BILL NUMBER: SBX3 10 CHAPTERED
BILL TEXT
CHAPTER 15
FILED WITH SECRETARY OF STATE FEBRUARY 20, 2009
APPROVED BY GOVERNOR FEBRUARY 20, 2009
PASSED THE SENATE FEBRUARY 19, 2009
PASSED THE ASSEMBLY FEBRUARY 14, 2009
AMENDED IN ASSEMBLY FEBRUARY 14, 2009
AMENDED IN ASSEMBLY JANUARY 13, 2009
INTRODUCED BY Senator Ducheny
JANUARY 5, 2009
An act to amend Sections 5891 and 5892 of the Welfare and
Institutions Code, relating to mental health, and declaring the
urgency thereof, to take effect immediately.
LEGISLATIVE COUNSEL'S DIGEST
SB 10, Ducheny. The Mental Health Services Act: Proposition 63
amendments.
Existing law, the Mental Health Services Act (hereafter, the
MHSA), an initiative measure, was approved by the voters in November
2004 as Proposition 63. The MHSA establishes the Mental Health
Oversight and Accountability Commission, and imposes a tax of 1% on
incomes above $1,000,000 for the purpose of financing new or expanded
mental health services. Under the MHSA, the State Department of
Mental Health is required, among other things, to distribute funds
for local assistance for designated mental health programs. The MHSA
prohibits a decrease in other funding levels for pre-existing mental
health programs below the 2003-04 fiscal year levels, and prohibits a
change in the structure of financing mental health services, which
increases the county's share of costs or risk unless full
compensation is provided. As an initiative measure, unless approved
by the voters, the MHSA permits amendment of its provisions by 2/3
vote of the Legislature, but only if the amendments are consistent
with and further the intent of the MHSA. The MHSA also permits
amendment by majority vote of the Legislature to clarify procedures
and terms.
This bill, subject to voter approval at a statewide election,
would, until July 1, 2011, permit the sum of $226,700,000 of MHSA
funding in the 2009-10 fiscal year and up to $234,000,000 of MHSA
funding in the 2010-11 fiscal year to be redirected to support the
Early and Periodic Screening, Diagnosis and Treatment (EPSDT) Program
as administered by the State Department of Mental Health.
The California Constitution authorizes the Governor to declare a
fiscal emergency and to call the Legislature into special session for
that purpose. The Governor issued a proclamation declaring a fiscal
emergency, and calling a special session for this purpose, on
December 19, 2008.
This bill would state that it addresses the fiscal emergency
declared by the Governor by proclamation issued on December 19, 2008,
pursuant to the California Constitution.
This bill would declare that it is to take effect immediately as
an urgency statute.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 5891 of the Welfare and Institutions Code is
amended to read:
5891. (a) The funding established pursuant to this act shall be
utilized to expand mental health services. Except as authorized in
paragraph (7) of subdivision (a) of Section 5892, these funds shall
not be used to supplant existing state or county funds utilized to
provide mental health services. Except as authorized in paragraph (7)
of subdivision (a) of Section 5892, state shall continue to provide
financial support for mental health programs with not less than the
same entitlements, amounts of allocations from the General Fund and
formula distributions of dedicated funds as provided in the last
fiscal year which ended prior to the effective date of this act. The
state shall not make any change to the structure of financing mental
health services, which increases a county's share of costs or
financial risk for mental health services unless the state includes
adequate funding to fully compensate for such increased costs or
financial risk. These funds shall only be used to pay for the
programs authorized in Section 5892. These funds may not be used to
pay for any other program. These funds may not be loaned to the state
General Fund or any other fund of the state, or a county general
fund or any other county fund for any purpose other than those
authorized by Section 5892.
(b) Notwithstanding subdivision (a), the Controller may use the
funds created pursuant to this part for loans to the General Fund as
provided in Sections 16310 and 16381 of the Government Code. Any such
loan shall be repaid from the General Fund with interest computed at
110 percent of the Pooled Money Investment Account rate, with
interest commencing to accrue on the date the loan is made from the
fund. This subdivision does not authorize any transfer that would
interfere with the carrying out of the object for which these funds
were created.
SEC. 2. Section 5892 of the Welfare and Institutions Code is
amended to read:
5892. (a) In order to promote efficient implementation of this
act allocate the following portions of funds available in the Mental
Health Services Fund in 2005-06 and each year thereafter:
(1) In 2005-06, 2006-07, and in 2007-08 10 percent shall be placed
in a trust fund to be expended for education and training programs
pursuant to Part 3.1.
(2) In 2005-06, 2006-07 and in 2007-08 10 percent for capital
facilities and technological needs distributed to counties in
accordance with a formula developed in consultation with the
California Mental Health Directors Association to implement plans
developed pursuant to Section 5847.
(3) Twenty percent for prevention and early intervention programs
distributed to counties in accordance with a formula developed in
consultation with the California Mental Health Directors Association
pursuant to Part 3.6 (commencing with Section 5840) of this division.
Each county's allocation of funds shall be distributed only after
its annual program for expenditure of such funds has been approved by
the Mental Health Services Oversight and Accountability Commission
established pursuant to Section 5845.
(4) The allocation for prevention and early intervention may be
increased in any county which the department determines that such
increase will decrease the need and cost for additional services to
severely mentally ill persons in that county by an amount at least
commensurate with the proposed increase. The statewide allocation for
prevention and early intervention may be increased whenever the
Mental Health Services Oversight and Accountability Commission
determines that all counties are receiving all necessary funds for
services to severely mentally ill persons and have established
prudent reserves and there are additional revenues available in the
fund.
