BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                            



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                                    THIRD READING


          Bill No:  AB 2679
          Author:   Logue (R) and Nestande (R), et al.
          Amended:  7/1/14 in Senate
          Vote:     21

           
           SENATE HEALTH COMMITTEE  :  8-0, 6/25/14
          AYES: Hernandez, Morrell, Beall, De León, DeSaulnier, Evans,  
            Monning, Nielsen
          NO VOTE RECORDED: Wolk

           SENATE APPROPRIATIONS COMMITTEE  :  Senate Rule 28.8

           ASSEMBLY FLOOR  :  73-0, 5/23/14 (Consent) - See last page for  
            vote


           SUBJECT  :    County mental health services:  baseline reports

           SOURCE  :     Author


           DIGEST  :    This bill requires the Department of Health Care  
          Services (DHCS) and the California Mental Health Planning  
          Council (CMHPC) to make specified information related to mental  
          health services client outcomes and cost effectiveness available  
          on their respective Internet Web sites.

           ANALYSIS  :    

          Existing law:

          1.Makes DHCS responsible for administration of law governing the  
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            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 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 (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 CMHPC, the MHSOAC, and the  
            California 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.

          This bill:

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          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.

           Comments
           
           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  
          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.    

          According to the author's office, Proposition 63, known as the  
          MHSA, was approved by voters in 2004 and placed a 1% 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  

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          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.

           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 (Senate Budget and Fiscal Review Committee, 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 (Senate Budget and Fiscal Review Committee, 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. 

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

           SUPPORT  :   (Verified  8/5/14)

          American College of Emergency Physicians
          California Mental Health Planning Council
          County Behavioral Health Directors Association

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          Mental Health America of California
          Mental Health Association

           ASSEMBLY FLOOR  :  73-0, 5/23/14
          AYES:  Achadjian, Alejo, Allen, Ammiano, Bigelow, Bloom,  
            Bocanegra, Bonta, Bradford, Brown, Buchanan, Ian Calderon,  
            Campos, Chau, Chávez, Chesbro, Conway, Cooley, Dababneh,  
            Dahle, Daly, Dickinson, Donnelly, Eggman, Fong, Fox, Frazier,  
            Beth Gaines, Garcia, Gatto, Gomez, Gonzalez, Gordon, Gorell,  
            Gray, Grove, Hagman, Hall, Holden, Jones, Jones-Sawyer,  
            Levine, Linder, Logue, Lowenthal, Maienschein, Mansoor,  
            Medina, Mullin, Muratsuchi, Nazarian, Olsen, Pan, Patterson,  
            Perea, John A. Pérez, Quirk, Quirk-Silva, Rendon,  
            Ridley-Thomas, Rodriguez, Salas, Skinner, Stone, Ting, Wagner,  
            Waldron, Weber, Wieckowski, Wilk, Williams, Yamada, Atkins
          NO VOTE RECORDED:  Bonilla, Harkey, Roger Hernández, Melendez,  
            Nestande, V. Manuel Pérez, Vacancy


          JL:k  8/6/14   Senate Floor Analyses 

                           SUPPORT/OPPOSITION:  SEE ABOVE

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