BILL ANALYSIS Ó AB 2279 Page 1 GOVERNOR'S VETO AB 2279 (Cooley) As Enrolled August 30, 2016 2/3 vote -------------------------------------------------------------------- |ASSEMBLY: |80-0 |(May 31, 2016) |SENATE: |39-0 |(August 17, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- -------------------------------------------------------------------- |ASSEMBLY: |79-1 |(August 23, | | | | | | |2016) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | -------------------------------------------------------------------- Original Committee Reference: HEALTH SUMMARY: Requires the Department of Health Care Services (DHCS) to develop and administer instructions for the compilation of AB 2279 Page 2 revenue and expenditure information related to the Mental Health Services Act (MHSA) by counties, in consultation with the Mental Health Services Oversight and Accountability Commission and the County Behavioral Health Directors Association of California, as specified, and permits DHCS to withhold MHSA funds from counties that do not submit the Annual MHSA Report until the reports are submitted. FISCAL EFFECT: According to the Senate Appropriations Committee, 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 DHCS. COMMENTS: According to the author, counties are required to report information to DHCS annually about local programs, expenditure plans and how MHSA funds were spent. While some counties make annual reports available to the public on their own Web sites, currently there is no complete state-wide financial picture of how much MHSA revenue is generated annually. The author argues that the absence of a single repository for this information makes it difficult for taxpayers, mental health advocates, and consumers to see which mental health programs are available and how MHSA funds are spent county-by-county and state-wide. This information would make it easier for providers to identify best practices and for consumers to compare services to identify programs that best address their needs. Proposition 63 was passed by voters in November 2004. The MHSA imposes a 1% income tax on personal income in excess of $1 million and creates the 16 member Commission charged with overseeing the implementation of MHSA. The 2015-16 Governor's Budget projected that $1.776 billion would be deposited into the Mental Health Services Fund in fiscal year (FY) 2015-16. The MHSA addresses a broad continuum of prevention, early AB 2279 Page 3 intervention and service needs as well as provided funding for infrastructure, technology and training needs for the community mental health system. In addition to local programs, the MHSA authorizes up to 5% of revenues for state administration. These include administrative functions performed by a variety of state entities such as the DHCS and Office of Statewide Health Planning and Development (OSHPD). It also funds evaluation of the MHSA by the Commission, which was established by the MHSA. 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 Commission. In their three-year plans, counties are required to include a list of all programs for which MHSA funding is being requested and that identifies how the funds will be spent and which populations will be served. Counties must submit their plans for approval to the Commission before the counties may spend certain categories of funding. The most recently available MHSA Report discusses expenditures for FY 2015-16 and is available on the DHCS website, but not on the Commission Web site. The MHSA Report includes an explanation of estimated revenues, general MHSA Fund expenditures to counties in the aggregate and to OSHPD, and a detailed summary of how the funds set aside for program administration were allocated to 14 different state agencies and departments. The National Association of Social Workers - California Chapter supports this legislation because it will increase transparency regarding how MHSA funds are spent. California Chapter of the American College of Emergency Physicians states that without adequate analysis of the effectiveness of MHSA programs, there is no guarantee that people with mental illness are receiving adequate treatment. County-by-county comparisons of MHSA program would be an important step toward determining the most AB 2279 Page 4 effective programs and increasing access to mental health services. The Steinberg Institute states, in support, that the current lack of timely and accessible reporting does not align with the principles set forth in Prop 63. There is no known opposition to this bill. GOVERNOR'S VETO MESSAGE: I am returning Assembly Bill 2279 without my signature. This bill requires the Department of Health Care Services to annually compile and publicly report financial data and program information from counties on their Mental Health Services Act expenditures. The department is already in the process of collecting and posting county revenue and expenditure reports as well as updated three year program expenditure plans, which will provide much of the information outlined in this bill. I encourage the Legislature and interested stakeholders to continue to work with the department to identify useful information that can be integrated into the existing reports to improve transparency and accountability in the use of these funds. Analysis Prepared by: Paula Villescaz / HEALTH / (916) 319-2097 FN: 0005050 AB 2279 Page 5