BILL ANALYSIS Ó SENATE COMMITTEE ON HEALTH Senator Ed Hernandez, O.D., Chair BILL NO: AB 2679 AUTHOR: Logue AMENDED: June 17, 2014 HEARING DATE: June 25, 2014 CONSULTANT: Diaz SUBJECT : County mental health services: baseline reports. SUMMARY : Requires the Department of Health Care Services and the California Mental Health Planning Council to make specified information related to mental health services client outcomes and cost effectiveness available on their respective Internet Web sites. Requires a county mental health program to add information requested by the Mental Health Services Oversight and Accountability Commission in its three-year program and expenditure plan. Permits the information to include mental health program services for adults and seniors, as specified. Existing law: 1.Makes the Department of Health Care Services (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. 2.Establishes the Mental Health Services Act (MHSA), which imposes a one percent 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 (MHSOAC) to oversee various mental health programs. Among many other duties, authorizes MHSOAC 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 DHCS to establish a Performance Outcome Committee and consult with the Committee, the California Mental Health Planning Council (CMHPC), the MHSOAC, and the California Continued--- AB 2679 | Page 2 Health and Human Services Agency, to develop uniform definitions and formats for a statewide, non-duplicative 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. 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, as guidance only. 5.Requires counties to annually report data on these performance measures to the local mental health advisory board and to DHCS. Requires DHCS to annually make available to the Legislature, no later than March 15, data on county performance. 6.Creates the CMHPC for purposes of fulfilling mental health planning requirements mandated by federal law and to review program performance in delivering mental health services based on specified data reports, and to report findings and recommendations on programs' performance annually to the Legislature, DHCS, and local boards. 7.Requires each county mental health program to prepare and submit a three-year program and expenditure plan, with annual updates, adopted by the county board of supervisors, to the MHSOAC within 30 days after adoption. Requires the plan to include, among other things, programs for services to adults and seniors. This bill: 1.Requires DHCS to make data reported by counties related to MHSA client outcomes and cost effectiveness of mental health services available on its Internet Web site. 2.Requires the CMHPC to make its findings and recommendations on the performance of mental health services programs available on its Internet Web site. 3.Requires a county mental health program's three-year program and expenditure plan to include information requested by the MHSOAC to assist in its oversight of the program for services to adults and seniors. Permits the information to include estimates of the number of additional people who meet the criteria for services pursuant to the Adult and Older Adult Mental Health System of Care Act and who are not receiving AB 2679 | Page 3 services that meet the criteria in the Act. Requires the estimates to be based on existing available data and not include duplicative reporting requirements. FISCAL EFFECT : According to the Assembly Appropriations Committee, any costs associated with this legislation are minor and absorbable. PRIOR VOTES : Assembly Health: 19- 0 Assembly Appropriations:17- 0 Assembly Floor: 73- 0 COMMENTS : 1.Author's statement. According to the author, Proposition 63, known as the MHSA, was approved by voters in 2004 and placed a one percent tax on incomes over one million dollars to fund mental health services at the county level. In 2012, the author along with Senator Steinberg and Assemblyman Nestande requested a state audit to determine where and how MHSA funds were being spent. In 2013, the State Auditor's office released the report, which found that there was a gross lack of oversight for programs funded through the MHSA. There was very little evidence to show that the $7.4 billion directed to county mental health service programs from 2006 through 2012 provided any direct benefit to the state. This bill seeks to bring needed transparency and accountability to county mental health services. Counties currently report key information to DHCS and the CMHPC regarding their county mental health programs. This bill will require them to compile the data they receive and provide it on their respective Web sites. This data is a necessary tool to properly target county spending and determine if there are any positive changes. The State Auditor told the Legislature that the audit results could not ensure that MHSA programs and spending were used effectively and appropriately. Establishing these added annual reporting requirements will tell a great deal about current conditions and enable the state to develop a system to compare those results with future conditions. 2.State audit. A 2013 audit by the State Auditor, titled "Mental Health Services Act (MHSA): The State's Oversight Has Provided Little Assurance of the Act's Effectiveness, and Some Counties AB 2679 | Page 4 Can Improve Measurement of Their Program Performance," found that, although the MHSA funded many programs and served numerous individuals, the former Department of Mental Health and the MHSOAC did not provide the oversight needed to demonstrate whether the MHSA is effective. The report suggested the state should use performance-based contracts, conduct comprehensive on-site reviews of MHSA programs, identify and collect meaningful data, and use the data to verify and report on performance. 3.Prior legislation. SB 585 (Steinberg), Chapter 288, Statutes of 2013, clarified 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 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 that included, 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. SB 1006 (Committee on Budget and Fiscal Review), Chapter 34, Statutes of 2012, provided for a comprehensive restructuring of community-based mental health services at both the state and local levels and made changes necessary to effectuate the 2011 Realignment. Among other changes, required DHCS to create a plan for a performance outcome system for Early and Periodic Screening, Diagnosis, and Treatment mental health services provided to eligible Medi-Cal beneficiaries under the age of 21. 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. 4.Oppose unless amended. The California Mental Health Directors Association (CMHDA) argues that the latest amendment on June 17, 2014, which requires county mental health programs' three-year program and expenditure plans to include information requested by the MHSOAC (which may include the AB 2679 | Page 5 estimate of adults and seniors who are eligible for but not receiving MHSA services) is already available through existing requirements. CMHDA argues that DHCS provides instructions to counties for their annual MHSA revenue and expenditure reports related to this information. CMHDA further argues that simply counting the number of individuals receiving or not receiving services does not yield information about the effectiveness and impact of the MHSA. 5.Amendments. The author may wish to consider the following committee staff amendments: a. On page 6, delete lines 33 through 39, inclusive. b. On page 7, delete lines 1 and 2, inclusive. SUPPORT AND OPPOSITION : Support: California American College of Emergency Physicians (previous version) California Council of Community Mental Health Agencies (previous version) California Mental Health Planning Council (previous version) Mental Health America of California (previous version) Oppose: California Mental Health Directors Association (unless amended) -- END --