BILL ANALYSIS Ó SENATE COMMITTEE ON BUDGET AND FISCAL REVIEW Mark Leno, Chair Bill No: AB 1470 Author: Committee on Budget As Amended: June 13, 2012 Consultant: Joe Stephenshaw Fiscal: Yes Hearing Date: June 14, 2012 Subject: Budget Act of 2012: State Hospitals Summary: Provides for statutory changes necessary to enact the State Hospital provisions of the Budget Act of 2012. Background: This is the State Hospitals Budget Trailer Bill. It contains the necessary changes to enact the Budget Act for 2012-13, as follows: 1. Establishes the Department of State Hospitals (DSH) Consistent with the transfer of community mental health functions to other state departments, primarily the Department of Health Care Services, makes various technical statutory changes necessary to eliminate the Department of Mental Health (DMH) and establish the DSH, which will have the singular focus of providing oversight, safety, and accountability at the state's five mental health hospitals and other psychiatric facilities. The majority of the amendments contained in this bill consist of changing statutory references to DMH to DSH. In addition, various obsolete reporting requirements are eliminated. 2. Increases County Bed Rate Establishes that, if a county has not contracted with the DSH by July 1 of any given fiscal year, that each monthly reimbursement shall be an amount equal to one-twelfth the number of beds provided to the county the previous fiscal year multiplied by the current state rate. This allows DSH to recover, from counties, a greater share of the cost of housing civil commitments and results in GF savings of $20 million in 2012-13. -1- 3. Expands the Incompetent to Stand Trial (IST) Program (IST) Provides for expanded authority to treat IST patients in county jails rather than in state hospitals. In 2007, a pilot program to test a more efficient and less costly process to restore competency for IST defendants by providing services in county jails, in lieu of providing them within state hospitals, was established in San Bernardino County. The LAO estimates that the state achieved approximately $1.2 million in savings from the San Bernardino County pilot project. Expanding this program will result in $3 million in GF savings in 2012-13. 4. Deletes the Time Cap on Exception to Treatment for Probable Cause Sexually Violent Predators For the purpose of Department of Public Health Licensure, removes a six-year limit for suspending treatment for probable cause sexually violent predators at Coalinga State Hospital, allowing for an indefinite suspension. 5. Legislative Intent for Staffing States the Legislature's intent that any changes in staffing ratios at the state's mental hospitals address adequate staff and patient safety standards, and that staffing ratios may vary based on patient acuity. -2-