Amended in Assembly September 1, 2015

Senate Bill No. 804

Introduced by Committee on Health (Senators Hernandez (Chair), Hall, Mitchell, Monning, Nguyen, Nielsen, Pan, Roth, and Wolk)

March 26, 2015

An act to amend Sections begin insert 1366.22, end insert 11801, begin insert 11811.6, end insert 11830.1, 11835, begin insert 24100, end insert 103577, 104151, begin delete and 128456 end delete begin insert 128456, 130302, and 130304 end insert of, begin insert to amend, repeal, and add Sections 1366.24 and 1366.25 of, end insert and to repeal Sections 130316 and 130317 of, the Health and Safety Code, begin insert to amend Section 10128.52 of, and to amend, repeal, and add Sections 10128.54 and 10128.55 of, the Insurance Code, end insert and to amend Sections begin insert 729.12, end insert 4033, 4040, 4095, 4096.5, begin insert 4117, 5121, 5150, 5152.1, 5152.2, 5250.1, 5305, 5306.5, 5307, 5308, end insert 5326.95, begin insert 5328, 5328.2, 5346, end insert 5400, 5585.22, 5601, 5611, 5664, begin insert 5694.7, end insert 5701.1, 5701.2, 5717, 5750, begin insert 5814.5, end insert 5845, 5847, 5848, 5848.5, 5892, 5899, 5902, begin insert 6002.25, 8103, end insert 11467, 11469, 14021.4, 14124.24, 14251, 14499.71, begin insert 14682.1, end insert 14707, 14711, 14717, 14718, 14725, 15204.8, begin delete 15847.7, and 17604 end delete begin insert and 15847.7 end insert of the Welfare and Institutions Code, relating to begin delete health. end delete begin insert public health. end insert

LEGISLATIVE COUNSEL’S DIGEST

SB 804, as amended, Committee on Health. begin delete Health. end delete begin insert Public health. end insert

begin insert

(1) The Knox-Keene Health Care Service Plan Act of 1975 provides for the licensure and regulation of health care service plans by the Department of Managed Health Care and makes a willful violation of the act a crime. Existing law also provides for the regulation of health insurers by the Department of Insurance. The California Continuation Benefits Replacement Act (Cal-COBRA) requires health care service plans and health insurers providing coverage under a group benefit plan to employers of 2 to 19 eligible employees to offer a continuation of that coverage for a specified period of time to certain qualified beneficiaries, as specified. Existing law requires a group benefit plan that is subject to Cal-COBRA to make specified disclosures to covered employees, including that a covered employee who is considering declining continuation of coverage should be aware that companies selling individual health insurance may require a review of the employee’s medical history that could result in a higher premium or denial of coverage.

end insert begin insert

This bill would eliminate the disclosure requirement described above. If federal law requiring an individual to maintain minimum health coverage is repealed or amended to no longer apply to the individual market, as specified, the bill would reenact that disclosure requirement to become operative 12 months after that repeal or amendment. The bill would also, under those same conditions, require a contract between a group benefit plan that is subject to Cal-COBRA and an employer to require the employer to make the same disclosure to a qualified beneficiary in connection with a notice regarding election of continuation coverage. The bill would require a group benefit plan that is subject to Cal-COBRA and that issues, amends, or renews a disclosure on or after July 1, 2016, to include a notice regarding additional health care coverage options in that disclosure, as specified. The bill would require a group contract that is issued, amended, or renewed on or after July 1, 2016, between a group benefit plan that is subject to Cal-COBRA and an employer to require the employer to give that notice regarding additional health care coverage options to a qualified beneficiary of the contract in connection with a notice regarding election of continuation coverage. The bill would make conforming changes to related provisions.

end insert begin insert

Because a willful violation of the bill’s requirements relative to health care service plans would be a crime, this bill would impose a state-mandated local program.

end insert begin delete

(1)

end delete

begin insert (2) end insert  Existing law regulates provision of programs and services relating to mental health and alcohol and drug abuse at the state and local levels and serving various populations. These provisions contain various obsolete references to the California Mental Health Directors Association, the County Alcohol and Drug Program Administrators’ Association of California, and similar entities.

This bill would delete those obsolete references and would refer instead to the County Behavioral Health Directors Association of California, and would make additional conforming begin delete changes. end delete begin insert changes to certain provisions relating to mental health directors and alcohol and drug program administrators. end insert

begin delete

(2)

end delete

begin insert (3) end insert  Existing law requires the State Department of Health Care Services to provide, no later than January 10 and concurrently with the May Revision of the annual budget, the fiscal committees of the Legislature with an estimate package for the Every Woman Counts Program for early detection of breast and cervical cancer.

This bill would require the department additionally to provide to the fiscal and appropriate policy committees of the Legislature quarterly updates on caseload, estimated expenditures, and related program monitoring data for the Every Woman Counts Program, as prescribed. The bill would declare the intent of the Legislature that these provisions supersede similar reporting requirements imposed on the State Department of Public Health by specified uncodified legislation.

begin delete

(3)

end delete

begin insert (4) end insert  Existing law, for purposes of Medi-Cal provisions relating to entities that provide payment for certain covered services on behalf of eligible persons, begin delete enrollees end delete begin insert enrollees, end insert or subscribers, includes a nonprofit hospital service plan within the descriptions of a fiscal intermediary, a prepaid health plan, and group health coverage.

This bill would delete a nonprofit hospital service plan from inclusion as a fiscal intermediary, prepaid health plan, or group health coverage, under the above circumstances.

begin delete

(4)

end delete

begin insert (5) end insert  Existing law establishes the State Department of Public Health and sets forth its powers and duties, including, but not limited to, duties as State Registrar relating to the uniform administration of provisions relating to vital records and health statistics. Existing law requires the State Registrar, local registrar, or county recorder to, upon request and payment of the required fee, supply to an applicant a certified copy of the record of a birth, fetal death, death, marriage, or marriage dissolution registered with the official. Existing law authorizes the issuance of certain records without payment of the fee.

Existing law, on and after July 1, 2015, requires each local registrar or county recorder to issue, without a fee, a certified record of live birth to any person who can verify his or her status as a homeless person or a homeless child or youth, as defined.

This bill would specify that no issuance or other related fee would be begin delete changed end delete begin insert charged end insert under the above circumstances.

begin delete

(5)

end delete

begin insert (6) end insert  Under the Health Insurance Portability and Accountability Implementation Act of 2001, the Office of HIPAA Implementation assumes statewide leadership, coordination, policy formulation, direction, and oversight responsibilities for HIPAA implementation, and exercises full authority relative to state entities to establish policy, provide direction to state entities, monitor progress, and report on implementation efforts. Under existing law, these duties have been assumed by a successor entity, the Office of Health Information Integrity. These provisions become inoperative and are repealed as of June 30, 2016, at which time funds appropriated for purposes of the act that remain unexpended and unencumbered, revert to the General Fund.

This bill would indefinitely extend the act and the operation of the office by deleting the June 30, 2016 repeal date. begin insert The bill would update references to the office to refer instead to the Office of Health Information Integrity. end insert

begin insert

(7) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

end insert begin insert

This bill would provide that no reimbursement is required by this act for a specified reason.

end insert

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  begin delete no end delete begin insert yes end insert .

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1. end insert   

end insert

begin insert Section 1366.22 of the end insert begin insert Health and Safety Code end insert
begin insert is amended to read: end insert

1366.22.  

The continuation coverage requirements of this article
do not apply to the following individuals:

(a) Individuals who are entitled to Medicare benefits or become
entitled to Medicare benefits pursuant to Title XVIII of the United
States Social Security Act, as amended or superseded. Entitlement
to Medicare Part A only constitutes entitlement to benefits under
Medicare.

(b) Individuals who have other hospital, medical, or surgical
coverage or who are covered or become covered under another
group benefit plan, including a self-insured employee welfare
benefit plan, that provides coverage for individuals and that does
not impose any exclusion or limitation with respect to any
preexisting condition of the individual, other than a preexisting
condition limitation or exclusion that does not apply to or is
satisfied by the qualified beneficiary pursuant to Sections 1357
and 1357.06. A group conversion option under any group benefit
plan shall not be considered as an arrangement under which an
individual is or becomes covered.

(c) Individuals who are covered, become covered, or are eligible
for federal COBRA coverage pursuant to Section 4980B of the
United States Internal Revenue Code or Chapter 18 of the
Employee Retirement Income Security begin delete Act, 29 end delete begin insert Act (29 end insert U.S.C.
begin delete Section end delete begin insert Sec. end insert 1161 et begin delete seq. end delete begin insert seq.). end insert

(d) Individuals who are covered, become covered, or are eligible
for coverage pursuant to Chapter 6A of the Public Health Service
begin delete Act, 42 end delete begin insert Act (42 end insert U.S.C. Section 300bb-1 et begin delete seq. end delete begin insert seq.). end insert

(e) Qualified beneficiaries who fail to meet the requirements of
subdivision (b) of Section 1366.24 or subdivision begin delete (h) end delete begin insert (i) end insert of Section
1366.25 regarding notification of a qualifying event or election of
continuation coverage within the specified time limits.

(f) Except as provided in Section 3001 of ARRA, qualified
beneficiaries who fail to submit the correct premium amount
required by subdivision (b) of Section 1366.24 and Section
1366.26, in accordance with the terms and conditions of the plan
contract, or fail to satisfy other terms and conditions of the plan
contract.

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 1366.24 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

1366.24.  

(a) Every health care service plan evidence of
coverage, provided for group benefit plans subject to this article,
that is issued, amended, or renewed on or after January 1, 1999,
shall disclose to covered employees of group benefit plans subject
to this article the ability to continue coverage pursuant to this
article, as required by this section.

(b) This disclosure shall state that all enrollees who are eligible
to be qualified beneficiaries, as defined in subdivision (c) of
Section 1366.21, shall be required, as a condition of receiving
benefits pursuant to this article, to notify, in writing, the health
care service plan, or the employer if the employer contracts to
perform the administrative services as provided for in Section
1366.25, of all qualifying events as specified in paragraphs (1),
(3), (4), and (5) of subdivision (d) of Section 1366.21 within 60
days of the date of the qualifying event. This disclosure shall
inform enrollees that failure to make the notification to the health
care service plan, or to the employer when under contract to
provide the administrative services, within the required 60 days
will disqualify the qualified beneficiary from receiving continuation
coverage pursuant to this article. The disclosure shall further state
that a qualified beneficiary who wishes to continue coverage under
the group benefit plan pursuant to this article begin delete must end delete begin insert shall end insert request
the continuation in writing and deliver the written request, by
first-class mail, or other reliable means of delivery, including
personal delivery, express mail, or private courier company, to the
health care service plan, or to the employer if the plan has
contracted with the employer for administrative services pursuant
to subdivision (d) of Section 1366.25, within the 60-day period
following the later of (1) the date that the enrollee’s coverage under
the group benefit plan terminated or will terminate by reason of a
qualifying event, or (2) the date the enrollee was sent notice
pursuant to subdivision (e) of Section 1366.25 of the ability to
continue coverage under the group benefit plan. The disclosure
required by this section shall also state that a qualified beneficiary
electing continuation shall pay to the health care service plan, in
accordance with the terms and conditions of the plan contract,
which shall be set forth in the notice to the qualified beneficiary
pursuant to subdivision (d) of Section 1366.25, the amount of the
required premium payment, as set forth in Section 1366.26. The
disclosure shall further require that the qualified beneficiary’s first
premium payment required to establish premium payment be
delivered by first-class mail, certified mail, or other reliable means
of delivery, including personal delivery, express mail, or private
courier company, to the health care service plan, or to the employer
if the employer has contracted with the plan to perform the
administrative services pursuant to subdivision (d) of Section
1366.25, within 45 days of the date the qualified beneficiary
provided written notice to the health care service plan or the
employer, if the employer has contracted to perform the
administrative services, of the election to continue coverage in
order for coverage to be continued under this article. This
disclosure shall also state that the first premium payment begin delete must end delete
begin insert shall end insert equal an amount sufficient to pay any required premiums
and all premiums due, and that failure to submit the correct
premium amount within the 45-day period will disqualify the
qualified beneficiary from receiving continuation coverage pursuant
to this article.

(c) The disclosure required by this section shall also describe
separately how qualified beneficiaries whose continuation coverage
terminates under a prior group benefit plan pursuant to subdivision
(b) of Section 1366.27 may continue their coverage for the balance
of the period that the qualified beneficiary would have remained
covered under the prior group benefit plan, including the
requirements for election and payment. The disclosure shall clearly
state that continuation coverage shall terminate if the qualified
beneficiary fails to comply with the requirements pertaining to
enrollment in, and payment of premiums to, the new group benefit
plan within 30 days of receiving notice of the termination of the
prior group benefit plan.

(d) Prior to August 1, 1998, every health care service plan shall
provide to all covered employees of employers subject to this
article a written notice containing the disclosures required by this
section, or shall provide to all covered employees of employers
subject to this section a new or amended evidence of coverage that
includes the disclosures required by this section. Any specialized
health care service plan that, in the ordinary course of business,
maintains only the addresses of employer group purchasers of
benefits and does not maintain addresses of covered employees,
may comply with the notice requirements of this section through
the provision of the notices to its employer group purchasers of
benefits.

(e) Every plan disclosure form issued, amended, or renewed on
and after January 1, 1999, for a group benefit plan subject to this
article shall provide a notice that, under state law, an enrollee may
be entitled to continuation of group coverage and that additional
information regarding eligibility for this coverage may be found
in the plan’s evidence of coverage.

(f)  begin delete Every end delete begin insert A end insert disclosure issued, amended, or renewed on begin delete and after
July 1, 2006, end delete begin insert or after July 1, 2016, end insert for a group benefit plan subject
to this article shall include the following notice:

begin delete

“Please examine your options carefully before declining this
coverage. You should be aware that companies selling individual
health insurance typically require a review of your medical history
that could result in a higher premium or you could be denied
coverage entirely.”

end delete begin insert

“In addition to your coverage continuation options, you may be
eligible for the following:

end insert begin insert

1. Coverage through the state health insurance marketplace,
also known as Covered California. By enrolling through Covered
California, you may qualify for lower monthly premiums and lower
out-of-pocket costs. Your family members may also qualify for
coverage through Covered California.

end insert begin insert

2. Coverage through Medi-Cal. Depending on your income, you
may qualify for low- or no-cost coverage through Medi-Cal. Your
family members may also qualify for Medi-Cal.

end insert begin insert

3. Coverage through an insured spouse. If your spouse has
coverage that extends to family members, you may be able to be
added on that benefit plan.

end insert begin insert

Be aware that there is a deadline to enroll in Covered California
although you can apply for Medi-Cal anytime. To find out more
about how to apply for Covered California and Medi-Cal, visit
the Covered California Internet Web site at

end insert begin insert

http://www.coveredca.com.”

end insert begin insert

(g) (1) If Section 5000A of the Internal Revenue Code, as added
by Section 1501 of PPACA, is repealed or amended to no longer
apply to the individual market, as defined in Section 2791 of the
federal Public Health Service Act (42 U.S.C. Sec. 300gg-91), this
section shall become inoperative and is repealed 12 months after
the date of that repeal or amendment.

end insert begin insert

(2) For purposes of this subdivision, “PPACA” means the
federal Patient Protection and Affordable Care Act (Public Law
111-148), as amended by the federal Health Care and Education
Reconciliation Act of 2010 (Public Law 111-152), and any rules,
regulations, or guidance issued pursuant to that law.

end insert

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 1366.24 is added to the end insert begin insert Health and Safety
Code end insert begin insert , to read: end insert

begin insert

begin insert 1366.24. end insert   

(a) Every health care service plan evidence of
coverage, provided for group benefit plans subject to this article,
that is issued, amended, or renewed on or after January 1, 1999,
shall disclose to covered employees of group benefit plans subject
to this article the ability to continue coverage pursuant to this
article, as required by this section.

(b) This disclosure shall state that all enrollees who are eligible
to be qualified beneficiaries, as defined in subdivision (c) of Section
1366.21, shall be required, as a condition of receiving benefits
pursuant to this article, to notify, in writing, the health care service
plan, or the employer if the employer contracts to perform the
administrative services as provided for in Section 1366.25, of all
qualifying events as specified in paragraphs (1), (3), (4), and (5)
of subdivision (d) of Section 1366.21 within 60 days of the date of
the qualifying event. This disclosure shall inform enrollees that
failure to make the notification to the health care service plan, or
to the employer when under contract to provide the administrative
services, within the required 60 days will disqualify the qualified
beneficiary from receiving continuation coverage pursuant to this
article. The disclosure shall further state that a qualified
beneficiary who wishes to continue coverage under the group
benefit plan pursuant to this article must request the continuation
in writing and deliver the written request, by first-class mail, or
other reliable means of delivery, including personal delivery,
express mail, or private courier company, to the health care service
plan, or to the employer if the plan has contracted with the
employer for administrative services pursuant to subdivision (d)
of Section 1366.25, within the 60-day period following the later
of either (1) the date that the enrollee’s coverage under the group
benefit plan terminated or will terminate by reason of a qualifying
event, or (2) the date the enrollee was sent notice pursuant to
subdivision (e) of Section 1366.25 of the ability to continue
coverage under the group benefit plan. The disclosure required
by this section shall also state that a qualified beneficiary electing
continuation shall pay to the health care service plan, in
accordance with the terms and conditions of the plan contract,
which shall be set forth in the notice to the qualified beneficiary
pursuant to subdivision (d) of Section 1366.25, the amount of the
required premium payment, as set forth in Section 1366.26. The
disclosure shall further require that the qualified beneficiary’s
first premium payment required to establish premium payment be
delivered by first-class mail, certified mail, or other reliable means
of delivery, including personal delivery, express mail, or private
courier company, to the health care service plan, or to the
employer if the employer has contracted with the plan to perform
the administrative services pursuant to subdivision (d) of Section
1366.25, within 45 days of the date the qualified beneficiary
provided written notice to the health care service plan or the
employer, if the employer has contracted to perform the
administrative services, of the election to continue coverage in
order for coverage to be continued under this article. This
disclosure shall also state that the first premium payment must
equal an amount sufficient to pay any required premiums and all
premiums due, and that failure to submit the correct premium
amount within the 45-day period will disqualify the qualified
beneficiary from receiving continuation coverage pursuant to this
article.

(c) The disclosure required by this section shall also describe
separately how qualified beneficiaries whose continuation coverage
terminates under a prior group benefit plan pursuant to subdivision
(b) of Section 1366.27 may continue their coverage for the balance
of the period that the qualified beneficiary would have remained
covered under the prior group benefit plan, including the
requirements for election and payment. The disclosure shall clearly
state that continuation coverage shall terminate if the qualified
beneficiary fails to comply with the requirements pertaining to
enrollment in, and payment of premiums to, the new group benefit
plan within 30 days of receiving notice of the termination of the
prior group benefit plan.

(d) Prior to August 1, 1998, every health care service plan shall
provide to all covered employees of employers subject to this article
a written notice containing the disclosures required by this section,
or shall provide to all covered employees of employers subject to
this section a new or amended evidence of coverage that includes
the disclosures required by this section. Any specialized health
care service plan that, in the ordinary course of business, maintains
only the addresses of employer group purchasers of benefits and
does not maintain addresses of covered employees, may comply
with the notice requirements of this section through the provision
of the notices to its employer group purchasers of benefits.

(e) Every plan disclosure form issued, amended, or renewed on
or after January 1, 1999, for a group benefit plan subject to this
article shall provide a notice that, under state law, an enrollee
may be entitled to continuation of group coverage and that
additional information regarding eligibility for this coverage may
be found in the plan’s evidence of coverage.

(f) Every disclosure issued, amended, or renewed on or after
the operative date of this section for a group benefit plan subject
to this article shall include the following notice:

“Please examine your options carefully before declining this
coverage. You should be aware that companies selling individual
health insurance typically require a review of your medical history
that could result in a higher premium or you could be denied
coverage entirely.”

(g) A disclosure issued, amended, or renewed on or after July
1, 2016, for a group benefit plan subject to this article shall include
the following

notice:

“In addition to your coverage continuation options, you may be
eligible for the following:

1. Coverage through the state health insurance marketplace,
also known as Covered California. By enrolling through Covered
California, you may qualify for lower monthly premiums and lower
out-of-pocket costs. Your family members may also qualify for
coverage through Covered California.

2. Coverage through Medi-Cal. Depending on your income, you
may qualify for low- or no-cost coverage through Medi-Cal. Your
family members may also qualify for Medi-Cal.

3. Coverage through an insured spouse. If your spouse has
coverage that extends to family members, you may be able to be
added on that benefit plan.

Be aware that there is a deadline to enroll in Covered California
although you can apply for Medi-Cal anytime. To find out more
about how to apply for Covered California and Medi-Cal, visit
the Covered California Internet Web site at

http://www.coveredca.com.”

(h) (1) If Section 5000A of the Internal Revenue Code, as added
by Section 1501 of PPACA, is repealed or amended to no longer
apply to the individual market, as defined in Section 2791 of the
federal Public Health Service Act (42 U.S.C. Sec. 300gg-91), this
section shall become operative 12 months after the date of that
repeal or amendment.

(2) For purposes of this subdivision, “PPACA” means the
federal Patient Protection and Affordable Care Act (Public Law
111-148), as amended by the federal Health Care and Education
Reconciliation Act of 2010 (Public Law 111-152), and any rules,
regulations, or guidance issued pursuant to that law.

end insert

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 1366.25 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

1366.25.  

(a) Every group contract between a health care service
plan and an employer subject to this article that is issued, amended,
or renewed on or after July 1, 1998, shall require the employer to
notify the plan, in writing, of any employee who has had a
qualifying event, as defined in paragraph (2) of subdivision (d) of
Section 1366.21, within 30 days of the qualifying event. The group
contract shall also require the employer to notify the plan, in
writing, within 30 days of the date, when the employer becomes
subject to Section 4980B of the United States Internal Revenue
Code or Chapter 18 of the Employee Retirement Income Security
begin delete Act, 29 end delete begin insert Act (29 end insert U.S.C. Sec. 1161 et begin delete seq. end delete begin insert seq.). end insert

(b) Every group contract between a plan and an employer subject
to this article that is issued, amended, or renewed on or after July
1, 1998, shall require the employer to notify qualified beneficiaries
currently receiving continuation coverage, whose continuation
coverage will terminate under one group benefit plan prior to the
end of the period the qualified beneficiary would have remained
covered, as specified in Section 1366.27, of the qualified
beneficiary’s ability to continue coverage under a new group
benefit plan for the balance of the period the qualified beneficiary
would have remained covered under the prior group benefit plan.
This notice shall be provided either 30 days prior to the termination
or when all enrolled employees are notified, whichever is later.

Every health care service plan and specialized health care service
plan shall provide to the employer replacing a health care service
plan contract issued by the plan, or to the employer’s agent or
broker representative, within 15 days of any written request,
information in possession of the plan reasonably required to
administer the notification requirements of this subdivision and
subdivision (c).

(c) Notwithstanding subdivision (a), the group contract between
the health care service plan and the employer shall require the
employer to notify the successor plan in writing of the qualified
beneficiaries currently receiving continuation coverage so that the
successor plan, or contracting employer or administrator, may
provide those qualified beneficiaries with the necessary premium
information, enrollment forms, and instructions consistent with
the disclosure required by subdivision (c) of Section 1366.24 and
subdivision (e) of this section to allow the qualified beneficiary to
continue coverage. This information shall be sent to all qualified
beneficiaries who are enrolled in the plan and those qualified
beneficiaries who have been notified, pursuant to Section 1366.24,
of their ability to continue their coverage and may still elect
coverage within the specified 60-day period. This information
shall be sent to the qualified beneficiary’s last known address, as
provided to the employer by the health care service plan or
disability insurer currently providing continuation coverage to the
qualified beneficiary. The successor plan shall not be obligated to
provide this information to qualified beneficiaries if the employer
or prior plan or insurer fails to comply with this section.

