BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 710
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          Date of Hearing:   May 13, 2009

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Kevin De Leon, Chair

                    AB 710 (Yamada) - As Amended:  April 22, 2009 

          Policy Committee:                              Veterans  
          AffairsVote:   8-0
                        Health                                18-0

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:               

           SUMMARY  

          This bill requires the Department of Veterans Affairs (DVA) to  
          apply for a grant from the federal Substance Abuse and Mental  
          Health Services Administration (SAMHSA) in order to fund  
          community-based organizations (CBOs) providing substance abuse  
          and mental health services to veterans, including treatment for  
          post traumatic stress syndrome (PTSD) and military sexual  
          trauma, as defined. This bill also: 

          1)Makes any federal grant monies received subject to  
            appropriation by the Legislature and deposits these funds in  
            the Veteran's Substance Abuse and Mental Health Services Fund.

          2)Requires DVA to develop a process to certify CBOs as eligible  
            for receipt of the grant funds.

          3)Requires CBOs receiving grant funds to report on the programs  
            and services supported by those funds. 

          4)Allows counties lacking CBOs serving veterans to apply  
            directly for the grants.

           FISCAL EFFECT  


          Minor absorbable costs for the grant application, and to the  
          extent grant funds are received on a sustained basis, annual  
          costs of about $100,000 for one position to certify eligible  
          CBOs and administer the grants. Presumably a portion of these  
          costs would be covered by the federal grant funds. 








                                                                  AB 710
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           COMMENTS  

           1)Background  .  Based on information from a similar bill last  
            year (see below), mental health care and substance abuse  
            treatment capacity within the federal Veterans Administration  
            (VA) has declined. During the past decade, the VA has embarked  
            on a major institutional shift from inpatient to outpatient  
            care. Despite a congressional mandate to "maintain capacity to  
            provide specialized treatment and rehabilitative needs of  
            disabled veterans (including mental illness)," there has been  
            a steady reduction in specialized inpatient services without a  
            corresponding increase in adequate outpatient services. 

            For example, in 1995, the Los Angeles VA hospital psychiatric  
            wards could accommodate 450 inpatients, but by 2005 that  
            number had dropped to just 105 and the hospital had closed its  
            psychiatric emergency room. During this same time period, the  
            number of patients who received inpatient or outpatient mental  
            health treatment at LA VA facilities increased by 28%. 

            Many veterans now access health care through Community-Based  
            Outpatient Clinics (CBOCs). In 2003, the VA reported that 258  
            of its 616 CBOCs provided no mental health visits at all. In  
            another 78, mental health accounted for less than 5% of  
            overall services provided.

           2)Purpose  . This bill requires the DVA to seek SAMHSA grant  
            funds in order to assist CBOs in targeting those funds toward  
            veteran mental health and substance abuse services. Last year,  
            government and nonprofit entities in California received about  
            $390 million in SAMHSA grants, with about $62 million of this  
            total being discretionary mental health and substance abuse  
            treatment monies.

           3)Prior Legislation  .  Last year, AB 2828 (Salas), which was  
            almost identical to this bill, was summarily vetoed by the  
            governor without a stated objection.  AB 2828 passed the  
            Assembly  78-0.

            AB 3083 (Veterans Affairs)/Chapter 591 of 2008 requires  
            counties to provide mental health services to California  
            veterans in need of services and who meet existing eligibility  
            requirements, to the extent services are available to other  








                                                                  AB 710
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            adults, and expands the definition of a serious mental  
            disorder to include PTSD and bipolar disorder for purposes of  
            qualifying target populations for county mental health  
            services.

           Analysis Prepared by  :    Chuck Nicol / APPR. / (916) 319-2081