BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          BILL NO:                    AB 2279             
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          |AUTHOR:        |Cooley                                         |
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          |VERSION:       |June 13, 2016                                  |
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          |HEARING DATE:  |June 22, 2016  |               |               |
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          |CONSULTANT:    |Reyes Diaz                                     |
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           SUBJECT  :  Mental Health Services Act: county-by-county spending  
          reports

           SUMMARY  : Requires the Department of Health Care Services, in  
          consultation with specified entities, to collect and publicly  
          report specified information related to Mental Health Services  
          Act revenue and expenditures, based on the current annual  
          reporting requirement.
          
          Existing law:
          1)Establishes the Mental Health Services Act (MHSA), enacted by  
            voters in 2004 as Proposition 63, which provides funds to  
            counties to expand services and develop innovative programs  
            and integrated service plans for mentally ill children,  
            adults, and seniors through a one percent income tax on  
            personal income above $1 million to be deposited to the Mental  
            Health Services Fund (MHSF), administered by the Department of  
            Health Care Services (DHCS).

          2)Establishes the Mental Health Services Oversight and  
            Accountability Commission (OAC) to oversee the implementation  
            of the MHSA.

          3)Requires each county mental health program to prepare and  
            submit a three-year program and expenditure plan, with annual  
            updates, adopted by the county board of supervisors, to the  
            OAC within 30 days after adoption. Requires the plan to  
            include, among other things, programs for services to adults  
            and seniors.

          4)Requires DHCS, in consultation with the OAC and the County  
            Behavioral Health Directors Association of California, to  
            develop and administer instructions for the Annual MHSA  







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            Revenue and Expenditure Report, including identifying the  
            expenditure of funds, quantifying the amount of additional  
            funds generated for the mental health system, identifying  
            unexpended funds and interest earned on funds, and determining  
            reversion amounts from prior fiscal year distributions. 
          
          This bill:
          1)Requires DHCS, based on the Annual MHSA Revenue and  
            Expenditures Report, to collect and publicly report, no later  
            than nine months after the end of each fiscal year, the  
            following information, by statewide total and by individual  
            county:

                  a)        Total revenue received from the MHSA;
                  b)        The amount of MHSA funds received by counties  
                    for each of the following components:

                        i)             Community services and supports;
                        ii)            Prevention and early intervention;
                        iii)           Innovation;
                        iv)            Housing that is not funded under i)  
                         above;
                        v)             Workforce education and training  
                         not funded under i) above;
                        vi)            Capital facilities and  
                         technological needs not funded under i) above;  
                         and,
                        vii)           Other mental health services not  
                         reflected in i) through vi) above;
                  c)        MHSA revenues expended in the prior fiscal  
                    year;
                  d)        The amount of MHSA funds expended by counties  
                    for each of the components in b) above;
                  e)        Funds held in prudent reserve by each county;
                  f)        Distribution from the counties' prudent  
                    reserves;
                  g)        For the most recent fiscal year, the amount of  
                    MHSA funds for each component listed in b) above; and,
                  h)        MHSA funds subject to reversion and funds that  
                    have reverted.

          2)Requires the information specified in 1) above to be reported  
            for each fiscal year and to include statewide totals. Requires  
            the information to be updated annually, including necessary  
            revisions. Requires annual reports to include fiscal  








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            information for a period of not less than 10 fiscal years, as  
            specified.

          3)Requires DHCS also to report publicly annual county program  
            expenditures for program administration, research and  
            evaluation, and funds used to support joint powers authorities  
            and other statewide entities. Requires a county to provide an  
            explanation if it cannot supply some or all of this  
            information, and to provide a timeframe for making the  
            information available. Requires DHCS to work with counties and  
            other specified entities to determine how best to make this  
            information available.

          4)Allows counties to submit to DHCS information about programs  
            that address areas that include, but are not limited to,  
            homelessness, criminal justice diversion, suicide prevention,  
            school-based mental health programs, programs to reduce  
            unemployment, stigma reduction, and programs targeted to meet  
            the needs of populations, including veterans; Lesbian, Gay,  
            Bisexual, Transgender, Queer, and Questioning; children and  
            transition-age youth; and adults and older adults.

          5)Requires DHCS to compile the information required in 1)  
            through 4) above to promote public understanding of MHSA funds  
            that are distributed to each county, as well as how the funds  
            are spent and what funds remain available for expenditure.  
            Requires DHCS to consult with the OAC, the State Controller's  
            Office, the Department of Finance, counties, other local  
            mental health agencies, and any other agency required to  
            implement the provisions in this bill.

          6)Requires DHCS to consolidate reporting requirements when  
            feasible and to propose to the appropriate policy committees  
            of the Legislature strategies to refine and consolidate  
            reporting requirements.

          7)Requires DHCS to make the information available to the  
            Legislature and the public on its Internet Web site no later  
            than July 1, 2018, and annually thereafter.

           FISCAL  
          EFFECT  : According to the Assembly Appropriations Committee,  
          costs to DHCS are expected to be minor and absorbable.

