BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | AB 1618| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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 AB 1618 Page 2 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. AB 1618 Page 3 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 AB 1618 Page 4 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 **** END **** AB 1618 Page 5