BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 585
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          Date of Hearing:  June 18, 2013

                            ASSEMBLY COMMITTEE ON HEALTH
                                 Richard Pan, Chair
              SB 585 (Steinberg and Correa) - As Amended:  May 13, 2013

           SENATE VOTE  :  36-0
           
          SUBJECT  :  Mental health: Mental Health Services Fund.

           SUMMARY  :  Clarifies that Mental Health Services Act (MHSA) funds  
          and various County Realignment accounts may be used to provide  
          mental health services under the Assisted Outpatient Treatment  
          (AOT) Demonstration Project Act of 2002, or Laura's Law, and  
          allows counties to opt to implement Laura's Law through the  
          county budget process.   Specifically,  this bill  :
            
          1)Allows counties to implement Laura's Law through the county  
            budget process, rather than a resolution of the board of  
            supervisors.

          2)Clarifies that counties that elect to implement Laura's Law  
            are permitted to pay for the provision of AOT services using  
            funds distributed to the counties from the Mental Health  
            Subaccount, the Mental Health Equity Subaccount, and the  
            Vehicle License Collection Account of the Local Revenue Fund,  
            funds from the Mental Health Account and the Behavioral Health  
            Subaccount within the Support Services Account of the Local  
            Revenue Fund 2011, funds from the Mental Health Services Fund,  
            as specified, and any other funds from which the Controller  
            makes distributions to the counties for those purposes.

           EXISTING LAW  :  

          1)Establishes MHSA, which imposes a 1% income tax on personal  
            income in excess of $1 million to provide for local mental  
            health services. 

          2)Establishes the Mental Health Services Fund in the state  
            Treasury, continuously appropriated to and administered by the  
            Department of Health Care Services (DHCS), to fund MHSA  
            programs.

          3)Under MHSA, requires counties' plans for services funded under  
            the MHSA to promote concepts key to recovery for individuals  








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            who have mental illness: hope, personal empowerment, respect,  
            social connections, self-responsibility, and  
            self-determination.

          4)Establishes the Local Revenue Fund and the Local Revenue Fund  
            2011, which contain various accounts and subaccounts used to  
            fund county mental health services.

          5)Establishes Laura's Law, which allows county boards of  
            supervisors, by resolution, to authorize court-ordered AOT  
            services, whereby a county mental health director can petition  
            for a court to order a person over age 18 with a mental  
            illness to receive AOT, as specified.

          6)Requires counties implementing Laura's Law to make a finding  
            that no voluntary mental health program serving adults and no  
            children's mental health program may be reduced as a result of  
            the implementation.

          7)Requires a county that provides court-ordered AOT services to  
            also offer the same services on a voluntary basis.

          8)Requires a court that orders AOT to find that the individual  
            meets specified criteria, including: a clinical determination  
            that the person is unlikely to survive safely in the community  
            without supervision; the person has a history of noncompliance  
            with treatment for his or her mental illness; the person's  
            condition is substantially deteriorating; and participation in  
            AOT would be the least restrictive placement necessary to  
            ensure the person's recovery.

          9)Requires DHCS to submit a report and evaluation of all  
            counties implementing any component of Laura's Law to the  
            Governor and the Legislature by July 1, 2015.

          10)Sunsets Laura's Law on January 1, 2017.

          11)Establishes the Lanterman-Petris-Short Act (LPS Act), which  
            authorizes a person to be involuntarily detained for inpatient  
            mental health treatment when, as a result of a mental  
            disorder, the person is a danger to him or herself or to  
            others, or is gravely disabled.  Defines "gravely disabled" to  
            mean a condition in which a person, as a result of a mental  
            disorder, is unable to provide for his or her basic personal  
            needs for food, clothing, or shelter.








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          12)Authorizes a peace officer, member of the attending staff of  
            an evaluation facility designated by the county, designated  
            members of a mobile crisis team, or other professional person  
            designated by the county, upon probable cause, to take a  
            person with a mental disorder who is a danger to himself or  
            herself, a danger to others, or who is gravely disabled, into  
            custody and place him or her in a facility designated by the  
            county and approved by Department of Social Services as a  
            facility for 72-hour treatment and evaluation (referred to as  
            a 72-hour hold).

           FISCAL EFFECT  :  This bill, as amended, has not been analyzed by  
          a fiscal committee.

