BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      



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          |SENATE RULES COMMITTEE            |                   AB 100|
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                                 THIRD READING


          Bill No:  AB 100
          Author:   Assembly Budget Committee
          Amended:  3/14/11 in Senate
          Vote:     27 - Urgency

           
          PRIOR VOTES NOT RELEVANT

           SENATE BUDGET & FISCAL REVIEW COMMITTEE  :  11-5, 03/16/11
          AYES:  Leno, Alquist, DeSaulnier, Evans, Liu, Lowenthal, 
            Rubio, Simitian, Wright, Hancock, Wolk
          NOES:  Huff, Emmerson, Fuller, Anderson, La Malfa

           ASSEMBLY FLOOR  :  57-16, 03/16/11 - See last page for vote


           SUBJECT  :    Budget Act of 2011:  Mental Health Services Act

           SOURCE  :     Author


           DIGEST  :    This bill makes necessary changes to enact the 
          Budget Bill for 2011-12 related to the Mental Health 
          Services Act (MHSA).

           Senate Floor Amendments  of 3/14/11 delete the prior version 
          of the bill and insert the current language regarding the 
          MHSA.

           ANALYSIS  :    This bill makes the following key changes:

           State Administrative Cap and Conforming Administrative 
          Changes.   This bill changes the percentage amount available 
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          from revenues deposited into the Mental Health Services Act 
          Fund for State Administration from the existing 5 percent 
          to 3.5 percent.  The Budget Bill appropriates about $22 
          million (Mental Health Services Act Funds) across several 
          state entities, including the Department of Mental Health, 
          the State Department of Education, Community College 
          Chancellor's office, and the MHSA Oversight and 
          Accountability Commission (OAC) for state administrative 
          purposes.  This appropriation level is below the revised 
          3.5 percent cap.

          This bill also (1) eliminates the State Department of 
          Mental Health from reviewing County Plans; and (2) 
          eliminates OAC from reviewing County Plans.

           Legislative Intent and Transitional Use of $861 million for 
          General Fund.   This bill contains declarations and findings 
          of the Legislature, including the following:

                 The Legislature declares that the statutory changes 
               in this act are consistent with, and further the 
               intent of, the Mental Health Services Act.  These 
               specified changes are necessary to adequately fund 
               essential mental health services that would otherwise 
               be significantly and substantially reduced or 
               eliminated absent this temporary funding support. 

                 It is the intent of the Legislature to ensure 
               continued state oversight and accountability of the 
               Mental Health Services Act.  In eliminating state 
               approval of county mental health programs, the 
               Legislature expects the state, in consultation with 
               the Mental Health Services Oversight and 
               Accountability Commission to establish a more 
               effective means of ensuring that county performance 
               complies with the Mental Health Services Act. 

          This bill modifies as specified for the 2011-12 fiscal year 
          only, due to the State's fiscal crisis and the inability of 
          General Fund revenues to sufficiently fund many existing 
          mental health programs, and the viability of using revenues 
          generated from the Local Revenue Fund 2011 in the State 
          Treasury, the use of Mental Health Services Act funds to 
          support the Early Periodic Screening, Diagnosis and 

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          Treatment (EPSDT) Program, Medi-Cal Specialty Mental Health 
          Managed Care, and mental health services provided to 
          special education students.

          This bill provides that for 2011-12, MHSA Funds shall be 
          allocated by the state in the following manner:

                 Commencing July 1, 2011, $183.6 million (MHSA 
               Funds) shall be distributed to counties based on a 
               formula as specified to fund the 2011-12 General Fund 
               obligation for Medi-Cal Specialty Mental Health 
               Managed Care.

                 Commencing July 1, 2011, $98.568 million (MHSA 
               Funds) shall be distributed to counties based on a 
               formula as specified to fund the 2011-12 General Fund 
               obligation for mental health services provided to 
               special education students.

                 Fifty percent of the 2011-12 MHSA component 
               allocations consistent with Sections 5847 and 5891, 
               not to exceed $488 million, shall be distributed to 
               counties beginning August 1, 2011.

                 Revenues of $579 million (MHSA Funds) shall be 
               distributed to counties as specified on a quarterly 
               basis for the EPSDT Program.

                 Remaining 2011-12 MHSA component allocations 
               consistent with Sections 5847 and 5891, shall begin no 
               later than April 30, 2012.


          This bill specifies that the $861 million in MHSA Funds 
          provided for these programs in 2011-12 is not subject to 
          repayment.  This distribution becomes inoperative on July 
          1, 2012.

          This bill also specifies that beginning July 1, 2012, on or 
          before the 15th of each month, the Controller shall 
          distribute to each Local Mental Health Services Fund 
          established by counties pursuant to the MHSA Act, all 
          unexpended and unreserved funds on deposit as of the last 
          day of the prior month in the MHSA Fund.

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


           ASSEMBLY FLOOR  :  
          AYES:  Alejo, Allen, Ammiano, Atkins, Beall, Block, 
            Blumenfield, Bonilla, Bradford, Brownley, Buchanan, 
            Butler, Charles Calderon, Campos, Carter, Cedillo, 
            Chesbro, Davis, Dickinson, Eng, Feuer, Fong, Fuentes, 
            Furutani, Galgiani, Gatto, Gordon, Hall, Hayashi, Roger 
            Hernández, Hill, Huber, Hueso, Huffman, Lara, Bonnie 
            Lowenthal, Ma, Mendoza, Mitchell, Monning, Nestande, 
            Nielsen, Norby, Olsen, Pan, Perea, V. Manuel Pérez, 
            Portantino, Skinner, Smyth, Solorio, Swanson, Torres, 
            Wieckowski, Williams, Yamada, John A. Pérez
          NOES:  Achadjian, Bill Berryhill, Conway, Cook, Garrick, 
            Hagman, Halderman, Harkey, Jeffries, Knight, Logue, 
            Mansoor, Miller, Morrell, Valadao, Wagner
          NO VOTE RECORDED:  Donnelly, Fletcher, Gorell, Grove, 
            Jones, Silva, Vacancy


          CTW:nl  3/17/11   Senate Floor Analyses 

                       SUPPORT/OPPOSITION:  NONE RECEIVED

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