BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HUMAN SERVICES
                               Senator McGuire, Chair
                                2015 - 2016  Regular 

          Bill No:              AB 1299
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          |Author:   |Ridley-Thomas                                         |
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          |Version:  |April 21, 2015         |Hearing    |July 14, 2015    |
          |          |                       |Date:      |                 |
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          |Urgency:  |No                     |Fiscal:    |Yes              |
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          |Consultant|Sara Rogers                                           |
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           Subject:  Medi-Cal:  specialty mental health services:  foster  
                                      children

            SUMMARY
          
          This bill establishes Legislative intent to ensure that foster  
          children placed outside of their county of original jurisdiction  
          are able to access mental health services in a timely manner and  
          to overcome barriers to care that exist when the responsibility  
          for providing services remains with the county of original  
          jurisdiction. It requires the California Health and Human  
          Services Agency to coordinate with the Department of Health Care  
          Services (DHCS) and the California Department of Social Services  
          (CDSS) to issue policy guidance establishing presumptive  
          transfer, as defined, of responsibility for providing mental  
          health services from the county of original jurisdiction to the  
          foster child's county of residence. Finally, it requires the  
          Department of Finance to set or adjust the Behavioral Health  
          subaccount allocations to ensure that counties who pay for  
          mental health services pursuant to the bill are fully reimbursed

            ABSTRACT
          
          Existing law:

          1)Establishes the criteria by which a child who has suffered, or  
            is at risk of suffering, significant abuse or harm shall be  
            within the jurisdiction of the juvenile court which may  
            adjudge that person to be a dependent child of the court. (WIC  
            300)  








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           2)Requires that a child who has been removed from the physical  
            custody of the parent or guardian, unless placed with  
            relatives, to be placed in the county of residence of the  
            parent or guardian in order to facilitate reunification of the  
            family. Further provides that, in the event that there are no  
            appropriate placements available, a placement may be made in  
            another county, preferably a county adjacent to the parent's  
            or guardian's residence. (WIC 362.2 (g))


          3)Provides that the sending county shall be responsible for  
            providing direct supervision and services or arranging for the  
            provision of supervision and services by the receiving county  
            based on a developed plan or formal agreement, if applicable,  
            specifying the activities to be provided. (WIC 362.2 (g)(5)  
            and (6); MPP 31-505)


          4)Establishes California's Medicaid program, Medi-Cal, though  
            which eligible low-income individuals receive health care  
            services, including foster youth, certain recipients of the  
            Adoption Assistance Program, and Kin-Gap. (WIC 14000 et seq.;  
            42 USC 1396, et seq.)


          5)Pursuant to federal law, provides that children with Title  
            IV-E Adoption Assistance, Foster Care or Guardianship care are  
            defined as "mandatory categorically needy" when determining  
            Medicaid eligibility. (42 CFR 435.145)


          6)Establishes the federal Early and Periodic Screening,  
            Diagnosis and Treatment (EPSDT) program to provide  
            comprehensive and preventive health services including  
            specialty mental health services to Medi-Cal beneficiaries  
            under the age of 21 who have full-scope Medi-Cal eligibility.  
            (42 USC Section 1396d)


          7)Requires county mental health departments to provide children  
            served by county social services and probation departments  
            mental health screening, assessment, participation in  









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            multidisciplinary placement teams and specialty mental health  
            treatment services for children placed out of home in group  
            care, for those children who meet the definition of medical  
            necessity, to the extent resources are available. Requires  
            first priority be given to children currently receiving  
            psychoactive medication. (WIC 5867.5)


          8)Requires each local mental health plan to establish a  
            procedure to ensure access to outpatient specialty mental  
            health services, as required by EPSDT program standards, for  
            any child in foster care who has been placed outside his or  
            her county of adjudication. (WIC 14716)


