BILL ANALYSIS                                                                                                                                                                                                    






                        SENATE HEALTH AND HUMAN SERVICES
                               COMMITTEE ANALYSIS
                        Senator Martha M. Escutia, Chair


          BILL NO:       AB 2034                                      
          A
          AUTHOR:        Steinberg                                    
          B
          AMENDED:       June 22, 2000
          HEARING DATE:  June 28, 2000                                
          2
          FISCAL:        Appropriations / URGENCY                     
          0
                                                                      
          3
          CONSULTANT:                                                 
          4
          McCarthy / ak
                                        

                                     SUBJECT
                                         
                      Mental health funding:  local grants

                                     SUMMARY  

          This bill continues and expands a demonstration program  
          initiated in FY 99-00, in AB 34 (Steinberg), that provides  
          mental health outreach, case management, and other services  
          to persons with mental illness who are homeless or at-risk  
          of homelessness. 

                                     ABSTRACT  

          Existing law:
          1.Requires counties to be the providers of last resort for  
            relief and support of incompetent, poor, indigent  
            persons, and those incapacitated by age, disease, or  
            accident, when such persons are not supported and  
            relieved by their own means, relatives, friends, or other  
            public or private institutions (WIC Section 17000);

          2.Establishes in certain counties, an adult system of care  
            program, that provides county mental health services to  
            severely mentally ill adults and children with severe  
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            emotional disturbances, as defined;

          3.Requires the Department of Mental Health (DMH) to  
            establish demonstration programs in three counties, as  
            specified in AB 34 (Ch. 617, Statutes of 1999), providing  
            mental health services to adults with severe mental  
            illness who are homeless, recently released from county  
            jail or who are at significant risk of incarceration or  
            homelessness, unless treatment is provided;

          4.Provides $10 million in FY 1999-2000 for the three  
            demonstration projects in Los Angeles, Sacramento and  
            Stanislaus counties;

          5.Specifies a number of service standards for the three  
            demonstration projects including, plans for mental health  
            services and housing assistance to the target population,  
            and plans for outreach to transition youth; 

          6.Requires that the demonstration projects be evaluated to  
            determine effectiveness and that a report be submitted to  
            the Legislature by May 1, 2000.

          This bill:
          1.Permits counties currently operating AB 34 demonstration  
            projects to be eligible for continued funding, if they  
            have demonstrated effectiveness, and also permits these  
            counties to expand the projects if they demonstrate  
            continued unmet need and the capacity to expand without  
            compromising effectiveness;

          2.Makes any other counties, or portions of counties,  
            eligible for funding to establish an AB 34 program if the  
            county can develop an integrated adult systems of care  
            program that provides comprehensive services to a  
            substantial number adults who meet the target criteria  
            (i.e., severely mentally ill adults who are homeless,  
            recently released from county jail or who are at  
            significant risk of incarceration or homelessness, unless  
            treatment is provided); 

          3.Requires provision of AB 34 program services to youth 25  
            years and younger who are seriously mentally ill and  
            homeless or at significant risk of becoming homeless;

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          4.Requires that program services reflect the special needs  
            of women with mental illness from diverse cultural  
            backgrounds, including supportive housing that accepts  
            children and substance treatment programs that address  
            gender-specific trauma and abuse;

          5.Requires the AB 34 project's service and delivery process  
            to include provision of housing for clients, including  
            immediate, transitional and permanent housing; 

          6.Requires that services also include provision of  
            psychiatric and psychological services, integrated with  
            other services, and includes psychiatric and  
            psychological collaboration in overall service planning;

          7.Requires certain entities--the California Department of  
            Social Services (CDSS), a service provider to transition  
            youth and specific advocacy groups, the United Advocates  
            for Children of California and the California Mental  
            Health Advocates for Children and Youth--to be  
            represented on the existing DMH advisory board which  
            recommends criteria for grant awards to counties;

          8.Requires counties ensure any client hospitalizations are  
            coordinated with other services;

          9.Requires DMH to submit a report with specified data to  
            the Legislature each year funding is provided for the  
            program, including data on the extent to which veterans  
            served in the program are receiving federally funded  
            veteran's services for which they are eligible; 

          10.Includes an urgency clause in order to maintain funding  
            for the existing demonstration programs without  
            disruption.

                                  FISCAL IMPACT  

          According to the Assembly Appropriations Committee,  
          implementation of programs in this bill is contingent upon  
          the Budget Act.  Unknown savings would accrue to the  
          California Department of Corrections, county mental health  
          programs and jails to the extent the AB 34 programs prevent  
          the need for more intensive mental health treatment and/or  
          incarceration.  The Budget Act for FY 00-01, as passed by  
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          the Senate, contains funding to continue and expand these  
          programs.

                            BACKGROUND AND DISCUSSION  

          1.Background
            Legislation enacted in 1999, AB 34 (Steinberg), Chapter  
            617 Statutes of 1999, established demonstration projects  
            in several counties to provide specified mental health  
            and related services to homeless mentally ill persons.   
            The legislation specified that only those counties with  
            an existing adult system of care program were eligible to  
            operate a demonstration project.  The target population  
            under the existing AB 34 demonstration projects are  
            adults with severe mental illness who are homeless,  
            recently released from a county jail or state prison, or  
            others who are untreated, unstable and at significant  
            risk of incarceration or homelessness, unless treatment  
            is provided.

            Through the demonstration projects, counties were  
            provided funds to establish outreach programs and to  
            provide mental health services, related medication,  
            substance abuse services, housing assistance, vocational  
            rehabilitation and other services to the target  
            population. 

