BILL ANALYSIS                                                                                                                                                                                                    



                                                          AB 34
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CONCURRENCE IN SENATE AMENDMENTS
AB 34 (Steinberg)
As Amended September 3, 1999
2/3 vote.  Urgency 
  
ASSEMBLY: 79-1 (June 4, 1999)   SENATE: 31-3 (September 7, 1999)
   
  Original Committee Reference:    HEALTH  
  
SUMMARY  :  Revises county mental health service standards to  
include access to integrated services, and establishes fiscal  
incentives for counties to engage in outreach to mentally ill  
persons.  Specifically,  this bill  : 

1)Revises county mental health service standards to be developed  
  by the Department of Mental Health (DMH), to include  
  coordination and access to medication, substance abuse  
  services, supportive housing, veterans' services and  
  vocational rehabilitation services.  

2)Requires DMH, in the 1999-2000 fiscal year, and in years in  
  which General Fund dollars are provided, to select a small  
  group of counties or portions of counties who can provide  
  comprehensive services to a substantial number of adults who  
  meet specified criteria.  Requires that eligible counties be  
  those that meet the criteria of the adult system of care as  
  set forth in existing law.  Requires DMH to select counties  
  that demonstrate:

   a)   That the county's share of the $10 million will allow  
     the county to cost effectively increase the number of  
     severely mentally ill adults that the county will serve  
     from program inception through June 2001; and,

   b)   The county will serve a substantial percentage of the  
     unmet needs of the mentally ill that there is a clear  
     quantifiable impact on the need, and other criteria as  
     specified.

3)Requires the Department of Corrections and the county mental  
  health director for any area selected, to develop a  
  coordinated strategy to maximize the efficiency and cost  
  effectiveness of services to severely mentally ill parolees.

4)Provides that an eligible county that has not yet received a  








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  grant may participate in a demonstration grant by committing  
  new county general fund dollars comparable to the amount the  
  county would receive if it had been successful in receiving a  
  grant.

5)Permits DMH to provide a grant to only a portion of a county's  
  population and territory if the grant funds are clearly  
  allocated to a specific geographic area that is easily  
  identifiable and separated from other populated areas within  
  the county.

6)Requires counties to use grant funds to provide new services  
  rather than to supplant existing services.

7)Requires outreach grants to be sufficient to provide mental  
  health services, medications, alcohol and drug services,  
  housing assistance, vocational rehabilitation, financial  
  management assistance and stipends to attract and retain  
  professionals to provide services.  

8)Permits subsequent funding to be limited, or for conditions  
  for improvement to be imposed upon a county that received a  
  grant, but did not reduce criminal justice expenditures or  
  meet other performance benchmarks as a result. Requires DMH to  
  provide annual oversight of grants for compliance with  
  contract standards.

9)Requires the DMH Director to establish an advisory committee  
  to provide advice regarding the development of grant award  
  criteria, and to identify performance measures for evaluating  
  the effectiveness of grants.  The committee shall include, but  
  not be limited to, representatives from veterans' services  
  programs, law enforcement, county and private mental health  
  providers, the Board of Corrections, the Department of Alcohol  
  and Drug Programs, substance abuse service providers, the  
  Department of Rehabilitation, providers of employment  
  services, the Mental Health Association of California, the  
  California Alliance for the Mentally Ill, the California  
  Network of Mental Health Clients, and the Mental Health  
  Clients, and Mental Health Planning Council.  Requires  
  criteria for grant awards to include, but not be limited to:

     a)        A strategic plan for providing outreach,  
     prevention, intervention, and evaluation in a cost  
     appropriate manner; and,








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     b)        A description of the population to be served,  
     ability to administer an effective service program, and the  
     degree to which local agencies and advocates will support  
     program efforts.

10)Requires each selected county to provide data demonstrating  
  the success of the county's existing adult system of care  
  programs, to specify the numbers of person to whom the county  
  will provide services for each $1 million of additional  
  funding that may be awarded through a grant.

11)Permits grant amounts to be increased to reward counties that  
  are providing mental health services to significantly more  
  mentally ill adults with funds other than state  
  appropriations, relative to other comparable counties.   
  Permits grant amounts to be decreased to penalize counties  
  serving a number of severely mentally ill adults significantly  
  below that of comparable counties.

12)Requires, beginning on or before November 1, 2001, and  
  annually thereafter, the Director to report to the Legislature  
  about the impact of grants in reducing incarceration of  
  mentally ill persons, and to make recommendations regarding  
  improving county performance and state mental health policies.

  The Senate amendments  :

1)Add the number of mentally ill persons contacted in outreach  
  efforts, who have refused treatment, to the outcomes and  
  performance measurements of county performance.

2)Delete language that would have permitted DMH to renew a  
  county contract even if the county is not meeting standards  
  for reducing incarceration rates.

3)Remove language specifying which counties will receive pilot  
  project funding.

4)Require DMH to establish a methodology for awarding grants,  
  and select a small group of counties or portions of counties  
  for eligibility for demonstration grants.

5)Remove the appropriations previously contained in this bill.   
  Deletes specification of the duration of the grants.








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  EXISTING LAW  : 

1) Requires counties to relieve and support poor, indigent and  
   incapacitated persons, when such persons are not supported  
   and relieved by relatives, friends, or other public or  
   private institutions.

2) Establishes three mental health care demonstration projects  
   in the Adult and Older Adult Mental Health System of Care  
   Act.

  AS PASSED BY THE ASSEMBLY  , this bill revised mental health  
service standards to include access to integrated services, and  
established incentives for counties to engage in outreach to  
mentally ill persons.

  FISCAL EFFECT  :  According to the Senate Appropriation Committee  
analysis, $10 million in 1999-2000 from the General Fund, and  
one-time costs of $500,000 required to be expended by DMH.

  COMMENTS  :  The author is proposing this bill to reduce  
homelessness of people with severe mental illnesses.  The author  
notes that the mentally ill frequently become disoriented and  
unable to recognize the need for medical assistance.  When  
medical care is not sought, a cycle of hospitalization, return  
to the streets, arrest, and return to homelessness ensues.  This  
bill is sponsored by the Mental Health Association in  
California.

AB 3777 (Wright), Chapter 982, Statutes of 1988, authorized two  
types of pilot programs for delivering mental health services to  
seriously mentally ill adults: a system of care model, which has  
been piloted in Ventura County, and the integrated service  
agencies (ISA) model, piloted in Stanislaus and Los Angeles  
Counties.  These programs have helped clients become functional  
through coordinated services to address multiple problems, such  
as mental illness, substance abuse and homelessness. SB 659  
(Wright), Chapter 153, Statutes of 1996, reauthorized the  
demonstration projects, and required DMH to issue requests for  
proposals for additional projects in any year in which the state  
provides funds for that purpose.  

The California Council of Community Mental Health Agencies  
(CCCMHA) argues that the only way to stop the cycle of  








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homelessness due to untreated illness is to provide incentive  
funding for county programs. The Los Angeles County Sheriff's  
Department believes this bill will provide resources to keep  
mentally ill patients from weighing down our criminal justice  
system.  The California Mental Health Planning Council argues  
that this bill will reverse a pattern of underfunding that has  
continued since deinstitutionalization of the mentally ill in  
the early 1970's. 


 Analysis Prepared by  :  Ann Blackwood / HEALTH / (916) 319-2097 
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