BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1571
                                                                  Page  1

          Date of Hearing:   April 21, 2009

                            ASSEMBLY COMMITTEE ON HEALTH
                                  Dave Jones, Chair
           AB 1571 (Committee on Veterans Affairs) - As Introduced:  March  
                                      16, 2009
           
          SUBJECT  :   Veterans mental health: county plans.

           SUMMARY  :   Prohibits the Department of Mental Health (DMH) from  
          approving a county's plan for the expenditure of funds from the  
          Mental Health Services Act (MHSA), as specified, unless it  
          includes verifiable representation from a legitimate veterans  
          group in the stakeholder planning process and includes a  
          separate section that specifically addresses how the mental  
          health needs of veterans are, or are not, being met.   
          Specifically,  this bill  :  

          1)Prohibits DMH from approving a county's plan for the  
            expenditure of MHSA funds for prevention and early  
            intervention and innovation programs unless it includes  
            verifiable representation from a legitimate veterans group in  
            the required stakeholder planning process and includes a  
            section that addresses the specific mental health issues of  
            veterans and how the plan will, or will not, address those  
            issues.

          2)Requires each county's expenditure update report for MHSA  
            funds allocated to services for children, adults, and seniors  
            to include the number of veterans to be served.

          3)Revises the list of local stakeholders required to be  
            consulted in the development and update of each county's MHSA  
            plan to include representatives from a legitimate veterans  
            organization.

          4)Specifies that the reports of achievement outcomes that are  
            required to be included in each county's MHSA plan must  
            specifically include recognition of the mental health needs of  
            veterans and how those needs are, or are not, being met.

           EXISTING LAW  :

          1)Establishes DMH to direct and coordinate statewide efforts for  
            the treatment of mental disabilities.








                                                                  AB 1571
                                                                  Page  2


          2)Establishes the MHSA, enacted by voters in 2004 as Proposition  
            63, to provide funds to counties to expand services and  
            develop innovative programs and integrated service plans for  
            mentally ill children, adults, and seniors through a 1% tax on  
            personal income above $1 million.

          3)Requires the State Controller to transfer specified amounts of  
            state funding into the Mental Health Services Fund,  
            administered by DMH.  Requires revenues deposited into the  
            fund to be used to create new county mental health programs  
            and expand existing programs.  

          4)Requires each county mental health department to prepare and  
            submit to DMH a three-year program and expenditure plan for  
            MHSA funding that addresses the following five major  
            components: a) community services and supports; b) workforce  
            education and training; c) capital facilities and  
            technological needs; d) prevention and early intervention;  
            and, e) innovation.  Requires DMH to establish guidelines for  
            the content of each of the five components and approval of  
            county plans.  

          5)Requires each county plan and update to be developed with  
            local stakeholders, including adults and seniors with severe  
            mental illness, families of children, adults, and seniors with  
            severe mental illness, providers of services, law enforcement  
            agencies, educators, social services agencies, and other  
            important interests.

          6)Specifies that the MHSA may only be amended by a two-thirds  
            vote of both houses of the Legislature and only so long as the  
            amendment is consistent with and furthers the intent of the  
            MHSA.  Permits provisions clarifying the procedures and terms  
            of the MHSA to be added by majority vote of the Legislature.

          7)Establishes, under federal law, the Veterans Health  
            Administration (VA) within the U.S. Department of Veterans  
            Affairs, to provide health care and other benefits to veterans  
            and their families and administer VA medical centers and  
            outpatient clinics.

          8)Establishes the Bronzan-McCorquodale Act, also known as  
            "Realignment," which shifted responsibility for the provision  
            of mental health services from the state to counties.   








                                                                  AB 1571
                                                                  Page  3

            Provides funding for local programs with revenues from  
            increased vehicle licensing fees and sales taxes.


          9)Requires counties to provide mental health services to target  
            populations to the extent resources are available.  Includes  
            in the target populations California veterans in need of  
            mental health services who are not eligible for care by the VA  
            or other federal health care provider.  Specifies the minimum  
            array of services that must be provided to target populations.


          10)Includes within the definition of a serious mental disorder  
            post-traumatic stress disorder (PTSD) and bipolar disorder for  
            purposes of qualifying target populations for county mental  
            health services.