          9)Establishes the behavioral health subaccount within the  
            support services account of the Local Revenue Fund 2011.  
            Requires the state Controller to distribute funds on a monthly  
            or quarterly basis pursuant to a schedule provided by the  
            Department of Finance created in consultation with appropriate  
            state agencies and the California State Association of  
            Counties. Provides that funds distributed to counties from the  
            behavioral health subaccount can only be used to provide  
            Medi-Cal Specialty Mental Health Services, including the EPSDT  
            benefit, and specified substance use disorder programs. (GOV  
            30025 and 30029.6 pursuant to SB 1020 (Chapter 40, Statutes of  
            2012)) 


          This bill:

          1)Establishes codified Legislative intent to ensure that foster  
            children who are placed in their county of original  
            jurisdiction are able to access mental health services, as  
            specified.  Further states the intent of the Legislature to  
            overcome the barriers to mental health care existing in the  
            current system for foster children who are placed outside  
            their county of original jurisdiction.


          2)Requires the California Health and Human Services Agency to  
            coordinate with DHCS and CDSS to facilitate the receipt of  
            medically necessary specialty mental health services by foster  
            youth placed outside the county of original jurisdiction. 









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          3)Requires DHCS to do the following on or before July 1, 2016:

               a.     Issue policy guidance that establishes the  
                 presumptive transfer of responsibility for providing or  
                 arranging mental health services to foster youth,  
                 consistent with EPSDT standards and requirements, from  
                 the county of original jurisdiction to the foster youth's  
                 county of residence;
               b.     Establish conditions and exceptions to presumptive  
                 transfer in consultation with CDSS and with input from  
                 stakeholders, as specified. 
               c.     Establish procedures for implementing a presumptive  
                 transfer that are consistent with the purpose and intent  
                 of the provisions of this bill and EPSDT standards and  
                 requirements. Requires DHCS to include a procedure for  
                 expedited transfer within 48 hours.

          4)Defines "presumptive transfer" as responsibility for providing  
            or arranging for mental health services being immediately  
            transferred from the county of original jurisdiction to the  
            county of residence, when the following occur, absent any  
            specified conditions or exceptions:


                  a.        A foster child is placed in a county other  
                    than the county of original jurisdiction; and;
                  b.        The transfer of responsibility is requested by  
                    the county child welfare services agency, county  
                    probation department, foster caregiver, or any other  
                    person authorized to make medical decisions on behalf  
                    of the foster child.

          5)Requires Department of Finance by May 1, 2016, to set or  
            adjust its allocation schedule of the behavioral health  
            subaccount so that counties that have paid, or will pay, for  
            specialty mental health services for foster youth placed  
            out-of-county are fully reimbursed during the fiscal year in  
            which the services were provided.

          6)Requires DHCS, if it determines it is necessary, to seek  
            approval under the state's Section 1915 (b) Medicaid waiver  
            from the Centers for Medicare and Medicaid Services (CMS)  









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            prior to implementing the provisions in this bill. Prohibits  
            DHCS from implementing any provision that CMS determines is  
            not permitted under the state's 1915 (b) waiver. (The state's  
            specialty mental health services are operated under a section  
            of the 1915 (b) waiver.)
          
            FISCAL IMPACT
          
          According to an Assembly Appropriations Committee analysis, this  
          bill is expected to incur annual increased costs in the medical  
          EPSDT program in the low millions (approx 50% GF), possibly more  
          to the extent this bill increases access to mental health  
          services for youth who face treatment and service barriers when   
          placed out-of-county.


            BACKGROUND AND DISCUSSION
          
          Purpose of the bill:


          According to the author, the disparity in access to mental  
          health services between in-county and out-of-county children  
          exists despite both having the same entitlement to mental health  
          services under federal and state law. The author states that  
          county-based mental health plans face substantial administrative  
          barriers when services must be provided to children placed  
          out-of-county.  Additionally, the author states that foster  
          children are three to six times more likely to experience  
          emotional, behavioral, and developmental problems than  
          non-foster children. When these mental health needs go unmet,  
          placement instability, disruptions in permanency plans, barriers  
          to educational attainment, and other consequences can result.  
          According to the author, "out-of-county" foster youth may be at  
          greater risk because of lengthy delays or denials in accessing  
          mental health services that can result from the way the system  
          of care provision currently operates.  
          