(d) A health care service plan may contract with an employer,
or an administrator, to perform the administrative obligations of
the plan as required by this article, including required notifications
and collecting and forwarding premiums to the health care service
plan. Except for the requirements of subdivisions (a), (b), and (c),
this subdivision shall not be construed to permit a plan to require
an employer to perform the administrative obligations of the plan
as required by this article as a condition of the issuance or renewal
of coverage.

(e) Every health care service plan, or employer or administrator
that contracts to perform the notice and administrative services
pursuant to this section, shall, within 14 days of receiving a notice
of a qualifying event, provide to the qualified beneficiary the
necessary benefits information, premium information, enrollment
forms, and disclosures consistent with the notice requirements
contained in subdivisions (b) and (c) of Section 1366.24 to allow
the qualified beneficiary to formally elect continuation coverage.
This information shall be sent to the qualified beneficiary’s last
known address.

(f) Every health care service plan, or employer or administrator
that contracts to perform the notice and administrative services
pursuant to this section, shall, during the 180-day period ending
on the date that continuation coverage is terminated pursuant to
paragraphs (1), (3), and (5) of subdivision (a) of Section 1366.27,
notify a qualified beneficiary who has elected continuation
coverage pursuant to this article of the date that his or her coverage
will terminate, and shall notify the qualified beneficiary of any
conversion coverage available to that qualified beneficiary. This
requirement shall not apply when the continuation coverage is
terminated because the group contract between the plan and the
employer is being terminated.

(g) (1) A health care service plan shall provide to a qualified
beneficiary who has a qualifying event during the period specified
in subparagraph (A) of paragraph (3) of subdivision (a) of Section
3001 of ARRA, a written notice containing information on the
availability of premium assistance under ARRA. This notice shall
be sent to the qualified beneficiary’s last known address. The notice
shall include clear and easily understandable language to inform
the qualified beneficiary that changes in federal law provide a new
opportunity to elect continuation coverage with a 65-percent
premium subsidy and shall include all of the following:

(A) The amount of the premium the person will pay. For
qualified beneficiaries who had a qualifying event between
September 1, 2008, and May 12, 2009, inclusive, if a health care
service plan is unable to provide the correct premium amount in
the notice, the notice may contain the last known premium amount
and an opportunity for the qualified beneficiary to request, through
a toll-free telephone number, the correct premium that would apply
to the beneficiary.

(B) Enrollment forms and any other information required to be
included pursuant to subdivision (e) to allow the qualified
beneficiary to elect continuation coverage. This information shall
not be included in notices sent to qualified beneficiaries currently
enrolled in continuation coverage.

(C) A description of the option to enroll in different coverage
as provided in subparagraph (B) of paragraph (1) of subdivision
(a) of Section 3001 of ARRA. This description shall advise the
qualified beneficiary to contact the covered employee’s former
employer for prior approval to choose this option.

(D) The eligibility requirements for premium assistance in the
amount of 65 percent of the premium under Section 3001 of
ARRA.

(E) The duration of premium assistance available under ARRA.

(F) A statement that a qualified beneficiary eligible for premium
assistance under ARRA may elect continuation coverage no later
than 60 days of the date of the notice.

(G) A statement that a qualified beneficiary eligible for premium
assistance under ARRA who rejected or discontinued continuation
coverage prior to receiving the notice required by this subdivision
has the right to withdraw that rejection and elect continuation
coverage with the premium assistance.

(H) A statement that reads as follows:

“IF YOU ARE HAVING ANY DIFFICULTIES READING OR
UNDERSTANDING THIS NOTICE, PLEASE CONTACT [name
of health plan] at [insert appropriate telephone number].”

(2) With respect to qualified beneficiaries who had a qualifying
event between September 1, 2008, and May 12, 2009, inclusive,
the notice described in this subdivision shall be provided by the
later of May 26, 2009, or seven business days after the date the
plan receives notice of the qualifying event.

(3) With respect to qualified beneficiaries who had or have a
qualifying event between May 13, 2009, and the later date specified
in subparagraph (A) of paragraph (3) of subdivision (a) of Section
3001 of ARRA, inclusive, the notice described in this subdivision
shall be provided within the period of time specified in subdivision
(e).

(4) Nothing in this section shall be construed to require a health
care service plan to provide the plan’s evidence of coverage as a
part of the notice required by this subdivision, and nothing in this
section shall be construed to require a health care service plan to
amend its existing evidence of coverage to comply with the changes
made to this section by the enactment of Assembly Bill 23 of the
2009-10 Regular Session or by the act amending this section during
the second year of the 2009-10 Regular Session.

(5) The requirement under this subdivision to provide a written
notice to a qualified beneficiary and the requirement under
paragraph (1) of subdivision begin delete (h) end delete begin insert (i) end insert to provide a new opportunity
to a qualified beneficiary to elect continuation coverage shall be
deemed satisfied if a health care service plan previously provided
a written notice and additional election opportunity under Section
3001 of ARRA to that qualified beneficiary prior to the effective
date of the act adding this paragraph.

begin insert

(h) A group contract between a group benefit plan and an
employer subject to this article that is issued, amended, or renewed
on or after July 1, 2016, shall require the employer to give the
following notice to a qualified beneficiary in connection with a
notice regarding election of continuation coverage:

end insert begin insert

“In addition to your coverage continuation options, you may be
eligible for the following:

end insert begin insert

1. Coverage through the state health insurance marketplace,
also known as Covered California. By enrolling through Covered
California, you may qualify for lower monthly premiums and lower
out-of-pocket costs. Your family members may also qualify for
coverage through Covered California.

end insert begin insert

2. Coverage through Medi-Cal. Depending on your income, you
may qualify for low- or no-cost coverage through Medi-Cal. Your
family members may also qualify for Medi-Cal.

end insert begin insert

3. Coverage through an insured spouse. If your spouse has
coverage that extends to family members, you may be able to be
added on that benefit plan.

end insert begin insert

Be aware that there is a deadline to enroll in Covered California
although you can apply for Medi-Cal anytime. To find out more
about how to apply for Covered California and Medi-Cal, visit
the Covered California Internet Web site at

end insert begin insert

http://www.coveredca.com.”

end insert begin delete

(h)

end delete

begin insert (i) end insert  (1) Notwithstanding any other begin delete provision of end delete law, a qualified
beneficiary eligible for premium assistance under ARRA may elect
continuation coverage no later than 60 days after the date of the
notice required by subdivision (g).

(2) For a qualified beneficiary who elects to continue coverage
pursuant to this subdivision, the period beginning on the date of
the qualifying event and ending on the effective date of the
continuation coverage shall be disregarded for purposes of
calculating a break in coverage in determining whether a
preexisting condition provision applies under subdivision (c) of
Section 1357.06 or subdivision (e) of Section 1357.51.

(3) For a qualified beneficiary who had a qualifying event
between September 1, 2008, and February 16, 2009, inclusive, and
who elects continuation coverage pursuant to paragraph (1), the
continuation coverage shall commence on the first day of the month
following the election.

(4) For a qualified beneficiary who had a qualifying event
between February 17, 2009, and May 12, 2009, inclusive, and who
elects continuation coverage pursuant to paragraph (1), the effective
date of the continuation coverage shall be either of the following,
at the option of the beneficiary, provided that the beneficiary pays
the applicable premiums:

(A) The date of the qualifying event.

(B) The first day of the month following the election.

(5) Notwithstanding any other begin delete provision of end delete law, a qualified
beneficiary who is eligible for the special election opportunity
described in paragraph (17) of subdivision (a) of Section 3001 of
ARRA may elect continuation coverage no later than 60 days after
the date of the notice required under subdivision begin delete (j). end delete begin insert (k). end insert For a
qualified beneficiary who elects coverage pursuant to this
paragraph, the continuation coverage shall be effective as of the
first day of the first period of coverage after the date of termination
of employment, except, if federal law permits, coverage shall take
effect on the first day of the month following the election.
However, for purposes of calculating the duration of continuation
coverage pursuant to Section 1366.27, the period of that coverage
shall be determined as though the qualifying event was a reduction
of hours of the employee.

(6) Notwithstanding any other begin delete provision of end delete law, a qualified
beneficiary who is eligible for any other special election
opportunity under ARRA may elect continuation coverage no later
than 60 days after the date of the special election notice required
under ARRA.

begin delete

(i)

end delete

begin insert (j) end insert  A health care service plan shall provide a qualified
beneficiary eligible for premium assistance under ARRA written
notice of the extension of that premium assistance as required
under Section 3001 of ARRA.

begin delete

(j)

end delete

begin insert (k) end insert  A health care service plan, or an administrator or employer
if administrative obligations have been assumed by those entities
pursuant to subdivision (d), shall give the qualified beneficiaries
described in subparagraph (C) of paragraph (17) of subdivision
(a) of Section 3001 of ARRA the written notice required by that
paragraph by implementing the following procedures:

(1) The health care service plan shall, within 14 days of the
effective date of the act adding this subdivision, send a notice to
employers currently contracting with the health care service plan
for a group benefit plan subject to this article. The notice shall do
all of the following:

(A) Advise the employer that employees whose employment is
terminated on or after March 2, 2010, who were previously enrolled
in any group health care service plan or health insurance policy
offered by the employer may be entitled to special health coverage
rights, including a subsidy paid by the federal government for a
portion of the premium.

(B) Ask the employer to provide the health care service plan
with the name, address, and date of termination of employment
for any employee whose employment is terminated on or after
March 2, 2010, and who was at any time covered by any health
care service plan or health insurance policy offered to their
employees on or after September 1, 2008.

(C) Provide employers with a format and instructions for
submitting the information to the health care service plan, or their
administrator or employer who has assumed administrative
obligations pursuant to subdivision (d), by telephone, fax,
electronic mail, or mail.

(2) Within 14 days of receipt of the information specified in
paragraph (1) from the employer, the health care service plan shall
send the written notice specified in paragraph (17) of subdivision
(a) of Section 3001 of ARRA to those individuals.

(3) If an individual contacts his or her health care service plan
and indicates that he or she experienced a qualifying event that
entitles him or her to the special election period described in
paragraph (17) of subdivision (a) of Section 3001 of ARRA or any
other special election provision of ARRA, the plan shall provide
the individual with the written notice required under paragraph
(17) of subdivision (a) of Section 3001 of ARRA or any other
applicable provision of ARRA, regardless of whether the plan
receives information from the individual’s previous employer
regarding that individual pursuant to Section 24100. The plan shall
review the individual’s application for coverage under this special
election notice to determine if the individual qualifies for the
special election period and the premium assistance under ARRA.
The plan shall comply with paragraph (5) if the individual does
not qualify for either the special election period or premium
assistance under ARRA.

(4) The requirement under this subdivision to provide the written
notice described in paragraph (17) of subdivision (a) of Section
3001 of ARRA to a qualified beneficiary and the requirement
under paragraph (5) of subdivision begin delete (h) end delete begin insert (i) end insert to provide a new
opportunity to a qualified beneficiary to elect continuation coverage
shall be deemed satisfied if a health care service plan previously
provided the written notice and additional election opportunity
described in paragraph (17) of subdivision (a) of Section 3001 of
ARRA to that qualified beneficiary prior to the effective date of
the act adding this paragraph.

(5) If an individual does not qualify for either a special election
period or the premium assistance under ARRA, the health care
service plan shall provide a written notice to that individual that
shall include information on the right to appeal as set forth in
Section 3001 of ARRA.

(6) A health care service plan shall provide information on its
publicly accessible Internet Web site regarding the premium
assistance made available under ARRA and any special election
period provided under that law. A plan may fulfill this requirement
by linking or otherwise directing consumers to the information
regarding COBRA continuation coverage premium assistance
located on the Internet Web site of the United States Department
of Labor. The information required by this paragraph shall be
located in a section of the plan’s Internet Web site that is readily
accessible to consumers, such as the Web site’s Frequently Asked
Questions section.

begin delete

(k)

end delete

begin insert (l) end insert  For purposes of implementing federal premium assistance
for continuation coverage, the department may designate a model
notice or notices that may be used by health care service plans.
Use of the model notice or notices shall not require prior approval
of the department. Any model notice or notices designated by the
department for purposes of this subdivision shall not be subject to
the Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code).

begin delete

(l)

end delete

begin insert (m) end insert  Notwithstanding any other begin delete provision of end delete law, a qualified
beneficiary eligible for premium assistance under ARRA may elect
to enroll in different coverage subject to the criteria provided under
subparagraph (B) of paragraph (1) of subdivision (a) of Section
3001 of ARRA.

begin delete

(m)

end delete

begin insert (n) end insert  A qualified beneficiary enrolled in continuation coverage
as of February 17, 2009, who is eligible for premium assistance
under ARRA may request application of the premium assistance
as of March 1, 2009, or later, consistent with ARRA.

begin delete

(n)

end delete

begin insert (o) end insert  A health care service plan that receives an election notice
from a qualified beneficiary eligible for premium assistance under
ARRA, pursuant to subdivision begin delete (h), end delete begin insert (i), end insert shall be considered a person
entitled to reimbursement, as defined in Section 6432(b)(3) of the
Internal Revenue Code, as amended by paragraph (12) of
subdivision (a) of Section 3001 of ARRA.

begin delete

(o)

end delete

begin insert (p) end insert  (1) For purposes of compliance with ARRA, in the absence
of guidance from, or if specifically required for state-only
continuation coverage by, the United States Department of Labor,
the Internal Revenue Service, or the Centers for Medicare and
Medicaid Services, a health care service plan may request
verification of the involuntary termination of a covered employee’s
employment from the covered employee’s former employer or the
qualified beneficiary seeking premium assistance under ARRA.

(2) A health care service plan that requests verification pursuant
to paragraph (1) directly from a covered employee’s former
employer shall do so by providing a written notice to the employer.
This written notice shall be sent by mail or facsimile to the covered
employee’s former employer within seven business days from the
date the plan receives the qualified beneficiary’s election notice
pursuant to subdivision begin delete (h). end delete begin insert (i). end insert Within 10 calendar days of receipt
of written notice required by this paragraph, the former employer
shall furnish to the health care service plan written verification as
to whether the covered employee’s employment was involuntarily
terminated.

(3) A qualified beneficiary requesting premium assistance under
ARRA may furnish to the health care service plan a written
document or other information from the covered employee’s former
employer indicating that the covered employee’s employment was
involuntarily terminated. This document or information shall be
deemed sufficient by the health care service plan to establish that
the covered employee’s employment was involuntarily terminated
for purposes of ARRA, unless the plan makes a reasonable and
timely determination that the documents or information provided
by the qualified beneficiary are legally insufficient to establish
involuntary termination of employment.

(4) If a health care service plan requests verification pursuant
to this subdivision and cannot verify involuntary termination of
employment within 14 business days from the date the employer
receives the verification request or from the date the plan receives
documentation or other information from the qualified beneficiary
pursuant to paragraph (3), the health care service plan shall either
provide continuation coverage with the federal premium assistance
to the qualified beneficiary or send the qualified beneficiary a
denial letter which shall include notice of his or her right to appeal
that determination pursuant to ARRA.

(5) No person shall intentionally delay verification of
involuntary termination of employment under this subdivision.

begin delete

(p)

end delete

begin insert (q) end insert  The provision of information and forms related to the
premium assistance available pursuant to ARRA to individuals by
a health care service plan shall not be considered a violation of
this chapter provided that the plan complies with all of the
requirements of this article.

begin insert

(r) (1) If Section 5000A of the Internal Revenue Code, as added
by Section 1501 of PPACA, is repealed or amended to no longer
apply to the individual market, as defined in Section 2791 of the
federal Public Health Service Act (42 U.S.C. Sec. 300gg-91), this
section shall become inoperative and is repealed 12 months after
the date of that repeal or amendment.

end insert begin insert

(2) For purposes of this subdivision, “PPACA” means the
federal Patient Protection and Affordable Care Act (Public Law
111-148), as amended by the federal Health Care and Education
Reconciliation Act of 2010 (Public Law 111-152), and any rules,
regulations, or guidance issued pursuant to that law.

end insert

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 1366.25 is added to the end insert begin insert Health and Safety
Code end insert begin insert , to read: end insert

begin insert

begin insert 1366.25. end insert   

(a) Every group contract between a health care
service plan and an employer subject to this article that is issued,
amended, or renewed on or after July 1, 1998, shall require the
employer to notify the plan, in writing, of any employee who has
had a qualifying event, as defined in paragraph (2) of subdivision
(d) of Section 1366.21, within 30 days of the qualifying event. The
group contract shall also require the employer to notify the plan,
in writing, within 30 days of the date, when the employer becomes
subject to Section 4980B of the United States Internal Revenue
Code or Chapter 18 of the Employee Retirement Income Security
Act (29 U.S.C. Sec. 1161 et seq.).

(b) Every group contract between a plan and an employer
subject to this article that is issued, amended, or renewed on or
after July 1, 1998, shall require the employer to notify qualified
beneficiaries currently receiving continuation coverage, whose
continuation coverage will terminate under one group benefit plan
prior to the end of the period the qualified beneficiary would have
remained covered, as specified in Section 1366.27, of the qualified
beneficiary’s ability to continue coverage under a new group
benefit plan for the balance of the period the qualified beneficiary
would have remained covered under the prior group benefit plan.
This notice shall be provided either 30 days prior to the termination
or when all enrolled employees are notified, whichever is later.

Every health care service plan and specialized health care
service plan shall provide to the employer replacing a health care
service plan contract issued by the plan, or to the employer’s agent
or broker representative, within 15 days of any written request,
information in possession of the plan reasonably required to
administer the notification requirements of this subdivision and
subdivision (c).

(c) Notwithstanding subdivision (a), the group contract between
the health care service plan and the employer shall require the
employer to notify the successor plan in writing of the qualified
beneficiaries currently receiving continuation coverage so that
the successor plan, or contracting employer or administrator, may
provide those qualified beneficiaries with the necessary premium
information, enrollment forms, and instructions consistent with
the disclosure required by subdivision (c) of Section 1366.24 and
subdivision (e) of this section to allow the qualified beneficiary to
continue coverage. This information shall be sent to all qualified
beneficiaries who are enrolled in the plan and those qualified
beneficiaries who have been notified, pursuant to Section 1366.24,
of their ability to continue their coverage and may still elect
coverage within the specified 60-day period. This information shall
be sent to the qualified beneficiary’s last known address, as
provided to the employer by the health care service plan or
disability insurer currently providing continuation coverage to
the qualified beneficiary. The successor plan shall not be obligated
to provide this information to qualified beneficiaries if the employer
or prior plan or insurer fails to comply with this section.

(d) A health care service plan may contract with an employer,
or an administrator, to perform the administrative obligations of
the plan as required by this article, including required notifications
and collecting and forwarding premiums to the health care service
plan. Except for the requirements of subdivisions (a), (b), and (c),
this subdivision shall not be construed to permit a plan to require
an employer to perform the administrative obligations of the plan
as required by this article as a condition of the issuance or renewal
of coverage.

(e) Every health care service plan, or employer or administrator
that contracts to perform the notice and administrative services
pursuant to this section, shall, within 14 days of receiving a notice
of a qualifying event, provide to the qualified beneficiary the
necessary benefits information, premium information, enrollment
forms, and disclosures consistent with the notice requirements
contained in subdivisions (b) and (c) of Section 1366.24 to allow
the qualified beneficiary to formally elect continuation coverage.
This information shall be sent to the qualified beneficiary’s last
known address.

(f) Every health care service plan, or employer or administrator
that contracts to perform the notice and administrative services
pursuant to this section, shall, during the 180-day period ending
on the date that continuation coverage is terminated pursuant to
paragraphs (1), (3), and (5) of subdivision (a) of Section 1366.27,
notify a qualified beneficiary who has elected continuation
coverage pursuant to this article of the date that his or her
coverage will terminate, and shall notify the qualified beneficiary
of any conversion coverage available to that qualified beneficiary.
This requirement shall not apply when the continuation coverage
is terminated because the group contract between the plan and
the employer is being terminated.

(g) (1) A health care service plan shall provide to a qualified
beneficiary who has a qualifying event during the period specified
in subparagraph (A) of paragraph (3) of subdivision (a) of Section
3001 of ARRA, a written notice containing information on the
availability of premium assistance under ARRA. This notice shall
be sent to the qualified beneficiary’s last known address. The notice
shall include clear and easily understandable language to inform
the qualified beneficiary that changes in federal law provide a
new opportunity to elect continuation coverage with a 65-percent
premium subsidy and shall include all of the following:

(A) The amount of the premium the person will pay. For
qualified beneficiaries who had a qualifying event between
September 1, 2008, and May 12, 2009, inclusive, if a health care
service plan is unable to provide the correct premium amount in
the notice, the notice may contain the last known premium amount
and an opportunity for the qualified beneficiary to request, through
a toll-free telephone number, the correct premium that would apply
to the beneficiary.

(B) Enrollment forms and any other information required to be
included pursuant to subdivision (e) to allow the qualified
beneficiary to elect continuation coverage. This information shall
not be included in notices sent to qualified beneficiaries currently
enrolled in continuation coverage.

(C) A description of the option to enroll in different coverage
as provided in subparagraph (B) of paragraph (1) of subdivision
(a) of Section 3001 of ARRA. This description shall advise the
qualified beneficiary to contact the covered employee’s former
employer for prior approval to choose this option.

(D) The eligibility requirements for premium assistance in the
amount of 65 percent of the premium under Section 3001 of ARRA.

(E) The duration of premium assistance available under ARRA.

(F) A statement that a qualified beneficiary eligible for premium
assistance under ARRA may elect continuation coverage no later
than 60 days of the date of the notice.

(G) A statement that a qualified beneficiary eligible for premium
assistance under ARRA who rejected or discontinued continuation
coverage prior to receiving the notice required by this subdivision
has the right to withdraw that rejection and elect continuation
coverage with the premium assistance.

(H) A statement that reads as follows:

“IF YOU ARE HAVING ANY DIFFICULTIES READING OR
UNDERSTANDING THIS NOTICE, PLEASE CONTACT [name
of health plan] at [insert appropriate telephone number].”

(2) With respect to qualified beneficiaries who had a qualifying
event between September 1, 2008, and May 12, 2009, inclusive,
the notice described in this subdivision shall be provided by the
later of May 26, 2009, or seven business days after the date the
plan receives notice of the qualifying event.

(3) With respect to qualified beneficiaries who had or have a
qualifying event between May 13, 2009, and the later date specified
in subparagraph (A) of paragraph (3) of subdivision (a) of Section
3001 of ARRA, inclusive, the notice described in this subdivision
shall be provided within the period of time specified in subdivision
(e).

(4) Nothing in this section shall be construed to require a health
care service plan to provide the plan’s evidence of coverage as a
part of the notice required by this subdivision, and nothing in this
section shall be construed to require a health care service plan to
amend its existing evidence of coverage to comply with the changes
made to this section by the enactment of Assembly Bill 23 of the
2009-10 Regular Session or by the act amending this section
during the second year of the 2009-10 Regular Session.

(5) The requirement under this subdivision to provide a written
notice to a qualified beneficiary and the requirement under
paragraph (1) of subdivision (k) to provide a new opportunity to
a qualified beneficiary to elect continuation coverage shall be
deemed satisfied if a health care service plan previously provided
a written notice and additional election opportunity under Section
3001 of ARRA to that qualified beneficiary prior to the effective
date of the act adding this paragraph.

(h) A group contract between a group benefit plan and an
employer subject to this article that is issued, amended, or renewed
on or after the operative date of this section shall require the
employer to give the following notice to a qualified beneficiary in
connection with a notice regarding election of continuation
coverage:

“Please examine your options carefully before declining this
coverage. You should be aware that companies selling individual
health insurance typically require a review of your medical history
that could result in a higher premium or you could be denied
coverage entirely.”

