BILL NUMBER: SB 1392 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY AUGUST 2, 2010
AMENDED IN ASSEMBLY JUNE 17, 2010
AMENDED IN SENATE APRIL 22, 2010
AMENDED IN SENATE APRIL 12, 2010
INTRODUCED BY Senator Steinberg
FEBRUARY 19, 2010
An act to amend Sections 5713 and 5813.5 ,
5778, and 5891 of, and to add Section 5784 to, the Welfare and
Institutions Code, relating to mental health, and making an
appropriation therefor.
LEGISLATIVE COUNSEL'S DIGEST
SB 1392, as amended, Steinberg. Mental health: community mental
health services.
Existing law, the Bronzan-McCorquodale Act, contains provisions
governing the operation and financing of community mental health
services for the mentally disordered in every county through locally
administered and locally controlled community mental health programs.
Under existing law, the State Department of Mental Health is
allowed to advance, in equal monthly increments, up to 95% of the
annual funds due to community mental health programs.
This bill would remove the restriction to 12 monthly installments
and a maximum of 95% for advances.
Existing law, the Mental Health Services Act, an initiative
measure enacted by the voters as Proposition 63 at the November 2,
2004, statewide general election, establishes the Mental Health
Services Fund to fund various county mental health programs. The act
may be amended by the Legislature only by a 2/3 vote of both houses
and only so long as the amendment is consistent with and furthers the
intent of the act. The Legislature may clarify procedures and terms
of the act by majority vote.
Existing law requires the distribution of funds for the provision
of specified services, subject to the availability of funds in the
Mental Health Services Fund.
This bill would provide that the distribution of funds for
services provided be on a monthly basis.
Existing law provides for administration of the Early and Periodic
Screening, Diagnosis, and Treatment Program (EPSDT) by the State
Department of Mental Health.
Existing law separately establishes the Medi-Cal
program, administered by the State Department of Health Care
Services, under which basic health care services, including mental
health services are provided to qualified low-income persons. The
Medi-Cal program is partially governed and funded under federal
Medicaid provisions.
Under existing law, the State Department of Mental Health is
required to implement managed mental health care for Medi-Cal
recipients through fee-for-service or capitated contracts with
counties, counties acting jointly, qualified individuals or
organizations, or nongovernmental entities. Existing law requires the
department to allocate the contracted amount to the mental health
plan (MHP) at the beginning of the contract period.
This bill would require the State Department of Mental Health to
allocate and distribute annually the full appropriated amount to the
MHP for the managed mental health program, exclusive of the EPSDT
component.
Existing law requires MHPs to have sufficient matching funds on
deposit with the department as matching funds necessary for federal
financial participation, as specified.
This bill would eliminate this requirement.
This bill, as of July 1, 2011, would establish and continuously
appropriate, without regard to fiscal year, to the State Department
of Health Care Services, the Specialty Mental Health Services Federal
Trust Fund, which would consist of federal funds that may be use to
facilitate continuity of care for specialty mental health services
provided to adults who are Medi-Cal beneficiaries. The bill would
require moneys in the fund to be distributed by the State Department
of Health Care Services to community mental health
programs based on adjudicated claims.
Existing law, the Mental Health Services Act, an initiative
measure enacted by the voters as Proposition 63 at the November 2,
2004, statewide general election, establishes the Mental Health
Services Fund (MHSF) to fund various county mental health programs.
The act may be amended by the Legislature only by a 2/3 vote of both
houses and only so long as the amendment is consistent with and
furthers the intent of the act. The Legislature may clarify
procedures and terms of the act by majority vote. Under existing law,
funding for the Mental Health Services Act is required to be used to
expand mental health services, but may be loaned to the General
Fund, as provided.
This bill would, instead, subject to the availability of funding
in the MHSF, require the State Department of Mental Health to
distribute in a single lump sum the total approved funding to the
counties for the provision of programs and other activities, as
specified.
Vote: majority. Appropriation: yes. Fiscal committee: yes.
State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. The Legislature hereby finds and declares all of the
following:
(a) In recent years, community mental health services, which are
administered by the counties, have experienced sharp budget
reductions.
