BILL ANALYSIS AB 34 Page 1 ASSEMBLY THIRD READING AB 34 (Steinberg) As Amended June 1, 1999 2/3 vote. Urgency HEALTH 14-0 APPROPRIATIONS 17-4 ----------------------------------------------------------------- |Ayes:|Gallegos, Baugh, |Ayes:|Migden, Cedillo, Davis, | | |Aanestad, Bates, Corbett, | |Pescetti, Hertzberg, | | |Firebaugh, Kuehl, | |Kuehl, Maldonado, Papan, | | |Steinberg, Strickland, | |Romero, Shelley, | | |Thomson, Vincent, Wayne, | |Steinberg, Thomson, | | |Wildman, Zettel | |Wesson, Wiggins, Wright, | | | | |Zettel, Aroner | |-----+--------------------------+-----+--------------------------| | | |Nays:|Brewer, Ashburn, Battin, | | | | |Runner | | | | | | ----------------------------------------------------------------- SUMMARY : Revises county mental health service standards to include access to integrated services, and establishes fiscal incentives for counties to engage in outreach to mentally ill persons. Specifically, this bill : 1)Revises county mental health service standards to be developed by the Department of Mental Health (DMH), to include coordination and access to medication, substance abuse services, supportive housing, veterans' services and vocational rehabilitation services. 2)Requires, as funds become available, the three demonstration projects established in the Adult and Older Adult Mental Health System of Care Act to be expanded to counties with significant populations of homeless mentally ill persons. 3)Establishes four-year planning and outreach grants to counties, provides for increased funding reflecting the number of adults receiving mental health services for at least four months in a six-month period. 4)Requires outreach grants to be sufficient to provide mental health services, medications, alcohol and drug services, housing assistance, vocational rehabilitation, financial management assistance and stipends to attract and retain AB 34 Page 2 professionals to provide services. 5)Permits an outreach grant to be renewed if the county demonstrates to DMH that the services are successfully reducing mental health needs and reducing law enforcement, criminal justice system, and state corrections expenditures on severely mentally ill persons. 6)Permits grant reductions based upon benchmarks for a 20% or larger reduction in incarceration rates over the four-year grant. Permits DMH to approve grant renewal if the benchmark is unmet and the county is stabilizing more mentally ill and reducing homelessness, achieving the maximum feasible reduction in incarceration, or meeting other performance criteria specified in the county contract. 7)Permits subsequent funding to be limited, or for conditions for improvement to be imposed upon a county that received a grant, but did not reduce criminal justice expenditures or meet other performance benchmarks as a result. Requires DMH to provide annual oversight of grants for compliance with contract standards. 8)Requires the DMH Director to establish an advisory committee to provide advice regarding the development of grant award criteria, and to identify performance measures for evaluating the effectiveness of grants. The committee shall include, but not be limited to, representatives from veterans' services programs, law enforcement, county and private mental health providers, the Board of Corrections, the Department of Alcohol and Drug Programs, substance abuse service providers, the Department of Rehabilitation, and providers of employment services. Requires criteria for grant awards to include, but not be limited to: a) A strategic plan for providing outreach, prevention, intervention, and evaluation in a cost appropriate manner; b) A description of the population to be served, ability to administer an effective service program, and the degree to which local agencies and advocates will support program efforts; and c) Mechanisms to award grants in a manner that supports better county performance, by restricting grants based on AB 34 Page 3 the extent to which the current number of people receiving extensive mental health services with funds provided other than through this part in the county are significantly below those of other comparable counties, and by rewarding counties that are able to provide mental health services to more people with other resources. 9)Requires local strategy committees composed of, but not limited to representatives of local government and providers of housing assistance, mental health services, outreach for mental health services, veterans' services, law enforcement, substance abuse services and employment services. 10)Requires the local strategy committee to develop a comprehensive plan to from the basis for a performance-based contract with DMH. Requires the plan to identify specified outcome and performance measures identified by DMH and the local committee. 11)Permits grant amounts to be increased to reward counties that are providing mental health services to significantly more mentally ill adults with funds other than state appropriations, relative to other comparable counties. Permits grant amounts to be decreased to penalize counties serving a number of severely mentally ill adults significantly below that of comparable counties. 12)Permits outreach grants to be renewed, if the county demonstrates to DMH that the outreach services are successfully bringing into treatment the number of persons projected in the contract. Permits contracts to be modified as necessary. 13)Requires, beginning on or before November 1, 2001, and annually thereafter, the Director to report to the Legislature about the impact of grants in reducing incarceration of mentally ill persons, and to make recommendations regarding improving county performance and state mental health policies. 14)Appropriates $12 million from the General Fund during the current (1999-2000) fiscal year to DMH. Requires $500,000 to be allocated for training, $500,000 to be allocated for homeless outreach training for counties, to be offered through an organization with significant success with homeless outreach programs. Requires $9 million to be allocated for AB 34 Page 4 county planning grants. 15)Appropriates $41 million to DMH from the General Fund for the 2000-2001 fiscal year. Requires, of the amounts appropriated each year, $500,000 to be allocated to DMH for administrative purposes. 16)Expresses legislative intent that the future funding be allocated to counties based on the amount due under the applicable county's contract, according to net increases in the number of persons served in the prior fiscal year, adjusted by the amount the county's prior fiscal year allocation was greater or less than the amount required to fund the county's actual increase in number of persons served. If the total amount of allocations due to all counties would exceed the previous year's appropriation by more than $50 million, each county shall receive a percentage of a $50 million increase over the previous year's appropriation. EXISTING LAW : 1) Requires counties to relieve and support poor, indigent and incapacitated persons, when such persons are not supported and relieved by relatives, friends, or other public or private institutions. 2) Establishes three mental health care demonstration projects in the Adult and Older Adult Mental Health System of Care Act. FISCAL EFFECT : According to the Assembly Appropriations Committee analysis, the bill appropriates $12 million General Fund in 1999-2000, and $41 million in 2000-2001. In addition, this bill expresses intent to provide state funding, with annual increases not to exceed $50 million annually.COMMENTS : The author is proposing this bill to reduce homelessness of people with severe mental illnesses. The author notes that the mentally ill frequently become disoriented and unable to recognize the need for medical assistance. When medical care is not sought, a cycle of hospitalization, return to the streets, arrest, and return to homelessness ensues. This bill is sponsored by the Mental Health Association in California. AB 34 Page 5 AB 3777 (Wright), Chapter 982, Statutes of 1988, authorized two types of pilot programs for delivering mental health services to seriously mentally ill adults: a system of care model, which has been piloted in Ventura County, and the integrated service agencies (ISA) model, piloted in Stanislaus and Los Angeles Counties. These programs have helped clients become functional through coordinated services to address multiple problems, such as mental illness, substance abuse and homelessness. SB 659 (Wright), Chapter 153, Statutes of 1996, reauthorized the demonstration projects, and required DMH to issue requests for proposals for additional projects in any year in which the state provides funds for that purpose. The California Council of Community Mental Health Agencies (CCCMHA) argues that the only way to stop the cycle of homelessness due to untreated illness is to provide incentive funding for county programs. The Los Angeles County Sheriff's Department believes this bill will provide resources to keep mentally ill patients from weighing down our criminal justice system. The California Mental Health Planning Council argues that this bill will reverse a pattern of underfunding that has continued since deinstitutionalization of the mentally ill in the early 1970's. Analysis Prepared by : Ann Blackwood / HEALTH / (916) 319-2097 FN: 0001584