(i) A group contract between a group benefit plan and an
employer subject to this article that is issued, amended, or renewed
on or after July 1, 2016, shall require the employer to give the
following notice to a qualified beneficiary in connection with a
notice regarding election of continuation coverage:

“In addition to your coverage continuation options, you may be
eligible for the following:

1. Coverage through the state health insurance marketplace,
also known as Covered California. By enrolling through Covered
California, you may qualify for lower monthly premiums and lower
out-of-pocket costs. Your family members may also qualify for
coverage through Covered California.

2. Coverage through Medi-Cal. Depending on your income, you
may qualify for low- or no-cost coverage through Medi-Cal. Your
family members may also qualify for Medi-Cal.

3. Coverage through an insured spouse. If your spouse has
coverage that extends to family members, you may be able to be
added on that benefit plan.

Be aware that there is a deadline to enroll in Covered California
although you can apply for Medi-Cal anytime. To find out more
about how to apply for Covered California and Medi-Cal, visit
the Covered California Internet Web site at
http://www.coveredca.com.”

(j) (1) Notwithstanding any other law, a qualified beneficiary
eligible for premium assistance under ARRA may elect continuation
coverage no later than 60 days after the date of the notice required
by subdivision (g).

(2) For a qualified beneficiary who elects to continue coverage
pursuant to this subdivision, the period beginning on the date of
the qualifying event and ending on the effective date of the
continuation coverage shall be disregarded for purposes of
calculating a break in coverage in determining whether a
preexisting condition provision applies under subdivision (c) of
Section 1357.06 or subdivision (e) of Section 1357.51.

(3) For a qualified beneficiary who had a qualifying event
between September 1, 2008, and February 16, 2009, inclusive,
and who elects continuation coverage pursuant to paragraph (1),
the continuation coverage shall commence on the first day of the
month following the election.

(4) For a qualified beneficiary who had a qualifying event
between February 17, 2009, and May 12, 2009, inclusive, and who
elects continuation coverage pursuant to paragraph (1), the
effective date of the continuation coverage shall be either of the
following, at the option of the beneficiary, provided that the
beneficiary pays the applicable premiums:

(A) The date of the qualifying event.

(B) The first day of the month following the election.

(5) Notwithstanding any other law, a qualified beneficiary who
is eligible for the special election opportunity described in
paragraph (17) of subdivision (a) of Section 3001 of ARRA may
elect continuation coverage no later than 60 days after the date
of the notice required under subdivision (l). For a qualified
beneficiary who elects coverage pursuant to this paragraph, the
continuation coverage shall be effective as of the first day of the
first period of coverage after the date of termination of
employment, except, if federal law permits, coverage shall take
effect on the first day of the month following the election. However,
for purposes of calculating the duration of continuation coverage
pursuant to Section 1366.27, the period of that coverage shall be
determined as though the qualifying event was a reduction of hours
of the employee.

(6) Notwithstanding any other law, a qualified beneficiary who
is eligible for any other special election opportunity under ARRA
may elect continuation coverage no later than 60 days after the
date of the special election notice required under ARRA.

(k) A health care service plan shall provide a qualified
beneficiary eligible for premium assistance under ARRA written
notice of the extension of that premium assistance as required
under Section 3001 of ARRA.

(l) A health care service plan, or an administrator or employer
if administrative obligations have been assumed by those entities
pursuant to subdivision (d), shall give the qualified beneficiaries
described in subparagraph (C) of paragraph (17) of subdivision
(a) of Section 3001 of ARRA the written notice required by that
paragraph by implementing the following procedures:

(1) The health care service plan shall, within 14 days of the
effective date of the act adding this subdivision, send a notice to
employers currently contracting with the health care service plan
for a group benefit plan subject to this article. The notice shall do
all of the following:

(A) Advise the employer that employees whose employment is
terminated on or after March 2, 2010, who were previously
enrolled in any group health care service plan or health insurance
policy offered by the employer may be entitled to special health
coverage rights, including a subsidy paid by the federal government
for a portion of the premium.

(B) Ask the employer to provide the health care service plan
with the name, address, and date of termination of employment
for any employee whose employment is terminated on or after
March 2, 2010, and who was at any time covered by any health
care service plan or health insurance policy offered to their
employees on or after September 1, 2008.

(C) Provide employers with a format and instructions for
submitting the information to the health care service plan, or their
administrator or employer who has assumed administrative
obligations pursuant to subdivision (d), by telephone, fax,
electronic mail, or mail.

(2) Within 14 days of receipt of the information specified in
paragraph (1) from the employer, the health care service plan
shall send the written notice specified in paragraph (17) of
subdivision (a) of Section 3001 of ARRA to those individuals.

(3) If an individual contacts his or her health care service plan
and indicates that he or she experienced a qualifying event that
entitles him or her to the special election period described in
paragraph (17) of subdivision (a) of Section 3001 of ARRA or any
other special election provision of ARRA, the plan shall provide
the individual with the written notice required under paragraph
(17) of subdivision (a) of Section 3001 of ARRA or any other
applicable provision of ARRA, regardless of whether the plan
receives information from the individual’s previous employer
regarding that individual pursuant to Section 24100. The plan
shall review the individual’s application for coverage under this
special election notice to determine if the individual qualifies for
the special election period and the premium assistance under
ARRA. The plan shall comply with paragraph (5) if the individual
does not qualify for either the special election period or premium
assistance under ARRA.

(4) The requirement under this subdivision to provide the written
notice described in paragraph (17) of subdivision (a) of Section
3001 of ARRA to a qualified beneficiary and the requirement under
paragraph (5) of subdivision (j) to provide a new opportunity to
a qualified beneficiary to elect continuation coverage shall be
deemed satisfied if a health care service plan previously provided
the written notice and additional election opportunity described
in paragraph (17) of subdivision (a) of Section 3001 of ARRA to
that qualified beneficiary prior to the effective date of the act
adding this paragraph.

(5) If an individual does not qualify for either a special election
period or the premium assistance under ARRA, the health care
service plan shall provide a written notice to that individual that
shall include information on the right to appeal as set forth in
Section 3001 of ARRA.

(6) A health care service plan shall provide information on its
publicly accessible Internet Web site regarding the premium
assistance made available under ARRA and any special election
period provided under that law. A plan may fulfill this requirement
by linking or otherwise directing consumers to the information
regarding COBRA continuation coverage premium assistance
located on the Internet Web site of the United States Department
of Labor. The information required by this paragraph shall be
located in a section of the plan’s Internet Web site that is readily
accessible to consumers, such as the Web site’s Frequently Asked
Questions section.

(m) For purposes of implementing federal premium assistance
for continuation coverage, the department may designate a model
notice or notices that may be used by health care service plans.
Use of the model notice or notices shall not require prior approval
of the department. Any model notice or notices designated by the
department for purposes of this subdivision shall not be subject
to the Administrative Procedure Act (Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code).

(n) Notwithstanding any other law, a qualified beneficiary
eligible for premium assistance under ARRA may elect to enroll
in different coverage subject to the criteria provided under
subparagraph (B) of paragraph (1) of subdivision (a) of Section
3001 of ARRA.

(o) A qualified beneficiary enrolled in continuation coverage
as of February 17, 2009, who is eligible for premium assistance
under ARRA may request application of the premium assistance
as of March 1, 2009, or later, consistent with ARRA.

(p) A health care service plan that receives an election notice
from a qualified beneficiary eligible for premium assistance under
ARRA, pursuant to subdivision (j), shall be considered a person
entitled to reimbursement, as defined in Section 6432(b)(3) of the
Internal Revenue Code, as amended by paragraph (12) of
subdivision (a) of Section 3001 of ARRA.

(q) (1) For purposes of compliance with ARRA, in the absence
of guidance from, or if specifically required for state-only
continuation coverage by, the United States Department of Labor,
the Internal Revenue Service, or the Centers for Medicare and
Medicaid Services, a health care service plan may request
verification of the involuntary termination of a covered employee’s
employment from the covered employee’s former employer or the
qualified beneficiary seeking premium assistance under ARRA.

(2) A health care service plan that requests verification pursuant
to paragraph (1) directly from a covered employee’s former
employer shall do so by providing a written notice to the employer.
This written notice shall be sent by mail or facsimile to the covered
employee’s former employer within seven business days from the
date the plan receives the qualified beneficiary’s election notice
pursuant to subdivision (j). Within 10 calendar days of receipt of
written notice required by this paragraph, the former employer
shall furnish to the health care service plan written verification
as to whether the covered employee’s employment was
involuntarily terminated.

(3) A qualified beneficiary requesting premium assistance under
ARRA may furnish to the health care service plan a written
document or other information from the covered employee’s former
employer indicating that the covered employee’s employment was
involuntarily terminated. This document or information shall be
deemed sufficient by the health care service plan to establish that
the covered employee’s employment was involuntarily terminated
for purposes of ARRA, unless the plan makes a reasonable and
timely determination that the documents or information provided
by the qualified beneficiary are legally insufficient to establish
involuntary termination of employment.

(4) If a health care service plan requests verification pursuant
to this subdivision and cannot verify involuntary termination of
employment within 14 business days from the date the employer
receives the verification request or from the date the plan receives
documentation or other information from the qualified beneficiary
pursuant to paragraph (3), the health care service plan shall either
provide continuation coverage with the federal premium assistance
to the qualified beneficiary or send the qualified beneficiary a
denial letter which shall include notice of his or her right to appeal
that determination pursuant to ARRA.

(5) No person shall intentionally delay verification of
involuntary termination of employment under this subdivision.

(r) The provision of information and forms related to the
premium assistance available pursuant to ARRA to individuals by
a health care service plan shall not be considered a violation of
this chapter provided that the plan complies with all of the
requirements of this article.

(s) (1) If Section 5000A of the Internal Revenue Code, as added
by Section 1501 of PPACA, is repealed or amended to no longer
apply to the individual market, as defined in Section 2791 of the
federal Public Health Service Act (42 U.S.C. Sec. 300gg-91), this
section shall become operative 12 months after the date of that
repeal or amendment.

(2) For purposes of this subdivision, “PPACA” means the
federal Patient Protection and Affordable Care Act (Public Law
111-148), as amended by the federal Health Care and Education
Reconciliation Act of 2010 (Public Law 111-152), and any rules,
regulations, or guidance issued pursuant to that law.

end insert

begin delete SECTION 1. end delete
begin insert SEC. 6. end insert   

Section 11801 of the Health and Safety Code is
amended to read:

11801.  

The alcohol and drug program administrator, acting
through administrative channels designated pursuant to Section
11795, shall do all of the following:

(a) Coordinate and be responsible for the preparation of the
county contract.

(b) Ensure compliance with applicable laws relating to
discrimination against any person because of any characteristic
listed or defined in Section 11135 of the Government Code.

(c) Submit an annual report to the board of supervisors reporting
all activities of the alcohol and other drug program, including a
financial accounting of expenditures, number of persons served,
and a forecast of anticipated needs for the upcoming year.

(d) Be directly responsible for the administration of all alcohol
or other drug program funds allocated to the county under this
part, administration of county operated programs, and coordination
and monitoring of programs that have contracts with the county
to provide alcohol and other drug services.

(e) Ensure the evaluation of alcohol and other drug programs,
including the collection of appropriate and necessary client data
and program information, pursuant to Chapter 6 (commencing
with Section 11825).

(f) Ensure program quality in compliance with appropriate
standards pursuant to Chapter 7 (commencing with Section 11830).

(g) Participate and represent the county in meetings of the
County Behavioral Health Directors Association of California
pursuant to Section 11811.5 for the purposes of representing the
counties in their relationship with the state with respect to policies,
standards, and administration for alcohol and other drug abuse
services.

(h) Perform any other acts that may be necessary, desirable, or
proper to carry out the purposes of this part.

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 11811.6 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

11811.6.  

The department shall consult with begin insert county behavioral
health directors, end insert alcohol and drug program begin delete administrators end delete
begin insert administrators, or both, end insert in establishing standards pursuant to
Chapter 7 (commencing with Section 11830) and regulations
pursuant to Chapter 8 (commencing with Section 11835), shall
consult with alcohol and drug program administrators on matters
of major policy and administration, and may consult with alcohol
and drug program administrators on other matters affecting persons
with alcohol and other drug problems. begin delete The alcohol and drug
program administrators may organize, adopt bylaws, and annually
elect officers. end delete The administrators shall consist of all legally
appointed alcohol and drug administrators in the state as designated
pursuant to subdivision (a) of Section 11800.

begin delete SEC. 2. end delete
begin insert SEC. 8. end insert   

Section 11830.1 of the Health and Safety Code is
amended to read:

11830.1.  

In order to ensure quality assurance of alcohol and
other drug programs and expand the availability of funding
resources, the department shall implement a program certification
procedure for alcohol and other drug treatment recovery services.
The department, after consultation with the County Behavioral
Health Directors Association of California, and other interested
organizations and individuals, shall develop standards and
regulations for the alcohol and other drug treatment recovery
services describing the minimal level of service quality required
of the service providers to qualify for and obtain state certification.
The standards shall be excluded from the rulemaking requirements
of the Administrative Procedure Act (Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code). Compliance with these standards shall be
voluntary on the part of programs. For the purposes of Section
2626.2 of the Unemployment Insurance Code, certification shall
be equivalent to program review.

begin delete SEC. 3. end delete
begin insert SEC. 9. end insert   

Section 11835 of the Health and Safety Code is
amended to read:

11835.  

(a) The purposes of any regulations adopted by the
department shall be to implement, interpret, or make specific the
provisions of this part and shall not exceed the authority granted
to the department pursuant to this part. To the extent possible, the
regulations shall be written in clear and concise language and
adopted only when necessary to further the purposes of this part.

(b) Except as provided in this section and Sections 11772,
11798, 11798.2, 11814, 11817.8, begin insert and end insert 11852.5, the department
may adopt regulations in accordance with the rulemaking
provisions of the Administrative Procedure Act (Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of begin delete the end delete
Title 2 of the Government Code) necessary for the proper execution
of the powers and duties granted to and imposed upon the
department by this part. However, these regulations may be adopted
only upon the following conditions:

(1) Prior to adoption of regulations, the department shall consult
with the County Behavioral Health Directors Association of
California and may consult with any other appropriate persons
relating to the proposed regulations.

(2) If an absolute majority of the designated county behavioral
health directors who represent counties that have submitted county
contracts, vote at a public meeting called by the department, for
which 45 days’ advance notice shall be given by the department,
to reject the proposed regulations, the department shall refer the
matter for a decision to a committee, consisting of a representative
of the county behavioral health directors, the director, the secretary,
and one designee of the secretary. The decision shall be made by
a majority vote of this committee at a public meeting convened
by the department. Upon a majority vote of the committee
recommending adoption of the proposed regulations, the
department may then adopt them. Upon a majority vote
recommending that the department not adopt the proposed
regulations, the department shall then consult again with the County
Behavioral Health Directors Association of California and resubmit
the proposed regulations to the county behavioral health directors
for a vote pursuant to this subdivision.

(3) In the voting process described in paragraph (2), no proxies
shall be allowed nor may anyone other than the designated county
behavioral health director, director, secretary, and secretary’s
designee vote at the meetings.

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 24100 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

24100.  

(a) For purposes of this section, the following
definitions apply:

(1) “ARRA” means Title III of Division B of the federal
American Recovery and Reinvestment Act of 2009 or any
amendment to that federal law extending federal premium
assistance to qualified beneficiaries, as defined in Section 1366.21
of this code or Section 10128.51 of the Insurance Code.

(2) “Employer” means an employer as defined in Section
1366.21 of this code or an employer as defined in Section 10128.51
of the Insurance Code.

(b) An employer shall provide the information described in
subparagraph (B) of paragraph (1) of subdivision begin delete (j) end delete begin insert (k) end insert of Section
1366.25 of this code or subparagraph (B) of paragraph (1) of
subdivision begin delete (j) end delete begin insert (k) end insert of Section 10128.55 of the Insurance Code, as
applicable, with respect to any employee whose employment is
terminated on or after March 2, 2010, and who was enrolled at any
time in a health care service plan or health insurance policy offered
by the employer on or after September 1, 2008. This information
shall be provided to the requesting health care service plan or
health insurer within 14 days of receipt of the notification described
in paragraph (1) of subdivision begin delete (j) end delete begin insert (k) end insert of Section 1366.25 of this
code or paragraph (1) of subdivision begin delete (j) end delete begin insert (k) end insert of Section 10128.55
of the Insurance Code. The employer shall continue to provide the
information to the health care service plan or health insurer within
14 days after the end of each month for any employee whose
employment is terminated in the prior month until the last date
specified in subparagraph (A) of paragraph (3) of subdivision (a)
of Section 3001 of ARRA.

begin delete SEC. 4. end delete
begin insert SEC. 11. end insert   

Section 103577 of the Health and Safety Code is
amended to read:

103577.  

(a) On or after July 1, 2015, each local registrar or
county recorder shall, without an issuance fee or any other
associated fee, issue a certified record of live birth to any person
who can verify his or her status as a homeless person or a homeless
child or youth. A homeless services provider that has knowledge
of a person’s housing status shall verify a person’s status for the
purposes of this subdivision. In accordance with all other
application requirements as set forth in Section 103526, a request
for a certified record of live birth made pursuant to this subdivision
shall be made by a homeless person or a homeless child or youth
on behalf of themselves, or by any person lawfully entitled to
request a certified record of live birth on behalf of a child, if the
child has been verified as a homeless person or a homeless child
or youth pursuant to this section. A person applying for a certified
record of live birth under this subdivision is entitled to one birth
record, per application, for each eligible person verified as a
homeless person or a homeless child or youth. For purposes of this
subdivision, an affidavit developed pursuant to subdivision (b)
shall constitute sufficient verification that a person is a homeless
person or a homeless child or youth. A person applying for a
certified record of live birth under this subdivision shall not be
charged a fee for verification of his or her eligibility.

(b) The State Department of Public Health shall develop an
affidavit attesting to an applicant’s status as a homeless person or
homeless child or youth. For purposes of this section, the affidavit
shall not be deemed complete unless it is signed by both the person
making a request for a certified record of live birth pursuant to
subdivision (a) and a homeless services provider that has
knowledge of the applicant’s housing status.

(c) Notwithstanding the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code), the department may implement and administer this section
through an all-county letter or similar instructions from the director
or State Registrar without taking regulatory action.

(d) For the purposes of this section, the following definitions
apply:

(1) A “homeless child or youth” has the same meaning as the
definition of “homeless children and youths” as set forth in the
federal McKinney-Vento Homeless Assistance Act (42 U.S.C.
Sec. 11301 et seq.).

(2) A “homeless person” has the same meaning as the definition
of that term set forth in the federal McKinney-Vento Homeless
Assistance Act (42 U.S.C. Sec. 11301 et seq.).

(3) A “homeless services provider” includes:

(A) A governmental or nonprofit agency receiving federal, state,
or county or municipal funding to provide services to a “homeless
person” or “homeless child or youth,” or that is otherwise
sanctioned to provide those services by a local homeless continuum
of care organization.

(B) An attorney licensed to practice law in this state.

(C) A local educational agency liaison for homeless children
and youth, pursuant to Section 11432(g)(1)(J)(ii) of Title 42 of the
United States Code, or a school social worker.

(D) A human services provider or public social services provider
funded by the State of California to provide homeless children or
youth services, health services, mental or behavioral health
services, substance use disorder services, or public assistance or
employment services.

(E) A law enforcement officer designated as a liaison to the
homeless population by a local police department or sheriff’s
department within the state.

begin delete SEC. 5. end delete
begin insert SEC. 12. end insert   

Section 104151 of the Health and Safety Code is
amended to read:

104151.  

(a) Notwithstanding Section 10231.5 of the
Government Code, each year, by no later than January 10 and
concurrently with the release of the May Revision, the State
Department of Health Care Services shall provide the fiscal
committees of the Legislature with an estimate package for the
Every Woman Counts Program. This estimate package shall
include all significant assumptions underlying the estimate for the
Every Woman Counts Program’s current-year and budget-year
proposals, and shall contain concise information identifying
applicable estimate components, such as caseload; a breakout of
costs, including, but not limited to, clinical service activities,
including office visits and consults, screening mammograms,
diagnostic mammograms, diagnostic breast procedures, case
management, and other clinical services; policy changes; contractor
information; General Fund, special fund, and federal fund
information; and other assumptions necessary to support the
estimate.

(b) Notwithstanding Section 10231.5 of the Government Code,
each year, the State Department of Health Care Services shall
provide the fiscal and appropriate policy committees of the
Legislature with quarterly updates on caseload, estimated
expenditures, and related program monitoring data for the Every
Woman Counts Program. These updates shall be provided no later
than November 30, February 28, May 31, and August 31 of each
year. The purpose of the updates is to provide the Legislature with
the most recent information on the program, and shall include a
breakdown of expenditures for each quarter for clinical service
activities, including, but not limited to, office visits and consults,
screening mammograms, diagnostic mammograms, diagnostic
breast procedures, case management, and other clinical services.
This subdivision supersedes the requirements of Section 169 of
Chapter 717 of the Statutes of 2010 begin delete (S.B. 853). end delete begin insert (SB 853). end insert

begin delete SEC. 6. end delete
begin insert SEC. 13. end insert   

Section 128456 of the Health and Safety Code is
amended to read:

128456.  

In developing the program established pursuant to this
article, the Health Professions Education Foundation shall solicit
the advice of representatives of the Board of Behavioral Sciences,
the Board of Psychology, the State Department of Health Care
Services, the County Behavioral Health Directors Association of
California, the California Mental Health Planning Council,
professional mental health care organizations, the California
Healthcare Association, the Chancellor of the California
Community Colleges, and the Chancellor of the California State
University. The foundation shall solicit the advice of
representatives who reflect the demographic, cultural, and linguistic
diversity of the state.

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 130302 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

130302.  

For the purposes of this division, the following
definitions apply:

(a) “Director” means the Director of the Office of begin delete HIPAA
Implementation. end delete begin insert Health Information Integrity. end insert

(b) “HIPAA” means the federal Health Insurance Portability
and Accountability Act.

(c) “Office” means the Office of begin delete HIPAA Implementation end delete begin insert Health
Information Integrity end insert established by the office of the Governor in
the Health and Human Services Agency.

(d) “State entities” means all state departments, boards,
commissions, programs, and other organizational units of the
executive branch of state government.

begin insert

begin insert SEC. 15. end insert   

end insert

begin insert Section 130304 of the end insert begin insert Health and Safety Code end insert begin insert is
amended to read: end insert

130304.  

The office shall be under the supervision and control
of a director, known as the Director of the Office of begin delete HIPAA
Implementation, end delete begin insert Health Information Integrity, end insert who shall be
appointed by, and serve at the pleasure of, the Secretary of the
Health and Human Services Agency.

begin delete SEC. 7. end delete
begin insert SEC. 16. end insert   

Section 130316 of the Health and Safety Code is
repealed.

begin delete SEC. 8. end delete
begin insert SEC. 17. end insert   

Section 130317 of the Health and Safety Code is
repealed.

begin insert

begin insert SEC. 18. end insert   

end insert

begin insert Section 10128.52 of the end insert begin insert Insurance Code end insert begin insert is amended
to read: end insert

10128.52.  

The continuation coverage requirements of this
article do not apply to the following individuals:

(a) Individuals who are entitled to Medicare benefits or become
entitled to Medicare benefits pursuant to Title XVIII of the United
States Social Security Act, as amended or superseded. Entitlement
to Medicare Part A only constitutes entitlement to benefits under
Medicare.