(b) These reductions have exacerbated emergency room overcrowding,
with mental health clients in crisis showing up in emergency rooms
instead of at mental health programs.
(c) Numerous recent audits of the state's administration of mental
health funds by the federal Centers for Medicaid and Medicare
Services, conducted in 2008 and 2010, revealed state noncompliance
with federal cost reporting requirements.
(d) Moreover, in 2007, a state audit by the Department of Finance,
Office of State Audits and Evaluations unearthed deficiencies in the
claims processing process for federal Medicare
Medicaid funds for mental health.
(e) This act is necessary to facilitate the efficiency and cost
effectiveness of community mental health services and to prevent
avoidable future county budget cuts to mental health.
SEC. 2. Section 5713 of the Welfare and Institutions Code is
amended to read:
5713. Advances for funding mental health services may be made by
the Director of Mental Health from funds appropriated to the
department for local mental health programs and services specified in
the annual Budget Act. Advances made pursuant to this section shall
be made in the form and manner the Director of Mental Health shall
determine. When certified by the Director of Mental Health, advances
shall be presented to the Controller for payment. Each advance shall
be payable from the appropriation made for the fiscal year in which
the expenses upon which the advance is based are incurred.
SEC. 3. Section 5778 of the Welfare and
Institutions Code is amended to read:
5778. (a) This section shall be limited to specialty mental
health services reimbursed through a fee-for-service payment system.
(b) The following provisions shall apply to matters related to
specialty mental health services provided under the Medi-Cal
specialty mental health services waiver, including, but not limited
to, reimbursement and claiming procedures, reviews and oversight, and
appeal processes for mental health plans (MHPs) and MHP
subcontractors.
(1) During the initial phases of the implementation of this part,
as determined by the department, the MHP contractor and
subcontractors shall submit claims under the Medi-Cal program for
eligible services on a fee-for-service basis.
(2) A qualifying county may elect, with the approval of the
department, to operate under the requirements of a capitated,
integrated service system field test pursuant to Section 5719.5
rather than this part, in the event the requirements of the two
programs conflict. A county that elects to operate under that section
shall comply with all other provisions of this part that do not
conflict with that section.
(3) (A) No sooner than October 1, 1994, state matching funds for
Medi-Cal fee-for-service acute psychiatric inpatient services, and
associated administrative days, shall be transferred to the
department. No later than July 1, 1997, upon agreement between the
department and the State Department of Health Care Services, state
matching funds for the remaining Medi-Cal fee-for-service mental
health services and the state matching funds associated with field
test counties under Section 5719.5 shall be transferred to the
department.
(B) The department, in consultation with the State Department of
Health Care Services, a statewide organization representing counties,
and a statewide organization representing health maintenance
organizations shall develop a timeline for the transfer of funding
and responsibility for fee-for-service mental health services from
Medi-Cal managed care plans to MHPs. In developing the timeline, the
department shall develop screening, referral, and coordination
guidelines to be used by Medi-Cal managed care plans and MHPs.
(4) (A) (i) A MHP subcontractor providing specialty mental health
services shall be financially responsible for federal audit
exceptions or disallowances to the extent that these exceptions or
disallowances are based on the MHP subcontractor's conduct or
determinations.
(ii) The state shall be financially responsible for federal audit
exceptions or disallowances to the extent that these exceptions or
disallowances are based on the state's conduct or determinations. The
state shall not withhold payment from a MHP for exceptions or
disallowances that the state is financially responsible for pursuant
to this clause.
(iii) A MHP shall be financially responsible for state audit
exceptions or disallowances to the extent that these exceptions or
disallowances are based on the MHP's conduct or determinations. A MHP
shall not withhold payment from a MHP subcontractor for exceptions
or disallowances for which the MHP is financially responsible
pursuant to this clause.
(B) For purposes of subparagraph (A), a "determination" shall be
shown by a written document expressly stating the determination,
while "conduct" shall be shown by any credible, legally admissible
evidence.
