BILL ANALYSIS                                                                                                                                                                                                    






                                 SENATE HEALTH
                               COMMITTEE ANALYSIS
                        Senator Elaine K. Alquist, Chair


          BILL NO:       AB 1571                                      
          A
          AUTHOR:        Committee on Veterans Affairs                
          B
          AMENDED:       July 6, 2009                                
          HEARING DATE:  July 15, 2009                                
          1
          CONSULTANT:                                                 
          5
          Tadeo/                                                      
          7
                                                                       
                                         1
                                        
                                     SUBJECT
                                         
                             Mental Health Services

                                     SUMMARY  

          Revises the list of local stakeholders required to be  
          consulted in the development and update of each county's  
          Mental Health Services Act plan to include veterans and  
          representatives from a veterans organization.  Requires the  
          Department of Mental Health,  to inform the California  
          Department of Veterans Affairs of county plans that have  
          outreach programs or that provide services specifically for  
          veterans.

                             CHANGES TO EXISTING LAW  

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

          Existing law:
          Establishes the California Department of Veterans Affairs  
          (CVA) to administer state military affairs and, among other  
          things, provide veterans assistance with claims for  
                                                         Continued---



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          veterans' benefits under federal laws, provide direct  
          low-cost loans; and provide rehabilitative, residential,  
          and medical care and services at California Veterans Homes.

          Establishes the Department of Mental Health (DMH), which  
          directs and coordinates statewide efforts for the treatment  
          of mental health conditions and illnesses. 

          Requires counties to provide mental health services, to the  
          extent resources are available, to target populations  
          including seriously emotionally disturbed children; adults  
          and older adults who have a serious mental disorder,  
          including post-traumatic stress disorder (PTSD) and bipolar  
          disorder; adults or older adults who require or are at risk  
          of requiring acute psychiatric inpatient care, residential  
          treatment, or outpatient intervention because of a mental  
          disorder who have symptoms of psychosis, suicidality, or  
          violence; and persons who need brief treatment as a result  
          of a natural disaster or severe local emergency.  Counties  
          must provide mental health services to veterans in need of  
          services who meet these existing eligibility requirements,  
          to the extent services are available to other adults. 

          Establishes the Mental Health Services Act, 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 one percent tax on personal  
          income above $1 million.  

          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 support; 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 for  
          approval of county plans.  

          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.




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          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 adopted by majority vote of the  
          Legislature.

          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 VA or other federal health care provider.  Prohibits an  
          eligible veteran from being denied county mental health  
          services based solely on his or her status as a veteran.

          Provides that if a member of the military forces of the  
          U.S., who served in combat, is convicted of a crime as a  
          result of PTSD, substance abuse, or psychological problems  
          stemming from service in a combat theater in the U.S.  
          military, who would otherwise be sentenced to county jail  
          or state prison, the court may order the defendant into a  
          local, state, federal, or private nonprofit treatment  
          program.  The court is required to conclude that the  
          defendant suffers from post-traumatic stress disorder,  
          substance abuse, or psychological problems as a result of  
          that service; and the defendant must otherwise be eligible  
          for, and placed on, probation.  
          
          This bill:
          Requires DMH, as part of its review and approval of  
          prevention and early intervention programs and innovations  
          programs of MHSA, to inform CVA of county mental health  
          plans that have outreach programs or that provide services  
          specifically for veterans.

          Revises the list of local stakeholders required to be  
          consulted in the development and update of each county's  
          MHSA plan to include veterans and representatives from a  
          veterans organization. 
                                         
                                 FISCAL IMPACT
                                         
          According to the Assembly Appropriations Committee analysis  
          of AB 1571 absorbable workload costs of less than $50,000  
          to DMH to add veteran review to the local plan review  
          process.  The MHSA authorizes a transfer of up to five  




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          percent of MHSA funding to offset state costs for  
          implementation of the measure. 

          Unknown special fund costs to county MHSA stakeholder  
          groups to increase the specificity of planning and  
          reporting regarding veterans' mental health. Up to 5  
          percent  of MHSA funding is available for county planning  
          and other administrative activities.

                            BACKGROUND AND DISCUSSION 

          According to the author, AB 1571 is needed to ensure that  
          veterans receive appropriate state and county mental health  
          services.  The author states that there has been a  
          longstanding gap in mental health services to California's  
          veterans, and that they are routinely referred to the VA by  
          county mental health providers in the belief that they will  
          receive the services they need.  The author adds that this  
          practice does not take into consideration actual  
          eligibility for VA services, nor the VA's ability to  
          deliver those services.  The author argues that, while  
          recognizing that it is the responsibility of the federal  
          government to provide these much needed services to our  
          returning veterans, the VA lacks the capacity to meet the  
          needs of all California's veterans. 

          The author argues that veterans are already  
          disproportionately represented among the homeless and  
          mentally ill populations and that many returning veterans  
          will be suffering from PTSD and other mental health  
          disorders.  The author contends that targeting veterans in  
          the provision of county mental health services will help to  
          reduce the overall burden mental health needs place on our  
          state and our communities.

          Veterans' mental health issues 
          The RAND Center for Military Health Policy reports that a  
          substantial percentage of the 1.7 million military service  
          members returning from the conflicts in Iraq and  
          Afghanistan may face mental health problems.  A  
          comprehensive study conducted by RAND in 2008 found that an  
          estimated 18.5 percent of those back from deployment  
          reported symptoms consistent with a diagnosis of PTSD or  
          depression.  The study concluded that the need for mental  
          health services for service members deployed to Afghanistan  
          and Iraq will increase over time, given the prevalence of  




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          information available to date and prior experience with  
          Vietnam, creating additional burdens on the agencies that  
          will be called upon to care for them now and in the near  
          future.    