           COMMENTS  :

           1)PURPOSE OF THIS BILL  .  Approved by voters through Proposition  
            63 of 2004, MHSA provides over $1 billion annually for local  
            mental health services.  The MHSA has served as a catalyst for  
            transforming California's mental health system by emphasizing  
            the philosophy, principles, and practices of recovery for  
            mental health clients, including personal empowerment,  
            self-responsibility, and self-determination.

          According to the author, there is presently a lack of clarity as  
            to whether MHSA funds can be used for mental health services  
            provided under Laura's Law.  This bill will clarify that  
            Mental Health Services Funds, in addition to other funding  
            sources as specified, may be expended to support mental health  
            treatment services provided under Laura's Law when a county  
            has acted to participate in the demonstration and it has been  
            included in a county's MHSA plan.  This proposed change will  
            serve to mitigate potential misconceptions that only certain  
            funding sources can be used for implementation of a Laura's  
            Law demonstration project by a county.
          In addition, this bill provides counties with the option to  
            implement Laura's Law either through a separate resolution  
            process or to make the declaration through their county budget  
            process.  The author states that it provides flexibility for  
            counties that elect to implement Laura's Law but does not take  
            away the requirement that no voluntary services lose ground as  
            the result of a county choosing to implement Laura's Law.

           2)BACKGROUND  .  In 2002, the Legislature passed AB 1421  








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            (Thomson), Chapter 1017, Statutes of 2002, also known as  
            Laura's Law, in memory of Laura Wilcox, a 19-year-old college  
            student who was killed by a severely mentally ill man who was  
            not adhering to prescribed mental health treatment.  Laura's  
            Law gives counties the option to implement intensive AOT  
            programs for individuals who have difficulty maintaining their  
            mental health stability in the community and have frequent  
            hospitalizations and contact with law enforcement related to  
            untreated or undertreated mental illness.  Laura's Law  
            requires a county board of supervisors to authorize  
            implementation by resolution and to make a finding that access  
            to voluntary mental health programs would not be reduced as a  
            result of implementation.

          Under Laura's Law, a person subject to AOT must have a history  
            of not complying with needed mental health treatment and be  
            unlikely to survive safely in the community without  
            supervision.  To qualify for AOT, a person's mental illness  
            must have twice led to psychiatric hospitalizations or  
            incarcerations within the prior 36 months or resulted in  
            violence toward self or others within the prior 48 months.  If  
            these criteria are satisfied, the county mental health  
            director or designee may file a petition with the court  
            indicating that AOT is needed to help prevent relapse or  
            deterioration that would likely result in grave disability or  
            serious harm to self or others.  Such a petition must  
            establish that the person has been offered an opportunity to  
            voluntarily participate in a treatment plan but continues not  
            to engage in treatment.

          Under Laura's Law, an adult living with the person, the parent,  
            spouse, sibling, or adult child of that person, or specified  
            mental health and law enforcement personnel, may request a  
            petition for an AOT order for the person.  Upon receiving the  
            request, the county mental health director or designee is  
            required to conduct an investigation.  The director or  
            designee is permitted to file a petition only if he or she  
            determines that it is likely that all the necessary elements  
            described above for an AOT petition can be proven by clear and  
            convincing evidence.

            Implementation of a Laura's Law AOT program is currently a  
            local option.   In 2003, the Department of Mental Health (DMH)  
            required counties that choose to implement an AOT program to  
            submit specified documentation to DMH prior to implementation,  








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            including a copy of the board of supervisor's resolution  
            verifying that voluntary services will not be reduced as a  
            result of implementation; documentation of the local mental  
            health board's review of the county's implementation plan; a  
            detailed AOT program narrative; a proposed budget and budget  
            narrative for AOT program expenditures; a description of  
            methods for data collection; and a plan for development of an  
            AOT training and education program.

           3)AOT IMPLEMENTATION AND RESULTS  .  In 2005, DMH sent a letter to  
            counties outlining requirements for their three-year plans for  
            community services and supports provided under the MHSA.  This  
            plan specified that "Individuals accessing services funded by  
            the Mental Health Services Act may have voluntary or  
            involuntary legal status which shall not affect their ability  
            to access the expanded services under this Act.  Programs  
            funded under the Mental Health Services Act must be voluntary  
            in nature."  In a May 2007 letter to the Director of the  
            Nevada County Behavioral Health Department, the Director of  
            DMH clarified that this meant that an AOT program could be  
            implemented for voluntary and involuntary enrollees; i.e.,  
            that MHSA funds could be used to fund Laura's Law programs.

