preservation and
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capitalized operating costs of permanent supportive housing
for persons who are eligible for services under Proposition
63 and are homeless, chronically homeless, or at risk of
chronic homelessness.
2) States that establishing a housing program providing
permanent supportive housing to persons who are in need of
mental health services and are homeless, chronically homeless
or at risk of homelessness is in furtherance of the purposes
of Proposition 63, enacted in the November 2, 2004 statewide
general election that imposed a one percent tax on income
exceeding $1 million.
3) Funds the program through the issuance of bonds by the State
Treasurer and secured by Proposition 63 revenues and
allocates the funds as follows:
$1.8 billion for a competitive grant program to
counties that meet minimum eligibility criteria related to
their ability to use the funds to develop and operate
permanent supportive housing to persons who are eligible
for services under Proposition 63 and are homeless,
chronically homeless or at risk of chronic homelessness,
with a preference for targeting those who are chronically
homeless or at risk of chronic homelessness.
$200 million to be distributed to counties for
construction, rehabilitation or preservation and
capitalized operating costs of permanent supportive
housing for persons who are eligible for services under
Proposition 63 and are homeless, chronically homeless or
at risk of chronic homelessness, with a priority for with
mental health supportive needs who are homeless or at risk
of chronic homelessness.
1) Authorizes an alternative process to the competitive grants
for counties with at least five percent of the state's
homeless population and provides a set aside of eight percent
for small counties.
2) Establishes four categories for the competitive grants based
on population, with a separate category for Los Angeles
County and requires at least four rounds of grants, as
specified.
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3) Specifies that the loans are in the form of secured deferred
payment loans to pay for the costs of development and
specifies additional loan terms; and provides for funds to
secure or avert default.
4) Appropriates $6.2 million from Proposition 63 funds for
technical and application assistance to the counties,
specifies amounts based on county size and authorizes HCD to
contract for expert technical assistance.
5) Requires annual reporting by the counties, HCD and an
evaluation.
6) Authorizes a General Fund loan of $1 million for program
implementations prior to receipt of bond funds.
7) States legislative intent that the costs to service the debt
for the bond shall not impede direct mental health services
provided by the counties.
8) Makes the following changes to the Mental Health Services
Act (MHSA) to improve transparency and accountability:
Requires the Department of Health Care Services (DHCS)
to revise MHSA county annual revenue and expenditure
reporting requirements, in consultation with county
representatives, to ensure timely, accurate, and
consistent data.
Requires DHCS to regularly post the annual revenue and
expenditure reports and each county's three-year MHSA
expenditure plan.
Requires counties to certify the accuracy of the data
they submit to DHCS.
Permits DHCS to request that the State Controller's
Office withhold MHSA funds from counties that fail to
comply with reporting requirements.
Requires DHCS to regularly conduct county MHSA program
reviews (as related to the requirements of the existing
performance contracts) and to post on its Web site
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findings from these reviews and county plans of
corrections when deficiencies are identified.
Requires DHCS to summarize county MHSA performance
outcomes.
1) Amends the MHSA to provide that at least one of the
Governor's appointees to the Mental Health Services Oversight
and Accountability Commission shall have a background in
auditing.
FISCAL EFFECT: Appropriation: Yes Fiscal
Com.:YesLocal: No
According to the Senate Budget and Fiscal Review Committee,
appropriates $6.2 million from Proposition 63, authorizes a
General Fund loan of $1 million, and provides for the issuance
of $2 billion in bonds by the Treasurer and secured by
Proposition 63 revenues.
SUPPORT: (Verified6/24/16)
None received
OPPOSITION: (Verified6/24/16)
None received
Prepared by:Farra Bracht / B. & F.R. / (916) 651-4103
6/27/16 16:10:15
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