(b) Individuals who have other hospital, medical, or surgical
coverage, or who are covered or become covered under another
group benefit plan, including a self-insured employee welfare
benefit plan, that provides coverage for individuals and that does
not impose any exclusion or limitation with respect to any
preexisting condition of the individual, other than a preexisting
condition limitation or exclusion that does not apply to or is
satisfied by the qualified beneficiary pursuant to Sections 10198.6
and 10198.7. A group conversion option under any group benefit
plan shall not be considered as an arrangement under which an
individual is or becomes covered.

(c) Individuals who are covered, become covered, or are eligible
for federal COBRA coverage pursuant to Section 4980B of the
United States Internal Revenue Code or Chapter 18 of the
Employee Retirement Income Security begin delete Act, 29 end delete begin insert Act (29 end insert U.S.C.
begin delete Section end delete begin insert Sec. end insert 1161 et begin delete seq. end delete begin insert seq.). end insert

(d) Individuals who are covered, become covered, or are eligible
for coverage pursuant to Chapter 6A of the Public Health Service
begin delete Act, 42 end delete begin insert Act (42 end insert U.S.C. begin delete Section end delete begin insert Sec. end insert 300bb-1 et begin delete seq. end delete begin insert seq.). end insert

(e) Qualified beneficiaries who fail to meet the requirements of
subdivision (b) of Section 10128.54 or subdivision begin delete (h) end delete begin insert (i) end insert of Section
10128.55 regarding notification of a qualifying event or election
of continuation coverage within the specified time limits.

(f) Except as provided in Section 3001 of ARRA, qualified
beneficiaries who fail to submit the correct premium amount
required by subdivision (b) of Section 10128.55 and Section
10128.57, in accordance with the terms and conditions of the policy
or contract, or fail to satisfy other terms and conditions of the
policy or contract.

begin insert

begin insert SEC. 19. end insert   

end insert

begin insert Section 10128.54 of the end insert begin insert Insurance Code end insert begin insert is amended
to read: end insert

10128.54.  

(a) Every insurer’s evidence of coverage for group
benefit plans subject to this article, that is issued, amended, or
renewed on or after January 1, 1999, shall disclose to covered
employees of group benefit plans subject to this article the ability
to continue coverage pursuant to this article, as required by this
section.

(b) This disclosure shall state that all insureds who are eligible
to be qualified beneficiaries, as defined in subdivision (c) of
Section 10128.51, shall be required, as a condition of receiving
benefits pursuant to this article, to notify, in writing, the insurer,
or the employer if the employer contracts to perform the
administrative services as provided for in Section 10128.55, of all
qualifying events as specified in paragraphs (1), (3), (4), and (5)
of subdivision (d) of Section 10128.51 within 60 days of the date
of the qualifying event. This disclosure shall inform insureds that
failure to make the notification to the insurer, or to the employer
when under contract to provide the administrative services, within
the required 60 days will disqualify the qualified beneficiary from
receiving continuation coverage pursuant to this article. The
disclosure shall further state that a qualified beneficiary who wishes
to continue coverage under the group benefit plan pursuant to this
article begin delete must end delete begin insert shall end insert request the continuation in writing and deliver
the written request, by first-class mail, or other reliable means of
delivery, including personal delivery, express mail, or private
courier company, to the disability insurer, or to the employer if
the plan has contracted with the employer for administrative
services pursuant to subdivision (d) of Section 10128.55, within
the 60-day period following the later of begin insert either end insert (1) the date that the
insured’s coverage under the group benefit plan terminated or will
terminate by reason of a qualifying event, or (2) the date the insured
was sent notice pursuant to subdivision (e) of Section 10128.55
of the ability to continue coverage under the group benefit plan.
The disclosure required by this section shall also state that a
qualified beneficiary electing continuation shall pay to the disability
insurer, in accordance with the terms and conditions of the policy
or contract, which shall be set forth in the notice to the qualified
beneficiary pursuant to subdivision (d) of Section 10128.55, the
amount of the required premium payment, as set forth in Section
10128.56. The disclosure shall further require that the qualified
beneficiary’s first premium payment required to establish premium
payment be delivered by first-class mail, certified mail, or other
reliable means of delivery, including personal delivery, express
mail, or private courier company, to the disability insurer, or to
the employer if the employer has contracted with the insurer to
perform the administrative services pursuant to subdivision (d) of
Section 10128.55, within 45 days of the date the qualified
beneficiary provided written notice to the insurer or the employer,
if the employer has contracted to perform the administrative
services, of the election to continue coverage in order for coverage
to be continued under this article. This disclosure shall also state
that the first premium payment begin delete must end delete begin insert shall end insert equal an amount
sufficient to pay all required premiums and all premiums due, and
that failure to submit the correct premium amount within the 45-day
period will disqualify the qualified beneficiary from receiving
continuation coverage pursuant to this article.

(c) The disclosure required by this section shall also describe
separately how qualified beneficiaries whose continuation coverage
terminates under a prior group benefit plan pursuant to Section
10128.57 may continue their coverage for the balance of the period
that the qualified beneficiary would have remained covered under
the prior group benefit plan, including the requirements for election
and payment. The disclosure shall clearly state that continuation
coverage shall terminate if the qualified beneficiary fails to comply
with the requirements pertaining to enrollment in, and payment of
premiums to, the new group benefit plan within 30 days of
receiving notice of the termination of the prior group benefit plan.

(d) Prior to August 1, 1998, every insurer shall provide to all
covered employees of employers subject to this article written
notice containing the disclosures required by this section, or shall
provide to all covered employees of employers subject to this
article a new or amended evidence of coverage that includes the
disclosures required by this section. Any insurer that, in the
ordinary course of business, maintains only the addresses of
employer group purchasers of benefits, and does not maintain
addresses of covered employees, may comply with the notice
requirements of this section through the provision of the notices
to its employer group purchases of benefits.

(e) Every disclosure form issued, amended, or renewed on and
after January 1, 1999, for a group benefit plan subject to this article
shall provide a notice that, under state law, an insured may be
entitled to continuation of group coverage and that additional
information regarding eligibility for this coverage may be found
in the evidence of coverage.

(f)  begin delete Every disclosure form end delete begin insert A disclosure end insert issued, amended, or
renewed on begin delete and after July 1, 2006, end delete begin insert or after July 1, 2016, end insert for a
group benefit plan subject to this article shall include the following
notice:

begin insert

“In addition to your coverage continuation options, you may be
eligible for the following:

end insert begin insert

1. Coverage through the state health insurance marketplace,
also known as Covered California. By enrolling through Covered
California, you may qualify for lower monthly premiums and lower
out-of-pocket costs. Your family members may also qualify for
coverage through Covered California.

end insert begin insert

2. Coverage through Medi-Cal. Depending on your income, you
may qualify for low- or no-cost coverage through Medi-Cal. Your
family members may also qualify for Medi-Cal.

end insert begin insert

3. Coverage through an insured spouse. If your spouse has
coverage that extends to family members, you may be able to be
added on that benefit plan.

end insert begin insert

Be aware that there is a deadline to enroll in Covered California
although you can apply for Medi-Cal at anytime. To find out more
about how to apply for Covered California and Medi-Cal, visit
the Covered California Internet Web site at

end insert begin insert

http://www.coveredca.com.”

end insert begin insert

(g) (1) If Section 5000A of the Internal Revenue Code, as added
by Section 1501 of PPACA, is repealed or amended to no longer
apply to the individual market, as defined in Section 2791 of the
federal Public Health Service Act (42 U.S.C. Sec. 300gg-91), this
section shall become inoperative and is repealed 12 months after
the date of that repeal or amendment.

end insert begin insert

(2) For purposes of this subdivision, “PPACA” means the
federal Patient Protection and Affordable Care Act (Public Law
111-148), as amended by the federal Health Care and Education
Reconciliation Act of 2010 (Public Law 111-152), and any rules,
regulations, or guidance issued pursuant to that law.

end insert begin delete

“Please examine your options carefully before declining this
coverage. You should be aware that companies selling individual
health insurance typically require a review of your medical history
that could result in a higher premium or you could be denied
coverage entirely.”

end delete

begin insert

begin insert SEC. 20. end insert   

end insert

begin insert Section 10128.54 is added to the end insert begin insert Insurance Code end insert begin insert , to
read: end insert

begin insert

begin insert 10128.54. end insert   

(a) Every insurer’s evidence of coverage for group
benefit plans subject to this article, that is issued, amended, or
renewed on or after January 1, 1999, shall disclose to covered
employees of group benefit plans subject to this article the ability
to continue coverage pursuant to this article, as required by this
section.

(b) This disclosure shall state that all insureds who are eligible
to be qualified beneficiaries, as defined in subdivision (c) of Section
10128.51, shall be required, as a condition of receiving benefits
pursuant to this article, to notify, in writing, the insurer, or the
employer if the employer contracts to perform the administrative
services as provided for in Section 10128.55, of all qualifying
events as specified in paragraphs (1), (3), (4), and (5) of
subdivision (d) of Section 10128.51 within 60 days of the date of
the qualifying event. This disclosure shall inform insureds that
failure to make the notification to the insurer, or to the employer
when under contract to provide the administrative services, within
the required 60 days will disqualify the qualified beneficiary from
receiving continuation coverage pursuant to this article. The
disclosure shall further state that a qualified beneficiary who
wishes to continue coverage under the group benefit plan pursuant
to this article must request the continuation in writing and deliver
the written request, by first-class mail, or other reliable means of
delivery, including personal delivery, express mail, or private
courier company, to the disability insurer, or to the employer if
the plan has contracted with the employer for administrative
services pursuant to subdivision (d) of Section 10128.55, within
the 60-day period following the later of either (1) the date that the
insured’s coverage under the group benefit plan terminated or
will terminate by reason of a qualifying event, or (2) the date the
insured was sent notice pursuant to subdivision (e) of Section
10128.55 of the ability to continue coverage under the group
benefit plan. The disclosure required by this section shall also
state that a qualified beneficiary electing continuation shall pay
to the disability insurer, in accordance with the terms and
conditions of the policy or contract, which shall be set forth in the
notice to the qualified beneficiary pursuant to subdivision (d) of
Section 10128.55, the amount of the required premium payment,
as set forth in Section 10128.56. The disclosure shall further
require that the qualified beneficiary’s first premium payment
required to establish premium payment be delivered by first-class
mail, certified mail, or other reliable means of delivery, including
personal delivery, express mail, or private courier company, to
the disability insurer, or to the employer if the employer has
contracted with the insurer to perform the administrative services
pursuant to subdivision (d) of Section 10128.55, within 45 days
of the date the qualified beneficiary provided written notice to the
insurer or the employer, if the employer has contracted to perform
the administrative services, of the election to continue coverage
in order for coverage to be continued under this article. This
disclosure shall also state that the first premium payment must
equal an amount sufficient to pay all required premiums and all
premiums due, and that failure to submit the correct premium
amount within the 45-day period will disqualify the qualified
beneficiary from receiving continuation coverage pursuant to this
article.

(c) The disclosure required by this section shall also describe
separately how qualified beneficiaries whose continuation coverage
terminates under a prior group benefit plan pursuant to Section
10128.57 may continue their coverage for the balance of the period
that the qualified beneficiary would have remained covered under
the prior group benefit plan, including the requirements for election
and payment. The disclosure shall clearly state that continuation
coverage shall terminate if the qualified beneficiary fails to comply
with the requirements pertaining to enrollment in, and payment
of premiums to, the new group benefit plan within 30 days of
receiving notice of the termination of the prior group benefit plan.

(d) Prior to August 1, 1998, every insurer shall provide to all
covered employees of employers subject to this article written
notice containing the disclosures required by this section, or shall
provide to all covered employees of employers subject to this article
a new or amended evidence of coverage that includes the
disclosures required by this section. Any insurer that, in the
ordinary course of business, maintains only the addresses of
employer group purchasers of benefits, and does not maintain
addresses of covered employees, may comply with the notice
requirements of this section through the provision of the notices
to its employer group purchases of benefits.

(e) Every disclosure form issued, amended, or renewed on or
after January 1, 1999, for a group benefit plan subject to this
article shall provide a notice that, under state law, an insured may
be entitled to continuation of group coverage and that additional
information regarding eligibility for this coverage may be found
in the evidence of coverage.

(f) Every disclosure issued, amended, or renewed on or after
the operative date of this section for a group benefit plan subject
to this article shall include the following notice:

“Please examine your options carefully before declining this
coverage. You should be aware that companies selling individual
health insurance typically require a review of your medical history
that could result in a higher premium or you could be denied
coverage entirely.”

(g) A disclosure issued, amended, or renewed on or after July
1, 2016, for a group benefit plan subject to this article shall include
the following notice:

“In addition to your coverage continuation options, you may be
eligible for the following:

1. Coverage through the state health insurance marketplace,
also known as Covered California. By enrolling through Covered
California, you may qualify for lower monthly premiums and lower
out-of-pocket costs. Your family members may also qualify for
coverage through Covered California.

2. Coverage through Medi-Cal. Depending on your income, you
may qualify for low- or no-cost coverage through Medi-Cal. Your
family members may also qualify for Medi-Cal.

3. Coverage through an insured spouse. If your spouse has
coverage that extends to family members, you may be able to be
added on that benefit plan.

Be aware that there is a deadline to enroll in Covered California
although you can apply for Medi-Cal anytime. To find out more
about how to apply for Covered California and Medi-Cal, visit
the Covered California Internet Web site at

http://www.coveredca.com.”

(h) (1) If Section 5000A of the Internal Revenue Code, as added
by Section 1501 of PPACA, is repealed or amended to no longer
apply to the individual market, as defined in Section 2791 of the
federal Public Health Service Act (42 U.S.C. Sec. 300gg-91), this
section shall become operative 12 months after the date of that
repeal or amendment.

(2) For purposes of this subdivision, “PPACA” means the
federal Patient Protection and Affordable Care Act (Public Law
111-148), as amended by the federal Health Care and Education
Reconciliation Act of 2010 (Public Law 111-152), and any rules,
regulations, or guidance issued pursuant to that law.

end insert

begin insert

begin insert SEC. 21. end insert   

end insert

begin insert Section 10128.55 of the end insert begin insert Insurance Code end insert begin insert is amended
to read: end insert

10128.55.  

(a) Every group benefit plan contract between a
disability insurer and an employer subject to this article that is
issued, amended, or renewed on or after July 1, 1998, shall require
the employer to notify the insurer in writing of any employee who
has had a qualifying event, as defined in paragraph (2) of
subdivision (d) of Section 10128.51, within 30 days of the
qualifying event. The group contract shall also require the employer
to notify the insurer, in writing, within 30 days of the date when
the employer becomes subject to Section 4980B of the United
States Internal Revenue Code or Chapter 18 of the Employee
Retirement Income Security begin delete Act, 29 end delete begin insert Act (29 end insert U.S.C. Sec. 1161 et
begin delete seq. end delete begin insert seq.). end insert

(b) Every group benefit plan contract between a disability insurer
and an employer subject to this article that is issued, amended, or
renewed after July 1, 1998, shall require the employer to notify
qualified beneficiaries currently receiving continuation coverage,
whose continuation coverage will terminate under one group
benefit plan prior to the end of the period the qualified beneficiary
would have remained covered, as specified in Section 10128.57,
of the qualified beneficiary’s ability to continue coverage under a
new group benefit plan for the balance of the period the qualified
beneficiary would have remained covered under the prior group
benefit plan. This notice shall be provided either 30 days prior to
the termination or when all enrolled employees are notified,
whichever is later.

Every disability insurer shall provide to the employer replacing
a group benefit plan policy issued by the insurer, or to the
employer’s agent or broker representative, within 15 days of any
written request, information in possession of the insurer reasonably
required to administer the notification requirements of this
subdivision and subdivision (c).

(c) Notwithstanding subdivision (a), the group benefit plan
contract between the insurer and the employer shall require the
employer to notify the successor plan in writing of the qualified
beneficiaries currently receiving continuation coverage so that the
successor plan, or contracting employer or administrator, may
provide those qualified beneficiaries with the necessary premium
information, enrollment forms, and instructions consistent with
the disclosure required by subdivision (c) of Section 10128.54 and
subdivision (e) of this section to allow the qualified beneficiary to
continue coverage. This information shall be sent to all qualified
beneficiaries who are enrolled in the group benefit plan and those
qualified beneficiaries who have been notified, pursuant to Section
10128.54 of their ability to continue their coverage and may still
elect coverage within the specified 60-day period. This information
shall be sent to the qualified beneficiary’s last known address, as
provided to the employer by the health care service plan or,
disability insurer currently providing continuation coverage to the
qualified beneficiary. The successor insurer shall not be obligated
to provide this information to qualified beneficiaries if the
employer or prior insurer or health care service plan fails to comply
with this section.

(d) A disability insurer may contract with an employer, or an
administrator, to perform the administrative obligations of the plan
as required by this article, including required notifications and
collecting and forwarding premiums to the insurer. Except for the
requirements of subdivisions (a), (b), and (c), this subdivision shall
not be construed to permit an insurer to require an employer to
perform the administrative obligations of the insurer as required
by this article as a condition of the issuance or renewal of coverage.

(e) Every insurer, or employer or administrator that contracts
to perform the notice and administrative services pursuant to this
section, shall, within 14 days of receiving a notice of a qualifying
event, provide to the qualified beneficiary the necessary premium
information, enrollment forms, and disclosures consistent with the
notice requirements contained in subdivisions (b) and (c) of Section
10128.54 to allow the qualified beneficiary to formally elect
continuation coverage. This information shall be sent to the
qualified beneficiary’s last known address.

(f) Every insurer, or employer or administrator that contracts
to perform the notice and administrative services pursuant to this
section, shall, during the 180-day period ending on the date that
continuation coverage is terminated pursuant to paragraphs (1),
(3), and (5) of subdivision (a) of Section 10128.57, notify a
qualified beneficiary who has elected continuation coverage
pursuant to this article of the date that his or her coverage will
terminate, and shall notify the qualified beneficiary of any
conversion coverage available to that qualified beneficiary. This
requirement shall not apply when the continuation coverage is
terminated because the group contract between the insurer and the
employer is being terminated.

(g) (1) An insurer shall provide to a qualified beneficiary who
has a qualifying event during the period specified in subparagraph
(A) of paragraph (3) of subdivision (a) of Section 3001 of ARRA,
a written notice containing information on the availability of
premium assistance under ARRA. This notice shall be sent to the
qualified beneficiary’s last known address. The notice shall include
clear and easily understandable language to inform the qualified
beneficiary that changes in federal law provide a new opportunity
to elect continuation coverage with a 65-percent premium subsidy
and shall include all of the following:

(A) The amount of the premium the person will pay. For
qualified beneficiaries who had a qualifying event between
September 1, 2008, and May 12, 2009, inclusive, if an insurer is
unable to provide the correct premium amount in the notice, the
notice may contain the last known premium amount and an
opportunity for the qualified beneficiary to request, through a
toll-free telephone number, the correct premium that would apply
to the beneficiary.

(B) Enrollment forms and any other information required to be
included pursuant to subdivision (e) to allow the qualified
beneficiary to elect continuation coverage. This information shall
not be included in notices sent to qualified beneficiaries currently
enrolled in continuation coverage.

(C) A description of the option to enroll in different coverage
as provided in subparagraph (B) of paragraph (1) of subdivision
(a) of Section 3001 of ARRA. This description shall advise the
qualified beneficiary to contact the covered employee’s former
employer for prior approval to choose this option.

(D) The eligibility requirements for premium assistance in the
amount of 65 percent of the premium under Section 3001 of
ARRA.

(E) The duration of premium assistance available under ARRA.

(F) A statement that a qualified beneficiary eligible for premium
assistance under ARRA may elect continuation coverage no later
than 60 days of the date of the notice.

(G) A statement that a qualified beneficiary eligible for premium
assistance under ARRA who rejected or discontinued continuation
coverage prior to receiving the notice required by this subdivision
has the right to withdraw that rejection and elect continuation
coverage with the premium assistance.

(H) A statement that reads as follows:

“IF YOU ARE HAVING ANY DIFFICULTIES READING OR
UNDERSTANDING THIS NOTICE, PLEASE CONTACT [name
of insurer] at [insert appropriate telephone number].”

(2) With respect to qualified beneficiaries who had a qualifying
event between September 1, 2008, and May 12, 2009, inclusive,
the notice described in this subdivision shall be provided by the
later of May 26, 2009, or seven business days after the date the
insurer receives notice of the qualifying event.

(3) With respect to qualified beneficiaries who had or have a
qualifying event between May 13, 2009, and the later date specified
in subparagraph (A) of paragraph (3) of subdivision (a) of Section
3001 of ARRA, inclusive, the notice described in this subdivision
shall be provided within the period of time specified in subdivision
(e).

(4) Nothing in this section shall be construed to require an
insurer to provide the insurer’s evidence of coverage as a part of
the notice required by this subdivision, and nothing in this section
shall be construed to require an insurer to amend its existing
evidence of coverage to comply with the changes made to this
section by the enactment of Assembly Bill 23 of the 2009-10
Regular Session or by the act amending this section during the
second year of the 2009-10 Regular Session.

(5) The requirement under this subdivision to provide a written
notice to a qualified beneficiary and the requirement under
paragraph (1) of subdivision begin delete (h) end delete begin insert (i) end insert to provide a new opportunity
to a qualified beneficiary to elect continuation coverage shall be
deemed satisfied if an insurer previously provided a written notice
and additional election opportunity under Section 3001 of ARRA
to that qualified beneficiary prior to the effective date of the act
adding this paragraph.

begin insert

(h) A group contract between a group benefit plan and an
employer subject to this article that is issued, amended, or renewed
on or after July 1, 2016, shall require the employer to give the
following notice to a qualified beneficiary in connection with a
notice regarding election of continuation coverage:

end insert begin insert

“In addition to your coverage continuation options, you may be
eligible for the following:

end insert begin insert

1. Coverage through the state health insurance marketplace,
also known as Covered California. By enrolling through Covered
California, you may qualify for lower monthly premiums and lower
out-of-pocket costs. Your family members may also qualify for
coverage through Covered California.

end insert begin insert

2. Coverage through Medi-Cal. Depending on your income, you
may qualify for low- or no-cost coverage through Medi-Cal. Your
family members may also qualify for Medi-Cal.

end insert begin insert

3. Coverage through an insured spouse. If your spouse has
coverage that extends to family members, you may be able to be
added on that benefit plan.

end insert begin insert

Be aware that there is a deadline to enroll in Covered California
although you can apply for Medi-Cal anytime. To find out more
about how to apply for Covered California and Medi-Cal, visit
the Covered California Internet Web site at

end insert begin insert

http://www.coveredca.com.”

end insert begin delete

(h)

end delete

begin insert (i) end insert  (1) Notwithstanding any other begin delete provision of end delete law, a qualified
beneficiary eligible for premium assistance under ARRA may elect
continuation coverage no later than 60 days after the date of the
notice required by subdivision (g).

(2) For a qualified beneficiary who elects to continue coverage
pursuant to this subdivision, the period beginning on the date of
the qualifying event and ending on the effective date of the
continuation coverage shall be disregarded for purposes of
calculating a break in coverage in determining whether a
preexisting condition provision applies under subdivision (e) of
Section 10198.7 or subdivision (c) of Section 10708.

(3) For a qualified beneficiary who had a qualifying event
between September 1, 2008, and February 16, 2009, inclusive, and
who elects continuation coverage pursuant to paragraph (1), the
continuation coverage shall commence on the first day of the month
following the election.

(4) For a qualified beneficiary who had a qualifying event
between February 17, 2009, and May 12, 2009, inclusive, and who
elects continuation coverage pursuant to paragraph (1), the effective
date of the continuation coverage shall be either of the following,
at the option of the beneficiary, provided that the beneficiary pays
the applicable premiums:

(A) The date of the qualifying event.

(B) The first day of the month following the election.

