BILL ANALYSIS                                                                                                                                                                                                    



                                                          AB 34
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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  








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  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  








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     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  








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  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
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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