Senate Bill No. 2005

June Special Session, Public Act No. 01-8

AN ACT CONCERNING COMMUNITY MENTAL HEALTH STRATEGIC INVESTMENT.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (a) There is established within the Department of Mental Health and Addiction Services an account in the General Fund to be known as the "Community Mental Health Strategic Investment Fund". The account shall contain all moneys required by law to be deposited in the account and shall be held separate and apart from all other money, funds and accounts. Investment earnings from any moneys in the account shall be credited to the account and shall become part of the assets of the account. Any balance remaining in the account at the end of any fiscal year shall not lapse and shall be available for use for the fiscal year next succeeding.

(b) The account established under subsection (a) of this section shall be used to provide assistance for persons with mental illness, including, but not limited to, eligible households, as defined in section 17a-484a of the general statutes, and such persons who are community-supervised offenders supervised by the executive or judicial branch, and children or youth not within the care of the Department of Children and Families for the development of new or expanded community-based clinical and nonclinical facilities, related mental health services and supportive housing for persons with mental health needs.

(c) Within the account established under subsection (a) of this section, there shall be two subaccounts: (1) A Community Mental Health Restoration subaccount for the purpose of providing financial assistance for new or expanded community-based mental health facilities and services, including, but not limited to, rental subsidies, case management, assertive community treatment teams, intensive residential programs, specialized treatment programs, hospital outpatient behavioral health services, regional independent living grants, multicultural services, training, technical assistance and evaluation, and grants to nonprofit providers for the enhancement of home and community-based services for the early detection, diagnosis and treatment of mental illness and emotional disturbance among children and youth from birth through transition to adult services; and (2) a Supportive Housing Enhancement subaccount for the purpose of carrying out section 5 of this act.

Sec. 2. (NEW) (a) Expenditures from the Community Mental Health Strategic Investment Fund established under section 1 of this act shall be made in accordance with a community mental health strategic plan and financial assistance plan adopted by the Community Mental Health Strategy Board established under section 3 of this act on or before January 1, 2002, and annually thereafter. Such strategic plan shall be consistent with other applicable state plans for mental health services.

(b) The Commissioners of Mental Health and Addiction Services, Children and Families, Economic and Community Development, Education, Correction, Public Health and Social Services, the Secretary of the Office of Policy and Management and the Chief Court Administrator shall provide such information, including, but not limited to, information regarding needs assessments, program reviews and program revenues and expenses, and make such recommendations for expenditures from the account established under section 1 of this act, as may be requested by the board.

Sec. 3. (NEW) (a) There is established a Community Mental Health Strategy Board. The voting members of the board shall be appointed as follows: (1) Two members by the Governor; (2) two members by the president pro tempore of the Senate; (3) two members by the speaker of the House of Representatives; (4) one member by the majority leader of the Senate; (5) one member by the majority leader of the House of Representatives; (6) two members by the minority leader of the Senate; (7) two members by the minority leader of the House of Representatives; (8) the Commissioner of Children and Families; (9) and the Commissioner of Mental Health and Addiction Services, who shall serve as chairperson. The Secretary of the Office of Policy and Management, the Chief Court Administrator and the Commissioners of Economic and Community Development, Education, Correction, Public Health and Social Services, or their designees, shall serve as nonvoting ex-officio members of the board. Board members shall serve without compensation but shall be reimbursed for their necessary expenses. All initial appointments to the board shall be made not later than September 1, 2001. The Commissioner of Mental Health and Addiction Services shall convene the first meeting of the board not later than September 15, 2001.

(b) The board, by majority vote of the voting members, shall, not less than annually, approve commitments and disbursements that the Commissioner of Mental Health and Addiction Services may make from the Community Mental Health Strategic Investment Fund established under section 1 of this act for the purposes of sections 1 to 5, inclusive, of this act that are consistent with the community mental health strategic plan adopted under subsection (a) of section 2 of this act. The board may (1) designate the appropriate state agencies or the Connecticut Housing Finance Authority to receive such disbursements and to implement the provisions of sections 1 to 5, inclusive, of this act, or (2) in conjunction with one or more state agencies or the Connecticut Housing Finance Authority, issue requests for proposals and request the Commissioner of Mental Health and Addiction Services to enter into contracts to make disbursements and implement the provisions of sections 1 to 5, inclusive, of this act. The board shall designate the assignment of funds not otherwise assigned to the subaccounts established under section 1 of this act as the board deems appropriate.