          In 2008, the Board of Supervisors of Nevada County passed a  
            resolution implementing AOT. In a 2011 report, DMH found that  
            Nevada County's AOT program had served a total of four  
            court-ordered individuals over two years, with two individuals  
            served each year.  The report indicated that the program had  
            succeeded primarily in assisting clients to significantly  
            reduce hospitalization days, with total hospitalization days  
            for all participants decreased from 239 to 97, a 59%  
            reduction.  The report noted that, as of 2011, Nevada County's  
            AOT was the only county in the state that had fully  
            implemented Laura's Law.

          In April 2010, the Los Angeles County Department of Mental  
            Health instituted a voluntary pilot AOT program for up to 50  
            individuals with mental illness involved in the criminal  
            justice system or transitioning from certain county  
            psychiatric facilities who would be able to live safely in the  
            community if they participated in the recommended AOT program.  
             Los Angeles County reported outcomes information to DMH for  
            the period covering April 2010 through October 2010, during  
            which 10 individuals were served.  Los Angeles reported that  
            80% of individuals served were compliant with treatment.  The  








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            data in the report indicated that there was a 78% reduction in  
            incarcerations for the program participants during the six  
            months following their enrollment in AOT and a 77% reduction  
            in hospitalization days after they were discharged from the  
            program.

          Despite the positive results reported by Nevada County, rigorous  
            studies of AOT have found small or negligible effects in favor  
            of involuntary AOT.  A 2005 Cochrane review, "Compulsory  
            community and involuntary outpatient treatment for people with  
            severe mental disorders," examined two randomized controlled  
            trials comparing AOT with voluntary treatment and found little  
            evidence to indicate that compulsory community treatment was  
            effective with respect to various outcomes, including hospital  
            readmission, arrests, homelessness, and perception of  
            coercion.  The study estimated that, in terms of numbers  
            needed to treat, it would take 85 outpatient commitment orders  
            to prevent one hospital readmission, 27 to prevent one episode  
            of homelessness, and 238 to prevent one arrest.  A 2013 study  
            of AOT in the United Kingdom, published in the Lancet and  
            entitled, "Community treatment orders for patients with  
            psychosis (OCTET): a randomised controlled trial," found that  
            the number of patients readmitted to the hospital did not  
            differ between two groups that, based on random assignment,  
            received either six months of compulsory outpatient treatment  
            or, on average, eight days of supervised leave prior to  
            release. 

           4)MHSA  .  As a funding source for mental health programs, MHSA  
            imposes a 1% income tax on personal income in excess of $1  
            million to expand mental health services for individuals with  
            severe mental health disorders.  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 emphasizes the philosophy, principles, and practices of  
            recovery for mental health clients, including personal  
            empowerment, self-responsibility, and self-determination.   
            Despite DMH's 2007 approval of the use of MHSA funds to  
            provide services under Laura's Law, there has historically  








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            been some confusion about whether the involuntary nature of  
            AOT under Laura's Law is incompatible with the guiding  
            principles of MHSA.  The author maintains that this bill will  
            serve to mitigate these misconceptions and that support for  
            Laura's Law through MHSA funding, in fact, ensures that the  
            full continuum of needs for mental health client recovery and  
            wellness is supported.

           5)SUPPORT IF AMENDED  .  The National Alliance on Mental Illness,  
            California (NAMI California), writes in support of the bill's  
            provisions that clarify which funds may be used for Laura's  
            Law.  However, NAMI California is concerned that the bill's  
            provision that allows for county implementation through the  
            budget process will lead to a lack of transparency and  
            community involvement, since attendance and media coverage of  
            county budget hearings are typically low.  Similarly, the  
            California Mental Health Directors Association (CMHDA) writes  
            that this bill will reduce the opportunity for community  
            partners, such as the courts and public defenders, as well as  
            community members and stakeholders, to have a voice in Laura's  
            Law implementation.  CMHDA writes that it is also unclear how  
            counties would make the required finding that no voluntary  
            mental health program would be reduced if a board of  
            supervisors decided to make Laura's Law operative through the  
            county budget process, rather than through a resolution that  
            would document this finding.  CMHDA and NAMI California both  
            request that the bill be amended to delete the county budget  
            process provision.