(5) Notwithstanding any other begin delete provision of end delete law, a qualified
beneficiary who is eligible for the special election period described
in paragraph (17) of subdivision (a) of Section 3001 of ARRA
may elect continuation coverage no later than 60 days after the
date of the notice required under subdivision begin delete (j). end delete begin insert (k). end insert For a qualified
beneficiary who elects coverage pursuant to this paragraph, the
continuation coverage shall be effective as of the first day of the
first period of coverage after the date of termination of
employment, except, if federal law permits, coverage shall take
effect on the first day of the month following the election.
However, for purposes of calculating the duration of continuation
coverage pursuant to Section 10128.57, the period of that coverage
shall be determined as though the qualifying event was a reduction
of hours of the employee.

(6) Notwithstanding any other begin delete provision of end delete law, a qualified
beneficiary who is eligible for any other special election period
under ARRA may elect continuation coverage no later than 60
days after the date of the special election notice required under
ARRA.

begin delete

(i)

end delete

begin insert (j) end insert  An insurer shall provide a qualified beneficiary eligible for
premium assistance under ARRA written notice of the extension
of that premium assistance as required under Section 3001 of
ARRA.

begin delete

(j)

end delete

begin insert (k) end insert  A health insurer, or an administrator or employer if
administrative obligations have been assumed by those entities
pursuant to subdivision (d), shall give the qualified beneficiaries
described in subparagraph (C) of paragraph (17) of subdivision
(a) of Section 3001 of ARRA the written notice required by that
paragraph by implementing the following procedures:

(1) The insurer shall, within 14 days of the effective date of the
act adding this subdivision, send a notice to employers currently
contracting with the insurer for a group benefit plan subject to this
article. The notice shall do all of the following:

(A) Advise the employer that employees whose employment is
terminated on or after March 2, 2010, who were previously enrolled
in any group health care service plan or health insurance policy
offered by the employer may be entitled to special health coverage
rights, including a subsidy paid by the federal government for a
portion of the premium.

(B) Ask the employer to provide the insurer with the name,
address, and date of termination of employment for any employee
whose employment is terminated on or after March 2, 2010, and
who was at any time covered by any health care service plan or
health insurance policy offered to their employees on or after
September 1, 2008.

(C) Provide employers with a format and instructions for
submitting the information to the insurer, or their administrator or
employer who has assumed administrative obligations pursuant
to subdivision (d), by telephone, fax, electronic mail, or mail.

(2) Within 14 days of receipt of the information specified in
paragraph (1) from the employer, the insurer shall send the written
notice specified in paragraph (17) of subdivision (a) of Section
3001 of ARRA to those individuals.

(3) If an individual contacts his or her health insurer and
indicates that he or she experienced a qualifying event that entitles
him or her to the special election period described in paragraph
(17) of subdivision (a) of Section 3001 of ARRA or any other
special election provision of ARRA, the insurer shall provide the
individual with the notice required under paragraph (17) of
subdivision (a) of Section 3001 of ARRA or any other applicable
provision of ARRA, regardless of whether the insurer receives or
received information from the individual’s previous employer
regarding that individual pursuant to Section 24100 of the Health
and Safety Code. The insurer shall review the individual’s
application for coverage under this special election notice to
determine if the individual qualifies for the special election period
and the premium assistance under ARRA. The insurer shall comply
with paragraph (5) if the individual does not qualify for either the
special election period or premium assistance under ARRA.

(4) The requirement under this subdivision to provide the written
notice described in paragraph (17) of subdivision (a) of Section
3001 of ARRA to a qualified beneficiary and the requirement
under paragraph (5) of subdivision begin delete (h) end delete begin insert (i) end insert to provide a new
opportunity to a qualified beneficiary to elect continuation coverage
shall be deemed satisfied if a health insurer previously provided
the written notice and additional election opportunity described in
paragraph (17) of subdivision (a) of Section 3001 of ARRA to that
qualified beneficiary prior to the effective date of the act adding
this paragraph.

(5) If an individual does not qualify for either a special election
period or the subsidy under ARRA, the insurer shall provide a
written notice to that individual that shall include information on
the right to appeal as set forth in Section 3001 of ARRA.

(6) A health insurer shall provide information on its publicly
accessible Internet Web site regarding the premium assistance
made available under ARRA and any special election period
provided under that law. An insurer may fulfill this requirement
by linking or otherwise directing consumers to the information
regarding COBRA continuation coverage premium assistance
located on the Internet Web site of the United States Department
of Labor. The information required by this paragraph shall be
located in a section of the insurer’s Internet Web site that is readily
accessible to consumers, such as the Web site’s Frequently Asked
Questions section.

begin delete

(k)

end delete

begin insert (l) end insert  Notwithstanding any other begin delete provision of end delete law, a qualified
beneficiary eligible for premium assistance under ARRA may elect
to enroll in different coverage subject to the criteria provided under
subparagraph (B) of paragraph (1) of subdivision (a) of Section
3001 of ARRA.

begin delete

(l)

end delete

begin insert (m) end insert  A qualified beneficiary enrolled in continuation coverage
as of February 17, 2009, who is eligible for premium assistance
under ARRA may request application of the premium assistance
as of March 1, 2009, or later, consistent with ARRA.

begin delete

(m)

end delete

begin insert (n) end insert  An insurer that receives an election notice from a qualified
beneficiary eligible for premium assistance under ARRA, pursuant
to subdivision begin delete (h), end delete begin insert (i), end insert shall be considered a person entitled to
reimbursement, as defined in Section 6432(b)(3) of the Internal
Revenue Code, as amended by paragraph (12) of subdivision (a)
of Section 3001 of ARRA.

begin delete

(n)

end delete

begin insert (o) end insert  (1) For purposes of compliance with ARRA, in the absence
of guidance from, or if specifically required for state-only
continuation coverage by, the United States Department of Labor,
the Internal Revenue Service, or the Centers for Medicare and
Medicaid Services, an insurer may request verification of the
involuntary termination of a covered employee’s employment from
the covered employee’s former employer or the qualified
beneficiary seeking premium assistance under ARRA.

(2) An insurer that requests verification pursuant to paragraph
(1) directly from a covered employee’s former employer shall do
so by providing a written notice to the employer. This written
notice shall be sent by mail or facsimile to the covered employee’s
former employer within seven business days from the date the
insurer receives the qualified beneficiary’s election notice pursuant
to subdivision begin delete (h). end delete begin insert (i). end insert Within 10 calendar days of receipt of written
notice required by this paragraph, the former employer shall furnish
to the insurer written verification as to whether the covered
employee’s employment was involuntarily terminated.

(3) A qualified beneficiary requesting premium assistance under
ARRA may furnish to the insurer a written document or other
information from the covered employee’s former employer
indicating that the covered employee’s employment was
involuntarily terminated. This document or information shall be
deemed sufficient by the insurer to establish that the covered
employee’s employment was involuntarily terminated for purposes
of ARRA, unless the insurer makes a reasonable and timely
determination that the documents or information provided by the
qualified beneficiary are legally insufficient to establish involuntary
termination of employment.

(4) If an insurer requests verification pursuant to this subdivision
and cannot verify involuntary termination of employment within
14 business days from the date the employer receives the
verification request or from the date the insurer receives
documentation or other information from the qualified beneficiary
pursuant to paragraph (3), the insurer shall either provide
continuation coverage with the federal premium assistance to the
qualified beneficiary or send the qualified beneficiary a denial
letter which shall include notice of his or her right to appeal that
determination pursuant to ARRA.

(5) No person shall intentionally delay verification of
involuntary termination of employment under this subdivision.

begin insert

(p) (1) If Section 5000A of the Internal Revenue Code, as added
by Section 1501 of PPACA, is repealed or amended to no longer
apply to the individual market, as defined in Section 2791 of the
federal Public Health Service Act (42 U.S.C. Sec. 300gg-91), this
section shall become inoperative and is repealed 12 months after
the date of that repeal or amendment.

end insert begin insert

(2) For purposes of this subdivision, “PPACA” means the
federal Patient Protection and Affordable Care Act (Public Law
111-148), as amended by the federal Health Care and Education
Reconciliation Act of 2010 (Public Law 111-152), and any rules,
regulations, or guidance issued pursuant to that law.

end insert

begin insert

begin insert SEC. 22. end insert   

end insert

begin insert Section 10128.55 is added to the end insert begin insert Insurance Code end insert begin insert , to
read: end insert

begin insert

begin insert 10128.55. end insert   

(a) Every group benefit plan contract between a
disability insurer and an employer subject to this article that is
issued, amended, or renewed on or after July 1, 1998, shall require
the employer to notify the insurer in writing of any employee who
has had a qualifying event, as defined in paragraph (2) of
subdivision (d) of Section 10128.51, within 30 days of the
qualifying event. The group contract shall also require the
employer to notify the insurer, in writing, within 30 days of the
date when the employer becomes subject to Section 4980B of the
United States Internal Revenue Code or Chapter 18 of the
Employee Retirement Income Security Act (29 U.S.C. Sec. 1161
et seq.).

(b) Every group benefit plan contract between a disability
insurer and an employer subject to this article that is issued,
amended, or renewed after July 1, 1998, shall require the employer
to notify qualified beneficiaries currently receiving continuation
coverage, whose continuation coverage will terminate under one
group benefit plan prior to the end of the period the qualified
beneficiary would have remained covered, as specified in Section
10128.57, of the qualified beneficiary’s ability to continue coverage
under a new group benefit plan for the balance of the period the
qualified beneficiary would have remained covered under the prior
group benefit plan. This notice shall be provided either 30 days
prior to the termination or when all enrolled employees are
notified, whichever is later.

Every disability insurer shall provide to the employer replacing
a group benefit plan policy issued by the insurer, or to the
employer’s agent or broker representative, within 15 days of any
written request, information in possession of the insurer reasonably
required to administer the notification requirements of this
subdivision and subdivision (c).

(c) Notwithstanding subdivision (a), the group benefit plan
contract between the insurer and the employer shall require the
employer to notify the successor plan in writing of the qualified
beneficiaries currently receiving continuation coverage so that
the successor plan, or contracting employer or administrator, may
provide those qualified beneficiaries with the necessary premium
information, enrollment forms, and instructions consistent with
the disclosure required by subdivision (c) of Section 10128.54 and
subdivision (e) of this section to allow the qualified beneficiary to
continue coverage. This information shall be sent to all qualified
beneficiaries who are enrolled in the group benefit plan and those
qualified beneficiaries who have been notified, pursuant to Section
10128.54 of their ability to continue their coverage and may still
elect coverage within the specified 60-day period. This information
shall be sent to the qualified beneficiary’s last known address, as
provided to the employer by the health care service plan or,
disability insurer currently providing continuation coverage to
the qualified beneficiary. The successor insurer shall not be
obligated to provide this information to qualified beneficiaries if
the employer or prior insurer or health care service plan fails to
comply with this section.

(d) A disability insurer may contract with an employer, or an
administrator, to perform the administrative obligations of the
plan as required by this article, including required notifications
and collecting and forwarding premiums to the insurer. Except
for the requirements of subdivisions (a), (b), and (c), this
subdivision shall not be construed to permit an insurer to require
an employer to perform the administrative obligations of the
insurer as required by this article as a condition of the issuance
or renewal of coverage.

(e) Every insurer, or employer or administrator that contracts
to perform the notice and administrative services pursuant to this
section, shall, within 14 days of receiving a notice of a qualifying
event, provide to the qualified beneficiary the necessary premium
information, enrollment forms, and disclosures consistent with the
notice requirements contained in subdivisions (b) and (c) of Section
10128.54 to allow the qualified beneficiary to formally elect
continuation coverage. This information shall be sent to the
qualified beneficiary’s last known address.

(f) Every insurer, or employer or administrator that contracts
to perform the notice and administrative services pursuant to this
section, shall, during the 180-day period ending on the date that
continuation coverage is terminated pursuant to paragraphs (1),
(3), and (5) of subdivision (a) of Section 10128.57, notify a
qualified beneficiary who has elected continuation coverage
pursuant to this article of the date that his or her coverage will
terminate, and shall notify the qualified beneficiary of any
conversion coverage available to that qualified beneficiary. This
requirement shall not apply when the continuation coverage is
terminated because the group contract between the insurer and
the employer is being terminated.

(g) (1) An insurer shall provide to a qualified beneficiary who
has a qualifying event during the period specified in subparagraph
(A) of paragraph (3) of subdivision (a) of Section 3001 of ARRA,
a written notice containing information on the availability of
premium assistance under ARRA. This notice shall be sent to the
qualified beneficiary’s last known address. The notice shall include
clear and easily understandable language to inform the qualified
beneficiary that changes in federal law provide a new opportunity
to elect continuation coverage with a 65-percent premium subsidy
and shall include all of the following:

(A) The amount of the premium the person will pay. For
qualified beneficiaries who had a qualifying event between
September 1, 2008, and May 12, 2009, inclusive, if an insurer is
unable to provide the correct premium amount in the notice, the
notice may contain the last known premium amount and an
opportunity for the qualified beneficiary to request, through a
toll-free telephone number, the correct premium that would apply
to the beneficiary.

(B) Enrollment forms and any other information required to be
included pursuant to subdivision (e) to allow the qualified
beneficiary to elect continuation coverage. This information shall
not be included in notices sent to qualified beneficiaries currently
enrolled in continuation coverage.

(C) A description of the option to enroll in different coverage
as provided in subparagraph (B) of paragraph (1) of subdivision
(a) of Section 3001 of ARRA. This description shall advise the
qualified beneficiary to contact the covered employee’s former
employer for prior approval to choose this option.

(D) The eligibility requirements for premium assistance in the
amount of 65 percent of the premium under Section 3001 of ARRA.

(E) The duration of premium assistance available under ARRA.

(F) A statement that a qualified beneficiary eligible for premium
assistance under ARRA may elect continuation coverage no later
than 60 days of the date of the notice.

(G) A statement that a qualified beneficiary eligible for premium
assistance under ARRA who rejected or discontinued continuation
coverage prior to receiving the notice required by this subdivision
has the right to withdraw that rejection and elect continuation
coverage with the premium assistance.

(H) A statement that reads as follows:

“IF YOU ARE HAVING ANY DIFFICULTIES READING OR
UNDERSTANDING THIS NOTICE, PLEASE CONTACT [name
of insurer] at [insert appropriate telephone number].”

(2) With respect to qualified beneficiaries who had a qualifying
event between September 1, 2008, and May 12, 2009, inclusive,
the notice described in this subdivision shall be provided by the
later of May 26, 2009, or seven business days after the date the
insurer receives notice of the qualifying event.

(3) With respect to qualified beneficiaries who had or have a
qualifying event between May 13, 2009, and the later date specified
in subparagraph (A) of paragraph (3) of subdivision (a) of Section
3001 of ARRA, inclusive, the notice described in this subdivision
shall be provided within the period of time specified in subdivision
(e).

(4) Nothing in this section shall be construed to require an
insurer to provide the insurer’s evidence of coverage as a part of
the notice required by this subdivision, and nothing in this section
shall be construed to require an insurer to amend its existing
evidence of coverage to comply with the changes made to this
section by the enactment of Assembly Bill 23 of the 2009-10
Regular Session or by the act amending this section during the
second year of the 2009-10 Regular Session.

(5) The requirement under this subdivision to provide a written
notice to a qualified beneficiary and the requirement under
paragraph (1) of subdivision (h) to provide a new opportunity to
a qualified beneficiary to elect continuation coverage shall be
deemed satisfied if an insurer previously provided a written notice
and additional election opportunity under Section 3001 of ARRA
to that qualified beneficiary prior to the effective date of the act
adding this paragraph.

(h) A group contract between a group benefit plan and an
employer subject to this article that is issued, amended, or renewed
on or after the operative date of this section shall require the
employer to give the following notice to a qualified beneficiary in
connection with a notice regarding election of continuation
coverage:

“Please examine your options carefully before declining this
coverage. You should be aware that companies selling individual
health insurance typically require a review of your medical history
that could result in a higher premium or you could be denied
coverage entirely.”

(i) A group contract between a group benefit plan and an
employer subject to this article that is issued, amended, or renewed
on or after July 1, 2016, shall require the employer to give the
following notice to a qualified beneficiary in connection with a
notice regarding election of continuation coverage:

“In addition to your coverage continuation options, you may be
eligible for the following:

1. Coverage through the state health insurance marketplace,
also known as Covered California. By enrolling through Covered
California, you may qualify for lower monthly premiums and lower
out-of-pocket costs. Your family members may also qualify for
coverage through Covered California.

2. Coverage through Medi-Cal. Depending on your income, you
may qualify for low- or no-cost coverage through Medi-Cal. Your
family members may also qualify for Medi-Cal.

3. Coverage through an insured spouse. If your spouse has
coverage that extends to family members, you may be able to be
added on that benefit plan.

Be aware that there is a deadline to enroll in Covered California
although you can apply for Medi-Cal anytime. To find out more
about how to apply for Covered California and Medi-Cal, visit
the Covered California Internet Web site at
http://www.coveredca.com.”

(j) (1) Notwithstanding any other law, a qualified beneficiary
eligible for premium assistance under ARRA may elect continuation
coverage no later than 60 days after the date of the notice required
by subdivision (g).

(2) For a qualified beneficiary who elects to continue coverage
pursuant to this subdivision, the period beginning on the date of
the qualifying event and ending on the effective date of the
continuation coverage shall be disregarded for purposes of
calculating a break in coverage in determining whether a
preexisting condition provision applies under subdivision (e) of
Section 10198.7 or subdivision (c) of Section 10708.

(3) For a qualified beneficiary who had a qualifying event
between September 1, 2008, and February 16, 2009, inclusive,
and who elects continuation coverage pursuant to paragraph (1),
the continuation coverage shall commence on the first day of the
month following the election.

(4) For a qualified beneficiary who had a qualifying event
between February 17, 2009, and May 12, 2009, inclusive, and who
elects continuation coverage pursuant to paragraph (1), the
effective date of the continuation coverage shall be either of the
following, at the option of the beneficiary, provided that the
beneficiary pays the applicable premiums:

(A) The date of the qualifying event.

(B) The first day of the month following the election.

(5) Notwithstanding any other law, a qualified beneficiary who
is eligible for the special election period described in paragraph
(17) of subdivision (a) of Section 3001 of ARRA may elect
continuation coverage no later than 60 days after the date of the
notice required under subdivision (l). For a qualified beneficiary
who elects coverage pursuant to this paragraph, the continuation
coverage shall be effective as of the first day of the first period of
coverage after the date of termination of employment, except, if
federal law permits, coverage shall take effect on the first day of
the month following the election. However, for purposes of
calculating the duration of continuation coverage pursuant to
Section 10128.57, the period of that coverage shall be determined
as though the qualifying event was a reduction of hours of the
employee.

(6) Notwithstanding any other law, a qualified beneficiary who
is eligible for any other special election period under ARRA may
elect continuation coverage no later than 60 days after the date
of the special election notice required under ARRA.

(k) An insurer shall provide a qualified beneficiary eligible for
premium assistance under ARRA written notice of the extension
of that premium assistance as required under Section 3001 of
ARRA.

(l) A health insurer, or an administrator or employer if
administrative obligations have been assumed by those entities
pursuant to subdivision (d), shall give the qualified beneficiaries
described in subparagraph (C) of paragraph (17) of subdivision
(a) of Section 3001 of ARRA the written notice required by that
paragraph by implementing the following procedures:

(1) The insurer shall, within 14 days of the effective date of the
act adding this subdivision, send a notice to employers currently
contracting with the insurer for a group benefit plan subject to
this article. The notice shall do all of the following:

(A) Advise the employer that employees whose employment is
terminated on or after March 2, 2010, who were previously
enrolled in any group health care service plan or health insurance
policy offered by the employer may be entitled to special health
coverage rights, including a subsidy paid by the federal government
for a portion of the premium.

(B) Ask the employer to provide the insurer with the name,
address, and date of termination of employment for any employee
whose employment is terminated on or after March 2, 2010, and
who was at any time covered by any health care service plan or
health insurance policy offered to their employees on or after
September 1, 2008.

(C) Provide employers with a format and instructions for
submitting the information to the insurer, or their administrator
or employer who has assumed administrative obligations pursuant
to subdivision (d), by telephone, fax, electronic mail, or mail.

(2) Within 14 days of receipt of the information specified in
paragraph (1) from the employer, the insurer shall send the written
notice specified in paragraph (17) of subdivision (a) of Section
3001 of ARRA to those individuals.

(3) If an individual contacts his or her health insurer and
indicates that he or she experienced a qualifying event that entitles
him or her to the special election period described in paragraph
(17) of subdivision (a) of Section 3001 of ARRA or any other
special election provision of ARRA, the insurer shall provide the
individual with the notice required under paragraph (17) of
subdivision (a) of Section 3001 of ARRA or any other applicable
provision of ARRA, regardless of whether the insurer receives or
received information from the individual’s previous employer
regarding that individual pursuant to Section 24100 of the Health
and Safety Code. The insurer shall review the individual’s
application for coverage under this special election notice to
determine if the individual qualifies for the special election period
and the premium assistance under ARRA. The insurer shall comply
with paragraph (5) if the individual does not qualify for either the
special election period or premium assistance under ARRA.

(4) The requirement under this subdivision to provide the written
notice described in paragraph (17) of subdivision (a) of Section
3001 of ARRA to a qualified beneficiary and the requirement under
paragraph (5) of subdivision (j) to provide a new opportunity to
a qualified beneficiary to elect continuation coverage shall be
deemed satisfied if a health insurer previously provided the written
notice and additional election opportunity described in paragraph
(17) of subdivision (a) of Section 3001 of ARRA to that qualified
beneficiary prior to the effective date of the act adding this
paragraph.

(5) If an individual does not qualify for either a special election
period or the subsidy under ARRA, the insurer shall provide a
written notice to that individual that shall include information on
the right to appeal as set forth in Section 3001 of ARRA.

(6) A health insurer shall provide information on its publicly
accessible Internet Web site regarding the premium assistance
made available under ARRA and any special election period
provided under that law. An insurer may fulfill this requirement
by linking or otherwise directing consumers to the information
regarding COBRA continuation coverage premium assistance
located on the Internet Web site of the United States Department
of Labor. The information required by this paragraph shall be
located in a section of the insurer’s Internet Web site that is readily
accessible to consumers, such as the Web site’s Frequently Asked
Questions section.

(m) Notwithstanding any other law, a qualified beneficiary
eligible for premium assistance under ARRA may elect to enroll
in different coverage subject to the criteria provided under
subparagraph (B) of paragraph (1) of subdivision (a) of Section
3001 of ARRA.

(n) A qualified beneficiary enrolled in continuation coverage
as of February 17, 2009, who is eligible for premium assistance
under ARRA may request application of the premium assistance
as of March 1, 2009, or later, consistent with ARRA.

(o) An insurer that receives an election notice from a qualified
beneficiary eligible for premium assistance under ARRA, pursuant
to subdivision (j), shall be considered a person entitled to
reimbursement, as defined in Section 6432(b)(3) of the Internal
Revenue Code, as amended by paragraph (12) of subdivision (a)
of Section 3001 of ARRA.

(p) (1) For purposes of compliance with ARRA, in the absence
of guidance from, or if specifically required for state-only
continuation coverage by, the United States Department of Labor,
the Internal Revenue Service, or the Centers for Medicare and
Medicaid Services, an insurer may request verification of the
involuntary termination of a covered employee’s employment from
the covered employee’s former employer or the qualified
beneficiary seeking premium assistance under ARRA.

(2) An insurer that requests verification pursuant to paragraph
(1) directly from a covered employee’s former employer shall do
so by providing a written notice to the employer. This written
notice shall be sent by mail or facsimile to the covered employee’s
former employer within seven business days from the date the
insurer receives the qualified beneficiary’s election notice pursuant
to subdivision (h). Within 10 calendar days of receipt of written
notice required by this paragraph, the former employer shall
furnish to the insurer written verification as to whether the covered
employee’s employment was involuntarily terminated.