(5) The balance of funds shall be distributed to county mental
health programs for services to persons with severe mental illnesses
pursuant to Part 4 (commencing with Section 5850), for the children's
system of care and Part 3 (commencing with Section 5800), for the
adult and older adult system of care.
(6) Five percent of the total funding for each county mental
health program for Part 3 (commencing with Section 5800), Part 3.6
(commencing with Section 5840), and Part 4 (commencing with Section
5850) of this division, shall be utilized for innovative programs
pursuant to an approved plan required by Section 5830 and such funds
may be distributed by the department only after such programs have
been approved by the Mental Health Services Oversight and
Accountability Commission established pursuant to Section 5845.
(7) Prior to the distribution of funds under paragraphs (1) to
(5), inclusive, effective July 1, 2009, the sum of two hundred
twenty-six million seven hundred thousand dollars ($226,700,000)
shall be redirected to support the Early and Periodic Screening,
Diagnosis and Treatment (EPSDT) Program as administered by the State
Department of Mental Health for the 2009-10 fiscal year. For the
2010-11 fiscal year prior to the distribution of funds under
paragraphs (1) to (5), inclusive, effective July 1, 2010, the sum of
two hundred twenty-six million seven hundred thousand dollars
($226,700,000) shall be redirected to support the EPSDT program,
except that this amount may be adjusted to fund caseload as
appropriate in the EPSDT program, but the total amount redirected for
the 2010-11 fiscal year shall not exceed the sum of two hundred
thirty-four million dollars ($234,000,000). This paragraph shall
become inoperative on July 1, 2011.
(b) In any year after 2007-08, programs for services pursuant to
Part 3 (commencing with Section 5800), and Part 4 (commencing with
Section 5850) of this division may include funds for technological
needs and capital facilities, human resource needs, and a prudent
reserve to ensure services do not have to be significantly reduced in
years in which revenues are below the average of previous years. The
total allocation for purposes authorized by this subdivision shall
not exceed 20 percent of the average amount of funds allocated to
that county for the previous five years pursuant to this section.
(c) The allocations pursuant to subdivisions (a) and (b) shall
include funding for annual planning costs pursuant to Section 5848.
The total of such costs shall not exceed 5 percent of the total of
annual revenues received for the fund. The planning costs shall
include funds for county mental health programs to pay for the costs
of consumers, family members and other stakeholders to participate in
the planning process and for the planning and implementation
required for private provider contracts to be significantly expanded
to provide additional services pursuant to Part 3 (commencing with
Section 5800), and Part 4 (commencing with Section 5850) of this
division.
(d) Prior to making the allocations pursuant to subdivisions (a),
(b) and (c), the department shall also provide funds for the costs
for itself, the California Mental Health Planning Council and the
Mental Health Services Oversight and Accountability Commission to
implement all duties pursuant to the programs set forth in this
section. Such costs shall not exceed 5 percent of the total of annual
revenues received for the fund. The administrative costs shall
include funds to assist consumers and family members to ensure the
appropriate state and county agencies give full consideration to
concerns about quality, structure of service delivery or access to
services. The amounts allocated for administration shall include
amounts sufficient to ensure adequate research and evaluation
regarding the effectiveness of services being provided and
achievement of the outcome measures set forth in Part 3 (commencing
with Section 5800), Part 3.6 (commencing with Section 5840), and Part
4 (commencing with Section 5850) of this division.
(e) In 2004-05 funds shall be allocated as follows:
(1) 45 percent for education and training pursuant to Part 3.1
(commencing with Section 5820) of this division.
(2) 45 percent for capital facilities and technology needs in the
manner specified by paragraph (2) of subdivision (a).
(3) 5 percent for local planning in the manner specified in
subdivision (c) and
(4) 5 percent for state implementation in the manner specified in
subdivision (d).
(f) Each county shall place all funds received from the State
Mental Health Services Fund in a local Mental Health Services Fund.
The Local Mental Health Services Fund balance shall be invested
consistent with other county funds and the interest earned on such
investments shall be transferred into the fund. The earnings on
investment of these funds shall be available for distribution from
the fund in future years.
(g) All expenditures for county mental health programs shall be
consistent with a currently approved plan or update pursuant to
Section 5847.
(h) Other than funds placed in a reserve in accordance with an
approved plan, any funds allocated to a county which have not been
spent for their authorized purpose within three years shall revert to
the state to be deposited into the fund and available for other
counties in future years, provided however, that funds for capital
facilities, technological needs or education and training may be
retained for up to 10 years before reverting to the fund.
(i) If there are still additional revenues available in the fund
after the Mental Health Services Oversight and Accountability
Commission has determined there are prudent reserves and no unmet
needs for any of the programs funded pursuant to this section,
including all purposes of the Prevention and Early Intervention
Program, the commission shall develop a plan for expenditures of such
revenues to further the purposes of this act and the Legislature may
appropriate such funds for any purpose consistent with the
commission's adopted plan which furthers the purposes of this act.
SEC. 3. As an amendment of an initiative statute, Sections 1 and 2
of this act shall become effective only upon approval by the voters
at a statewide election.
SEC. 4. This act addresses the fiscal emergency declared by the
Governor by proclamation on December 19, 2008, pursuant to
subdivision (f) of Section 10 of Article IV of the California
Constitution.
SEC. 5. This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect. The facts constituting the necessity are:
In order to present these provisions amending Proposition 63 to
the voters at the earliest opportunity, it is necessary that this
bill take effect immediately.