BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Tom Torlakson, Chairman

                                           851 (Steinberg)
          
          Hearing Date:  5/31/07          Amended: 5/2/07
          Consultant: Nora Lynn           Policy Vote: Health 7-3; Pub Saf  
          4-1
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   SB 851 would create the Corrections Mental  
          Health Act of 2007, a comprehensive system of care for  
          individuals with serious mental illness (SMI) who are involved  
          in the state's criminal justice system. The bill would authorize  
          superior courts to develop and implement mental health courts,  
          requiring those that do opt in to establish a protocol to  
          determine the eligibility of defendants with SMI for  
          participation and subsequent diversion. SB 851 would also permit  
          parolees to participate in mental health courts, as specified,  
          and require mental health care for those incarcerated in state  
          prisons, on parole or completing parole. Several of the  
          provisions of SB 851 pose state-mandated local programs.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2007-08      2008-09       2009-10     Fund
           Mental health courts,  Unknown, potentially significant costs  
          Various*
               diversion to services,     
               parole services, reports,  
               training, mandate 

          CDCR: comprehensive    Unknown, major costs             General
               parolee mental health      
               services          

          DMH: oversight of services      Unknown, potentially significant  
          costs                  General
          _____
          * General, Trial Court Trust Fund (TCTF), Mental Health Services  
          Act (MHSA), Mentally Ill Offender Crime Reduction (MIOCR) grant,  
          Substance Abuse and Mental Health Services Administration  
          (SAMHSA) grant, and local funds
          _________________________________________________________________ 
          ____











          STAFF COMMENTS: SUSPENSE FILE. AS PROPOSED TO BE AMENDED
           Courts
           There are currently 39 mental health courts (MHCs) operating in  
          31 counties. SB 851 does not require the creation of any  
          additional MHCs; to the extent courts elect to create additional  
          MHCs and divert SMI defendants to mental health resources under  
          SB 851 or modify existing MHCs to meet SB 851's standards,  
          however, costs would be substantial.

          A preliminary survey conducted by the Administrative Office of  
          the Courts (AOC) of several of the existing MHCs indicated that  
          their average annual operating costs are approximately $239,000  
          each, including personnel, overhead, program development and  
          training. Start-up costs for a new MHC are approximately  
          $23,000. In comparison 
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          Page 2
          SB 851 (Steinberg)

          to a standard court's operating costs, the added annual cost of  
          operating MHCs, taking into account only justice court  
          personnel, is approximately $108,000 per MHC. Staff notes that  
          if the MHCs surveyed by the AOC were found to be comparable to  
          the MHCs required in the bill, at that cost, if the remaining 27  
          counties were each to establish a single MHC, differential court  
          costs would exceed $3 million. 

          This cost differential departs somewhat from that outlined in an  
          analysis of SB 851 prepared at Sen. Steinberg's request by the  
          Legislative Analyst's Office (LAO), which the Senator's staff  
          has provided to committee staff. Among other assumptions the LAO  
          estimated MHC per-court costs would likely be less than standard  
          courtroom costs based on an AOC analysis of drug courts that  
          found their average operational cost was somewhat lower than the  
          traditional criminal court process for offenders in Superior  
          Courts. 

          SB 851 would further allow CDCR to contract with superior courts  
          to use MHCs as mental health referral courts for parolees with  
          SMI who are in violation of their parole or receiving new terms.  
          Parolees are the responsibility of CDCR; while the bill allows  
          for a contracting process between MHCs and CDCR, it will require  
          considerable levels of dedicated staff time for collaboration  
          among the courts, CDCR and the Board of Parole Hearings to work  
          out the interrelation of the systems and the paroling  
          authorities in place. In addition, reporting requirements placed  
          on courts dealing with parolees (Sec. 1001.134 of the bill) may  
          drive additional information technology needs on the courts who  
          accept contracts with CDCR for parolee screening, and that could  
          in turn increase contracting costs.

