BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 2679
                                                                  Page  1

          Date of Hearing:  April 29, 2014

                            ASSEMBLY COMMITTEE ON HEALTH
                                 Richard Pan, Chair
                  AB 2679 (Logue) - As Introduced: February 21, 2014
           
          SUBJECT  :  County mental health services: baseline reports.

           SUMMARY :  Requires the Department of Health Care Services (DHCS)  
          to develop a baseline report of system quality and access to  
          services in each county's mental health plan.  Specifically,  
           this bill  :  

          1)Requires DHCS, in cooperation with county mental health  
            directors and appropriate state and county officials, to  
            develop a baseline report of system quality and access to  
            services in each county's mental health plan.  Requires the  
            baseline report to include documentation of services funded by  
            all revenue sources, including county overmatch and any other  
            sources.

          2)Requires, on or before July 1, 2015, the state to issue  
            requirements for each county to establish a baseline report on  
            its county mental health plan.  Requires these reports to  
            include specified data, including number of clients served,  
            service priorities, staff-to-client ratios, a description of  
            certain programs, data about county jail populations, suicide  
            rates, and law enforcement involvement, and use of funds  
            towards treatment in locked facilities.

          3)Requires each county to submit a baseline report on the  
            efficacy of the county's mental health care plan, including  
            county-operated programs and county-contracted services, and  
            requires DHCS to report to the Legislature.  Requires reports  
            in 2016 and 2020.
           
           EXISTING LAW  :  

          1)Makes DHCS responsible for administration of law governing the  
            state's community mental health systems and for all statewide  
            mental health planning, research, evaluation and quality  
            assurance functions.  Includes among these functions  
            implementation of a system of required performance reporting  
            by local mental health programs.









                                                                  AB 2679
                                                                  Page  2

          2)Establishes the Mental Health Services Act (MHSA), which  
            imposes a 1% income tax on personal income in excess of $1  
            million to provide for local mental health services.  

          3)Establishes the Mental Health Services Oversight and  
            Accountability Commission to oversee various mental health  
            programs.  Among many other duties, authorizes the Commission  
            to obtain data and information from DHCS, the Office of  
            Statewide Health Planning and Development, or other state or  
            local entities that receive  MHSA funds, for oversight,  
            review, training and technical assistance, accountability, and  
            evaluation of projects and programs supported with  MHSA  
            funds.

          4)Requires counties to annually adopt and submit to DHCS a  
            proposed annual performance contract for mental health  
            services in the county.  

          5)Provides for appointment of local mental health boards by  
            county boards of supervisors.  Requires each local mental  
            health board to submit an annual report to the county on the  
            needs and performance of the county's mental health system.

          6)Creates the California Mental Health Planning Council for  
            purposes of fulfilling mental health planning requirements  
            mandated by federal law.

          7)Requires each local mental health board to review and comment  
            on the county's performance outcome data and communicate its  
            findings to the California Mental Health Planning Council.

          8)Requires DHCS to establish a Performance Outcome Committee and  
            consult with the Committee, the California Mental Health  
            Planning Council, the Mental Health Services Oversight and  
            Accountability Commission, and the California Health and Human  
            Services Agency, to develop uniform definitions and formats  
            for a statewide, nonduplicative client-based information  
            system that meets federal mental health grant requirements and  
            state and federal Medicaid reporting requirements, as well as  
            any other state requirements established by law.  

          9)Requires the data system to include performance measures for  
            evaluating client outcomes and cost effectiveness of mental  
            health services, including a consideration of outcome measures  
            in the following areas:








                                                                  AB 2679
                                                                  Page  3


             a)   Numbers of persons in identified target populations  
               served;
             b)   Estimated number of persons in identified target  
               populations in need of services;
             c)   Treatment plan development for members of the target  
               population served;
             d)   Treatment plan goals met;
             e)   Stabilization of living arrangements;
             f)   Reduction of law enforcement involvement and jail  
               bookings;
             g)   Increase in employment or education activities;
             h)   Percentage of resources used to serve children and older  
               adults;
             i)   Number of patients' rights advocates and their duties;
             j)   Quality assurance activities for services, including  
               peer review and medication management; and,
             aa)  Identification of special projects, incentives, and  
               prevention programs.

          10)Requires counties to annually report data on these  
            performance measures to the local mental health board and to  
            DHCS.

          11)Requires DHCS to annually make available to the Legislature,  
            no later than March 15, data on county performance.

