BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HEALTH
                          Senator Ed Hernandez, O.D., Chair

          BILL NO:                    AB 741    
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          |AUTHOR:        |Williams                                       |
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          |VERSION:       |June 16, 2016                                  |
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          |HEARING DATE:  |June 29, 2016  |               |               |
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          |CONSULTANT:    |Scott Bain                                     |
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           SUBJECT  :  Mental health:  community care facilities

           SUMMARY  :  Allows a short-term residential treatment center to be  
          operated as a children's crisis residential center as defined,  
          which would be operated specifically to divert children  
          experiencing a mental health crisis from psychiatric  
          hospitalization. Requires the Department of Social Services to  
          establish regulations for short-term residential treatment  
          centers that are operated as children's crisis residential  
          centers, and requires the regulations to include specified  
          minimum components. Requires the Department of Health Care  
          Services to establish Medi-Cal rates as needed that are  
          sufficient to reimburse the costs for children's crisis  
          residential services in excess of any specialty mental health  
          services that would have been otherwise authorized, provided,  
          and invoiced for each eligible Medi-Cal beneficiary receiving  
          children's crisis residential services.

          Existing law:
          1)Requires, under the California Community Care Facilities Act,  
            the licensing and regulation of community care facilities, as  
            defined, by the Department of Social Services (DSS). 
          
          2)Defines a community care facility to include a short-term  
            residential treatment residential treatment center (STRTC).  
            Defines a STRTC as a residential facility licensed by DSS and  
            operated by any public agency or private organization that  
            provides short-term, specialized, and intensive treatment, and  
            24-hour care and supervision to children. Requires the care  
            and supervision provided by a STRTC to be non-medical, except  
            as otherwise permitted by law.









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          3)Establishes the Medi-Cal program, administered by the  
            Department of Health Care Services (DHCS), under which  
            qualified low-income individuals receive health care services.  



          4)Establishes a schedule of benefits under the Medi-Cal program,  
            which includes Early, Periodic Screening, Diagnostic and  
            Treatment Services (EPSDT) for any individual under 21 years  
            of age, consistent with federal Medicaid requirements. EPSDT  
            includes screening, vision, hearing and dental services and  
            other necessary health care, diagnostic services, treatment,  
            and other measures described in federal Medicaid law to  
            correct or ameliorate defects and physical and mental  
            illnesses and conditions discovered by the screening services,  
            whether or not such services are covered under the State's  
            Medicaid Plan.


          5)Requires county mental health plans to provide specialty  
            mental health services to eligible Medi-Cal beneficiaries,  
            including both adults and children. Includes EPSDT within the  
            scope of specialty mental health services for eligible  
            Medi-Cal beneficiaries under the age of 21.


          



          This bill:
          1)Allows a STRTC to be operated as a children's crisis  
            residential center (CCRC). Defines a CCRC as a STRTC operated  
            specifically to divert children experiencing a mental health  
            crisis from psychiatric hospitalization.

          2)Requires DSS to establish regulations for STRTCs that are  
            operated as CCRC. Requires, at a minimum, the regulations to  
            include all of the following:

               a)     Requires the CCRC to be used only for diversion from  
                 admittance to a psychiatric hospitalization; 
               b)     Requires the length of stay for a single admission  
                 to a CCRC to be limited to 10 consecutive days; 
               c)     Prohibits an organization providing children's  








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                 crisis residential services from admitting a child for  
                 more than two consecutive 10-day lengths of stay during  
                 any 12-month period. Requires an organization providing  
                 children's crisis residential services to obtain prior  
                 approval from the county mental health plan authorizing  
                 those services before extending the length of stay for a  
                 Medi-Cal beneficiary beyond 10 consecutive days; 
               d)     Requires therapeutic programming to be provided  
                 seven days a week, including weekends and holidays, with  
                 sufficient professional and paraprofessional staff to  
                 maintain an appropriate treatment setting and services,  
                 based on individual children's needs; 
               e)     Requires the program to be staffed with sufficient  
                 personnel to accept children 24 hours per day, seven days  
                 a week and to admit children, at a minimum, from 7 a.m.  
                 to 11 p.m., seven days a week, 365 days per year; 
               f)     Requires the program to be sufficiently staffed to  
                 discharge children, as appropriate, seven days a week,  
                 365 days per year.
               g)     Requires facilities to be limited to fewer than 16  
                 beds, with at least 50 percent of those beds in  
                 single-occupancy rooms; 
               h)     Requires facilities to include ample physical space  
                 for accommodating individuals who provide natural  
                 supports to each child and for integrating family members  
                 into the day-to-day care of the youth; and, 
               i)     Requires the CCRC to collaborate with each child's  
                 mental health team, child and family team, and other  
                 formal and natural supports within 24 hours of intake and  
                 throughout the course of care and treatment as  
                 appropriate.