          Background:

          California is home to nearly 67,000 child welfare and probation  
          foster children who have been removed from their homes as a  
          result of traumatic life events usually involving severe abuse  
          and neglect. California's child welfare system, in assuming  









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          responsibility as the acting "parent" for dependent children,  
          seeks to provide a continuum of placement settings, services and  
          supports for children and their biological and foster families.  
          An important component of these services and supports are mental  
          health services provided under the direction of county-operated  
          mental health plans which provide specialty Medi-Cal mental  
          health services to children and adults. 

          Long-standing divisions and competing priorities between local  
          child welfare, mental health, and education systems have led to  
          insurmountable barriers to effectively serving many of these  
          children within individual counties. Such barriers are further  
          complicated when dependent children move out of their county of  
          jurisdiction, the county with legal and financial responsibility  
          to provide child welfare and mental health services, to a new  
          county that often lacks mechanisms enabling the child to access  
          needed services in the new county. 

          California Child Welfare System

          California has a complex child welfare system incorporating  
          federal, state and local funds expended for the broad purpose of  
          child welfare, including child abuse prevention and response.  
          The federal Administration of Children and Families administers  
          numerous federal grants intended to assist states with child  
          abuse prevention and response and to support the foster care  
          system which provides board and care payments for eligible  
          dependent children as well as a variety of "child welfare  
          services" intended to support the child and family in accordance  
          with the child's case plan. Within the statutorily established  
          parameters for each grant, states have substantial flexibility  
          in how to apportion funds but are accountable to significant  
          federal oversight of program administration.  

          CDSS supervises the 58 county-administered Child Welfare  
          Services systems that investigate approximately 32,000 reports  
          of abuse and neglect of children annually. According to CDSS, as  
          of April of 2015, nearly one in three foster children live in  
          Los Angeles County. Following a court order to remove a child  
          from parental custody, existing law requires the court to order  
          the care, custody, control and conduct of the child to be under  












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          the supervision of the social worker.<1> The social worker from  
          the county of jurisdiction is responsible to visit the child at  
          least monthly, to assess the child for needed services and  
          supports and to establish a case plan that documents the  
          services the child needs and receives. 


          Out-of-county placements

          When children move across county lines, the county of  
          jurisdiction retains legal responsibility for these child  
          welfare-related activities. However, a sending county may  
          arrange for the receiving county to assume the child welfare  
          and/or mental health responsibilities through a formal  
          agreement. As of January 2015, approximately 20 percent of  
          foster youth were placed out-of-county (13,440 children) with  
          Los Angeles County having the largest number (3,580 children) in  
          out-of-county placement, while hosting 860 children from other  
          counties.<2> Children may be placed out-of-county for a variety  
          of reasons - to be placed with a relative, because the only  
          appropriate and available foster home is across county lines, or  
          because a child requires placement in a residential group home.  
          Among children placed in group homes, 33 percent are placed out  
          of county while 21 percent of children placed in Foster Family  
          Agencies (FFAs) and 22 percent of children placed with  
          relatives.<3> There is wide variation across counties in the  
          frequency and patterns of children being placed out of county  
          and in the number of children a county "hosts."  


          Existing law requires mental health plans to establish a  
          procedure to ensure access to outpatient specialty mental health  
          services for any child in foster care who has been placed  
          outside the county of jurisdiction. However, children's mental  
          ---------------------------


          <1> WIC 361.2

          <2> CWS/CMS 2015 Quarter 1 Extract. January 1, 2015 Children in  
          Child Welfare Supervised Foster Care. (Approximations excluding  
          out of state placements and missing youth, including probation  
          youth)

          <3> Access to Mental Health Services for Foster Children Placed  
          Out of County. National Center for Youth Law. January 2013.







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          health advocates state that such care is often difficult to  
          access. As a result, the county of jurisdiction frequently lacks  
          relationships with a receiving county or the direct contracts  
          with providers to enable access to needed care. 