          The VA also reports that PTSD may also be accompanied by  
          other problems such as alcohol or substance abuse,  
          hopelessness, shame, despair, employment problems,  
          relationship problems including divorce and violence, and  
          physical symptoms.
          
          Access to mental health services for veterans
          All veterans are not eligible for VA services. Eligibility  
          is based on discharge status, length of active duty  
          (generally 24 months continuous active service), financial  
          need, and whether the veteran has a service connected  
          rating (having a condition which occurred or began during  
          active service).   
          According to the VA website, one of the more important VA  
          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.  
          Most veterans must enroll to receive VA health care  
          benefits, and can apply for enrollment at any VA health  
          care facility or veterans' benefits office.  According to  
          the website, more than six million veterans were enrolled  
          in the VA health care system as of October 2001, and a  
          quarter of the nation's population, approximately 70  
          million people, are potentially eligible for benefits and  
          services because they are veterans, or are family members  
          or survivors of veterans.

          According to the California Association of Veteran Service  
          Agencies (CAVSA), California veterans number over 2.1  
          million, approximately 6 percent of the state's population.  
           California has more veterans than any other state in the  




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          union and its number  is expected to continue to grow.   
          CAVSA reports critical obstacles exist for veterans seeking  
          mental health care and states that veterans are often  
          denied services from both VA and county providers.  CAVSA  
          reports that: 
                 not all veterans are eligible for VA services; 
                 there is a decline in mental health treatment and  
               substance abuse treatment capacity in the VA; 
                 a variability in services and lack of continuum of  
               care exists in Veterans Integrated Services Networks; 
                 there is an increased demand from newly separated  
               veterans; and,
                 there are institutional barriers to adequate mental  
               health care.  

          CAVSA cites the VA mental task force findings that a newly  
          returning veteran will find the availability of appropriate  
          evidence-based care is haphazard and spotty.   CAVSA also  
          cites findings from a study published in the National  
          Journal of Medicine that found that, 4 months after  
          deployment, 15 to 17 percent of troops met the criteria for  
          PTSD, 12 months out, the same troops' rates had jumped to  
          21 percent. 
          
          The Mental Health Services Act (MHSA) 
          In November 2004, voters passed the Mental Health Services  
          Act (MHSA), or Proposition 63, which imposes a one percent  
          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 MHSA.  

          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 by the Mental  
          Health Services Oversight and Accountability Commission.  

          Each county plan and update must 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,  




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          and other important interests.

          In their three-year plan, 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.  

          Related bills
          AB 710 (Assembly Veterans Affairs Committee) would require  
          CVA to apply to the federal Substance Abuse and Mental  
          Health Services Administration for funding to award grants  
          to community-based organizations to provide substance abuse  
          and mental health services to veterans.  This bill is set  
          to be heard in the Senate Health Committee on July 8, 2009.

          Prior legislation
          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.   
          
          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.
          
          AB 599 (Gordon), Chapter 221, Statutes of 2005, adds  
          California veterans in need of mental health services who  
          are not eligible for care by the VA or other federal health  
          care providers, and who meet existing eligibility  
          requirements, to the existing target populations that  
          counties are required to serve, to the extent resources are  
          available. 

          AB 2828 (Salas, 2008) would have required CVA to apply for  
          federal Substance Abuse and Mental Health Services  
          Administration funding to provide grants to community based  
          organizations for substance abuse and mental health  
          services for veterans.  This bill was vetoed by the  




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          governor, who stated in his veto message that it was not  
          identified as a high priority for the state. 

          Arguments in support
          Proponents argue that AB 1571 would help address mental  
          health issues which 
          predominately effect veterans such as PTSD, by specifically  
          including veterans in county stakeholders groups that  
          participate in county mental health planning.  

          Concerns
          The California Mental Health Directors Association (CMHDA)  
          and the California State Association of Counties (CSAC)  
          state that they would be in full support of AB 1571 if the  
          bill were amended to delete the following provisions:  
          require county expenditure plans and annual updates to  
          indicate the number of veterans to be served, the cost per  
          person; and, require DMH to determine the extent to which  
          the county has the capacity to serve the proposed number of  
          veterans and the extent to which there is an unmet need to  
          serve that number of veterans.  CMHDA and CSAC further  
          state that they support the intent of these provisions,  
          which is to identify the extent to which counties are  
          serving veterans in county mental health programs and  
          service.  CMHDA and CSAC have also provided alternative  
          provisions and technical assistance in drafting appropriate  
          amendments to the bill.  

                                    COMMENTS 
           
          1)The author may wish to consider the alternatives provided  
             by CMHDA and CSAC.  While the bill has already been  
            amended in a way that addresses the concerns stated by  
            CMHDA and CSAC, the author may wish to consider the  
            alternatives that were offered, to identify the extent to  
            which counties are serving veterans in county mental  
            health programs and services.  The two alternatives that  
            were provided are as follows:

            Require DMH and CVA, in consultation with an organization  
            representing county mental health directors and an  
            organization representing county veteran service  
            officers, to identify an effective method for collecting  
            the veteran status of all county mental health consumers;  
            or 





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            Require DMH to use its MHSA State Administrative funds to  
            contract out for a study of existing county MHSA programs  
            and services provided to veterans to identify the number  
            of veterans currently being served. 

                                  PRIOR ACTIONS

           Senate Veterans Affairs:  6-0
          Assembly Floor:          73-2
          Assembly Appropriations:15-0
          Assembly Veterans Affairs:  8-1
          Assembly Health:    14-2

                                    POSITIONS  
                                        
          Support:  American Legion, Department of California
                            AMVETS, Department of California
                            California Association of County Veterans  
                 Service Officers
                            California Mental Health Directors  
                 Association 
                            California State Association of Counties 

          Oppose:  None received




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