(C) The department and the State Department of Health Care
Services shall work jointly with MHPs in initiating any necessary
appeals. The department may invoice or offset the amount of any
federal disallowance or audit exception against subsequent claims
from the MHP or MHP subcontractor. This offset may be done at any
time, after the audit exception or disallowance has been withheld
from the federal financial participation claim made by the State
Department of Health Care Services. The maximum amount that may be
withheld shall be 25 percent of each payment to the plan or
subcontractor.
(5) (A) Oversight by the department of the MHPs and MHP
subcontractors may include client record reviews of Early Periodic
Screening Diagnosis and Treatment (EPSDT) specialty mental health
services under the Medi-Cal specialty mental health services waiver
in addition to other audits or reviews that are conducted.
(B) The department may contract with an independent,
nongovernmental entity to conduct client record reviews. The contract
awarded in connection with this section shall be on a competitive
bid basis, pursuant to the Department of General Services contracting
requirements, and shall meet both of the following additional
requirements:
(i) Require the entity awarded the contract to comply with all
federal and state privacy laws, including, but not limited to, the
federal Health Insurance Portability and Accountability Act (HIPAA;
42 U.S.C. Sec. 1320d et seq.) and its implementing regulations, the
Confidentiality of Medical Information Act (Part 2.6 (commencing with
Section 56) of Division 1 of the Civil Code), and Section 1798.81.5
of the Civil Code. The entity shall be subject to existing penalties
for violation of these laws.
(ii) Prohibit the entity awarded the contract from using, selling,
or disclosing client records for a purpose other than the one for
which the record was given.
(C) For purposes of this paragraph, the following terms shall have
the following meanings:
(i) "Client record" means a medical record, chart, or similar
file, as well as other documents containing information regarding an
individual recipient of services, including, but not limited to,
clinical information, dates and times of services, and other
information relevant to the individual and services provided and that
evidences compliance with legal requirements for Medi-Cal
reimbursement.
(ii) "Client record review" means examination of the client record
for a selected individual recipient for the purpose of confirming
the existence of documents that verify compliance with legal
requirements for claims submitted for Medi-Cal reimbursement.
(D) The department shall recover overpayments of federal financial
participation from MHPs within the timeframes required by federal
law and regulation and return those funds to the State Department of
Health Care Services for repayment to the federal Centers for
Medicare and Medicaid Services. The department shall recover
overpayments of General Fund moneys utilizing the recoupment methods
and timeframes required by the State Administrative Manual.
(6) (A) The department, in consultation with mental health
stakeholders, the California Mental Health Directors Association, and
MHP subcontractor representatives, shall provide an appeals process
that specifies a progressive process for resolution of disputes about
claims or recoupments relating to specialty mental health services
under the Medi-Cal specialty mental health services waiver.
(B) The department shall provide MHPs and MHP subcontractors the
opportunity to directly appeal findings in accordance with procedures
that are similar to those described in Article 1.5 (commencing with
Section 51016) of Chapter 3 of Subdivision 1 of Division 3 of Title
22 of the California Code of Regulations, until new regulations for a
progressive appeals process are promulgated. When an MHP
subcontractor initiates an appeal, it shall give notice to the MHP.
The department shall propose a rulemaking package by no later than
the end of the 2008-09 fiscal year to amend the existing appeals
process. The reference in this subparagraph to the procedures
described in Article 1.5 (commencing with Section 51016) of Chapter 3
of Subdivision 1 of Division 3 of Title 22 of the California Code of
Regulations, shall only apply to those appeals addressed in this
subparagraph.
(C) The department shall develop regulations as necessary to
implement this paragraph.
(7) The department shall assume the applicable program oversight
authority formerly provided by the State Department of Health Care
Services, including, but not limited to, the oversight of utilization
controls as specified in Section 14133. The MHP shall include a
requirement in any subcontracts that all inpatient subcontractors
maintain necessary licensing and certification. MHPs shall require
that services delivered by licensed staff are within their scope of
practice. Nothing in this part shall prohibit the MHPs from
establishing standards that are in addition to the minimum federal
and state requirements, provided that these standards do not violate
federal and state Medi-Cal requirements and guidelines.
(8) Subject to federal approval and consistent with state
requirements, the MHP may negotiate rates with providers of mental
health services.