          Mental Health Services for Foster Youth

          A principal point of access for mental health services for  
          foster youth is though specialty Medi-Cal mental health  
          services, through the EPSDT program, by county-operated mental  
          health plans amounting to at least $1.4 billion (FY2012-13).<4>  
          Mental health plans may provide services directly, or by  
          contracting with local providers including group homes, FFAs,  
          clinics and community providers. 


          Foster youth, like all children enrolled in Medi-Cal, are  
          eligible for the EPSDT benefit based on their assessed medical  
          need. This uncapped entitlement includes periodic screenings to  
          determine a child's medical needs and treatment services based  
          on identified mental health needs. EPSDT mental health services  
          ideally provide Medi-Cal enrolled children access to a continuum  
          of mental health services including:

                 Mental health assessment;
                 Crisis Intervention/Stabilization;
                 Day Rehabilitation/Day Treatment Intensive; 
                 Intensive Care Coordination;
                 Medication support services; 
                 Targeted case management;
                 Therapeutic behavioral services.

          The intent of the EPSDT program is to provide children with a  
          benefit at an exceptionally high standard of care.  According to  
          the U.S. Department of Health and Human Services:


               "While there is no federal definition of preventive medical  
               necessity, federal amount, duration and scope rules require  
               that coverage limits must be sufficient to ensure that the  

               -------------------------


          <4> A Complex Case: Public Mental Health Delivery and Financing  
          in California. California Health Care Foundation. July 2013.







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               purpose of a benefit can be reasonably achieved. Since the  
               purpose of EPSDT is to prevent the onset of worsening of  
               disability and illness and children, the standard of  
               coverage is necessarily broad. the standard of medical  
               necessity used by a state must be one that ensures a  
               sufficient level of coverage to not merely treat an  
               already-existing illness or injury but also, to prevent the  
               development or worsening of conditions, illnesses, and  
               disabilities."<5>


          In many counties, foster youth may also access mental health  
          benefits through a managed care plan, which may screen for  
          mental health needs and refer a foster youth to a provider  
          directly, or to a county mental health plan where the child  
          receives "specialty mental health services."


          Although EPSDT specialty mental health services are officially  
          uncapped, they are apportioned largely according to an  
          allocation schedule based on a mixture of 1991 and 2011  
          realignment formulas structured as a "rolling base" that grows  
          each year that growth funds are available. If counties overspend  
          their allocation, the county may seek reimbursement, however the  
          process for this is lengthy and depends on the availability of  
          growth monies. As a result of these complex historical financial  
          arrangements, there is wide variation in the average payment per  
          client, with some counties spending as little as $1,500 while  
          others spend more than $8,000. Although some spending disparity  
          may be the result of cost-of-living differences and population  
          characteristics, mental health advocates argue that this  
          spending disparity reflects disparities in access to services  
          and standards of care. 


          Stakeholders describe the limited availability and scope of  
          county mental health services for children across counties  
          despite repeated assurances from the DHCS and county mental  
          health departments that services are available to all children  





          ---------------------------




          ---------------------------
          <5>  http://mchb.hrsa.gov/epsdt/mednecessity.html  









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          who meet very broad medical necessity criteria under EPSDT.<6>  
          Foster youth, caregivers, community service providers and  
          advocates report that when a foster youth has been assessed as  
          being in need of mental health services, it often is not until  
          the youth is exhibiting more acute symptoms that the child  
          accesses services -- despite the intended "early" nature of  
          EPSDT. 


          Performance Outcome System

          DHCS is engaged in the development of a Performance Outcome  
          System (POS)<7> intended to establish outcome and performance  
          measures for EPSDT services. According to DHCS, the POS will be  
          "used to evaluate the domains of access, engagement, service  
          appropriateness to need, service effectiveness, linkages, cost  
          effectiveness and satisfaction." Additionally, the department  
          states that three reports will be provided regarding statewide  
          aggregate data, county groups, and county-specific data and that  
          these reports will be updated every six months. The current  
          report provides data for all medically eligible youth, although  
          it is anticipated that foster-care-specific reports are  
          forthcoming.


