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  




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            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  





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            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  




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            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)



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