(9) Under the fee-for-service payment system, any excess in the
payment set forth in the contract over the expenditures for services
by the plan shall be spent for the provision of specialty mental
health services under the Medi-Cal specialty mental health service
waiver and related administrative costs.
(10) Nothing in this part shall limit the MHP from being
reimbursed appropriate federal financial participation for any
qualified services even if the total expenditures for service exceeds
the contract amount with the department. Matching nonfederal public
funds shall be provided by the plan for the federal financial
participation matching requirement.
(c) The provisions of this This
subdivision shall apply to managed mental health care funding
allocations and risk-sharing determinations and arrangements.
(1) The department shall allocate the contracted amount
at the beginning of the contract period to the MHP and
distribute annually the full appropriated amount to each MHP for the
managed mental health care program, exclusive of the EPSDT specialty
mental health services program, provided under the mental health
services waiver . The allocated funds shall be
considered to be funds of the plan that may be held by the
department. The department shall develop a methodology to ensure that
these funds are held as the property of the plan and shall not be
reallocated by the department or other entity of state government for
other purposes to be used as specified in this part
.
(2) Each fiscal year the state matching funds for Medi-Cal
specialty mental health services shall be included in the annual
budget for the department. The amount included shall be based on
historical cost, adjusted for changes in the number of Medi-Cal
beneficiaries and other relevant factors. The appropriation for
funding the state share of the costs for EPSDT specialty mental
health services provided under the Medi-Cal specialty mental health
services waiver shall only be used for reimbursement payments of
claims for those services.
(3) Initially, the MHP shall use the fiscal intermediary of the
Medi-Cal program of the State Department of Health Care Services for
the processing of claims for inpatient psychiatric hospital services
and may be required to use that fiscal intermediary for the remaining
mental health services. The providers for other Short-Doyle Medi-Cal
services shall not be initially required to use the fiscal
intermediary but may be required to do so on a date to be determined
by the department. The department and its MHPs shall be responsible
for the initial incremental increased matching costs of the fiscal
intermediary for claims processing and information retrieval
associated with the operation of the services funded by the
transferred funds.
(4) The MHPs shall have sufficient funds on deposit with the
department as the matching funds necessary for federal financial
participation to ensure timely payment of claims for acute
psychiatric inpatient services and associated administrative days.
The department and the State Department of Health Care Services, in
consultation with a statewide organization representing counties,
shall establish a mechanism to facilitate timely availability of
those funds. Any funds held by the state on behalf of a plan shall be
deposited in a mental health managed care deposit fund and shall
accrue interest to the plan. The department shall exercise any
necessary funding procedures pursuant to Section 12419.5 of the
Government Code and Sections 8776.6 and 8790.8 of the State
Administrative Manual regarding county claim submission and payment.
(5)
(4) The goal for funding of the future capitated system
shall be to develop statewide rates for beneficiary, by aid category
and with regional price differentiation, within a reasonable time
period. The formula for distributing the state matching funds
transferred to the department for acute inpatient psychiatric
services to the participating counties shall be based on the
following principles:
(A) Medi-Cal state General Fund matching dollars shall be
distributed to counties based on historic Medi-Cal acute inpatient
psychiatric costs for the county's beneficiaries and on the number of
persons eligible for Medi-Cal in that county.
(B) All counties shall receive a baseline based on historic and
projected expenditures up to October 1, 1994.
(C) Projected inpatient growth for the period October 1, 1994, to
June 30, 1995, inclusive, shall be distributed to counties below the
statewide average per eligible person on a proportional basis. The
average shall be determined by the relative standing of the aggregate
of each county's expenditures of mental health Medi-Cal dollars per
beneficiary. Total Medi-Cal dollars shall include both
fee-for-service Medi-Cal and Short-Doyle Medi-Cal dollars for both
acute inpatient psychiatric services, outpatient mental health
services, and psychiatric nursing facility services, both in
facilities that are not designated as institutions for mental disease
and for beneficiaries who are under 22 years of age and
beneficiaries who are over 64 years of age in facilities that are
designated as institutions for mental disease.
