BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       AB 1618|
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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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