BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2234
                                                                  Page  1

          Date of Hearing:   April 28, 2010

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  AB 2234 (Lowenthal) - As Amended:  March 15, 2010 

          Policy Committee:                              Health Vote:19-0

          Urgency:     No                   State Mandated Local Program:  
          Yes    Reimbursable:              Yes

           SUMMARY  

          This bill modifies definitions for "adults," "serious mental  
          disorder," and "functional impairment" in several areas of  
          mental health statutes including Bronzan-McCorquodale (county  
          realignment), the Mental Health Services Act (MHSA/Proposition  
          63), and statutes addressing court-ordered treatment.   
          Specifically, this bill: 

          1)Changes "adults and older adults" under realignment and  
            Proposition 63 target population categories to adults 18 to  
            59, inclusive, and older adults 60 years of age and older. 

          2)Links definitions added by this bill for older adults, serious  
            mental disorder, and functional impairments to realignment,  
            Proposition 63, and court ordered mental health treatment  
            statutes. 

          3)Changes the definition for "functional impairment" related to  
            a mental illness from a general definition to one that defines  
            impairment to mean impairment in two of several areas  
            including activities of daily living, employment, and leisure  
            activities.

           FISCAL EFFECT  

          1)On-going cost pressure or reallocation of $100 million to $200  
            million (realignment or Proposition 63 funds) to the extent  
            this bill leads to more or different Californians receiving  
            mental health treatment and services under county-administered  
            programs. There are six million Californians older than 60  
            years of age. Mental health programs serve people of all ages.  
            Therefore, if this bill increases services provided to older  








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            individuals, as is the author's intention, services for  
            children or non-elderly adults may be reduced. This estimate  
            assumes a mental health fund shift to older adults of about  
            5%. 

          2)In 2009-10 more than $2 billion in realignment and Proposition  
            63 funding is provided to counties. These funding sources are  
            capped and there is significant unmet need statewide for  
            mental health treatment across all age categories and target  
            populations. 

          3)This bill contains a substantive change to the definition of  
            "functional impairment" as it applies to older adults. While  
            the definition allows for additional areas of impairment to be  
            considered for establishing eligibility, it requires two areas  
            of specific impairment be demonstrated rather than one general  
            category. It appears this change in definition may both  
            increase and reduce access and may increase a burden for both  
            patient and administrator in documenting impairment, as  
            required necessary in several other health programs. 

           COMMENTS  

           1)Rationale  . This bill is co-sponsored by the California  
            Commission on Aging and the California Mental Health Planning  
            Council to increase the provision of mental health treatment  
            and services to older adults. According to the author and  
            sponsors, although older Californians have significant mental  
            health needs and more complex needs than younger counterparts,  
            their needs are often overlooked. This bill increases the  
            specificity of statutes to address older adults and to elevate  
            their target population status within county funded  
            realignment and Proposition 63 programs. 

          2)Realignment  . The Bronzan-McCorquodale Act, Chapter 89,  
            Statutes of 1991, refers to realignment of mental health  
            funding and programs. Realignment transferred financial  
            responsibility for many mental health, public health, and  
            social service program from the state to local governments,  
            and provided counties with a dedicated revenue source to pay  
            for these changes. For mental health, realignment transferred  
            funding associated with categorical programs, general  
            community mental health funding, state hospital civil  
            commitment funding, and institutions for mental disease.









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           3)Proposition 63  , approved by voters in November 2004, enacted a  
            state personal income tax surcharge of 1% that applies to  
            taxpayers with annual taxable incomes of more than $1 million.  
             The funds are used to provide mental health services  
            statewide. 

           Analysis Prepared by  :    Mary Ader / APPR. / (916) 319-2081