          1)Permits DSS to adopt regulations, as needed, to waive the  
            STRTC licensure and accreditation requirements that are in  
            conflict with the purposes or best practices of operating a  
            CCRC.

          2)Requires DHCS, in consultation with the County Behavioral  
            Health Directors Association of California, representatives of  
            provider associations, children's advocates, and other  
            stakeholders to establish Medi-Cal rates as needed that are  
            sufficient to reimburse the costs for CCRC in excess of any  
            specialty mental health services that would have been  
            otherwise authorized, provided, and invoiced for each eligible  
            Medi-Cal beneficiary receiving children's crisis residential  








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            services.

          3)Requires, for foster children admitted for CCRC, programs to  
            receive payment for board and care equivalent to the rate paid  
            for STRTCs.

          4)Prohibits the Medi-Cal rate provisions from preventing a  
            county from providing payment in excess of the STRTC rate in  
            order to meet the needs of individual children.

          5)Permits a STRTC that is operating as a CCRC to accept for  
            admission or placement any child, referred by a parent or  
            guardian, or by the representative of a public or private  
            entity, including, but not limited to, the county probation  
            agency or child welfare services agency with responsibility  
            for the placement of a child in foster care, that has the  
            right to make these decisions on behalf of a child who is in  
            mental health crisis and, absent admission to a children's  
            crisis residential center, would otherwise require acceptance  
            by the emergency department of a hospital, or admission into a  
            psychiatric hospital or the psychiatric inpatient unit of a  
            hospital.

           FISCAL  
          EFFECT  :  According to the Assembly Appropriations Committee of a  
          narrower previous version of this bill: 

          1)$200,000 General Fund (GF) to Department of Social Services to  
            modify regulations governing licensure to define program  
            standards specific to children.


          2)Potential ongoing costs to license additional facilities.  
            Licensure fees would cover some licensure costs; however, any  
            workload cost in excess of license would be GF costs. 

           PRIOR  
          VOTES  :  
          
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          |Assembly Floor:                     |77 - 0                      |
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          |Assembly Appropriations Committee:  |17 - 0                      |
          |------------------------------------+----------------------------|
          |Assembly Health Committee:          |19 - 0                      |








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          COMMENTS  :
          1)Author's statement.  According to the author, the objective  
            for mental health services, guided by the federal Olmstead  
            Act, is to provide treatment in the least restrictive setting  
            possible. The overarching goal of existing programs is to keep  
            youth in crisis in calm, familiar environments where their  
            mental health needs can be met. However, without a licensing  
            category specific to children's crisis residential programs,  
            this critically needed service is missing from the continuum  
            of care. This bill expands the definition of Short-Term  
            Residential Treatment Center, thereby creating a category of  
            licensing in state statute for children's crisis residential  
            services. With the appropriate licensing category established,  
            the state and counties would have all the elements of the  
            continuum available to implement the services under the EPSDT  
            requirements already in place.

          2)Short-Term Residential Treatment Center. Last year, AB 403  
            (Stone, Chapter 773, Statutes of 2015), codified the continuum  
            of care reform effort by eliminating group homes and creating  
            a new licensure category known as STRTCs, effective January 1,  
            2017. STRTCs that operate a mental health program that serves  
            children who have either been assessed as meeting the medical  
            necessity criteria for Medi-Cal specialty mental health  
            services under EPSDT or who have been assessed as seriously  
            emotionally disturbed must obtain and have in good standing a  
            mental health certification. STRTCs must accept for placement  
            children who do not required inpatient care in a licensed  
            health facility but who have been assessed as requiring the  
            level of services provided in a STRTC in order to maintain the  
            safety and well-being of the child or others due to behaviors,  
            including those resulting from traumas, that render the child  
            or those around the child unsafe or at risk of harm, or that  
            prevent the effective delivery of needed services and supports  
            provided in the child's own home or in other family settings.  
            In addition, a child must meet at least one of the following  
            conditions:

               a)     The child has been assessed as meeting the medical  
                 necessity criteria for Medi-Cal specialty mental health  
                 EPSDT;
               b)     The child has been assessed as seriously emotionally  