           








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          PRIOR  
          VOTES  :  
          
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          |Assembly Floor:                     |80 - 0                      |
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          |Assembly Appropriations Committee:  |20 - 0                      |
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          |Assembly Health Committee:          |18 - 0                      |
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          COMMENTS  :
          1)Author's statement. According to the author, the Centers for  
            Disease Control and Prevention and the National Institute of  
            Mental Health report that 4.2% of Americans ages 18 and older  
            suffer from serious mental illness and 26.2% suffer from a  
            diagnosable mental disorder. In 2004, the California voters  
            passed the MHSA, which aimed to address serious mental  
            illness, create prevention and intervention programs, and spur  
            innovation to identify best practices to treat and prevent  
            mental illness. The MHSA created a revenue source to fund  
            programs and determined that local and state oversight was  
            necessary to ensure accountability to the public. Currently,  
            there is no single repository with county-by-county and  
            state-wide information about how MHSA funds are spent. The  
            lack of information made available to the public makes it  
            difficult for consumers to compare services to identify  
            programs that best address their needs, for county programs to  
            identify best practices, and to ensure effective oversight and  
            accountability to the public. AB 2279 requires that the total  
            amount of revenue generated by the MHSA, a county-by-county  
            comparison of fund expenditure plans, and comparison of how  
            MHSA funds were spent be made available in one place in an  
            easy to understand format. Easy access to this information can  
            facilitate enhanced research and modeling, promote best  
            practices, enhance transparency, and allow consumers to more  
            easily identify programs that best address their needs.
            
          2)MHSA. The MHSA provides funding for programs within five  
            components:

               a)     Community Services and Supports (CSS): provides  
                 direct mental health services to the severely and  








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                 seriously mentally ill, such as mental health treatment,  
                 cost of health care treatment, and housing supports. CSS  
                 requires counties to direct the majority of its funds to  
                 full-service partnerships, which are county-coordinated  
                 plans, in collaboration with the client and the family to  
                 provide the full spectrum of community services and  
                 utilize a "whatever it takes" approach to providing  
                 services. Such services include peer support and crisis  
                 intervention services, and non-mental health services and  
                 supports, such as food, clothing, housing, and the cost  
                 of medical treatment;
               b)     Prevention and Early Intervention (PEI): provides  
                 services to mental health clients in order to help  
                 prevent mental illness from becoming severe and  
                 disabling, emphasizing improving timely access to  
                 services for underserved populations. PEI programs are  
                 also required to emphasize strategies to reduce negative  
                 outcomes resulting from untreated mental illness,  
                 including suicide, school failure or dropout,  
                 incarcerations, and unemployment;
               c)     Innovation: provides services and approaches that  
                 are creative in an effort to address mental health  
                 clients' persistent issues, such as improving services  
                 for underserved or unserved populations within the  
                 community. Innovation is funded by 5% from CSS and 5%  
                 from PEI funds;
               d)     Capital Facilities and Technological Needs: creates  
                 additional county infrastructure, such as additional  
                 clinics and facilities, and/or development of a  
                 technological infrastructure for the mental health  
                 system, such as electronic health records for mental  
                 health services; and,
               e)     Workforce Education and Training: provides training  
                 for existing county mental health employees, outreach and  
                 recruitment to increase employment in the mental health  
                 system, and financial incentives to recruit or retain  
                 employees within the public mental health system.

            The MHSA requires each county mental health department to  
            prepare and submit a three-year plan to DHCS that must be  
            updated each year and approved by DHCS after review and  
            comment by the OAC. Some counties make annual reports  
            available to the public on their own Web sites while others do  
            not. In their three-year plans, counties are required to  
            include a list of all programs for which MHSA funding is being  








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            requested and identify how the funds will be spent and what  
            populations will be served. Counties must submit their plans  
            for approval to the OAC before the counties may spend certain  
            categories of funding.

          3)Related legislation. SB 1273 (Moorlach), would clarify that  
            counties may use MHSF moneys for services when co-located with  
            involuntary services. SB 1273 is set to be heard in the  
            Assembly Health Committee on June 28, 2016.

            AB 2017 (McCarty), would establish the College Mental Health  
            Services Program Act, as specified, until January 1, 2022,  
            with dedicated funding from the MHSF. Requires DHCS to create  
            a grant program for specified colleges to provide required  
            improved access to mental health services, as specified. AB  
            2017 is set to be heard in this committee on June 22, 2016.

            AB 847 (Mullin, Chapter 6, Statutes of 2016), requires DHCS to  
            develop a proposal for the United States Secretary of Health  
            and Human Services to be selected as a participating state in  
            the time-limited demonstration program for mental health  
            services to be provided by certified community behavioral  
            health clinics to Medi-Cal beneficiaries. Appropriates $1  
            million from the MHSA for DHCS to develop the proposal.

          4)Prior legislation. SB 585 (Steinberg, Chapter 288, Statutes of  
            2013), allows counties, when included in their plans, to use  
            MHSF moneys for Assisted Outpatient Treatment, known as  
            "Laura's Law," if a county elects to participate in and  
            implement Laura's Law.

          5)Support. Supporters of this bill argue that, while the MHSA  
            has helped to fund a mental health system that has been sorely  
            underfunded for many years, there has been a lack of  
            transparency in county MHSA spending reports, which are not  
            consistently made available to the public either by the  
            counties themselves or DHCS. Supporters also state that there  
            is no single repository for MHSA revenue and expenditure  
            reporting, leaving the general public and mental health care  
            advocates unable to access this information. Supporters argue  
            that this bill will enhance transparency about MHSA funds and  
            promote better outcomes, facilitate program improvement, and  
            enhance accountability to the public. 
          
           SUPPORT AND OPPOSITION  :








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          Support:  California Chapter of the American College of  
                    Emergency Physicians
                    California Council of Community Behavioral Health  
                    Agencies
                    California Hospital Association
                    California Youth Empowerment Network
                    Little Hoover Commission
                    Mental Health America of California
                    National Association of Social Workers, California  
                    Chapter
                    The Steinberg Institute
                    United Advocates for Children and Families 

          Oppose:   None received
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