          Related legislation:


          SB 785 (Steinberg, Chapter 469, Statutes of 2007) established a  
          form of presumptive transfer by requiring a host county provide  
          specialty mental health services for foster youth placed out of  
          county who move into permanency, largely through kinship  
          guardianship and adoption. 


            COMMENTS


          ---------------------------
          <6>  
           http://www.kidsdata.org/topic/64/special-needs-referrals-difficul 
          ty/table#fmt=323&loc=1774,2&tf=74&ch=136,135   

          <7> Pursuant to SB 1009 (Committee on Budget, Chapter 34,  
          Statutes of 2012) and AB 82 (Committee on Budget, Chapter 23,  
          Statutes of 2013).  WIC 14707.5.









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          According to children's mental health advocates, the model of  
          presumptive transfer established under SB 785, which applied to  
          adoptive and guardianship youth, has successfully enabled those  
          youth to better access services. This bill proposes to expand  
          presumptive transfer to all foster youth living outside their  
          original county of jurisdiction, while providing exceptions to  
          accommodate  instances in which a foster youth may be better  
          served by the original county. 


          The author has solicited and received substantial feedback from  
          numerous stakeholders representing counties, mental health  
          providers and children's advocacy organizations, and is  
          proposing the committee amendments in attached mock-up. Staff  
          notes that the author and sponsors intend to continue working  
          with stakeholders, including county representatives, to resolve  
          several remaining concerns.


            PRIOR VOTES
          
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                                                                                        |Assembly Floor:                                            |80 - |
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          |Assembly Appropriations Committee:                         |17 - |
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          |Assembly Human Services Committee:                         |7 -  |
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            POSITIONS
                                          
          Support:       
               California Alliance/Steinberg Institute/Women's Foundation  
               of California/Women's Policy Institute (Co-Sponsor)
               California Alliance of Child and Family Services  
               (Co-Sponsor)
               Accessing Health Services for California's Children in  
               Foster Care Taskforce
               Alliance for Children's Rights
               Alternative Family Services
               Aspiranet









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               Assessing Health Services for California's Children in  
               Foster Care Task Force
               Aviva Family and Children's Services
               Bayfront Youth & Family Services
               California Council of Community Mental Health Agencies
               California State PTA
               California Youth Connection
               California Mental Health Advocates for Children and Youth
               Casa Pacifica Centers for Children and Families
               Child and Family Policy Institute of California
               Children Now
               Crittenton Services for Children and Families
               Community Clinic Association of Los Angeles County 
               David & Margaret Youth and Family Services
               Ettie Lee Youth & Family Services
               Faith Advisory Council, Alameda County
               Families Now
               Family & Youth Roundtable
               Family Care Network, Inc.
               Fred Finch Youth Center 
               Hathaway Sycamores 
               Health Access California
               Hillsides
               Humboldt County Transition Age Youth Collaboration
               Integral Community Solutions Institute 
               John Burton Foundation for Children Without Homes
               Junior Blind of America 
               Lilliput Children's Services 
               Maryvale 
               Mendocino County Health and Human Services Agency 
               National Association of Social Workers, CA Chapter 
               North Star Family Center 
               OPTIMIST Youth Homes and Family Services
               San Diego Center for Children 
               Seneca Family of Agencies 
               Sierra Forever Families 
               Special Education Local Plan Area
               Stanford Youth Solutions
               The Village Family Services 
               TLC Child and Family Services 
               Trinity Youth Services 
               United Advocates for Children and Families 
               Unity Care Group, Inc. 
               United Parents









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               Victor Treatment Centers
               West Coast Children's Clinic 
               Young Minds Advocacy Project 
               Youth Homes Inc.

          Oppose:   
               None received.

