(D) There shall be funds set aside for a self-insurance risk pool
for small counties. The department may provide these funds directly
to the administering entity designated in writing by all counties
participating in the self-insurance risk pool. The small counties
shall assume all responsibility and liability for appropriate
administration of these funds. For purposes of this subdivision,
"small counties" means counties with less than 200,000 population.
Nothing in this paragraph shall in any way obligate the state or the
department to provide or make available any additional funds beyond
the amount initially appropriated and set aside for each particular
fiscal year, unless otherwise authorized in statute or regulations,
nor shall the state or the department be liable in any way for
mismanagement of loss of funds by the entity designated by the
counties under this paragraph.
(6)
(5) The allocation method for state funds transferred
for acute inpatient psychiatric services shall be as follows:
(A) For the 1994-95 fiscal year, an amount equal to 0.6965 percent
of the total shall be transferred to a fund established by small
counties. This fund shall be used to reimburse MHPs in small counties
for the cost of acute inpatient psychiatric services in excess of
the funding provided to the MHP for risk reinsurance, acute inpatient
psychiatric services and associated administrative days,
alternatives to hospital services as approved by participating small
counties, or for costs associated with the administration of these
moneys. The methodology for use of these moneys shall be determined
by the small counties, through a statewide organization representing
counties, in consultation with the department.
(B) The balance of the transfer amount for the 1994-95 fiscal year
shall be allocated to counties based on the following formula:
County Percentage
Alameda.............................. 3.5991
Alpine............................... .0050
Amador............................... .0490
Butte................................ .8724
Calaveras............................ .0683
Colusa............................... .0294
Contra Costa......................... 1.5544
Del Norte............................ .1359
El Dorado............................ .2272
Fresno............................... 2.5612
Glenn................................ .0597
Humboldt............................. .1987
Imperial............................. .6269
Inyo................................. .0802
Kern................................. 2.6309
Kings................................ .4371
Lake................................. .2955
Lassen............................... .1236
Los Angeles.......................... 31.3239
Madera............................... .3882
Marin................................ 1.0290
Mariposa............................. .0501
Mendocino............................ .3038
Merced............................... .5077
Modoc................................ .0176
Mono................................. .0096
Monterey............................. .7351
Napa................................. .2909
Nevada............................... .1489
Orange............................... 8.0627
Placer............................... .2366
Plumas............................... .0491
Riverside............................ 4.4955
Sacramento........................... 3.3506
San Benito........................... .1171
San Bernardino....................... 6.4790
San Diego............................ 12.3128
San Francisco........................ 3.5473
San Joaquin.......................... 1.4813
San Luis Obispo...................... .2660
San Mateo............................ .0000
Santa Barbara........................ .0000
Santa Clara.......................... 1.9284
Santa Cruz........................... 1.7571
Shasta............................... .3997
Sierra............................... .0105
Siskiyou............................. .1695
Solano............................... .0000
Sonoma............................... .5766
Stanislaus........................... 1.7855
Sutter/Yuba.......................... .7980
Tehama............................... .1842
Trinity.............................. .0271
Tulare............................... 2.1314
Tuolumne............................. .2646
Ventura.............................. .8058
Yolo................................. .4043
(7)
(6) The allocation method for the state funds
transferred for subsequent years for acute inpatient psychiatric and
other specialty mental health services shall be determined by the
department in consultation with a statewide organization representing
counties.
(8)
(7) The allocation methodologies described in this
section shall only be in effect while federal financial participation
is received on a fee-for-service reimbursement basis. When federal
funds are capitated, the department, in consultation with a statewide
organization representing counties, shall determine the methodology
for capitation consistent with federal requirements. The share of
cost ratio arrangement for EPSDT specialty mental health services
provided under the Medi-Cal specialty mental health services waiver
between the state and the counties in existence during the 2007-08
fiscal year shall remain as the share of cost ratio arrangement for
these services unless changed by statute.
(9)
(8) The formula that specifies the amount of state
matching funds transferred for the remaining Medi-Cal fee-for-service
mental health services shall be determined by the department in
consultation with a statewide organization representing counties.
This formula shall only be in effect while federal financial
participation is received on a fee-for-service reimbursement basis.
