BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 710
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          ASSEMBLY THIRD READING
          AB 710 (Yamada)
          As Amended  April 22, 2009
          Majority Vote 

           VETERANS AFFAIRS    8-0         HEALTH         18-0             
           
           ----------------------------------------------------------------- 
          |Ayes:|Salas, Cook, DeVore,      |Ayes:|Jones, Fletcher, Adams,   |
          |     |Gilmore                   |     |Ammiano, Block, Carter,   |
          |     |Huber, Lieu, Saldana,     |     |Conway, De La Torre, De   |
          |     |Yamada                    |     |Leon, Emmerson, Hall,     |
          |     |                          |     |Hayashi, Hernandez,       |
          |     |                          |     |Bonnie Lowenthal, Nava,   |
          |     |                          |     |V. Manuel Perez, Salas,   |
          |     |                          |     |Audra Strickland          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           APPROPRIATIONS      16-0                                         
           -------------------------------- 
          |Ayes:|De Leon, Nielsen,         |
          |     |Ammiano,                  |
          |     |Charles Calderon, Davis,  |
          |     |Duvall, Krekorian, Hall,  |
          |     |Harkey, Miller,           |
          |     |John A. Perez, Price,     |
          |     |Skinner, Solorio, Audra   |
          |     |Strickland, Torlakson,    |
          |     |                          |
           -------------------------------- 

           SUMMARY  :   Requires the California Department of Veterans  
          Affairs (CDVA) to submit a grant application to the federal  
          Substance Abuse and Mental Health Services Administration  
          (SAMHSA) for the purposes of funding community-based  
          organizations, certified by CDVA, to provide substance abuse and  
          mental health services to veterans.  Specifically,  this bill  : 

          1)Requires that all grant money awarded to CDVA by SAMHSA be  
            deposited into the Veterans' Substance Abuse and Mental Health  
            Services Fund, a special fund the bill would create, and from  
            which moneys would be appropriated by the Legislature to CDVA  
            for purposes of funding community-based organizations that  








                                                                  AB 710
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            provide substance abuse and mental health programs that would  
            benefit California veterans and to pay reasonable  
            administrative expenses. 

          2)Requires CDVA to develop a process by which to certify  
            community-based organizations that receive funding, and  
            require the department to establish criteria of success for  
            the purposes of determining renewal of funding to those  
            community-based organizations. 

          3)Authorizes in counties where there are no community-based  
            organizations that serve veterans, a county may apply for a  
            grant under this section to be used by the county for purposes  
            related to the funding and provision of substance abuse and  
            mental health services to veterans.

           EXISTING LAW  : 

          1)Allows CDVA to administer state military affairs and has  
            responsibility for, among other things, veterans' welfare and  
            homes. 

          2)Establishes the California Department of Mental Health which  
            directs and coordinates statewide efforts for the treatment of  
            mental disabilities.
           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, 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. 

           COMMENTS  :   This bill creates the Veterans' Substance Abuse and  
          Mental Health Services Fund for the receipt of the grant money,  
          and continuously appropriates that money to the CDVA.  The money  
          will fund community-based organizations that provide substance  
          abuse and mental health programs that will benefit California  
          veterans, and to pay reasonable administrative expenses.

          This bill requires the CDVA to develop a certification process  
          by which to certify community-based organizations that receive  
          funds, and only certified organizations will be eligible for the  
               funding.  Organizations that receive funding will be  
          required to report annually to the DVA on the programs and  








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          services supported by those funds.  This bill provides that the  
          funds disbursed shall be used only for the purposes of providing  
          substance abuse and mental health services to veterans,  
          including, but not limited to, the treatment of post-traumatic  
          stress disorder.
          Currently, there is no existing law that recognizes veterans'  
          mental health needs or substance abuse needs.  Furthermore,  
          there is no additional funding for these services.

          A mandate by Congress states that the VA should "maintain the  
          capacity to provide specialized treatment and rehabilitative  
          needs of disabled veterans, including mental illness."  The CDVA  
          administers state military affairs and has responsibility for  
          veteran welfare and homes.  

          Not all veterans are eligible for VA services.  Eligibility is  
          based on discharge status, length of active duty, financial  
          need, and level of "service connected" rating which is a rating  
          to evaluate the condition that occurred or began to occur during  
          active service.  Healthcare is prioritized and categorized into  
          seven groups where "Priority One" veterans are those evaluated  
          to have the greatest need.  Veterans suffering from PTSD or  
          substance abuse who receive low priority often report lengthy  
          wait times for professional care.  The federal VA is shifting  
          from inpatient to outpatient care which will significantly  
          increase the financial burden on the state General Fund,  
          counties, and other organizations that serve veterans with  
          substance abuse and mental health problems.  The Executive  
          Director of Iraq and Afghanistan Veterans of America  
          approximates that a quarter of returning veterans have PTSD. 
            

           Analysis Prepared by  :    Eric Worthen / V. A. / (916) 319-3550 



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