BILL ANALYSIS                                                                                                                                                                                                    Ó



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          GOVERNOR'S VETO


          AB  
          2279 (Cooley)


          As Enrolled  August 30, 2016


          2/3 vote


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          |ASSEMBLY:  |80-0  |(May 31, 2016) |SENATE: |39-0  |(August 17,      |
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          Original Committee Reference:  HEALTH




          SUMMARY:  Requires the Department of Health Care Services (DHCS)  
          to develop and administer instructions for the compilation of  








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          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  








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          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  








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          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











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