          11)Clarifies that counties are required 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 adults.

          12)Requires counties to provide mental health services to  
            California veterans in need of services and who meet existing  
            eligibility requirements, to the extent resources are  
            available.  Requires counties to advise veterans who may be  
            eligible for mental health services through USDVA of these  
            services.

          13)Requires counties to refer a veteran to the county veterans  
            service officer to determine the veteran's eligibility for,  
            and the availability of, mental health services provided by  
            the USDVA or other federal health care provider.

          14)Prohibits an eligible veteran from being denied county mental  
            health services based solely on his or her status as a  
            veteran.

           FISCAL EFFECT  :   This bill has not yet been analyzed by a fiscal  
          committee.

           COMMENTS  :   

           1)PURPOSE OF THIS BILL  .  The author states that this bill is  








                                                                  AB 1571
                                                                  Page  4

            needed to ensure that veterans receive their fair share of  
            state and county mental health resources.  California is home  
            to the third largest population of veterans in the nation and  
            is third in the nation in residents who have been deployed in  
            the Global War on Terror.  The author points out that there  
            has been a longstanding gap in mental health services for  
            California's veterans who have been referred to the VA for  
            services without regard to their actual eligibility for VA  
            services and the VA's actual capacity to deliver those  
            services.  The author notes that veterans are  
            disproportionately represented among the homeless and mentally  
            ill populations and the VA lacks the capacity to meet the  
            needs of all of California's veterans, including the 45% of  
            all forces deployed in Iraq and Afghanistan from the Reserve  
            and the State National Guard.  The author believes targeting  
            veterans in the provision of county mental health services  
            will help to reduce the overall burden mental health need  
            places on our state and our communities.

           2)FEDERAL BENEFITS  .  According to the VA website, one of the  
            more important USDVA benefits is health care.  It specifies  
            that VA has about 1,300 care facilities, including 163  
            hospitals, 850 ambulatory care and community-based outpatient  
            clinics, 206 counseling centers, 137 nursing homes, and 43  
            domiciliary facilities.  The website also indicates that the  
            Veterans' Health Care Eligibility Reform Act of 1996 created  
            the Medical Benefits Package which is a standardized, enhanced  
            health benefits plan available to all enrolled veterans.  The  
            Medical Benefits Package includes preventive services,  
            including: immunizations; screening tests; health education  
            and training classes; primary health care; diagnosis and  
            treatment; mental health and substance abuse treatment; and,  
            drugs and pharmaceuticals.  To receive VA health care  
            benefits, most veterans must enroll.  Veterans can apply for  
            enrollment at any VA health care facility or veterans'  
            benefits office.  According to the website, more than six  
            million veterans are enrolled in the VA health care system as  
            of October 2001 and that a quarter of the nation's population,  
            approximately 70 million people, are potentially eligible for  
            benefits and services because they are veterans, family  
            members, or survivors of veterans.

           3)STATISTICS FROM THE VA  .  According to an August 2007 research  
            brief by the VA's Office of Research and Development, from the  
            start of the conflicts in Iraq and Afghanistan in 2003, and  








                                                                  AB 1571
                                                                 Page  5

            through 2006, more than 631,000 soldiers have been discharged.  
             Approximately 32.5% have sought VA health care and, of these,  
            35.7% have had a mental health condition or concern.  In 2008,  
            VA expects to treat 5.8 million veterans, an increase of 2.4%  
            over 2007.  Of these 5.8 million, VA expects to see 263,000  
            Iraq and Afghanistan war veterans, or 25.8% more than in 2007.  
             The VA notes that many of these veterans have experienced  
            multiple injuries including injuries to several organs, limb  
            loss, sensory loss, burns, and chronic pain.  Moreover, combat  
            veterans of the Iraq and Afghanistan wars are at higher risk  
            for PTSD and other mental health disorders, such as adjustment  
            disorder, anxiety, depression, and substance abuse.  The VA  
            notes that war veterans are eligible for two years of free  
            health care from the USDVA for any condition that may be  
            related to combat, and USDVA clinicians are informed to  
            evaluate veterans for war-related mental disorders.   