          12)Requires DHCS to consult with the Quality Improvement  
            Committee, which includes representatives of the California  
            Mental Health Planning Council, local mental health  
            departments, consumers and families of consumers, and other  
            stakeholders, to establish and measure indicators of access  
            and quality for the purpose of continuously improving  
            California's public mental health system.  Requires inclusion  
            of indicators for structure, access, appropriateness, and cost  
            effectiveness of care, and outcomes.

          13)Requires the California Mental Health Planning Council to  
            annually review performance outcome data as follows: a) review  
            and approve the performance outcome measures; b) review mental  
            health program performance based on performance outcome data  
            and other reports from the State Department of Health Care  
            Services and other sources; c) report findings and  
            recommendations on programs' performance annually to the  
            Legislature and DHCS; and d) identify successful and failing  








                                                                  AB 2679
                                                                  Page  4

            programs.

          14)Requires county mental health systems, in consultation with  
            the California Mental Health Directors Association, DHCS, the  
            Mental Health Services Oversight and Accountability  
            Commission, the California Mental Health Planning Council, and  
            the California Health and Human Services Agency, to provide  
            reports and data to meet the information needs of the state.

          15)Requires a county, whenever it makes a substantial change in  
            its allocation of mental health funds among services,  
            facilities, programs, and providers, to document that it based  
            its decision on the most cost-effective use of available  
            resources to maximize overall client outcomes, and provide  
            this documentation to DHCS.

           FISCAL EFFECT  :  This bill has not yet been analyzed by a fiscal  
          committee.

           COMMENTS  :

           1)PURPOSE OF THIS BILL  .  This bill was introduced in response to  
            a 2013 audit by the Bureau of State Audits (BSA) entitled  
            "Mental Health Services Act: The State's Oversight Has  
            Provided Little Assurance of the Act's Effectiveness, and Some  
            Counties Can Improve Measurement of Their Program  
            Performance."  The author of this bill notes the audit found  
            that, although the MHSA funded many programs and served  
            numerous individuals, the Department of Mental Health (DMH)  
            and the Mental Health Services Oversight and Accountability  
            Commission did not provide the oversight needed to demonstrate  
            whether the MHSA is effective.  This bill seeks to provide the  
            necessary oversight to ensure that the funds generated through  
            the MHSA are being used effectively.

           2)BACKGROUND  .  California has a decentralized public mental  
            health system with most direct services provided through the  
            county mental health system.  Counties have the primary  
            funding and programmatic responsibility for the majority of  
            local mental health programs.  Specifically, counties are  
            responsible for: a) all mental health treatment services  
            provided to low-income, uninsured individuals with severe  
            mental illness; b) Medi-Cal Specialty Mental Health Services  
            for adults and children; c) mental health treatment services  
            for individuals enrolled in other programs, including special  








                                                                  AB 2679
                                                                  Page  5

            education and CalWORKs; and d) programs specifically  
            associated with the MHSA.  

             a)   Medi-Cal Specialty Mental Health Services Program.   
               California provides Medi-Cal specialty mental health  
               services under a waiver that includes outpatient specialty  
               mental health services, such as clinic outpatient  
               providers, psychiatrists, psychologists, some nursing  
               services, and psychiatric inpatient hospital services.   
               Children's specialty mental health services are provided  
               under the federal requirements of the Early and Periodic  
               Screening, Diagnosis, and Treatment (EPSDT) benefit for  
               persons under age 21.  County mental health plans are the  
               responsible entity that ensures specialty mental health  
               services are provided, and  Medi-Cal enrollees must obtain  
               their specialty mental health services through the county.   


             b)   MHSA.  Proposition 63 of 2004 enacted the MHSA, which  
               imposes a 1% income tax on personal income in excess of $1  
               million.  The purpose of the MHSA is to expand mental  
               health services to children, youth, adults and older adults  
               who have severe mental illnesses or severe mental health  
               disorders and whose service needs are not being met through  
               other funding sources.  Under MHSA, counties that receive  
               funds must have a three-year plan developed with  
               significant local stakeholder input and involvement.  The  
               MHSA requires each plan to cover the following five  
               components: a) Community Services and Supports for Adults  
               and Children's System of Care; b) Prevention and Early  
               Intervention; c) Innovation; d) Workforce Education and  
               Training; and, e) Capital Facilities and Technological  
               Needs.  MHSA revenues for Fiscal Year 2014-15 are projected  
               to be about $1.6 billion.