                                           

            Amendments Mock-up for 2015-2016 AB-1299 (Ridley-Thomas (A))  
                                           
                       *********Amendments are in BOLD*********
                                          
            Mock-up based on Version Number 98 - Amended Assembly 4/21/15
          
           
             The people of the State of California do enact as follows:

          SECTION 1. Article 6 (commencing with Section 14695.1) is added  









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          to Chapter 8.8 of Part 3 of Division 9 of the Welfare and  
          Institutions Code, to read:
              
               Article  6. Specialty Mental Health Services for Foster  
                                     Children  

          14695.1. (a) (1) It is the intent of the Legislature to ensure  
          that foster children who are placed outside of their county of  
          original jurisdiction, are able to access mental health services  
          in a timely manner, consistent with their individualized  
          strengths and needs and the requirements of Early Periodic  
          Screening Diagnosis and Treatment (EPSDT) program standards and  
          requirements.

          (2) It is the further intent of the Legislature to overcome the  
          barriers to care that exist under existing law, which place  
          responsibility for providing or arranging for mental health  
          services to foster children who are placed outside of their  
          county of original jurisdiction, on those same counties.

          (b) In order to facilitate the receipt of medically necessary  
          specialty mental health services by a foster child who is placed  
          outside of his or her county of original jurisdiction, the  
          California Health and Human Services Agency shall coordinate  
          with the department and the State Department of Social Services  
          to take all of the following actions:

          (1) On or before July 1, 2016, all of the following shall occur:

          (A) The department shall issue policy guidance, pursuant to  
          Section 14716, that establishes the presumptive transfer of  
          responsibility for providing or arranging for mental health  
          services to foster youth, consistent with the requirements of  
          EPSDT program standards and requirements, from the county of  
          original jurisdiction to the foster child's county of  
          residence   .  , and exceptions to presumptive transfer as defined in  
          (d).  

          (B) The department shall establish the  policy guidance   
           conditions and exceptions  to presumptive transfer  and exceptions   
          in consultation with the State Department of Social Services,  
          and with the input of stakeholders that include the County  
          Welfare Directors Association of California, the County  
          Behavioral Health Directors Association of California, provider  









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          representatives, and family and youth advocates. The conditions  
          and exceptions to presumptive transfer are intended to ensure  
          that the transfer of responsibility improves access to mental  
          health care services and does not impede the continuity of  
          existing care.

          (C) The department shall establish the procedures for  
          implementing presumptive transfer that are consistent with the  
          purposes and intent of this section and Early Periodic Screening  
          Diagnosis and Treatment program standards and requirements, and  
          shall include a procedure for expedited transfer within 48  
          hours.

          (c) "Presumptive transfer" for the purposes of this section,  
          means that absent any conditions or exceptions as established  
          pursuant to this article, responsibility for providing or  
          arranging for mental health services shall immediately transfer  
          from the county of original jurisdiction to the county of  
          residence,  under the following conditions:   when all of the  
          following conditions occur:  

          (1) A foster child is placed in a county other than the county  
          of original jurisdiction  ; or  

           (2) A foster child who resides in a county other than the county  
          of jurisdiction is not receiving mental health services  
          consistent with his or her treatment plan and the child's  
          caregiver with responsibility for healthcare decisions, in  
          consultation with the county probation or child welfare agency  
          with responsibility for the care and placement of the child, or  
          the Child and Family Team if one exists, requests transfer of  
          responsibility under this section.
            (2) The transfer of responsibility is requested by the county  
          child welfare services agency, county probation department,  
          foster caregiver, or any other person authorized to make medical  
          decisions on behalf of the foster child.  


            (d) Consistent with the conditions herein and exceptions to  
          presumptive transfer established by the department pursuant to  
          (d) (1), the person or agency responsible for healthcare  
          decisions, in consultation with the child and family team, if  
          one exists, may waive the presumptive transfer, and the  
          responsibility for the provision of mental health services shall  









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          remain with the county of original jurisdiction. 


          (1) On a case by case basis, the presumptive transfer specified  
          in (c) may be waived and the responsibility for provision of  
          specialty mental health services may remain with the mental  
          health plan in the county of original jurisdiction when any of  
          the following conditions are met. Such exceptions shall be  
          documented in the child's case plan pursuant to Section 16501.1.  
          Exceptions may include but are not limited to, the following:


               (A) It is determined that the transfer of services would  
               disrupt continuity of care or timely access to services  
               provided to the child, as defined in paragraph (2). 
               (B) It is determined that the transfer would interfere with  
               family reunification efforts.
               (C) The child's placement out of county is expected to last  
               less than 9 months.