            AB 34 provided funding for the demonstration projects in  
            Los Angeles ($4.8 million), Stanislaus ($2.8 million) and  
            Sacramento ($1.9 million) counties.  In Sacramento  
            County, outreach teams go to parks, levees and other  
            places to find homeless persons to whom they can offer  
            services.  Sacramento County has enrolled 196 people in  
            mental health services as a result of this program.  In  
            Stanislaus, 88 people are being served by programs funded  
            through AB 34.  According to the author, Stanislaus is  
            working to serve adults who are periodically homeless,  
            and young adults who are transitioning from foster care  
            and the juvenile justice system.  Los Angeles County is  
            serving 790 people with demonstration project dollars.
          
          2.AB 2034
            In addition to the provisions described in the Abstract  
            above, AB 2034 contains the following provisions: 
              Requires participating counties to designate for each  
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               client a "personal services coordinator", who may be  
               part of an multidisciplinary team.  Under current law,  
               clients may be provided a case manager or a  
               multidisciplinary team;


              Requires DMH to conduct a literature review of mental  
               health public education programs on early psychosis,  
               and treatment thereof, and to make recommendations to  
               the Legislature as to whether such a program should be  
               implemented in California;
              Adds to the criteria for grant awards, a description  
               of efforts to maximize utilization of other state,  
               federal and local funds, and a description of efforts  
               to obtain health foundation charitable funds.

            The author is proposing this bill to continue and expand  
            upon the successful community mental health programs  
            established under AB 34 (Steinberg) Chapter 617, Statutes  
            of 1999. 

          3.Evaluation of AB 34
            As required by AB 34, the demonstration projects were  
            evaluated by the DMH and a report submitted to the  
            Legislature ("Effectiveness of Integrated Services for  
            Homeless Adults with Serious Mental Illness", May, 2000).  
             The DMH's findings include the following:
              fewer than 15% of eligible clients refused enrollment  
               in the program and less than 4% left the program;
              approximately 2/3 of the clients were male;
              most clients were between the ages of 22 and 59 years  
               (90%);
              the ethnic distribution of the clients was 43%  
               Caucasian, 37% African American, 12% Hispanic, 1%  
               Asian and 7% unspecified;
              the percent of enrollees hospitalized dropped 64%;
              the number of days of incarceration dropped 74%;
              the number of days of homelessness dropped 59%.

          4.Arguments of proponents
            Sacramento County supports this bill to extend the  
            1999-2000 demonstration program to other counties as well  
            as to youth in transition.

            The California Psychiatric Association, writing in  
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            support of this bill, states that with AB 34, California  
            is "finally beginning to develop the community care  
            system" envisioned 30 years ago and that the program has  
            succeeded beyond expectations. The California Healthcare  
            Association states there is ample evidence that  
            "wraparound" (comprehensive) services for the seriously  
            mentally ill is cost effective and humane and that:  "We  
            know how to effectively treat this population.  What we  
            need now is additional funding to ensure that more  
            mentally ill individuals at risk of homelessness or  
            incarceration are given the chance to participate....".

                                  PRIOR ACTIONS

           Assembly Floor:               69-7Pass
          Assembly Appropriations:      21-0Do Pass as Amended
          Assembly Health:              13-0Do Pass as Amended



                                    POSITIONS  

           Support:       50+ and Strong 
                         ACCESS Campaign for Mental Healthcare
                         AFSCME, AFL-CIO
                         All Saints Parish
                         Calaveras County Mental Health Board
                         California Catholic Conference
                         California Child, Youth and Family Coalition
                         California Coalition for Ethical Mental  
                         Health Care
                         California Council of Community Mental  
                         Health Agencies
                         California Healthcare Association
                         California Medical Association
                         California Mental Health Directors Assoc.
                         California Mental Health Planning Council
                         California Psychological Assoc.
                         California Psychiatric Association
                         California Rural Legal Assistance Foundation
                         California Seniors Coalition
                         California Society for Clinical Social Work
                         California State Assoc. of Counties
                         Catholic Charities of California
                         Changing Lives Through Jobs
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                         Chief Probation Officers of California
                         City and County of San Francisco
                         CLARE Foundation, Inc.
                         Common Ground
                         Congress of California Seniors
                         County of Los Angeles
                         County of Sacramento
                         Didi Hirsch Community Mental Health Center
                         Gray Panthers
                         Homeless Action CenterJericho: A Voice for  
                         Justice
                         Jesuit Volunteer Corps - San Jose
                         Los Angeles Youth Network
                         Mental Health Advocacy Project
                         Mental Health Assoc. in CA  (Sponsor)
                         Mental Health Assoc. in Los Angeles County
                         Mental Health Assoc. in Santa Barbara
                         National Association of Social Workers
                         New Directions, Inc.
                         Ocean Park Community Center
                         Orange County Coalition for Mental Health
























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                         Project Return: The Next Step
                         Protection and Advocacy, Inc.
                         Regional Psychological Society
                         Sacramento County Board of Supervisors

          Support:       San Diego County Board of Supervisors
          (cont'd)       Santa Clara County Board of Supervisors
                         Sacramento County Sheriff's Department
                         San Bernardino County Sheriff's Department 
                         San Fernando Valley Community Mental Health  
                         Center, Inc.
                         Union of American Physicians & Dentists
                         Upward Bound House
                         Urban Counties Caucus
                         Verdugo Mental Health Center
                         Westside Shelter and Hunger Coalition
                         Western Center on Law and Poverty

          Oppose:   None received




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