(c) The board shall, not later than February 1, 2002, and annually thereafter, report to the Governor and the General Assembly, in accordance with the provisions of section 11-4a of the general statutes. The report shall include a description of all disbursements made from the account established under section 1 of this act during the prior fiscal year and an evaluation of the impact of each program or service receiving such disbursements with respect to its outcome and effectiveness in expanding access to quality, appropriate community-based mental health care.

(d) Within the limits of available appropriations, the Department of Mental Health and Addiction Services shall provide for such staff and other administrative support as may be required by the board for the purposes of this act.

Sec. 4. (a) The Department of Mental Health and Addiction Services, in consultation with the Department of Social Services, shall conduct a study concerning the implementation of adult rehabilitation services under Medicaid. Not later than February 1, 2002, the departments shall jointly submit a report of their findings and recommendations to the Governor and to the joint standing committees of the General Assembly having cognizance of matters relating to public health, human services and appropriations and the budgets of state agencies, in accordance with the provisions of section 11-4a of the general statutes. The report shall include, but not be limited to, an implementation plan, a cost benefit analysis and a description of the plan's impact on existing services.

(b) The Department of Mental Health and Addiction Services and the Department of Social Services shall conduct a study concerning the advisability of entering into an interagency agreement pursuant to which the Department of Mental Health and Addiction Services would provide clinical management of mental health services, including, but not limited to, review and authorization of services, implementation of quality assurance and improvement initiatives and provision of case management services, for aged, blind or disabled adults enrolled in the Medicaid program to the extent permitted under federal law. Not later than February 1, 2002, the departments shall jointly submit a report of their findings and recommendations to the Governor and to the joint standing committees of the General Assembly having cognizance of matters relating to public health, human services and appropriations and the budgets of state agencies, in accordance with the provisions of section 11-4a of the general statutes.

(c) Upon completion of the study and report required under subsection (a) of this section, the Commissioner of Social Services shall take such action as may be necessary to amend the Medicaid state plan to provide for coverage of optional adult rehabilitation services supplied by various providers of mental health services, pursuant to a contract with the Department of Mental Health and Addiction Services, for adults with mental health needs who are clients of said department. For the fiscal years ending June 30, 2002, and June 30, 2003, any moneys received by the state as federal reimbursement for optional Medicaid adult rehabilitation services shall be credited to the Community Mental Health Restoration subaccount within the account established under section 1 of this act and shall be available for use for the purposes of the subaccount.

Sec. 5. (NEW) (a) The Commissioner of Mental Health and Addiction Services, in collaboration with the Commissioners of Social Services and Economic and Community Development and the Connecticut Housing Finance Authority, shall establish a Supportive Housing Pilots Initiative to provide additional units of affordable housing and support services to eligible households, as defined in section 17a-484a of the general statutes, and to persons with serious mental health needs who are community-supervised offenders supervised by the executive or judicial branch. Such housing shall be permanent supportive housing or transitional living programs, and the permanent supportive housing may include both individuals and families with special needs and individuals and families without such needs.

(b) The Supportive Housing Pilots Initiative shall provide up to six hundred fifty dwelling units. Not later than January 1, 2002, the Secretary of the Office of Policy and Management and the Commissioner of Mental Health and Addiction Services shall enter into a memorandum of understanding with the Departments of Social Services and Economic and Community Development and the Connecticut Housing Finance Authority. The memorandum of understanding shall provide that: (1) A collaborative plan shall be submitted with specific timetables to create up to six hundred fifty dwelling units of supportive housing, which may include the construction of up to three hundred new units of supportive housing; (2) the Department of Social Services may provide project-based rental subsidy certificates; (3) the Connecticut Housing Finance Authority and the Department of Economic and Community Development shall provide grants, mortgage loans and tax credits that offer a viable financing package, including capitalized operating reserves, for the construction of up to three hundred new units of supportive housing; (4) the Department of Mental Health and Addiction Services shall provide annual grants to the projects for supportive services during the term of any mortgage loan; (5) there shall be a plan for private and federal predevelopment financing and financing from nonstate sources for grants and loans from private investment through federal and state tax credit programs and federal project-based rental subsidies; and (6) not later than July 1, 2002, the Connecticut Housing Finance Authority shall issue a request for proposals by persons or entities interested in participating in such initiative with priority given to applicants that include organizations deemed qualified to provide services by the Department of Mental Health and Addiction Services pursuant to a request for qualifications. The Connecticut Housing Finance Authority shall review and underwrite projects developed under the Supportive Housing Pilots Initiative.