(3) A qualified beneficiary requesting premium assistance under
ARRA may furnish to the insurer a written document or other
information from the covered employee’s former employer
indicating that the covered employee’s employment was
involuntarily terminated. This document or information shall be
deemed sufficient by the insurer to establish that the covered
employee’s employment was involuntarily terminated for purposes
of ARRA, unless the insurer makes a reasonable and timely
determination that the documents or information provided by the
qualified beneficiary are legally insufficient to establish involuntary
termination of employment.

(4) If an insurer requests verification pursuant to this
subdivision and cannot verify involuntary termination of
employment within 14 business days from the date the employer
receives the verification request or from the date the insurer
receives documentation or other information from the qualified
beneficiary pursuant to paragraph (3), the insurer shall either
provide continuation coverage with the federal premium assistance
to the qualified beneficiary or send the qualified beneficiary a
denial letter which shall include notice of his or her right to appeal
that determination pursuant to ARRA.

(5) No person shall intentionally delay verification of
involuntary termination of employment under this subdivision.

(q) (1) If Section 5000A of the Internal Revenue Code, as added
by Section 1501 of PPACA, is repealed or amended to no longer
apply to the individual market, as defined in Section 2791 of the
federal Public Health Service Act (42 U.S.C. Sec. 300gg-91), this
section shall become operative 12 months after the date of that
repeal or amendment.

(2) For purposes of this subdivision, “PPACA” means the
federal Patient Protection and Affordable Care Act (Public Law
111-148), as amended by the federal Health Care and Education
Reconciliation Act of 2010 (Public Law 111-152), and any rules,
regulations, or guidance issued pursuant to that law.

end insert

begin insert

begin insert SEC. 23. end insert   

end insert

begin insert Section 729.12 of the end insert begin insert Welfare and Institutions Code end insert
begin insert is amended to read: end insert

729.12.  

(a) It is the intent of the Legislature to authorize an
Assessment, Orientation, and Volunteer Mentor Pilot Program in
San Diego County. The pilot project will operate under the
authority of the county begin delete Alcohol and Drug Program Administrator end delete
begin insert behavioral health director end insert in conjunction with the San Diego
Juvenile Court and the County of San Diego Probation Department.

(b) Whenever a judge of the San Diego County Juvenile Court
or a referee of the San Diego Juvenile Court finds a minor to be a
person described in Section 601 or 602 for any reason, the minor
may be assessed and screened for drug and alcohol use and abuse;
and if the assessment and screening determines the need for drug
and alcohol education and intervention, the minor may be required
to participate in, and successfully complete, an alcohol and drug
orientation, and to participate in, and successfully complete, an
alcohol or drug program with a local community-based service
provider, as designated by the court.

(c) The Assessment, Orientation, and Volunteer Mentor Pilot
Program may operate for a minimum of three years and may screen
and assess for drug and alcohol problems, minors who are declared
wards of San Diego Juvenile Court.

(d) Drug and alcohol assessments may be conducted utilizing
a standardized instrument that shall be approved by the county
begin delete Alcohol and Drug Program Administrator end delete begin insert behavioral health
director end insert in conjunction with San Diego Juvenile Court and the San
Diego County Probation Department.

(e) Those minors who are determined to have drug and alcohol
problems, may be required to participate in, and successfully
complete, a drug and alcohol orientation. The orientation may
provide drug and alcohol education and intervention, referral to
community resources for followup education and intervention and
arrange for volunteers to serve as mentors to assist each minor in
addressing their drug and alcohol problem. Parents or guardians
of minors will have the opportunity to participate in the orientation
program in order to help juveniles address drug and alcohol use
or abuse problems.

(f) As a condition of probation, each minor may be required to
submit to drug testing. Drug testing may be conducted on a random
basis by a qualified drug and alcohol service provider in
coordination with the county probation department. All contested
drug tests may be confirmed by a National Institute for Drug Abuse
certified drug laboratory and the findings may be reported to the
probation officer for appropriate action. The drug testing protocol
may be approved by the county begin delete Alcohol and Drug Program
Administrator end delete begin insert behavioral health director end insert in conjunction with San
Diego Juvenile Court and the County of San Diego Probation
Department.

(g) An evaluation of the pilot program shall be conducted and
results of the program shall be submitted to state alcohol and drug
programs and to the Legislature at the conclusion of the pilot
program. The evaluation shall include, but not be limited to, all of
the following:

(1) The number and percentage of juveniles screened.

(2) The number and percentage of juveniles given followup
education and intervention.

(3) The number of mentors recruited and trained.

(4) The number and percentage of juveniles assigned to a
mentor.

(5) The length of time in an education and intervention program.

(6) The program completion rates.

(7) The number of subsequent violations.

(8) The number of re-arrests.

(9) The urine test results.

(10) The subsequent drug or alcohol use.

(11) The participant’s perceptions of program utility.

(12) The provider’s perceptions of program utility.

(13) The mentor’s perceptions of program utility.

begin delete SEC. 9. end delete
begin insert SEC. 24. end insert   

Section 4033 of the Welfare and Institutions Code is
amended to read:

4033.  

(a) The State Department of Health Care Services shall,
to the extent resources are available, comply with the Substance
Abuse and Mental Health Services Administration federal planning
requirements. The department shall update and issue a state plan,
which may also be any federally required state service plan, so
that citizens may be informed regarding the implementation of,
and long-range goals for, programs to serve mentally ill persons
in the state. The department shall gather information from counties
necessary to comply with this section.

(b) (1) If the State Department of Health Care Services makes
a decision not to comply with any Substance Abuse and Mental
Health Services Administration federal planning requirement to
which this section applies, the State Department of Health Care
Services shall submit the decision, for consultation, to the County
Behavioral Health Directors Association of California, the
California Mental Health Planning Council, and affected mental
health entities.

(2) The State Department of Health Care Services shall not
implement any decision not to comply with the Substance Abuse
and Mental Health Services Administration federal planning
requirements sooner than 30 days after notification of that decision,
in writing, by the Department of Finance, to the chairperson of the
committee in each house of the Legislature that considers
appropriations, and the Chairperson of the Joint Legislative Budget
Committee.

begin delete SEC. 10. end delete
begin insert SEC. 25. end insert   

Section 4040 of the Welfare and Institutions Code is
amended to read:

4040.  

The State Department of Health Care Services or State
Department of State Hospitals may conduct, or contract for,
research or evaluation studies that have application to mental health
policy and management issues. In selecting areas for study the
department shall be guided by the information needs of state and
local policymakers and managers, and suggestions from the County
Behavioral Health Directors Association of California.

begin delete SEC. 11. end delete
begin insert SEC. 26. end insert   

Section 4095 of the Welfare and Institutions Code is
amended to read:

4095.  

(a) It is the intent of the Legislature that essential and
culturally relevant mental health assessment, case management,
and treatment services be available to wards of the court and
dependent children of the court placed out of home or who are at
risk of requiring out-of-home care. This can be best achieved at
the community level through the active collaboration of county
social service, probation, education, mental health agencies, and
foster care providers.

(b) Therefore, using the Children’s Mental Health Services Act
(Part 4 (commencing with Section 5850) of Division 5) as a
guideline, the State Department of Health Care Services, in
consultation with the County Behavioral Health Directors
Association of California, the State Department of Social Services,
the County Welfare Directors begin delete Association, end delete begin insert Association of
California, end insert the Chief Probation Officers of California, and foster
care providers, shall do all of the following:

(1) By July 1, 1994, develop an individualized mental health
treatment needs assessment protocol for wards of the court and
dependent children of the court.

(2) Define supplemental services to be made available to the
target population, including, but not limited to, services defined
in Section 540 and following of Title 9 of the California Code of
Regulations as of January 1, 1994, family therapy, prevocational
services, and crisis support activities.

(3) Establish statewide standardized rates for the various types
of services defined by the department in accordance with paragraph
(2), and provided pursuant to this section. The rates shall be
designed to reduce the impact of competition for scarce treatment
resources on the cost and availability of care. The rates shall be
implemented only when the state provides funding for the services
described in this section.

(4) By January 1, 1994, to the extent state funds are available
to implement this section, establish, by regulation, all of the
following:

(A) Definitions of priority ranking of subsets of the court wards
and dependents target population.

(B) A procedure to certify the mental health programs.

(c) (1) Only those individuals within the target population as
defined in regulation and determined to be eligible for services as
a result of a mental health treatment needs assessment may receive
services pursuant to this section.

(2) Allocation of funds appropriated for the purposes of this
section shall be based on the number of wards and dependents and
may be adjusted in subsequent fiscal years to reflect costs.

(3) The counties shall be held harmless for failure to provide
any assessment, case management, and treatment services to those
children identified in need of services for whom there is no funding.

(d) (1) The State Department of Health Care Services shall
make information available to the Legislature, on request, on the
service populations provided mental health treatment services
pursuant to this section, the types and costs of services provided,
and the number of children identified in need of treatment services
who did not receive the services.

(2) The information required by paragraph (1) may include
information on need, cost, and service impact experience from the
following:

(A) Family preservation pilot programs.

(B) Pilot programs implemented under the former Children’s
Mental Health Services Act, as contained in Chapter 6.8
(commencing with Section 5565.10) of Part 1 of Division 5.

(C) Programs implemented under Chapter 26 (commencing
with Section 7570) of Division 7 of Title 1 of the Government
Code and Section 11401.

(D) County experience in the implementation of Section 4096.

begin delete SEC. 12. end delete
begin insert SEC. 27. end insert   

Section 4096.5 of the Welfare and Institutions Code
is amended to read:

4096.5.  

(a) The State Department of Health Care Services
shall make a determination, within 45 days of receiving a request
from a group home to be classified at RCL 13 or RCL 14 pursuant
to Section 11462.01, to certify or deny certification that the group
home program includes provisions for mental health treatment
services that meet the needs of seriously emotionally disturbed
children. The department shall issue each certification for a period
of one year and shall specify the effective date the program met
the certification requirements. A program may be recertified if the
program continues to meet the criteria for certification.

(b) The State Department of Health Care Services shall, in
consultation with County Behavioral Health Directors Association
of California and representatives of provider organizations, develop
the criteria for the certification required by subdivision (a) by July
1, 1992.

(c) (1) The State Department of Health Care Services may,
upon the request of a county, delegate to that county the
certification task.

(2) Any county to which the certification task is delegated
pursuant to paragraph (1) shall use the criteria and format
developed by the department.

(d) The State Department of Health Care Services or delegated
county shall notify the State Department of Social Services
Community Care Licensing Division immediately upon the
termination of any certification issued in accordance with
subdivision (a).

(e) Upon receipt of notification from the State Department of
Social Services Community Care Licensing Division of any adverse
licensing action taken after the finding of noncompliance during
an inspection conducted pursuant to Section 1538.7 of the Health
and Safety Code, the State Department of Health Care Services or
the delegated county shall review the certification issued pursuant
to this section.

begin insert

begin insert SEC. 28. end insert   

end insert

begin insert Section 4117 of the end insert begin insert Welfare and Institutions Code end insert begin insert ,
as amended by Section 47 of Chapter 26 of the Statutes of 2015,
is amended to read: end insert

4117.  

(a) Whenever a trial is had of any person charged with
escape or attempt to escape from a state hospital, whenever a
hearing is had on the return of a writ of habeas corpus prosecuted
by or on behalf of any person confined in a state hospital except
in a proceeding to which Section 5110 applies, whenever a hearing
is had on a petition under Section 1026.2, subdivision (b) of Section
1026.5, Section 2966, or Section 2972 of the Penal Code, Section
7361 of this code, or former Section 6316.2 of this code for the
release of a person confined in a state hospital, whenever a hearing
is had for an order seeking involuntary treatment with psychotropic
medication, or any other medication for which an order is required,
of a person confined in a state hospital pursuant to Section 2962
of the Penal Code, and whenever a person confined in a state
hospital is tried for a crime committed therein, the appropriate
financial officer or other designated official of the county in which
the trial or hearing is had shall make out a statement of all mental
health treatment costs and shall make out a separate statement of
all nontreatment costs incurred by the county for investigation and
other preparation for the trial or hearing, and the actual trial or
hearing, all costs of maintaining custody of the patient and
transporting him or her to and from the hospital, and costs of
appeal. The statements shall be properly certified by a judge of
the superior court of that county. The statement of mental health
treatment costs shall be sent to the State Department of State
Hospitals and the statement of all nontreatment costs, except as
provided in subdivision (c), shall be sent to the Controller for
approval. After approval, the department shall cause the amount
of mental health treatment costs incurred on or after July 1, 1987,
to be paid to the county begin delete mental end delete begin insert behavioral end insert health director or his
or her designee begin delete where end delete begin insert when end insert the trial or hearing was held out of
the money appropriated for this purpose by the Legislature. In
addition, the Controller shall cause the amount of all nontreatment
costs incurred on and after July 1, 1987, to be paid out of the money
appropriated by the Legislature, to the county treasurer of the
county where the trial or hearing was had.

(b) Commencing January 1, 2012, the nontreatment costs
associated with Section 2966 of the Penal Code and approved by
the Controller, as required by subdivision (a), shall be paid by the
Department of Corrections and Rehabilitation pursuant to Section
4750 of the Penal Code.

(c) The nontreatment costs associated with any hearing for an
order seeking involuntary treatment with psychotropic medication,
or any other medication for which an order is required, of a person
confined in a state hospital pursuant to Section 1026, 1026.5, or
2972 of the Penal Code, as provided in subdivision (a), shall be
paid by the county of commitment. As used in this subdivision,
“county of commitment” means the county seeking the continued
treatment of a mentally disordered offender pursuant to Section
2972 of the Penal Code or the county committing a patient who
has been found not guilty by reason of insanity pursuant to Section
1026 or 1026.5 of the Penal Code. The appropriate financial officer
or other designated official of the county in which the proceeding
is held shall make out a statement of all of the costs incurred by
the county for the investigation, preparation, and conduct of the
proceedings, and the costs of appeal, if any. The statement shall
be certified by a judge of the superior court of the county. The
statement shall then be sent to the county of commitment, which
shall reimburse the county providing the services.

(d) (1) Whenever a hearing is held pursuant to Section 1604,
1608, 1609, or 2966 of the Penal Code, all transportation costs to
and from a state hospital or a facility designated by the community
program director during the hearing shall be paid by the Controller
as provided in this subdivision. The appropriate financial officer
or other designated official of the county in which a hearing is
held shall make out a statement of all transportation costs incurred
by the county. The statement shall be properly certified by a judge
of the superior court of that county and sent to the Controller for
approval. The Controller shall cause the amount of transportation
costs incurred on and after July 1, 1987, to be paid to the county
treasurer of the county where the hearing was had out of the money
appropriated by the Legislature.

(2) As used in this subdivision, “community program director”
means the person designated pursuant to Section 1605 of the Penal
Code.

begin insert

begin insert SEC. 29. end insert   

end insert

begin insert Section 5121 of the end insert begin insert Welfare and Institutions Code end insert begin insert is
amended to read: end insert

5121.  

The county begin delete mental end delete begin insert behavioral end insert health director may
develop procedures for the county’s designation and training of
professionals who will be designated to perform functions under
Section 5150. These procedures may include, but are not limited
to, the following:

(a) The license types, practice disciplines, and clinical
experience of professionals eligible to be designated by the county.

(b) The initial and ongoing training and testing requirements
for professionals eligible to be designated by the county.

(c) The application and approval processes for professionals
seeking to be designated by the county, including the timeframe
for initial designation and procedures for renewal of the
designation.

(d) The county’s process for monitoring and reviewing
professionals designated by the county to ensure appropriate
compliance with state law, regulations, and county procedures.

begin insert

begin insert SEC. 30. end insert   

end insert

begin insert Section 5150 of the end insert begin insert Welfare and Institutions Code end insert begin insert is
amended to read: end insert

5150.  

(a) When a person, as a result of a mental health
disorder, is a danger to others, or to himself or herself, or gravely
disabled, a peace officer, professional person in charge of a facility
designated by the county for evaluation and treatment, member of
the attending staff, as defined by regulation, of a facility designated
by the county for evaluation and treatment, designated members
of a mobile crisis team, or professional person designated by the
county may, upon probable cause, take, or cause to be taken, the
person into custody for a period of up to 72 hours for assessment,
evaluation, and crisis intervention, or placement for evaluation
and treatment in a facility designated by the county for evaluation
and treatment and approved by the State Department of Health
Care Services. At a minimum, assessment, as defined in Section
5150.4, and evaluation, as defined in subdivision (a) of Section
5008, shall be conducted and provided on an ongoing basis. Crisis
intervention, as defined in subdivision (e) of Section 5008, may
be provided concurrently with assessment, evaluation, or any other
service.

(b) The professional person in charge of a facility designated
by the county for evaluation and treatment, member of the
attending staff, or professional person designated by the county
shall assess the person to determine whether he or she can be
properly served without being detained. If in the judgment of the
professional person in charge of the facility designated by the
county for evaluation and treatment, member of the attending staff,
or professional person designated by the county, the person can
be properly served without being detained, he or she shall be
provided evaluation, crisis intervention, or other inpatient or
outpatient services on a voluntary basis. Nothing in this subdivision
shall be interpreted to prevent a peace officer from delivering
individuals to a designated facility for assessment under this
section. Furthermore, the assessment requirement of this
subdivision shall not be interpreted to require peace officers to
perform any additional duties other than those specified in Sections
5150.1 and 5150.2.

(c) Whenever a person is evaluated by a professional person in
charge of a facility designated by the county for evaluation or
treatment, member of the attending staff, or professional person
designated by the county and is found to be in need of mental
health services, but is not admitted to the facility, all available
alternative services provided pursuant to subdivision (b) shall be
offered as determined by the county begin delete mental end delete begin insert behavioral end insert health
director.

(d) If, in the judgment of the professional person in charge of
the facility designated by the county for evaluation and treatment,
member of the attending staff, or the professional person designated
by the county, the person cannot be properly served without being
detained, the admitting facility shall require an application in
writing stating the circumstances under which the person’s
condition was called to the attention of the peace officer,
professional person in charge of the facility designated by the
county for evaluation and treatment, member of the attending staff,
or professional person designated by the county, and stating that
the peace officer, professional person in charge of the facility
designated by the county for evaluation and treatment, member of
the attending staff, or professional person designated by the county
has probable cause to believe that the person is, as a result of a
mental health disorder, a danger to others, or to himself or herself,
or gravely disabled. If the probable cause is based on the statement
of a person other than the peace officer, professional person in
charge of the facility designated by the county for evaluation and
treatment, member of the attending staff, or professional person
designated by the county, the person shall be liable in a civil action
for intentionally giving a statement begin delete which end delete begin insert that end insert he or she knows to
be false.

(e) At the time a person is taken into custody for evaluation, or
within a reasonable time thereafter, unless a responsible relative
or the guardian or conservator of the person is in possession of the
person’s personal property, the person taking him or her into
custody shall take reasonable precautions to preserve and safeguard
the personal property in the possession of or on the premises
occupied by the person. The person taking him or her into custody
shall then furnish to the court a report generally describing the
person’s property so preserved and safeguarded and its disposition,
in substantially the form set forth in Section 5211, except that if
a responsible relative or the guardian or conservator of the person
is in possession of the person’s property, the report shall include
only the name of the relative or guardian or conservator and the
location of the property, whereupon responsibility of the person
taking him or her into custody for that property shall terminate.
As used in this section, “responsible relative” includes the spouse,
parent, adult child, domestic partner, grandparent, grandchild, or
adult brother or sister of the person.

(f) (1) Each person, at the time he or she is first taken into
custody under this section, shall be provided, by the person who
takes him or her into custody, the following information orally in
a language or modality accessible to the person. If the person
cannot understand an oral advisement, the information shall be
provided in writing. The information shall be in substantially the
following form:

 

My name is     . I am a     . (peace officer/mental health professional) with     . (name of agency) You are not under criminal arrest, but I am taking you for an examination by mental health professionals at     .     (name of facility) You will be told your rights by the mental health staff.

 

(2) If taken into custody at his or her own residence, the person
shall also be provided the following information:

You may bring a few personal items with you, which I will have
to approve. Please inform me if you need assistance turning off
any appliance or water. You may make a phone call and leave a
note to tell your friends or family where you have been taken.

(g) The designated facility shall keep, for each patient evaluated,
a record of the advisement given pursuant to subdivision (f) which
shall include all of the following:

(1) The name of the person detained for evaluation.

(2) The name and position of the peace officer or mental health
professional taking the person into custody.

(3) The date the advisement was completed.

(4) Whether the advisement was completed.

(5) The language or modality used to give the advisement.

(6) If the advisement was not completed, a statement of good
cause, as defined by regulations of the State Department of Health
Care Services.

(h) (1) Each person admitted to a facility designated by the
county for evaluation and treatment shall be given the following
information by admission staff of the facility. The information
shall be given orally and in writing and in a language or modality
accessible to the person. The written information shall be available
to the person in English and in the language that is the person’s
primary means of communication. Accommodations for other
disabilities that may affect communication shall also be provided.
The information shall be in substantially the following form:

 

My name is     .

My position here is     .

You are being placed into this psychiatric facility because it is our professional opinion that, as a result of a mental health disorder, you are likely to (check applicable):

◻ Harm yourself.   ◻ Harm someone else.   ◻ Be unable to take care of your own food, clothing, and housing needs. We believe this is true because

(list of the facts upon which the allegation of dangerous or gravely disabled due to mental health disorder is based, including pertinent facts arising from the admission interview).

You will be held for a period up to 72 hours. During the 72 hours you may also be transferred to another facility. You may request to be evaluated or treated at a facility of your choice. You may request to be evaluated or treated by a mental health professional of your choice. We cannot guarantee the facility or mental health professional you choose will be available, but we will honor your choice if we can.

During these 72 hours you will be evaluated by the facility staff, and you may be given treatment, including medications. It is possible for you to be released before the end of the 72 hours. But if the staff decides that you need continued treatment you can be held for a longer period of time. If you are held longer than 72 hours, you have the right to a lawyer and a qualified interpreter and a hearing before a judge. If you are unable to pay for the lawyer, then one will be provided to you free of charge.

If you have questions about your legal rights, you may contact the county Patients’ Rights Advocate at    . (phone number for the county Patients’ Rights Advocacy office) Your 72-hour period began    . (date/time)

 

(2) If the notice is given in a county where weekends and
holidays are excluded from the 72-hour period, the patient shall
be informed of this fact.

(i) For each patient admitted for evaluation and treatment, the
facility shall keep with the patient’s medical record a record of the
advisement given pursuant to subdivision (h), which shall include
all of the following:

(1) The name of the person performing the advisement.

(2) The date of the advisement.

(3) Whether the advisement was completed.

(4) The language or modality used to communicate the
advisement.

(5) If the advisement was not completed, a statement of good
cause.

begin insert

begin insert SEC. 31. end insert   

end insert

begin insert Section 5152.1 of the end insert begin insert Welfare and Institutions Code end insert
begin insert is amended to read: end insert

5152.1.  

The professional person in charge of the facility
providing 72-hour evaluation and treatment, or his or her designee,
shall notify the county begin delete mental end delete begin insert behavioral end insert health director or the
director’s designee and the peace officer who makes the written
application pursuant to Section 5150 or a person who is designated
by the law enforcement agency that employs the peace officer,
when the person has been released after 72-hour detention, when
the person is not detained, or when the person is released before
the full period of allowable 72-hour detention if all of the following
conditions apply:

(a) The peace officer requests such notification at the time he
or she makes the application and the peace officer certifies at that
time in writing that the person has been referred to the facility
under circumstances which, based upon an allegation of facts
regarding actions witnessed by the officer or another person, would
support the filing of a criminal complaint.

(b) The notice is limited to the person’s name, address, date of
admission for 72-hour evaluation and treatment, and date of release.

