BILL ANALYSIS                                                                                                                                                                                                    



                                                                       


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          |SENATE RULES COMMITTEE            |                  AB 2034|
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                                 THIRD READING
                                        

          Bill No:  AB 2034
          Author:   Steinberg (D), et al
          Amended:  8/25/00 in Senate
          Vote:     27 - Urgency

            
           SENATE HEALTH & HUMAN SERV. COMMITTEE  :  6-0, 6/28/00
          AYES:  Escutia, Figueroa, Hughes, Morrow, Mountjoy,  
            Vasconcellos

           SENATE APPROPRIATIONS COMMITTEE  :  13-0, 8/23/00
          AYES:  Johnston, Alpert, Bowen, Burton, Escutia, Johnson,  
            Karnette, Kelley, Leslie, McPherson, Mountjoy, Perata,  
            Vasconcellos

          ASSEMBLY FLOOR  :  69-7, 5/31/00 - See last page for vote
           

           SUBJECT  :    Mental health funding:  local grants

           SOURCE  :     Mental Health Association in California

           
           DIGEST  :    This bill continues and expands a demonstration  
          program initiated in fiscal year 1999-2000, 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.   
          Funding is contingent on funds appropriated in the annual  
          Budget Act.

           ANALYSIS  :    

          Existing law:
                                                           CONTINUED





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          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.

          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  
            emotional disturbances, as defined.

          3.Requires the State 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.In any year funds are appropriated in the annual Budget  
             Act, 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.








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           2.In any year funds are appropriated in the annual budget  
             Act, makes any other counties, or portions of counties,  
             or cities that operate independent public mental health  
             programs, as specified, eligible for funding to  
             establish an AB 34 program if the county or eligible  
             city 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.

           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 State Department of  
             Social Services (DSS), 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 and other  
             appropriate entities- 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.








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

           Comments

          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.

          In addition to the provisions described in the Abstract  
          above, AB 2034 contains the following provisions:

          1.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.

          2.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.

           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:

          1.Fewer than 15 percent of eligible clients refused  
            enrollment in the program and less than four percent left  
            the program.

          2.Approximately two-thirds of the clients were male.

          3.Most clients were between the ages of 22 and 59 years (90  
            percent).

          4.The ethnic distribution of the clients was 43 percent  
            Caucasian, 37 percent African American, 12 percent  
            Hispanic, one percent Asian and seven percent  
            unspecified.

          5.The percent of enrollees hospitalized dropped 64 percent.

          6.The number of days of incarceration dropped 74 percent.

          7.The number of days of homelessness dropped 59 percent.

           FISCAL EFFECT  :    Appropriation:  No   Fiscal Com.:  Yes    
          Local:  No







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          According to the Senate Appropriations Committee, cost to  
          General Fund of $250,000 in 2000-01 and $500,000 each in  
          2001-02 and 2002-03.  Expansion is contingent upon future  
          appropriations.

           SUPPORT  :   (Verified  6/28/00)(Unable to verify at time of  
          this writing)

          Mental Health Association in California (source)
          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 Association
          California Mental Health Planning Council
          California Psychological Association
          California Psychiatric Association
          California Rural Legal Assistance Foundation
          California Seniors Coalition
          California Society for Clinical Social Work
          California State Association of Counties
          Catholic Charities of California
          Changing Lives Through Jobs
          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 Center
          Jericho:  A Voice for Justice
          Jesuit Volunteer Corps - San Jose
          Los Angeles Youth Network







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          Mental Health Advocacy Project
          Mental Health Association in Los Angeles County
          Mental Health Association in Santa Barbara
          National Association of Social Workers
          New Directions, Inc.
          Ocean Park Community Center
          Orange County Coalition for Mental Health
          Project Return: The Next Step
          Protection and Advocacy, Inc.
          Regional Psychological Society
          Sacramento County Board of Supervisors
          San Diego County Board of Supervisors
          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

           OPPOSITION  :    (Verified  8/1/00)

          Department of Finance (prior version)

           ARGUMENTS IN SUPPORT  :    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 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....".








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           ARGUMENTS IN OPPOSITION  :    According to the Department of  
          Finance (prior version), it opposes the General Fund  
          pressure created by the bill and, additionally, notes the  
          following concerns:

          1.The bill would create new and unfunded administrative  
            workload in DMH.

          2.The required literature review and resultant  
            recommendation could result in fiscal pressures and  
            expectations of future funding for new programs.

          3.This bill could be construed as creating a new  
            categorical program.  That could result in pressure to  
            provide additional funding for the newly defined  
            population in need of services even though that  
            population is already eligible for services under a  
            different program.  
           

           ASSEMBLY FLOOR  : 
          AYES:  Aanestad, Ackerman, Alquist, Aroner, Bates, Battin,  
            Bock, Brewer, Briggs, Calderon, Campbell, Cardenas,  
            Cardoza, Cedillo, Corbett, Correa, Cox, Cunneen, Davis,  
            Dickerson, Ducheny, Dutra, Firebaugh, Florez, Frusetta,  
            Gallegos, Granlund, Havice, Honda, House, Jackson,  
            Keeley, Knox, Kuehl, Leach, Lempert, Leonard, Longville,  
            Lowenthal, Machado, Maddox, Maldonado, Margett, Mazzoni,  
            Migden, Nakano, Olberg, Robert Pacheco, Papan, Pescetti,  
            Reyes, Romero, Scott, Shelley, Steinberg, Strickland,  
            Strom-Martin, Thomson, Torlakson, Villaraigosa, Vincent,  
            Washington, Wayne, Wesson, Wiggins, Wildman, Wright,  
            Zettel, Hertzberg
          NOES:  Ashburn, Kaloogian, McClintock, Oller, Rod Pacheco,  
            Runner, Thompson


          CP:cm  8/27/00   Senate Floor Analyses 

                         SUPPORT/OPPOSITION:  SEE ABOVE

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