BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 2279 (Cooley) - Mental Health Services Act:  county-by-county  
          spending reports
          
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          |Version: June 13, 2016          |Policy Vote: HEALTH 9 - 0       |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 1, 2016    |Consultant: Brendan McCarthy    |
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          This bill meets the criteria for referral to the Suspense File.

          Bill  
          Summary:  AB 2279 would require the Department of Health Care  
          Services to collect and publicly report specified information  
          regarding Mental Health Services Act revenues and expenditures  
          made by counties.


          Fiscal  
          Impact:  Ongoing costs of $240,000 per year to compile  
          information submitted by counties, create comparisons of  
          county-by-county expenditures, and develop the required reports  
          by the Department of Health Care Services (Mental Health  
          Services Act Fund).


          Background:  The Mental Health Services Act (Proposition 63 of 2004)  
          imposes an additional 1% personal income tax on incomes over $1  
          million. Most of the funding from the Mental Health Services Act  
          is transferred to counties to provide support for mental health  
          services. The Mental Health Services Act limits state  
          administrative spending to 5% of revenues. Counties are required  







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          to prepare three-year program and expenditure plans (with annual  
          updates) and to submit those plans to the state. In addition,  
          under direction from the Department of Health Care Services,  
          counties are required to develop annual revenue and expenditure  
          reports.


          Proposed Law:  
            AB 2279 would require the Department of Health Care Services  
          to collect and publicly report specified information regarding  
          Mental Health Services Act revenues and expenditures made by  
          counties.
          Specific provisions of the bill would:
                 Require the Department of Health Care Services, no later  
               than nine months after the end of each fiscal year, to  
               collect and publicly report specified information by county  
               and statewide;
                 Specify the information to be reported, including  
               information broken down by programmatic area, information  
               on administrative expenditures, funds held in reserve, and  
               other topics;
                 Require the report made by the Department to include  
               information going back ten years and to provide for a  
               process for making revisions;
                 Authorize counties to provide additional information on  
               expenditures based on the purpose of expenditure (e.g.  
               expenditures that address homelessness, suicide prevention,  
               and other issues);
                 Require the Department to make the information required  
               in the bill available to the Legislature and the public no  
               later than July 1, 2018 and annually thereafter.


          Related  
          Legislation:  AB 2017 (McCarty) would appropriate $40 million  
          per year from the Mental Health Services Act Fund to create a  
          grant program for mental health services at colleges and  
          universities. That bill will be heard in this committee.


          Staff  
          Comments:  Under current law, the Department of Health Care  
          Services receives information from counties on their expenditure  
          plans and expenditures. However, the Department does not perform  








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          any substantial review of that information or compile the  
          information into any report that would allow comparisons to be  
          made between county programs.


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