(10)
(9) (A) For the managed mental health care program,
exclusive of EPSDT specialty mental health services provided under
the Medi-Cal specialty mental health services waiver, the department
shall establish, by regulation, a risk-sharing arrangement between
the department and counties that contract with the department as MHPs
to provide an increase in the state General Fund allocation, subject
to the availability of funds, to the MHP under this section, where
there is a change in the obligations of the MHP required by federal
or state law or regulation, or required by a change in the
interpretation or implementation of any such law or regulation which
significantly increases the cost to the MHP of performing under the
terms of its contract.
(B) During the time period required to redetermine the allocation,
payment to the MHP of the allocation in effect at the time the
change occurred shall be considered an interim payment, and shall be
subject to increase effective as of the date on which the change is
effective.
(C) In order to be eligible to participate in the risk-sharing
arrangement, the county shall demonstrate, to the satisfaction of the
department, its commitment or plan of commitment of all annual
funding identified in the total mental health resource base, from
whatever source, but not including county funds beyond the required
maintenance of effort, to be spent on specialty mental health
services. This determination of eligibility shall be made annually.
The department may limit the participation in a risk-sharing
arrangement of any county that transfers funds from the mental health
account to the social services account or the health services
account, in accordance with Section 17600.20 during the year to which
the transfers apply to MHP expenditures for the new obligation that
exceed the total mental health resource base, as measured before the
transfer of funds out of the mental health account and not including
county funds beyond the required maintenance of effort. The State
Department of Mental Health shall participate in a risk-sharing
arrangement only after a county has expended its total annual mental
health resource base.
(d) The following provisions govern the administrative
responsibilities of the department and the State Department of Health
Care Services:
(1) It is the intent of the Legislature that the department and
the State Department of Health Care Services consult and collaborate
closely regarding administrative functions related to and supporting
the managed mental health care program in general, and the delivery
and provision of EPSDT specialty mental health services provided
under the Medi-Cal specialty mental health services waiver, in
particular. To this end, the following provisions shall apply:
(A) Commencing in the 2009-10 fiscal year, and each fiscal year
thereafter, the department shall consult with the State Department of
Health Care Services and amend the interagency agreement between the
two departments as necessary to include improvements or updates to
procedures for the accurate and timely processing of Medi-Cal claims
for specialty mental health services provided under the Medi-Cal
specialty mental health services waiver. The interagency agreement
shall ensure that there are consistent and adequate time limits,
consistent with federal and state law, for claims submitted and the
need to correct errors.
(B) Commencing in the 2009-10 fiscal year, and each fiscal year
thereafter, upon a determination by the department and the State
Department of Health Care Services that it is necessary to amend the
interagency agreement, the department and the State Department of
Health Care Services shall process the interagency agreement to
ensure final approval by January 1, for the following fiscal year,
and as adjusted by the budgetary process.
(C) The interagency agreement shall include, at a minimum, all of
the following:
(i) A process for ensuring the completeness, validity, and timely
processing of Medi-Cal claims as mandated by the federal Centers for
Medicare and Medicaid Services.
(ii) Procedures and timeframes by which the department shall
submit complete, valid, and timely invoices to the State Department
of Health Care Services, which shall notify the department of
inconsistencies in invoices that may delay payments.
(iii) Procedures and timeframes by which the department shall
notify MHPs of inconsistencies that may delay payment.
(2) (A) The department shall consult with the State Department of
Health Care Services and the California Mental Health Directors
Association in February and September of each year to review the
methodology used to forecast
future trends in the provision of EPSDT specialty mental health
services provided under the Medi-Cal specialty mental health services
waiver, to estimate these yearly EPSDT specialty mental health
services related costs, and to estimate the annual amount of funding
required for reimbursements for EPSDT specialty mental health
services to ensure relevant factors are incorporated in the
methodology. The estimates of costs and reimbursements shall include
both federal financial participation amounts and any state General
Fund amounts for EPSDT specialty mental health services provided
under the State Medi-Cal specialty mental health services waiver. The
department shall provide the State Department of Health Care
Services the estimate adjusted to a cash basis.
(B) The estimate of annual funding described in subparagraph (A)
shall, include, but not be limited to, the following factors:
(i) The impacts of interactions among caseload, type of services,
amount or number of services provided, and billing unit cost of
services provided.