(c) Not later than January 1, 2004, the Commissioners of Mental Health and Addiction Services and Economic and Community Development and the Connecticut Housing Finance Authority shall submit an interim status report relative to the Supportive Housing Pilots Initiative established under this section to the joint standing committees of the General Assembly having cognizance of matters relating to public health, human services, finance, revenue and bonding and appropriations and the budgets of state agencies. Not later than January 1, 2006, the Commissioners of Mental Health and Addiction Services and Economic and Community Development and the Connecticut Housing Finance Authority shall submit a final report to said committees with respect to the Supportive Housing Pilots Initiative and the report shall include, but not be limited to, information indicating (1) the number and location of the units of supportive housing created, (2) the number of individuals served, (3) the number and type of services offered, and (4) the estimated amount of cost avoidance achieved as a direct result of such initiative.

Sec. 6. Subsection (h) of section 8-395 of the general statutes is repealed and the following is substituted in lieu thereof:

(h) In no event shall the total amount of all tax credits allowed to all business firms pursuant to the provisions of this section exceed five million dollars in any one fiscal year, provided, until November first of each year, one million dollars of the total amount of all tax credits under this section shall be set aside for the Supportive Housing Pilot Initiative established pursuant to section 5 of this act. On or after November first of each year, any unused portion of such tax credits shall become available for any housing program eligible for tax credits pursuant to this section.

Sec. 7. (a) For the purposes described in subsection (b) of this section, the State Bond Commission shall have the power, from time to time, to authorize the issuance of bonds of the state in one or more series and in principal amounts not exceeding in the aggregate ten million dollars.

(b) The proceeds of the sale of said bonds, to the extent of the amount stated in subsection (a) of this section, shall be used by the Department of Economic and Community Development for the purpose of providing funds for implementation of the Supportive Housing Pilots Initiative established under section 5 of this act.

(c) All provisions of section 3-20 of the general statutes, or the exercise of any right or power granted thereby, which are not inconsistent with the provisions of this section are hereby adopted and shall apply to all bonds authorized by the State Bond Commission pursuant to this section, and temporary notes in anticipation of the money to be derived from the sale of any such bonds so authorized may be issued in accordance with said section 3-20 and from time to time renewed. Such bonds shall mature at such time or times not exceeding twenty years from their respective dates as may be provided in or pursuant to the resolution or resolutions of the State Bond Commission authorizing such bonds. None of said bonds shall be authorized except upon a finding by the State Bond Commission that there has been filed with it a request for such authorization which is signed by or on behalf of the Secretary of the Office of Policy and Management and states such terms and conditions as said commission, in its discretion, may require. Said bonds issued pursuant to this section shall be general obligations of the state and the full faith and credit of the state of Connecticut are pledged for the payment of the principal of and interest on said bonds as the same become due, and accordingly and as part of the contract of the state with the holders of said bonds, appropriation of all amounts necessary for punctual payment of such principal and interest is hereby made, and the State Treasurer shall pay such principal and interest as the same become due.

Sec. 8. (NEW) (a) There is established an account to be known as the Pretrial Account. The account shall contain any moneys required by law to be deposited in the account and shall be a separate, nonlapsing account of the General Fund. Investment earnings credited to the account shall become part of the assets of the account. Any balance remaining in said account at the end of any fiscal year shall be carried forward in the account for the next fiscal year.

(b) There shall be deposited in the Pretrial Account all program fees collected pursuant to subsection (c) of section 54-56g of the general statutes and subsection (g) of section 54-56i of the general statutes, as amended by this act, and funds appropriated in subsection (a) of section 47 of special act 01-1 of the June special session.

(c) Amounts in the Pretrial Account shall be available to fund the cost of operating the pretrial alcohol and drug education programs established under sections 54-56g and 54-56i of the general statutes, as amended by this act.