           Services
           SB 851 would require MHCs to use community mental health  
          providers and other agencies to offer defendants access to  
          appropriate treatment services and establish a treatment plan  
          for each defendant based on a formal assessment of the  
          defendant's mental health and substance abuse treatment needs.

          Funding for these services would be provided through the MHSA.  
          SB 851 amends the MHSA funding prioritization to add, after  
          existing programs and then programs in counties with high  
          incidence of homeless SMI, funding for counties to serve those  










          subject to arrest or hospitalization, discharged from hospital  
          or jail, or successfully completing parole. Staff notes  
          treatment services to prison inmates and parolees are not  
          eligible for funding through this program. Staff further notes  
          that there are protocols required for use of MHSA funds  
          involving review and approval by DMH, stakeholders and the MHSA  
          Oversight and Accountability Commission that have to be  
          satisfied prior to the use of these funds.

          Assuming for purposes of an estimate, as the LAO did in its  
          analysis, that SMI offenders would require at least the same  
          level of care as those classified in CDCR as needing Enhanced  
          Outpatient Program (EOP) or higher level of care, each  
          defendant's annual 
          treatment services would cost in the $20,000 range annually. If  
          3,500 individuals were to be diverted from standard criminal  
          dockets via MHCs to services described in SB 851, annual  
          treatment costs would be in the $70 million range annually. 






































          Page 3
          SB 851 (Steinberg)

          As counties opt in, staff notes the Department of Mental Health  
          (DMH) and county mental health programs' staff resources,  
          programs and services will be increasingly 
          impacted. Requirements for information sharing for data  
          collection, evaluation, development of standards and regulations  
          are all significant, and for counties that elect MHCs, there  
          will infrastructure and personnel impacts that will be  
          potentially substantial and challenging. 

          CDCR 
           The Mental Health Association of California estimates that from  
          15 percent to 20 percent of CDCR's 172,000 prisoners and 117,000  
          parolees are SMI. The department is currently operating under a  
          series of federal lawsuits and settlements, one of which  
          addresses its management of mentally ill inmates, which the LAO  
          describes as follows in its Analysis of the 2007-08 Budget Bill:

               The Coleman case, filed in 1992, involves allegations  
               that the state prison system provided  
               constitutionally inadequate psychiatric care for  
               inmates. A federal court found the state to be in  
               violation of federal constitutional standards for  
               inmate medical care and established a special master  
               in 1995 to monitor state efforts to remedy the  
               problems. The state implemented a series of remedial  
               actions, which are still continuing. 

          SB 851 requires all parolees with SMI to receive comprehensive  
          mental health care and supportive services; requires CDCR to  
          "ensure" the mental health needs of all parolees are in  
          accordance with community standards of mental health care; and  
          requires CDCR to establish service standards in consultation  
          with DMH for mentally ill inmates with SMI that ensure, upon  
          release, to reach their potential as productive citizens. 

          CDCR projects it will require an additional 197 staff an at  
          annual cost of between $11 million and $14 million General Fund  
          to comply with these requirements. To the extent these programs  
          reduce recidivism and, therefore, there are foregone  
          incarceration costs in the long term, costs could be offset to  
          some degree. SB 851 requires CDCR to provide training for all  
          persons responsible for management and care of persons with SMI  
          in the custody of the department and further requires it to  










          ensure "all correctional officers" are trained in dealing with  
          inmates with SMI. If 30,000 correctional peace officers were to  
          need a one-time four-hour training, costs to conduct the  
          training, including coverage using overtime to fill behind  
          staff, would be in excess of $7 million. 

          AS PROPOSED TO BE AMENDED: 
                 Recast the mental health court provisions of the  
               measure;
                 Strike training requirements for CDCR;
                 Strike transition programming from prison-to-parole  
               requirements; and
                 Reduce expanded mental health services for parolees to a  
               300-parolee pilot while stating that CDCR shall "provide  
               for and ensure that" all parolees with SMI have their  
               mental health needs met in accordance with specified  
               standards.