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                 disturbed; and, 
               c)     The child has been assessed as requiring the level  
                 of services provided in order to meet his or her  
                 behavioral or therapeutic needs, which can include, in  
                 appropriate circumstances, a commercially sexually  
                 exploited child, a private voluntary placement (if the  
                 youth exhibits status offender behavior, the parents or  
                 other relatives feel they cannot control the child's  
                 behavior, and short-term intervention is needed to  
                 transition the child back into the home), a juvenile sex  
                 offender or a child who is affiliated with, or impacted  
                 by, a gang.

          1)Double referral. This bill is double referred. This bill was  
            previously heard by the Senate Human Services Committee and  
            passed on a 4-0 vote.

          2)Related legislation. AB 1997 (Stone of 2016) is the clean-up  
            bill to AB 403, and will include modifications to the  
            licensure and certification of STRTCs. AB 1997 is pending in  
            the Assembly Committee on Human Services.

          3)Prior legislation. AB 403 (Stone, Chapter 773, Statutes of  
            2015), codified the continuum of care reform effort by  
            eliminating group homes and creating short term residential  
            treatment centers, home-based therapeutic efforts and other  
            reforms.
             
            SB 1013 (Committee on Budget and Fiscal Review, Chapter 35,  
            Statutes of 2012), called for the department to establish a  
            working group to develop recommended revisions to the current  
            rate-setting system, resulting in the Continuum of Care Reform  
            effort. 

            SB 82 (Committee on Budget and Fiscal Review, Chapter 34,  
            Statutes of 2013) established the Investment in Mental Health  
            Wellness Act of 2013, which authorized the California Health  
            Facilities Financing Authority to administer a local grant  
            program to increase capacity for crisis support programs.

          4)Support. This bill is sponsored by the California Alliance of  
            Child and Family Services (the Alliance), which is a statewide  
            association of accredited private non-profit organizations  
            providing care, services, treatment and support to vulnerable  
            children, youth and families. The Alliance writes this bill is  








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            aimed at addressing a critical component missing in the  
            continuum of specialty mental health services for children and  
            youth in California. This bill would create the needed  
            licensing category to ensure that counties and their  
            community-based providers have the ability to develop crisis  
            residential programs to ensure children and youth have access  
            to mental health services that are responsive to the  
            individual needs and strengths in a timely manner and  
            consistent with ESPDT and specialty mental health services  
            program standards and requirements.  The Alliance argues the  
            lack of a licensing component for crisis residential services  
            is preventing the development of this much needed program,  
            which would provide a residentially-based acute care option in  
            a less restrictive environment than inpatient hospitalization,  
            and would offer a more appropriate alternative for children  
            who do not require a hospital level of care.

           
          SUPPORT AND OPPOSITION  :
          Support:  California Alliance of Child and Family Services  
                    (co-sponsor) 
                    American Federation of State, County and Municipal  
                    Employees (AFSCME)
                    Aviva Family and Children's Services 
                    California Chapter of the American College of  
               Emergency Physicians 
                    California Coalition for Youth 
                    California Health + Advocates 
                    California Mental Health Advocates for Children and  
                    Youth 
                    California Primary Care Association 
                    California State PTA 
                    California State University Channel Islands 
                    Casa Pacifica Centers for Children and Families 
                    Common Sense Kids Action 
                    David & Margaret Youth and Family Services 
                    Disability Rights California 
                    Family Care Network, Inc. 
                    Hathaway-Sycamores Child and Family Services 
                    Hillsides 
                    Junior Blind of America 
                    Lincoln Child Center 
                    NAMI California 
                    National Association of Social Workers, California  
                    Chapter 








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                    National Council for Behavioral Health 
                    Pacific Clinics 
                    Redwood Community Services 
                    Redwood Quality Management Company 
                    Remi Vista, Inc. 
                    Santa Barbara County Board of Supervisors 
                    Seneca Family of Agencies 
                    Sierra Sacramento Valley Medical Society 
                    Stars Behavioral Health Group
                    Steinberg Institute 
                    Trinity Youth Services 
                    United Advocates for Children and Families 
                    Young Minds Advocacy Project 
                    Youth Homes, Inc. 
                    Youth In Mind

          Oppose:   None received
          
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