If a police officer, law enforcement agency, or designee of the
law enforcement agency, possesses any record of information
obtained pursuant to the notification requirements of this section,
the officer, agency, or designee shall destroy that record two years
after receipt of notification.

begin insert

begin insert SEC. 32. end insert   

end insert

begin insert Section 5152.2 of the end insert begin insert Welfare and Institutions Code end insert
begin insert is amended to read: end insert

5152.2.  

Each law enforcement agency within a county shall
arrange with the county begin delete mental end delete begin insert behavioral end insert health director a method
for giving prompt notification to peace officers pursuant to Section
5152.1.

begin insert

begin insert SEC. 33. end insert   

end insert

begin insert Section 5250.1 of the end insert begin insert Welfare and Institutions Code end insert
begin insert is amended to read: end insert

5250.1.  

The professional person in charge of a facility
providing intensive treatment, pursuant to Section 5250 or 5270.15,
or that person’s designee, shall notify the county begin delete mental end delete begin insert behavioral end insert
health director, or the director’s designee, and the peace officer
who made the original written application for 72-hour evaluation
pursuant to Section 5150 or a person who is designated by the law
enforcement agency that employs the peace officer, that the person
admitted pursuant to the application has been released
unconditionally if all of the following conditions apply:

(a) The peace officer has requested notification at the time he
or she makes the application for 72-hour evaluation.

(b) The peace officer has certified in writing at the time he or
she made the application that the person has been referred to the
facility under circumstances which, based upon an allegation of
facts regarding actions witnessed by the officer or another person,
would support the filing of a criminal complaint.

(c) The notice is limited to the person’s name, address, date of
admission for 72-hour evaluation, date of certification for intensive
treatment, and date of release.

If a police officer, law enforcement agency, or designee of the
law enforcement agency, possesses any record of information
obtained pursuant to the notification requirements of this section,
the officer, agency, or designee shall destroy that record two years
after receipt of notification.

begin insert

begin insert SEC. 34. end insert   

end insert

begin insert Section 5305 of the end insert begin insert Welfare and Institutions Code end insert begin insert is
amended to read: end insert

5305.  

(a) Any person committed pursuant to Section 5300
may be placed on outpatient status if all of the following conditions
are satisfied:

(1) In the evaluation of the superintendent or professional person
in charge of the licensed health facility, the person named in the
petition will no longer be a danger to the health and safety of others
while on outpatient status and will benefit from outpatient status.

(2) The county begin delete mental end delete begin insert behavioral end insert health director advises the
court that the person named in the petition will benefit from
outpatient status and identifies an appropriate program of
supervision and treatment.

(b) After actual notice to the public officer, pursuant to Section
5114, and to counsel of the person named in the petition, to the
court and to the county begin delete mental end delete begin insert behavioral end insert health director, the plan
for outpatient treatment shall become effective within five judicial
days unless a court hearing on that action is requested by any of
the aforementioned parties, in which case the release on outpatient
status shall not take effect until approved by the court after a
hearing. This hearing shall be held within five judicial days of the
actual notice required by this subdivision.

(c) The county begin delete mental end delete begin insert behavioral end insert health director shall be the
outpatient supervisor of persons placed on outpatient status under
begin delete provisions of end delete this section. The county begin delete mental end delete begin insert behavioral end insert health
director may delegate begin delete such end delete outpatient supervision responsibility
to a designee.

(d) The outpatient treatment supervisor shall, begin delete where end delete begin insert when end insert the
person is placed on outpatient status at least three months, submit
at 90-day intervals to the court, the public officer, pursuant to
Section 5114, and counsel of the person named in the petition and
to the supervisor or professional person in charge of the licensed
health facility, begin delete where end delete begin insert when end insert appropriate, a report setting forth the
status and progress of the person named in the petition.
Notwithstanding the length of the outpatient status, a final report
shall be submitted by the outpatient treatment supervisor at the
conclusion of the 180-day commitment setting forth the status and
progress of the person.

begin insert

begin insert SEC. 35. end insert   

end insert

begin insert Section 5306.5 of the end insert begin insert Welfare and Institutions Code end insert
begin insert is amended to read: end insert

5306.5.  

(a)  If at any time during the outpatient period, the
outpatient treatment supervisor is of the opinion that the person
receiving treatment requires extended inpatient treatment or refuses
to accept further outpatient treatment and supervision, the county
begin delete mental end delete begin insert behavioral end insert health director shall notify the superior court
in either the county begin delete which end delete begin insert that end insert approved outpatient status or in the
county where outpatient treatment is being provided of begin delete such end delete begin insert that end insert
opinion by means of a written request for revocation of outpatient
status. The county begin delete mental end delete begin insert behavioral end insert health director shall furnish
a copy of this request to the counsel of the person named in the
request for revocation and to the public officer, pursuant to Section
5114, in both counties if the request is made in the county of
treatment, rather than the county of commitment.

(b)  Within 15 judicial days, the court where the request was
filed shall hold a hearing and shall either approve or disapprove
the request for revocation of outpatient status. If the court approves
the request for revocation, the court shall order that the person be
confined in a state hospital or other treatment facility approved by
the county begin delete mental end delete begin insert behavioral end insert health director. The court shall
transmit a copy of its order to the county begin delete mental end delete begin insert behavioral end insert health
director or a designee and to the Director of State Hospitals. begin delete Where end delete
begin insert When end insert the county of treatment and the county of commitment differ
and revocation occurs in the county of treatment, the court shall
enter the name of the committing county and its case number on
the order of revocation and shall send a copy of the order to the
committing court and the public officer, pursuant to Section 5114,
and counsel of the person named in the request for revocation in
the county of commitment.

begin insert

begin insert SEC. 36. end insert   

end insert

begin insert Section 5307 of the end insert begin insert Welfare and Institutions Code end insert begin insert is
amended to read: end insert

5307.  

If at any time during the outpatient period the public
officer, pursuant to Section 5114, is of the opinion that the person
is a danger to the health and safety of others while on outpatient
status, the public officer, pursuant to Section 5114, may petition
the court for a hearing to determine whether the person shall be
continued on outpatient status. Upon receipt of the petition, the
court shall calendar the case for further proceedings within 15
judicial days and the clerk shall notify the person, the county
begin delete mental end delete begin insert behavioral end insert health director, and the attorney of record for
the person of the hearing date. Upon failure of the person to appear
as noticed, if a proper affidavit of service and advisement has been
filed with the court, the court may issue a body attachment for
begin delete such end delete begin insert that end insert person. If, after a hearing in court the judge determines
that the person is a danger to the health and safety of others, the
court shall order that the person be confined in a state hospital or
other treatment facility begin delete which end delete begin insert that end insert has been approved by the county
begin delete mental end delete begin insert behavioral end insert health director.

begin insert

begin insert SEC. 37. end insert   

end insert

begin insert Section 5308 of the end insert begin insert Welfare and Institutions Code end insert begin insert is
amended to read: end insert

5308.  

Upon the filing of a request for revocation of outpatient
status under Section 5306.5 or 5307 and pending the court’s
decision on revocation, the person subject to revocation may be
confined in a state hospital or other treatment facility by the county
begin delete mental end delete begin insert behavioral end insert health director when it is the opinion of that
director that the person will now be a danger to self or to another
while on outpatient status and that to delay hospitalization until
the revocation hearing would pose a demonstrated danger of harm
to the person or to another. Upon the request of the county begin delete mental end delete
begin insert behavioral end insert health director or a designee, a peace officer shall take,
or cause to be taken, the person into custody and transport the
person to a treatment facility for hospitalization under this section.
The county begin delete mental end delete begin insert behavioral end insert health director shall notify the court
in writing of the admission of the person to inpatient status and of
the factual basis for the opinion that begin delete such end delete immediate return to
inpatient treatment was necessary. The court shall supply a copy
of these documents to the public officer, pursuant to Section 5114,
and counsel of the person subject to revocation.

A person hospitalized under this section shall have the right to
judicial review of the detention in the manner prescribed in Article
5 (commencing with Section 5275) of Chapter 2 and to an
explanation of rights in the manner prescribed in Section 5252.1.

Nothing in this section shall prevent hospitalization pursuant to
the provisions of Section 5150, 5250, 5350, or 5353.

A person whose confinement in a treatment facility under Section
5306.5 or 5307 is approved by the court shall not be released again
to outpatient status unless court approval is obtained under Section
5305.

begin delete SEC. 13. end delete
begin insert SEC. 38. end insert   

Section 5326.95 of the Welfare and Institutions Code
is amended to read:

5326.95.  

The Director of State Hospitals shall adopt regulations
to carry out the provisions of this chapter, including standards
defining excessive use of convulsive begin delete treatment end delete begin insert treatment, end insert which
shall be developed in consultation with the State Department of
Health Care Services and the County Behavioral Health Directors
Association of California.

begin insert

begin insert SEC. 39. end insert   

end insert

begin insert Section 5328 of the end insert begin insert Welfare and Institutions Code end insert begin insert is
amended to read: end insert

5328.  

All information and records obtained in the course of
providing services under Division 4 (commencing with Section
4000), Division 4.1 (commencing with Section 4400), Division
4.5 (commencing with Section 4500), Division 5 (commencing
with Section 5000), Division 6 (commencing with Section 6000),
or Division 7 (commencing with Section 7100), to either voluntary
or involuntary recipients of services shall be confidential.
Information and records obtained in the course of providing similar
services to either voluntary or involuntary recipients prior to 1969
shall also be confidential. Information and records shall be
disclosed only in any of the following cases:

(a) In communications between qualified professional persons
in the provision of services or appropriate referrals, or in the course
of conservatorship proceedings. The consent of the patient, or his
or her guardian or conservator, shall be obtained before information
or records may be disclosed by a professional person employed
by a facility to a professional person not employed by the facility
who does not have the medical or psychological responsibility for
the patient’s care.

(b) When the patient, with the approval of the physician and
surgeon, licensed psychologist, social worker with a master’s
degree in social work, licensed marriage and family therapist, or
licensed professional clinical counselor, who is in charge of the
patient, designates persons to whom information or records may
be released, except that nothing in this article shall be construed
to compel a physician and surgeon, licensed psychologist, social
worker with a master’s degree in social work, licensed marriage
and family therapist, licensed professional clinical counselor, nurse,
attorney, or other professional person to reveal information that
has been given to him or her in confidence by members of a
patient’s family. Nothing in this subdivision shall be construed to
authorize a licensed marriage and family therapist or licensed
professional clinical counselor to provide services or to be in charge
of a patient’s care beyond his or her lawful scope of practice.

(c) To the extent necessary for a recipient to make a claim, or
for a claim to be made on behalf of a recipient for aid, insurance,
or medical assistance to which he or she may be entitled.

(d) If the recipient of services is a minor, ward, dependent, or
conservatee, and his or her parent, guardian, guardian ad litem,
conservator, or authorized representative designates, in writing,
persons to whom records or information may be disclosed, except
that nothing in this article shall be construed to compel a physician
and surgeon, licensed psychologist, social worker with a master’s
degree in social work, licensed marriage and family therapist,
licensed professional clinical counselor, nurse, attorney, or other
professional person to reveal information that has been given to
him or her in confidence by members of a patient’s family.

(e) For research, provided that the Director of Health Care
Services, the Director of State Hospitals, the Director of Social
Services, or the Director of Developmental Services designates
by regulation, rules for the conduct of research and requires the
research to be first reviewed by the appropriate institutional review
board or boards. The rules shall include, but need not be limited
to, the requirement that all researchers shall sign an oath of
confidentiality as follows:

 

	Date

 

As a condition of doing research concerning persons who have
received services from ____ (fill in the facility, agency or person),
I, ____, agree to obtain the prior informed consent of such persons
who have received services to the maximum degree possible as
determined by the appropriate institutional review board or boards
for protection of human subjects reviewing my research, and I
further agree not to divulge any information obtained in the course
of such research to unauthorized persons, and not to publish or
otherwise make public any information regarding persons who
have received services such that the person who received services
is identifiable.

I recognize that the unauthorized release of confidential
information may make me subject to a civil action under provisions
of the Welfare and Institutions Code.

(f) To the courts, as necessary to the administration of justice.

(g) To governmental law enforcement agencies as needed for
the protection of federal and state elective constitutional officers
and their families.

(h) To the Senate Committee on Rules or the Assembly
Committee on Rules for the purposes of legislative investigation
authorized by the committee.

(i) If the recipient of services who applies for life or disability
insurance designates in writing the insurer to which records or
information may be disclosed.

(j) To the attorney for the patient in any and all proceedings
upon presentation of a release of information signed by the patient,
except that when the patient is unable to sign the release, the staff
of the facility, upon satisfying itself of the identity of the attorney,
and of the fact that the attorney does represent the interests of the
patient, may release all information and records relating to the
patient except that nothing in this article shall be construed to
compel a physician and surgeon, licensed psychologist, social
worker with a master’s degree in social work, licensed marriage
and family therapist, licensed professional clinical counselor, nurse,
attorney, or other professional person to reveal information that
has been given to him or her in confidence by members of a
patient’s family.

(k) Upon written agreement by a person previously confined in
or otherwise treated by a facility, the professional person in charge
of the facility or his or her designee may release any information,
except information that has been given in confidence by members
of the person’s family, requested by a probation officer charged
with the evaluation of the person after his or her conviction of a
crime if the professional person in charge of the facility determines
that the information is relevant to the evaluation. The agreement
shall only be operative until sentence is passed on the crime of
which the person was convicted. The confidential information
released pursuant to this subdivision shall be transmitted to the
court separately from the probation report and shall not be placed
in the probation report. The confidential information shall remain
confidential except for purposes of sentencing. After sentencing,
the confidential information shall be sealed.

(l) (1) Between persons who are trained and qualified to serve
on multidisciplinary personnel teams pursuant to subdivision (d)
of Section 18951. The information and records sought to be
disclosed shall be relevant to the provision of child welfare services
or the investigation, prevention, identification, management, or
treatment of child abuse or neglect pursuant to Chapter 11
(commencing with Section 18950) of Part 6 of Division 9.
Information obtained pursuant to this subdivision shall not be used
in any criminal or delinquency proceeding. Nothing in this
subdivision shall prohibit evidence identical to that contained
within the records from being admissible in a criminal or
delinquency proceeding, if the evidence is derived solely from
means other than this subdivision, as permitted by law.

(2) As used in this subdivision, “child welfare services” means
those services that are directed at preventing child abuse or neglect.

(m) To county patients’ rights advocates who have been given
knowing voluntary authorization by a client or a guardian ad litem.
The client or guardian ad litem, whoever entered into the
agreement, may revoke the authorization at any time, either in
writing or by oral declaration to an approved advocate.

(n) To a committee established in compliance with Section
14725.

(o) In providing information as described in Section 7325.5.
Nothing in this subdivision shall permit the release of any
information other than that described in Section 7325.5.

(p) To the county begin delete mental end delete begin insert behavioral end insert health director or the
director’s designee, or to a law enforcement officer, or to the person
designated by a law enforcement agency, pursuant to Sections
5152.1 and 5250.1.

(q) If the patient gives his or her consent, information
specifically pertaining to the existence of genetically handicapping
conditions, as defined in Section 125135 of the Health and Safety
Code, may be released to qualified professional persons for
purposes of genetic counseling for blood relatives upon request of
the blood relative. For purposes of this subdivision, “qualified
professional persons” means those persons with the qualifications
necessary to carry out the genetic counseling duties under this
subdivision as determined by the genetic disease unit established
in the State Department of Health Care Services under Section
125000 of the Health and Safety Code. If the patient does not
respond or cannot respond to a request for permission to release
information pursuant to this subdivision after reasonable attempts
have been made over a two-week period to get a response, the
information may be released upon request of the blood relative.

(r) When the patient, in the opinion of his or her psychotherapist,
presents a serious danger of violence to a reasonably foreseeable
victim or victims, then any of the information or records specified
in this section may be released to that person or persons and to
law enforcement agencies and county child welfare agencies as
the psychotherapist determines is needed for the protection of that
person or persons. For purposes of this subdivision,
“psychotherapist” means anyone so defined within Section 1010
of the Evidence Code.

(s) (1) To the designated officer of an emergency response
employee, and from that designated officer to an emergency
response employee regarding possible exposure to HIV or AIDS,
but only to the extent necessary to comply with provisions of the
federal Ryan White Comprehensive AIDS Resources Emergency
Act of 1990 (Public Law 101-381; 42 U.S.C. Sec. 201).

(2) For purposes of this subdivision, “designated officer” and
“emergency response employee” have the same meaning as these
terms are used in the federal Ryan White Comprehensive AIDS
Resources Emergency Act of 1990 (Public Law 101-381; 42 U.S.C.
Sec. 201).

(3) The designated officer shall be subject to the confidentiality
requirements specified in Section 120980, and may be personally
liable for unauthorized release of any identifying information about
the HIV results. Further, the designated officer shall inform the
exposed emergency response employee that the employee is also
subject to the confidentiality requirements specified in Section
120980, and may be personally liable for unauthorized release of
any identifying information about the HIV test results.

(t) (1) To a law enforcement officer who personally lodges with
a facility, as defined in paragraph (2), a warrant of arrest or an
abstract of such a warrant showing that the person sought is wanted
for a serious felony, as defined in Section 1192.7 of the Penal
Code, or a violent felony, as defined in Section 667.5 of the Penal
Code. The information sought and released shall be limited to
whether or not the person named in the arrest warrant is presently
confined in the facility. This paragraph shall be implemented with
minimum disruption to health facility operations and patients, in
accordance with Section 5212. If the law enforcement officer is
informed that the person named in the warrant is confined in the
facility, the officer may not enter the facility to arrest the person
without obtaining a valid search warrant or the permission of staff
of the facility.

(2) For purposes of paragraph (1), a facility means all of the
following:

(A) A state hospital, as defined in Section 4001.

(B) A general acute care hospital, as defined in subdivision (a)
of Section 1250 of the Health and Safety Code, solely with regard
to information pertaining to a person with mental illness subject
to this section.

(C) An acute psychiatric hospital, as defined in subdivision (b)
of Section 1250 of the Health and Safety Code.

(D) A psychiatric health facility, as described in Section 1250.2
of the Health and Safety Code.

(E) A mental health rehabilitation center, as described in Section
5675.

(F) A skilled nursing facility with a special treatment program
for individuals with mental illness, as described in Sections 51335
and 72445 to 72475, inclusive, of Title 22 of the California Code
of Regulations.

(u) Between persons who are trained and qualified to serve on
multidisciplinary personnel teams pursuant to Section 15610.55,
15753.5, or 15761. The information and records sought to be
disclosed shall be relevant to the prevention, identification,
management, or treatment of an abused elder or dependent adult
pursuant to Chapter 13 (commencing with Section 15750) of Part
3 of Division 9.

(v) The amendment of subdivision (d) enacted at the 1970
Regular Session of the Legislature does not constitute a change
in, but is declaratory of, the preexisting law.

(w) This section shall not be limited by Section 5150.05 or 5332.

(x) (1) When an employee is served with a notice of adverse
action, as defined in Section 19570 of the Government Code, the
following information and records may be released:

(A) All information and records that the appointing authority
relied upon in issuing the notice of adverse action.

(B) All other information and records that are relevant to the
adverse action, or that would constitute relevant evidence as
defined in Section 210 of the Evidence Code.

(C) The information described in subparagraphs (A) and (B)
may be released only if both of the following conditions are met:

(i) The appointing authority has provided written notice to the
consumer and the consumer’s legal representative or, if the
consumer has no legal representative or if the legal representative
is a state agency, to the clients’ rights advocate, and the consumer,
the consumer’s legal representative, or the clients’ rights advocate
has not objected in writing to the appointing authority within five
business days of receipt of the notice, or the appointing authority,
upon review of the objection has determined that the circumstances
on which the adverse action is based are egregious or threaten the
health, safety, or life of the consumer or other consumers and
without the information the adverse action could not be taken.

(ii) The appointing authority, the person against whom the
adverse action has been taken, and the person’s representative, if
any, have entered into a stipulation that does all of the following:

(I) Prohibits the parties from disclosing or using the information
or records for any purpose other than the proceedings for which
the information or records were requested or provided.

(II) Requires the employee and the employee’s legal
representative to return to the appointing authority all records
provided to them under this subdivision, including, but not limited
to, all records and documents from any source containing
confidential information protected by this section, and all copies
of those records and documents, within 10 days of the date that
the adverse action becomes final except for the actual records and
documents or copies thereof that are no longer in the possession
of the employee or the employee’s legal representative because
they were submitted to the administrative tribunal as a component
of an appeal from the adverse action.

(III) Requires the parties to submit the stipulation to the
administrative tribunal with jurisdiction over the adverse action
at the earliest possible opportunity.

(2) For the purposes of this subdivision, the State Personnel
Board may, prior to any appeal from adverse action being filed
with it, issue a protective order, upon application by the appointing
authority, for the limited purpose of prohibiting the parties from
disclosing or using information or records for any purpose other
than the proceeding for which the information or records were
requested or provided, and to require the employee or the
employee’s legal representative to return to the appointing authority
all records provided to them under this subdivision, including, but
not limited to, all records and documents from any source
containing confidential information protected by this section, and
all copies of those records and documents, within 10 days of the
date that the adverse action becomes final, except for the actual
records and documents or copies thereof that are no longer in the
possession of the employee or the employee’s legal representatives
because they were submitted to the administrative tribunal as a
component of an appeal from the adverse action.

(3) Individual identifiers, including, but not limited to, names,
social security numbers, and hospital numbers, that are not
necessary for the prosecution or defense of the adverse action,
shall not be disclosed.

(4) All records, documents, or other materials containing
confidential information protected by this section that have been
submitted or otherwise disclosed to the administrative agency or
other person as a component of an appeal from an adverse action
shall, upon proper motion by the appointing authority to the
administrative tribunal, be placed under administrative seal and
shall not, thereafter, be subject to disclosure to any person or entity
except upon the issuance of an order of a court of competent
jurisdiction.

(5) For purposes of this subdivision, an adverse action becomes
final when the employee fails to answer within the time specified
in Section 19575 of the Government Code, or, after filing an
answer, withdraws the appeal, or, upon exhaustion of the
administrative appeal or of the judicial review remedies as
otherwise provided by law.

(y) To the person appointed as the developmental services
decisionmaker for a minor, dependent, or ward pursuant to Section
319, 361, or 726.

begin insert

begin insert SEC. 40. end insert   

end insert

begin insert Section 5328.2 of the end insert begin insert Welfare and Institutions Code end insert
begin insert is amended to read: end insert

5328.2.  

Notwithstanding Section 5328, movement and
identification information and records regarding a patient who is
committed to the department, state hospital, or any other public
or private mental health facility approved by the county begin delete mental end delete
begin insert behavioral end insert health director for observation or for an indeterminate
period as a mentally disordered sex offender, or for a person who
is civilly committed as a sexually violent predator pursuant to
Article 4 (commencing with Section 6600) of Chapter 2 of Part 2
of Division 6, or regarding a patient who is committed to the
department, to a state hospital, or any other public or private mental
health facility approved by the county begin delete mental end delete begin insert behavioral end insert health
director under Section 1026 or 1370 of the Penal Code or receiving
treatment pursuant to Section 5300 of this code, shall be forwarded
immediately without prior request to the Department of Justice.
Except as otherwise provided by law, information automatically
reported under this section shall be restricted to name, address,
fingerprints, date of admission, date of discharge, date of escape
or return from escape, date of any home leave, parole or leave of
absence and, if known, the county in which the person will reside
upon release. The Department of Justice may in turn furnish
information reported under this section pursuant to Section 11105
or 11105.1 of the Penal Code. It shall be a misdemeanor for
recipients furnished with this information to in turn furnish the
information to any person or agency other than those specified in
Section 11105 or 11105.1 of the Penal Code.

begin insert

begin insert SEC. 41. end insert   

end insert

begin insert Section 5346 of the end insert begin insert Welfare and Institutions Code end insert begin insert is
amended to read: end insert

5346.  