           4)PROPOSITION 63  .  In November 2004, voters passed Proposition  
            63 or MHSA.  MHSA imposes a 1% state income surtax on incomes  
            exceeding $1 million.  MHSA requires the State Controller to  
            transfer specified amounts of state funding into the Mental  
            Health Services Fund.  Revenues deposited into the fund must  
            be used to create new county mental health programs and to  
            expand existing programs.  Adult systems of care, children's  
            services, preventive measures, workforce and training, and  
            technology improvements are all programs that may receive  
            Proposition 63 funds.  

          MHSA requires each county mental health program to prepare and  
            submit a three-year plan to DMH that must be updated each year  
            and approved by DMH after review and comment by the Mental  
            Health Services Oversight and Accountability Commission.  In  
            their three-year plans, counties are required to submit a  
            listing of all work plans for which MHSA funding is being  
            requested that identifies how the funds will be spent and  
            which populations will be served.  This bill requires counties  
            to include in their revenue and expenditure reports the number  
            of veterans being served.

           5)OPPOSITION .  The California Mental Health Directors  
            Association (CMHDA) and the California State Association of  
            Counties (CSAC) object to this bill.  They note that veterans  
            are and should remain an identified part of the target  
            population for MHSA programs but they point out that veterans  
            should qualify for enrollment based on community-identified  








                                                                  AB 1571
                                                                  Page  6

            priority and need, not solely on their status as a veteran.   
            They contend this bill singles out veterans for special  
            attention, which, they assert, could be very divisive at the  
            local level.  Specifically, they are concerned that the  
            provision in this bill that includes veterans among the groups  
            of local stakeholders that counties must consult when  
            developing and updating their MHSA plans will set a precedent  
            that will open the floodgates to other populations seeking  
            similar status.  

          CMHDA and CSAC also take issue with the provision in this bill  
            that requires the updates on MHSA expenditures that counties  
            must provide to DMH to include the number of veterans served.   
            They argue that counties do not have a way to accurately  
            identify the number and costs of veterans served and this  
            requirement singles out veterans over other segments of the  
            population.  Furthermore, they add that, in many cases,  
            veterans come to county mental health departments and choose  
            not to self-identify as a veteran or as having been in the  
            military.  They point out that many veterans are in fact being  
            served through adult mental health service programs, but are  
            not specifically identified as veterans, and may not want to  
            be. 

           6)PRIOR LEGISLATION  .

             a)   AB 3083 (Committee on Veterans Affairs), Chapter 591,  
               Statutes 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 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.   

             b)   AB 2844 (Nation), Chapter 618, Statutes of 2006,  
               requires counties to provide mental health services to  
               California veterans in need of services and who meet  
               existing eligibility requirements to the extent resources  
               are available, and prohibits eligible veterans from being  
               denied county mental health services based solely on their  
               status as a veteran.

             c)   AB 599 (Gordon), Chapter 221, Statutes of 2005, adds  
               California veterans in need of mental health services who  








                                                                  AB 1571
                                                                  Page  7

               are not eligible for care by the USDVA or other federal  
               health care provider and who meet existing eligibility  
               requirements, to the existing target populations that  
               counties are required to serve, to the extent resources are  
               available. 

           7)SUGGESTED TECHNICAL AMENDMENTS  .  On page 2, lines 19 and 22,  
            delete "Include," and insert "Includes".

           8)DOUBLE-REFERRAL  .  This bill has been double-referred.  Should  
            this bill pass out of this committee, it will be referred to  
            the Assembly Veterans Affairs Committee.  

          9)POLICY COMMENT  .  This bill prohibits DMH from approving a  
            county's plan for the prevention and early intervention and  
            innovation components of MHSA funding unless certain criteria  
            have been met, including that the plan involves verifiable  
            representation from a legitimate veterans group in the  
            stakeholder planning process.  Given that this bill does not  
            specify how the verification of representation would be  
            determined and there are many veterans' organizations at the  
            local level with various priorities, the author may wish to  
            clarify this provision. 

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file.

           Opposition 
           
          California Mental Health Directors Association
          California State Association of Counties

           
          Analysis Prepared by  :    Cassie Rafanan / HEALTH / (916)  
          319-2097