           6)SUPPORT  .  The Urban Counties Caucus (UCC), in support, writes  
            that, since the enactment of Laura's Law, many counties have  
            considered implementation, but funding has been a major  
            barrier.  UCC writes that, by making it clear that counties  
            may use MHSA and other funding provided under the Public  
            Safety Realignment of 2011, this bill will enable counties to  
            implement Laura's Law without incurring major cost impacts to  
            the county's general fund.  The California Treatment Advocacy  
            Coalition (CTAC), in support, writes that studies have shown  
            that, when AOT is implemented, vicinities experience both cost  
            avoidance and social consequence reduction by reducing  
            violence, suicide, homelessness, and incarceration.  CTAC  
            states that this bill will increase the likelihood that more  
            counties will implement and benefit from Laura's Law.

           7)OPPOSITION  .  The California Psychological Association (CPA)  








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            opposes the provision of this bill that allows counties to  
            implement Laura's Law through county budget process, rather  
            than through a Board of Supervisors resolution, which will  
            prevent counties from having proper discussion and  
            deliberation surrounding Laura's Law implementation.  CPA  
            believes that coercive treatment does not add to the  
            effectiveness of community mental health services; rather, it  
            could interfere with recovery by compromising the nature of  
            trust between the practitioner and client.  The Citizens  
            Commission on Human Rights, also in opposition, believes that  
            providing drug-based treatments for mental health disorders  
            leads individuals to carry out violent acts, and that making  
            more money available for counties to provide these treatments  
            "will increase the number of rights violations exponentially."



           8)RELATED LEGISLATION  .  

             a)   SB 664 (Yee), pending in the Senate Appropriations  
               Committee, deletes the requirement under Laura's Law that  
               county boards of supervisors must pass a resolution  
               authorizing Laura's Law services and make a finding that no  
               voluntary mental health programs may be reduced as a result  
               of Laura's Law implementation.

             b)   AB 1265 (Conway), which failed passage in the Assembly  
               Judiciary Committee and was granted reconsideration,  
               increases the maximum period of imposed AOT under Laura's  
               Law from six months to one year.

             c)   AB 1367 (Mansoor), pending in the Assembly Health  
               Committee, clarifies that AOT provided under Laura's Law  
               may be provided pursuant to the MHSA and allows funding of  
               local educational agencies for training to identify  
               students with mental health issues that may result in a  
               threat to themselves or others. 

           9)PREVIOUS LEGISLATION  .  

             a)   AB 1569 (Allen), Chapter 441, Statutes of 2012, delays  
               the sunset on Laura's Law from January 1, 2013, to January  
               1, 2017.

             b)   AB 2134 (Chesbro) of 2012 would have required counties,  








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               when they opt to implement Laura's Law, to develop and  
               implement best practices for mental health crisis response.  
                AB 2134 failed passage in the Senate Health Committee.

             c)   SB 1606 (Yee) of 2008 would have required DMH to conduct  
               a study of individuals who fail to meet the eligibility  
               criteria for specified court-ordered mental health  
               treatment available pursuant to AB 1421.  SB 1606 was held  
               on the Suspense File in the Assembly Appropriations  
               Committee.

             d)   AB 2357 (Karnette), Chapter 774, Statutes of 2006,  
               delays the sunset of Laura's Law from January 1, 2008, to  
               January 1, 2013, and requires DMH to submit an evaluation  
               to the Governor and Legislature by July 31, 2011.

             e)   AB 1421 enacts Laura's Law, which permits counties to  
               provide court-ordered outpatient treatment services for  
               people with serious mental illnesses when a court finds  
               that a person's recent history of hospitalizations or  
               violent behavior, coupled with noncompliance with voluntary  
               treatment, indicate the person is likely to become  
               dangerous or gravely disabled without the court-ordered  
               outpatient treatment.

             f)   SB 677 (Lanterman, Petris, and Short), Chapter 1667,  
               Statutes of 1967, enacts the LPS Act, which governs  
               involuntary civil commitment for individuals with mental  
               illness, with the intent to end inappropriate, indefinite,  
               and involuntary commitment and provide for prompt  
               evaluation and treatment.

           



          REGISTERED SUPPORT / OPPOSITION  :

           Support 
           
          California Council of Community Mental Health Agencies
          California Treatment Advocacy Coalition
          National Alliance on Mental Illness, Orange County
          Urban Counties Caucus
          Treatment Advocacy Center








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          18 individuals
           
            Opposition 
           
          California Psychological Association
          Citizens Commission on Human Rights
          Two individuals

           Analysis Prepared by  :    Ben Russell / HEALTH / (916) 319-2097