           3)BSA AUDIT  .  In its audit of the state's oversight of MHSA  
            activities, BSA found that DMH, which was responsible for  
            administering law related to community mental health programs  
            through June 2012, made poor use of the statutory protections  
            that ensure transparency and accountability of spending in the  
            state's public mental health system.  The audit report found  
            that DMH did not base its monitoring of county MHSA programs  
            on performance contracts, but instead used an agreement that  
            offered little specificity as to the steps a county should  
            take to assure compliance with the MHSA.  The audit further  








                                                                  AB 2679
                                                                  Page  6

            found that DMH did not provide clear and consistent guidance  
            to counties on how to evaluate and assess the outcomes of  
            their MHSA activities.

          The audit made several recommendations, mostly focused on urging  
            DHCS and counties to use performance contracts to achieve  
            effective oversight and accountability.  The audit report made  
            one recommendation to the Legislature, which is to clarify  
            that DHCS can withhold certain funds from a noncompliant  
            county.  

           4)SUPPORT  .  The California Chapter of the American College of  
            Emergency Physicians (California ACEP) argues that this bill,  
            by establishing baseline measures for county mental health  
            programs, will help increase access to mental health services.  
             California ACEP states emergency physicians know firsthand  
            the difficulties facing patients in need of psychiatric care,  
            and those patients without access to adequate mental health  
            services often find themselves in the emergency department.
            
           5)SUPPORT IF AMENDED  .  The California Mental Health Directors  
            Association (CMHDA) with a position of "support if amended,"  
            writes that while it supports transparency and accountability  
            in the public mental health system, amendments are needed to  
            ensure that meaningful information without excessive  
            regulation or bureaucracy is reported.  CMHDA asserts counties  
            already report vast amounts of information to the state and  
            suggests that this bill creates duplicative requirements.   
            CMHDA requests that this bill be amended to require DHCS to  
            publish a report that makes use of the extensive information  
            already reported and collected, with the aim of achieving a  
            transformative, transparent, and useful measuring tool that  
            empowers policy makers and the public.  

           6)RELATED LEGISLATION  .  

             a)   SB 82 (Committee on Budget), Chapter 20, Statutes of  
               2013, the Investment in Mental Health Wellness Act of 2013,  
               was a trailer bill for the 2013-14 Budget Act.  SB 82  
               includes, among its other provisions, $206 million ($142  
               million General Fund one-time) for a major investment in  
               mental health services, including additional residential  
               treatment capacity, crisis treatment teams, and triage  
               personnel.









                                                                  AB 2679
                                                                  Page  7

             b)    SB 585 (Steinberg) clarifies that MHSA funds and  
               various County Realignment accounts may be used to provide  
               mental health services under the Assisted Outpatient  
               Treatment Demonstration Project Act of 2002, or Laura's  
               Law, and allows counties to opt to implement Laura's Law  
               through the county budget process.  SB 585 is pending in  
               the Assembly Appropriations Committee.

           7)PREVIOUS LEGISLATION .  

             a)   SB 1006 (Committee on Budget and Fiscal Review), Chapter  
               34, Statutes of 2012, provides for a comprehensive  
               restructuring of community-based mental health services at  
               both the state and local levels and makes changes necessary  
               to effectuate the 2011 Realignment.  Among other changes,  
               requires DHCS to create a plan for a performance outcome  
               system for EPSDT mental health services provided to  
               eligible Medi-Cal beneficiaries under the age of 21.

             b)   AB 1288 (Bronzan and McCorquodale), Chapter 89, Statutes  
               of 1991, realigned financial responsibility for various  
               state programs, including the state's mental health  
               programs, to local governments. 

           8)SUGGESTED AMENDMENT  .  Given the already extensive requirements  
            for counties and the state to report performance data, the  
            additional reporting requirements in this bill may  
            unnecessarily divert needed resources from the provision of  
            needed mental health services.  Instead, to achieve the  
            author's stated goal and to make the currently reported  
            information more useful, the author may wish to remove the new  
            reporting requirements in this bill and instead: a) require  
            DHCS's currently required annual report to the Legislature on  
            county mental health performance data to be posted on the DHCS  
            Website; and b) require the California Mental Health Planning  
            Council's annual report to review mental health program  
            performance in each county and be posted on the web.

           REGISTERED SUPPORT / OPPOSITION  :  

           Support 
           
          California Chapter of the American College of Emergency  
          Physicians









                                                                  AB 2679
                                                                  Page  8

           Opposition 
           
          None on file.
           
          Analysis Prepared by  :    Ben Russell / HEALTH / (916) 319-2097