Sec. 9. Subsection (c) of section 54-56g of the general statutes is repealed and the following is substituted in lieu thereof:

(c) At the time the court grants the application for participation in the pretrial alcohol education system, such person shall also pay to the court a nonrefundable program fee of four hundred twenty-five dollars or, if such person was charged with a violation of subdivision (2) of subsection (a) of section 14-227a, where the ratio of alcohol in the blood of such person was sixteen-hundredths of one per cent or more of alcohol, by weight, a nonrefundable program fee of six hundred dollars, except that no person may be excluded from such program for inability to pay such fee, provided (1) such person files with the court an affidavit of indigency or inability to pay, (2) such indigency is confirmed by the Bail Commission, and (3) the court enters a finding thereof. If the court denies the application, such person shall not be required to pay the program fee. If the court grants the application, and such person is later determined to be ineligible for participation in such pretrial alcohol education system or fails to complete the assigned program, the program fee shall not be refunded. All such program fees shall be credited to the [General Fund] Pretrial Account.

Sec. 10. Subsection (g) of section 54-56i of the general statutes is repealed and the following is substituted in lieu thereof:

(g) At the time the court grants the application for participation in the pretrial drug education program, such person shall pay to the court a nonrefundable program fee of three hundred fifty dollars, except that no person may be excluded from such program for inability to pay such fee, provided (1) such person files with the court an affidavit of indigency or inability to pay, (2) such indigency or inability to pay is confirmed by the Bail Commission, and (3) the court enters a finding thereof. The court may waive all or any portion of such fee depending on such person's ability to pay. If the court denies the application, such person shall not be required to pay the program fee. If the court grants the application, and such person is later determined to be ineligible for participation in such pretrial drug education program or fails to complete the assigned program, the three-hundred-fifty-dollar program fee shall not be refunded. All such program fees shall be credited to the [General Fund] Pretrial Account.

Sec. 11. (a) The sum of $25,000,000 appropriated to the Department of Mental Health and Addiction Services for the Community Mental Health Strategic Investment Fund, for the fiscal year ending June 30, 2001, in subsection (a) of section 47 of special act 01-1 of the June special session, shall be transferred to the Community Mental Health Restoration subaccount established pursuant to subdivision (1) of subsection (c) of section 1 of this act. Such funds shall not lapse on June 30, 2001, and shall continue to be available for expenditure for such purpose in the fiscal years ending June 30, 2002, and June 30, 2003.

(b) The sum of $15,000,000 appropriated to the Department of Mental Health and Addiction Services for Supportive Housing, for the fiscal year ending June 30, 2001, in subsection (a) of section 47 of special act 01-1 of the June special session, shall be transferred to the Supportive Housing Enhancement subaccount established pursuant to subdivision (1) of subsection (c) of section 1 of this act. Such funds shall not lapse on June 30, 2001, and shall continue to be available for expenditure for such purpose in the fiscal years ending June 30, 2002, and June 30, 2003.

Sec. 12. (a) The sum of $1,500,000 appropriated to the Department of Mental Health and Addiction Services for the Housing Supports and Services account, for the fiscal year ending June 30, 2002, in section 1 of special act 01-1 of the June special session, shall be transferred to the Community Mental Health Restoration subaccount established pursuant to subdivision (1) of subsection (c) of section 1 of this act. The sum of $3,500,000 appropriated to the Department of Mental Health and Addiction Services for the Managed Service System account, for the fiscal year ending June 30, 2002, in section 1 of special act 01-1 of the June special session, shall be transferred to the Community Mental Health Restoration subaccount established pursuant to subdivision (1) of subsection (c) of section 1 of this act.

(b) The sum of $650,000 appropriated to the Department of Mental Health and Addiction Services for the Managed Service System account, for the fiscal year ending June 30, 2002, in section 1 of special act 01-1 of the June special session, shall be used for hospital-based mental health programs at the discretion of the Commissioner of Mental Health and Addiction Services.

(c) The sum of $650,000 appropriated to the Department of Mental Health and Addiction Services for the Managed Service System account, for the fiscal year ending June 30, 2003, in section 11 of special act 01-1 of the June special session, shall be used for hospital-based mental health programs at the discretion of the Commissioner of Mental Health and Addiction Services.

Sec. 13. This act shall take effect July 1, 2001.

Approved July 2, 2001