(ii) A systematic review of federal and state policies, trends
over time, and other causes of change.
(C) The forecasting and estimates performed under this paragraph
are primarily for the purpose of providing the Legislature and the
Department of Finance with projections that are as accurate as
possible for the state budget process, but will also be informative
and useful for other purposes. Therefore, it is the intent of the
Legislature that the information produced under this paragraph shall
be taken into consideration under paragraph (10) of subdivision (c).
SEC. 3. SEC. 4. Section 5784 is
added to the Welfare and Institutions Code, to read:
5784. (a) Effective July 1, 2011, the Specialty Mental Health
Services Federal Trust Fund is hereby created in the State Treasury.
Notwithstanding Section 13340 of the Government Code, the Specialty
Mental Health Services Federal Trust Fund is hereby continuously
appropriated to the State Department of Health Care Services, without
regard to fiscal year.
(b) The fund consists of federal funds that may be used to
facilitate continuity of care for specialty mental health services
provided to adults who are Medi-Cal beneficiaries.
(c) Moneys in the fund shall be distributed by the State
Department of Health Care Services to community mental health
programs based on adjudicated claims and in accordance with the
requirements of federal law and the State Department of Health Care
Services, the state's designated Medicaid entity.
SEC. 4. Section 5813.5 of the Welfare and
Institutions Code is amended to read:
5813.5. Subject to the availability of funds from the Mental
Health Services Fund, the State Department of Mental Health shall
distribute funds for the provision of services under Sections 5801,
5802 and 5806 to county mental health programs on a monthly basis.
Services shall be available to adults and seniors with severe
illnesses who meet the eligibility criteria in subdivisions (b) and
(c) of Section 5600.3 of the Welfare and Institutions Code. For
purposes of this act, seniors means older adult persons identified in
Part 3 (commencing with Section 5800) of this division.
(a) Funding shall be provided at sufficient levels to ensure that
counties can provide each adult and senior served pursuant to this
part with the medically necessary mental health services, medications
and supportive services set forth in the applicable treatment plan.
(b) The funding shall only cover the portions of those costs of
services that cannot be paid for with other funds including other
mental health funds, public and private insurance, and other local,
state and federal funds.
(c) Each county mental health programs plan shall provide for
services in accordance with the system of care for adults and seniors
who meet the eligibility criteria in subdivisions (b) and (c) of
Section 5600.3.
(d) Planning for services shall be consistent with the philosophy,
principles, and practices of the Recovery Vision for mental health
consumers:
(1) To promote concepts key to the recovery for individuals who
have mental illness: hope, personal empowerment, respect, social
connections, self-responsibility, and self-determination.
(2) To promote consumer-operated services as a way to support
recovery.
(3) To reflect the cultural, ethnic and racial diversity of mental
health consumers.
(4) To plan for each consumer's individual needs.
(e) The plan for each county mental health program shall indicate,
subject to the availability of funds as determined by Part 4.5
(commencing with Section 5890) of this division, and other funds
available for mental health services, adults and seniors with a
severe mental illness being served by this program are either
receiving services from this program or have a mental illness that is
not sufficiently severe to require the level of services required of
this program.
(f) Each county plan and annual update pursuant to Section 5847
shall consider ways to provide services similar to those established
pursuant to the Mentally Ill Offender Crime Reduction Grant Program.
Funds shall not be used to pay for persons incarcerated in state
prison or parolees from state prisons.
(g) The department shall contract for services with county mental
health programs pursuant to Section 5897. After the effective date of
this section the term grants referred to in Sections 5814 and 5814.5
shall refer to such contracts.
SEC. 5. 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. These funds shall not be
used to supplant existing state or county funds utilized to provide
mental health services. The 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.
(c) Subject to the availability of funding in the Mental Health
Services Fund as determined by the Department of Finance, the State
Department of Mental Health shall distribute in a single lump sum the
total approved funding to each county for the provision of programs
and other related activities set forth in Part 3 (commencing with
Section 5800), Part 3.2 (commencing with Section 5830), Part 3.6
(commencing with Section 5840), and Part 4 (commencing with Section
5850).