          (2) Exceptions to the presumptive transfer shall be contingent  
          upon the county mental health plan in the county with dependency  
          or delinquency jurisdiction demonstrating an existing contract  
          with a foster care provider, or the ability to enter into a  
          contract within 30 days of the exception decision, and the  
          ability to deliver timely services directly to the foster child.  
          This shall be documented in the child's case plan.


          (e) If the county of jurisdiction mental health plan has  
          completed an assessment of needed services for the foster child,  
          the host county shall accept the assessment. The host county may  
          conduct additional assessments if the child's needs change.


          (f) Upon presumptive transfer, the mental health plan in the  
          county of residence shall assume liability for the authorization  
          and provision of services, and payments for services.

          (g) The department, in consultation with counties and through  
          any administrative means within existing authority, will amend  
          its contract with county mental health plans no later than July  
          1, 2016 to ensure a host county is reimbursed for services  









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          provided pursuant to this section within the fiscal year.
           
            14695.2. By May 1, 2016, the Department of Finance shall set or  
          adjust its allocation schedule of the Behavioral Health  
          Subaccount pursuant to the requirements of Senate Bill 1020  
          (Chapter 40, Statutes of 2012), in order that counties that have  
          paid, or will pay, for specialty mental health services for  
          foster children placed out of county pursuant to this article,  
          are fully reimbursed during the fiscal year in which the  
          services are provided.  
            
          14695.3. (a) If the department determines it is necessary, it  
          shall seek approval under the state's Section 1915(b) Medicaid  
          waiver from the United States Department of Health and Human  
          Services, Centers for Medicare and Medicaid Services (CMS) prior  
          to implementing this article.

          (b) If the department makes the determination that it is  
          necessary to seek CMS approval pursuant to subdivision (a), the  
          department shall make an official request for approval from CMS  
          no later than July 1, 2016, and shall do everything within its  
          power necessary to secure an expeditious approval from CMS.

          (c) The department shall not be required to implement any  
          provision of this article that CMS determines is not permitted  
          under the state's waiver.

          Add New Section
          
           SECTION 14714 of the Welfare and Institutions Code is amended to  
          read:      


           14714. (a) (1) Except as otherwise specified in this chapter, a  
          contract entered into pursuant to this chapter shall include a  
          provision that the mental health plan contractor shall bear the  
          financial risk for the cost of providing medically necessary  
          specialty mental health services to Medi-Cal beneficiaries.
          (2) If the mental health plan is not administered by a county,  
          the mental health plan shall not transfer the obligation for any  
          specialty mental health services to Medi-Cal beneficiaries to  
          the county. The mental health plan may purchase services from  
          the county. The mental health plan shall establish mutually  
          agreed-upon protocols with the county that clearly establish  









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          conditions under which beneficiaries may obtain non-Medi-Cal  
          reimbursable services from the county. Additionally, the plan  
          shall establish mutually agreed-upon protocols with the county  
          for the conditions of transfer of beneficiaries who have lost  
          Medi-Cal eligibility to the county for care under Part 2  
          (commencing with Section 5600), Part 3 (commencing with Section  
          5800), and Part 4 (commencing with Section 5850) of Division 5.


          (3) The mental health plan shall be financially responsible for  
          ensuring access and a minimum required scope of benefits and  
          services, consistent with state and federal requirements, to  
          Medi-Cal beneficiaries who are residents of that county  
          regardless of where the beneficiary resides  except as provided  
          for and consistent with Section 14695.1.  The department shall  
          require that the same definition of medical necessity be used,  
          and the minimum scope of benefits offered by each mental health  
          plan be the same, except to the extent that prior federal  
          approval is received and is consistent with state and federal  
          laws.

                                      -- END --