BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           710 (Yamada)
          
          Hearing Date:  08/27/2009           Amended: 07/15/2009
          Consultant:  Dan Troy           Policy Vote: VA 6-0, Health 11-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY:   AB 710 would require the Department of Veterans  
          Affairs (DVA) to consult with the Department of Mental Health  
          (DMH) and the Department of Alcohol and Drug Programs (ADP) to  
          identify federal funds available for funding community-based  
          organizations that provide substance abuse and mental health  
          services to veterans, as specified.  If identified, the DVA  
          would apply for federal Substance Abuse and Mental Health  
          Services Administration funds through DMH or ADP.  DVA would be  
          required to establish a certification process to certify the  
          eligibility of community-based organizations and to establish  
          criteria for determining renewal of funding for recipient  
          organizations.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

          Major Provisions         2009-10      2010-11       2011-12     Fund
           
          DVA                    $50        $100        $100      General 
          ADP                               $40              $80   $80    
          General
          _________________________________________________________________ 
          ____

          STAFF COMMENTS: SUSPENSE FILE.
          
          The federal government has established the Substance Abuse and  
          Mental Health Services Administration (SAMHSA) within the U. S.  
          Department of Health and Human Services for the purpose of  
          improving the quality and availability of prevention, treatment,  
          and rehabilitative services in order to reduce illness, death,  
          disability, and cost to society resulting from substance abuse  
          and mental illnesses.  Approximately $2.1 billion in funds has  
          been proposed for grants to states for the 2009-10 federal  
          fiscal year.  It is not yet clear what California' share of that  
          grant is, nor is it clear that grants will be available for the  
          purposes of this bill. 











          According to the author, many veterans in need of mental health  
          services or treatment for substance abuse do not meet  
          eligibility criteria (e.g., discharge status, length of active  
          duty, financial need, timing of onset of the condition) for  
          services provided through the U.S. Department of Veterans  
          Affairs or have what are deemed to be low priority needs  
          relative to the needs of other veterans.  Veterans suffering  
          from post-traumatic stress disorder, for example, are not  
          considered high priority cases.  By requiring DVA to apply for  
          SAMHSA funding, it is hoped that this bill would provide  
          enhanced services to California veterans and ease the financial  
          burden on the state and local communities to fund them.

          According to DVA, there would be approximately $100,000 in  
          annual costs to certify eligible community-based organizations  
          and to administer the grants.  Additionally, ADP 
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          AB 710 (Yamada)

          would require the work of one analyst position to apply for,  
          monitor and report on the grants.  The approximate annual cost,  
          including benefits of an analyst is $80,000.  While it's  
          possible that some of ADP's general fund costs could be  
          mitigated by use of the federal grant, use of SAMHSA funds for  
          administrative costs are often tightly restricted.