(a) In any county in which services are available as
provided in Section 5348, a court may order a person who is the
subject of a petition filed pursuant to this section to obtain assisted
outpatient treatment if the court finds, by clear and convincing
evidence, that the facts stated in the verified petition filed in
accordance with this section are true and establish that all of the
requisite criteria set forth in this section are met, including, but
not limited to, each of the following:

(1) The person is 18 years of age or older.

(2) The person is suffering from a mental illness as defined in
paragraphs (2) and (3) of subdivision (b) of Section 5600.3.

(3) There has been a clinical determination that the person is
unlikely to survive safely in the community without supervision.

(4) The person has a history of lack of compliance with
treatment for his or her mental illness, in that at least one of the
following is true:

(A) The person’s mental illness has, at least twice within the
last 36 months, been a substantial factor in necessitating
hospitalization, or receipt of services in a forensic or other mental
health unit of a state correctional facility or local correctional
facility, not including any period during which the person was
hospitalized or incarcerated immediately preceding the filing of
the petition.

(B) The person’s mental illness has resulted in one or more acts
of serious and violent behavior toward himself or herself or
another, or threats, or attempts to cause serious physical harm to
himself or herself or another within the last 48 months, not
including any period in which the person was hospitalized or
incarcerated immediately preceding the filing of the petition.

(5) The person has been offered an opportunity to participate
in a treatment plan by the director of the local mental health
department, or his or her designee, provided the treatment plan
includes all of the services described in Section 5348, and the
person continues to fail to engage in treatment.

(6) The person’s condition is substantially deteriorating.

(7) Participation in the assisted outpatient treatment program
would be the least restrictive placement necessary to ensure the
person’s recovery and stability.

(8) In view of the person’s treatment history and current
behavior, the person is in need of assisted outpatient treatment in
order to prevent a relapse or deterioration that would be likely to
result in grave disability or serious harm to himself or herself, or
to others, as defined in Section 5150.

(9) It is likely that the person will benefit from assisted
outpatient treatment.

(b) (1) A petition for an order authorizing assisted outpatient
treatment may be filed by the county begin delete mental end delete begin insert behavioral end insert health
director, or his or her designee, in the superior court in the county
in which the person who is the subject of the petition is present or
reasonably believed to be present.

(2) A request may be made only by any of the following persons
to the county mental health department for the filing of a petition
to obtain an order authorizing assisted outpatient treatment:

(A) Any person 18 years of age or older with whom the person
who is the subject of the petition resides.

(B) Any person who is the parent, spouse, or sibling or child
18 years of age or older of the person who is the subject of the
petition.

(C) The director of any public or private agency, treatment
facility, charitable organization, or licensed residential care facility
providing mental health services to the person who is the subject
of the petition in whose institution the subject of the petition
resides.

(D) The director of a hospital in which the person who is the
subject of the petition is hospitalized.

(E) A licensed mental health treatment provider who is either
supervising the treatment of, or treating for a mental illness, the
person who is the subject of the petition.

(F) A peace officer, parole officer, or probation officer assigned
to supervise the person who is the subject of the petition.

(3) Upon receiving a request pursuant to paragraph (2), the
county begin delete mental end delete begin insert behavioral end insert health director shall conduct an
investigation into the appropriateness of the filing of the petition.
The director shall file the petition only if he or she determines that
there is a reasonable likelihood that all the necessary elements to
sustain the petition can be proven in a court of law by clear and
convincing evidence.

(4) The petition shall state all of the following:

(A) Each of the criteria for assisted outpatient treatment as set
forth in subdivision (a).

(B) Facts that support the petitioner’s belief that the person who
is the subject of the petition meets each criterion, provided that
the hearing on the petition shall be limited to the stated facts in
the verified petition, and the petition contains all the grounds on
which the petition is based, in order to ensure adequate notice to
the person who is the subject of the petition and his or her counsel.

(C) That the person who is the subject of the petition is present,
or is reasonably believed to be present, within the county where
the petition is filed.

(D) That the person who is the subject of the petition has the
right to be represented by counsel in all stages of the proceeding
under the petition, in accordance with subdivision (c).

(5) The petition shall be accompanied by an affidavit of a
licensed mental health treatment provider designated by the local
mental health director who shall state, if applicable, either of the
following:

(A) That the licensed mental health treatment provider has
personally examined the person who is the subject of the petition
no more than 10 days prior to the submission of the petition, the
facts and reasons why the person who is the subject of the petition
meets the criteria in subdivision (a), that the licensed mental health
treatment provider recommends assisted outpatient treatment for
the person who is the subject of the petition, and that the licensed
mental health treatment provider is willing and able to testify at
the hearing on the petition.

(B) That no more than 10 days prior to the filing of the petition,
the licensed mental health treatment provider, or his or her
designee, has made appropriate attempts to elicit the cooperation
of the person who is the subject of the petition, but has not been
successful in persuading that person to submit to an examination,
that the licensed mental health treatment provider has reason to
believe that the person who is the subject of the petition meets the
criteria for assisted outpatient treatment, and that the licensed
mental health treatment provider is willing and able to examine
the person who is the subject of the petition and testify at the
hearing on the petition.

(c) The person who is the subject of the petition shall have the
right to be represented by counsel at all stages of a proceeding
commenced under this section. If the person so elects, the court
shall immediately appoint the public defender or other attorney to
assist the person in all stages of the proceedings. The person shall
pay the cost of the legal services if he or she is able.

(d) (1) Upon receipt by the court of a petition submitted
pursuant to subdivision (b), the court shall fix the date for a hearing
at a time not later than five days from the date the petition is
received by the court, excluding Saturdays, Sundays, and holidays.
The petitioner shall promptly cause service of a copy of the
petition, together with written notice of the hearing date, to be
made personally on the person who is the subject of the petition,
and shall send a copy of the petition and notice to the county office
of patient rights, and to the current health care provider appointed
for the person who is the subject of the petition, if any such
provider is known to the petitioner. Continuances shall be permitted
only for good cause shown. In granting continuances, the court
shall consider the need for further examination by a physician or
the potential need to provide expeditiously assisted outpatient
treatment. Upon the hearing date, or upon any other date or dates
to which the proceeding may be continued, the court shall hear
testimony. If it is deemed advisable by the court, and if the person
who is the subject of the petition is available and has received
notice pursuant to this section, the court may examine in or out of
court the person who is the subject of the petition who is alleged
to be in need of assisted outpatient treatment. If the person who is
the subject of the petition does not appear at the hearing, and
appropriate attempts to elicit the attendance of the person have
failed, the court may conduct the hearing in the person’s absence.
If the hearing is conducted without the person present, the court
shall set forth the factual basis for conducting the hearing without
the person’s presence.

(2) The court shall not order assisted outpatient treatment unless
an examining licensed mental health treatment provider, who has
personally examined, and has reviewed the available treatment
history of, the person who is the subject of the petition within the
time period commencing 10 days before the filing of the petition,
testifies in person at the hearing.

(3) If the person who is the subject of the petition has refused
to be examined by a licensed mental health treatment provider,
the court may request that the person consent to an examination
by a licensed mental health treatment provider appointed by the
court. If the person who is the subject of the petition does not
consent and the court finds reasonable cause to believe that the
allegations in the petition are true, the court may order any person
designated under Section 5150 to take into custody the person who
is the subject of the petition and transport him or her, or cause him
or her to be transported, to a hospital for examination by a licensed
mental health treatment provider as soon as is practicable.
Detention of the person who is the subject of the petition under
the order may not exceed 72 hours. If the examination is performed
by another licensed mental health treatment provider, the
examining licensed mental health treatment provider may consult
with the licensed mental health treatment provider whose
affirmation or affidavit accompanied the petition regarding the
issues of whether the allegations in the petition are true and whether
the person meets the criteria for assisted outpatient treatment.

(4) The person who is the subject of the petition shall have all
of the following rights:

(A) To adequate notice of the hearings to the person who is the
subject of the petition, as well as to parties designated by the person
who is the subject of the petition.

(B) To receive a copy of the court-ordered evaluation.

(C) To counsel. If the person has not retained counsel, the court
shall appoint a public defender.

(D) To be informed of his or her right to judicial review by
habeas corpus.

(E) To be present at the hearing unless he or she waives the
right to be present.

(F) To present evidence.

(G) To call witnesses on his or her behalf.

(H) To cross-examine witnesses.

(I) To appeal decisions, and to be informed of his or her right
to appeal.

(5) (A) If after hearing all relevant evidence, the court finds
that the person who is the subject of the petition does not meet the
criteria for assisted outpatient treatment, the court shall dismiss
the petition.

(B) If after hearing all relevant evidence, the court finds that
the person who is the subject of the petition meets the criteria for
assisted outpatient treatment, and there is no appropriate and
feasible less restrictive alternative, the court may order the person
who is the subject of the petition to receive assisted outpatient
treatment for an initial period not to exceed six months. In
fashioning the order, the court shall specify that the proposed
treatment is the least restrictive treatment appropriate and feasible
for the person who is the subject of the petition. The order shall
state the categories of assisted outpatient treatment, as set forth in
Section 5348, that the person who is the subject of the petition is
to receive, and the court may not order treatment that has not been
recommended by the examining licensed mental health treatment
provider and included in the written treatment plan for assisted
outpatient treatment as required by subdivision (e). If the person
has executed an advance health care directive pursuant to Chapter
2 (commencing with Section 4650) of Part 1 of Division 4.7 of
the Probate Code, any directions included in the advance health
care directive shall be considered in formulating the written
treatment plan.

(6) If the person who is the subject of a petition for an order for
assisted outpatient treatment pursuant to subparagraph (B) of
paragraph (5) of subdivision (d) refuses to participate in the assisted
outpatient treatment program, the court may order the person to
meet with the assisted outpatient treatment team designated by the
director of the assisted outpatient treatment program. The treatment
team shall attempt to gain the person’s cooperation with treatment
ordered by the court. The person may be subject to a 72-hour hold
pursuant to subdivision (f) only after the treatment team has
attempted to gain the person’s cooperation with treatment ordered
by the court, and has been unable to do so.

(e) Assisted outpatient treatment shall not be ordered unless the
licensed mental health treatment provider recommending assisted
outpatient treatment to the court has submitted to the court a written
treatment plan that includes services as set forth in Section 5348,
and the court finds, in consultation with the county begin delete mental end delete
begin insert behavioral end insert health director, or his or her designee, all of the
following:

(1) That the services are available from the county, or a provider
approved by the county, for the duration of the court order.

(2) That the services have been offered to the person by the
local director of mental health, or his or her designee, and the
person has been given an opportunity to participate on a voluntary
basis, and the person has failed to engage in, or has refused,
treatment.

(3) That all of the elements of the petition required by this article
have been met.

(4) That the treatment plan will be delivered to the county
begin delete director of mental health, end delete begin insert behavioral health director, end insert or to his or
her appropriate designee.

(f) If, in the clinical judgment of a licensed mental health
treatment provider, the person who is the subject of the petition
has failed or has refused to comply with the treatment ordered by
the court, and, in the clinical judgment of the licensed mental health
treatment provider, efforts were made to solicit compliance, and,
in the clinical judgment of the licensed mental health treatment
provider, the person may be in need of involuntary admission to
a hospital for evaluation, the provider may request that persons
designated under Section 5150 take into custody the person who
is the subject of the petition and transport him or her, or cause him
or her to be transported, to a hospital, to be held up to 72 hours for
examination by a licensed mental health treatment provider to
determine if the person is in need of treatment pursuant to Section
5150. Any continued involuntary retention in a hospital beyond
the initial 72-hour period shall be pursuant to Section 5150. If at
any time during the 72-hour period the person is determined not
to meet the criteria of Section 5150, and does not agree to stay in
the hospital as a voluntary patient, he or she shall be released and
any subsequent involuntary detention in a hospital shall be pursuant
to Section 5150. Failure to comply with an order of assisted
outpatient treatment alone may not be grounds for involuntary
civil commitment or a finding that the person who is the subject
of the petition is in contempt of court.

(g) If the director of the assisted outpatient treatment program
determines that the condition of the patient requires further assisted
outpatient treatment, the director shall apply to the court, prior to
the expiration of the period of the initial assisted outpatient
treatment order, for an order authorizing continued assisted
outpatient treatment for a period not to exceed 180 days from the
date of the order. The procedures for obtaining any order pursuant
to this subdivision shall be in accordance with subdivisions (a) to
(f), inclusive. The period for further involuntary outpatient
treatment authorized by any subsequent order under this
subdivision may not exceed 180 days from the date of the order.

(h) At intervals of not less than 60 days during an assisted
outpatient treatment order, the director of the outpatient treatment
program shall file an affidavit with the court that ordered the
outpatient treatment affirming that the person who is the subject
of the order continues to meet the criteria for assisted outpatient
treatment. At these times, the person who is the subject of the order
shall have the right to a hearing on whether or not he or she still
meets the criteria for assisted outpatient treatment if he or she
disagrees with the director’s affidavit. The burden of proof shall
be on the director.

(i) During each 60-day period specified in subdivision (h), if
the person who is the subject of the order believes that he or she
is being wrongfully retained in the assisted outpatient treatment
program against his or her wishes, he or she may file a petition for
a writ of habeas corpus, thus requiring the director of the assisted
outpatient treatment program to prove that the person who is the
subject of the order continues to meet the criteria for assisted
outpatient treatment.

(j) Any person ordered to undergo assisted outpatient treatment
pursuant to this article, who was not present at the hearing at which
the order was issued, may immediately petition the court for a writ
of habeas corpus. Treatment under the order for assisted outpatient
treatment may not commence until the resolution of that petition.

begin delete SEC. 14. end delete
begin insert SEC. 42. end insert   

Section 5400 of the Welfare and Institutions Code is
amended to read:

5400.  

(a) The Director of Health Care Services shall administer
this part and shall adopt rules, regulations, and standards as
necessary. In developing rules, regulations, and standards, the
Director of Health Care Services shall consult with the County
Behavioral Health Directors Association of California, the
California Mental Health Planning Council, and the office of the
Attorney General. Adoption of these standards, rules, and
regulations shall require approval by the County Behavioral Health
Directors Association of California by majority vote of those
present at an official session.

(b) Wherever feasible and appropriate, rules, regulations, and
standards adopted under this part shall correspond to comparable
rules, regulations, and standards adopted under the
Bronzan-McCorquodale Act. These corresponding rules,
regulations, and standards shall include qualifications for
professional personnel.

(c) Regulations adopted pursuant to this part may provide
standards for services for persons with chronic alcoholism that
differ from the standards for services for persons with mental health
disorders.

begin delete SEC. 15. end delete
begin insert SEC. 43. end insert   

Section 5585.22 of the Welfare and Institutions Code
is amended to read:

5585.22.  

The Director of Health Care Services, in consultation
with the County Behavioral Health Directors Association of
California, may develop the appropriate educational materials and
a training curriculum, and may provide training as necessary to
ensure that those persons providing services pursuant to this part
fully understand its purpose.

begin delete SEC. 16. end delete
begin insert SEC. 44. end insert   

Section 5601 of the Welfare and Institutions Code is
amended to read:

5601.  

As used in this part:

(a) “Governing body” means the county board of supervisors
or boards of supervisors in the case of counties acting jointly; and
in the case of a city, the city council or city councils acting jointly.

(b) “Conference” means the County Behavioral Health Directors
Association of California as established under former Section
5757.

(c) Unless the context requires otherwise, “to the extent
resources are available” means to the extent that funds deposited
in the mental health account of the local health and welfare fund
are available to an entity qualified to use those funds.

(d) “Part 1” refers to the Lanterman-Petris-Short Act (Part 1
(commencing with Section 5000)).

(e) “Director of Health Care Services” or “director” means the
Director of the State Department of Health Care Services.

(f) “Institution” includes a general acute care hospital, a state
hospital, a psychiatric hospital, a psychiatric health facility, a
skilled nursing facility, including an institution for mental disease
as described in Chapter 1 (commencing with Section 5900) of Part
5, an intermediate care facility, a community care facility or other
residential treatment facility, or a juvenile or criminal justice
institution.

(g) “Mental health service” means any service directed toward
early intervention in, or alleviation or prevention of, mental
disorder, including, but not limited to, diagnosis, evaluation,
treatment, personal care, day care, respite care, special living
arrangements, community skill training, sheltered employment,
socialization, case management, transportation, information,
referral, consultation, and community services.

begin delete SEC. 17. end delete
begin insert SEC. 45. end insert   

Section 5611 of the Welfare and Institutions Code is
amended to read:

5611.  

(a) The Director of begin delete Mental Health end delete begin insert State Hospitals end insert shall
establish a Performance Outcome Committee, to be comprised of
representatives from the begin delete PL end delete begin insert Public Law end insert 99-660 Planning Council
and the County Behavioral Health Directors Association of
California. Any costs associated with the performance of the duties
of the committee shall be absorbed within the resources of the
participants.

(b) Major mental health professional organizations representing
licensed clinicians may participate as members of the committee
at their own expense.

(c) The committee may seek private funding for costs associated
with the performance of its duties.

begin delete SEC. 18. end delete
begin insert SEC. 46. end insert   

Section 5664 of the Welfare and Institutions Code is
amended to read:

5664.  

In consultation with the County Behavioral Health
Directors Association of California, the State Department of Health
Care Services, the Mental Health Services Oversight and
Accountability Commission, the California Mental Health Planning
Council, and the California Health and Human Services Agency,
county begin delete mental end delete begin insert behavioral end insert health systems shall provide reports and
data to meet the information needs of the state, as necessary.

begin insert

begin insert SEC. 47. end insert   

end insert

begin insert Section 5694.7 of the end insert begin insert Welfare and Institutions Code end insert
begin insert is amended to read: end insert

5694.7.  

When the director of begin delete mental end delete begin insert behavioral end insert health in a
county is notified pursuant to Section 319.1 or 635.1, or Section
7572.5 of the Government Code about a specific case, the county
begin delete mental end delete begin insert behavioral end insert health director shall assign the responsibility
either directly or through contract with a private provider, to review
the information and assess whether or not the child is seriously
emotionally disturbed as well as to determine the level of
involvement in the case needed to assure access to appropriate
mental health treatment services and whether appropriate treatment
is available through the minor’s own resources, those of the family
or another private party, including a third-party payer, or through
another agency, and to ensure access to services available within
the county’s program. This determination shall be submitted in
writing to the notifying agency within 30 days. If in the course of
evaluating the minor, the county begin delete mental end delete begin insert behavioral end insert health director
determines that the minor may be dangerous, the county begin delete mental end delete
begin insert behavioral end insert health director may request the court to direct counsel
not to reveal information to the minor relating to the name and
address of the person who prepared the subject report. If
appropriate treatment is not available within the county’s
Bronzan-McCorquodale program, nothing in this section shall
prevent the court from ordering treatment directly or through a
family’s private resources.

begin delete SEC. 19. end delete
begin insert SEC. 48. end insert   

Section 5701.1 of the Welfare and Institutions Code
is amended to read:

5701.1.  

Notwithstanding Section 5701, the State Department
of Health Care Services, in consultation with the County Behavioral
Health Directors Association of California and the California
Mental Health Planning Council, may utilize funding from the
Substance Abuse and Mental Health Services Administration Block
Grant, awarded to the State Department of Health Care Services,
above the funding level provided in federal fiscal year 1998, for
the development of innovative programs for identified target
populations, upon appropriation by the Legislature.

begin delete SEC. 20. end delete
begin insert SEC. 49. end insert   

Section 5701.2 of the Welfare and Institutions Code
is amended to read:

5701.2.  

(a) The State Department of Mental Health, or its
successor, the State Department of State Hospitals, shall maintain
records of any transfer of funds or state hospital beds made
pursuant to Chapter 1341 of the Statutes of 1991.

(b) Commencing with the 1991-92 fiscal year, the State
Department of Mental Health, or its successor, the State
Department of State Hospitals, shall maintain records that set forth
that portion of each county’s allocation of state mental health
moneys that represent the dollar equivalent attributed to each
county’s state hospital beds or bed days, or both, that were
allocated as of May 1, 1991. The State Department of Mental
Health, or its successor, the State Department of State Hospitals,
shall provide a written summary of these records to the appropriate
committees of the Legislature and the County Behavioral Health
Directors Association of California within 30 days after the
enactment of the annual Budget Act.

(c) Nothing in this section is intended to change the counties’
base allocations as provided in subdivisions (a) and (b) of Section
17601.

begin delete SEC. 21. end delete
begin insert SEC. 50. end insert   

Section 5717 of the Welfare and Institutions Code is
amended to read:

5717.  

(a) Expenditures that may be funded from amounts
allocated to the county by the State Department of Health Care
Services from funds appropriated to the department shall include,
salaries of personnel, approved facilities and services provided
through contract, and operation, maintenance, and service costs,
including insurance costs or departmental charges for participation
in a county self-insurance program if the charges are not in excess
of comparable available commercial insurance premiums and on
the condition that any surplus reserves be used to reduce future
year contributions; depreciation of county facilities as established
in the state’s uniform accounting manual, disregarding depreciation
on the facility to the extent it was financed by state funds under
this part; lease of facilities where there is no intention to, nor option
to, purchase; expenses incurred under this act by members of the
County Behavioral Health Directors Association of California for
attendance at regular meetings of these conferences; expenses
incurred by either the chairperson or elected representative of the
local mental health advisory boards for attendance at regular
meetings of the begin delete Organization of Mental Health Advisory Boards; end delete
begin insert organization of mental health advisory boards; end insert expenditures
included in approved countywide cost allocation plans submitted
in accordance with the Controller’s guidelines, including, but not
limited to, adjustments of prior year estimated general county
overhead to actual costs, but excluding allowable costs otherwise
compensated by state funding; net costs of conservatorship
investigation, approved by the Director of Health Care Services.
Except for expenditures made pursuant to Article 6 (commencing
with Section 129225) of Chapter 1 of Part 6 of Division 107 of
the Health and Safety Code, it shall not include expenditures for
initial capital improvements; the purchaser or construction of
buildings except for equipment items and remodeling expense as
may be provided for in regulations of the State Department of
Health Care Services; compensation to members of a local mental
health advisory board, except actual and necessary expenses
incurred in the performance of official duties that may include
travel, lodging, and meals while on official business; or
expenditures for a purpose for which state reimbursement is
claimed under any other provision of law.

(b) The Director of Health Care Services may make
investigations and audits of expenditures the director may deem
necessary.

(c) With respect to funds allocated to a county by the State
Department of Health Care Services from funds appropriated to
the department, the county shall repay to the state amounts found
not to have been expended in accordance with the requirements
set forth in this part. Repayment shall be within 30 days after it is
determined that an expenditure has been made that is not in
accordance with the requirements. In the event that repayment is
not made in a timely manner, the department shall offset any
amount improperly expended against the amount of any current
or future advance payment or cost report settlement from the state
for mental health services. Repayment provisions shall not apply
to Short-Doyle funds allocated by the department for fiscal years
up to and including the 1990-91 fiscal year.

begin delete SEC. 22. end delete
begin insert SEC. 51. end insert   

Section 5750 of the Welfare and Institutions Code is
amended to read:

5750.  

The State Department of Health Care Services shall
administer this part and shall adopt standards for the approval of
mental health services, and rules and regulations necessary thereto.
However, these standards, rules, and regulations shall be adopted
only after consultation with the County Behavioral Health Directors
Association of California and the California Mental Health
Planning Council.

begin insert

begin insert SEC. 52. end insert   

end insert

begin insert Section 5814.5 of the end insert begin insert Welfare and Institutions Code end insert
begin insert is amended to read: end insert

5814.5.  

(a) (1) In any year in which funds are appropriated
for this purpose through the annual Budget Act, counties funded
under this part in the 1999-2000 fiscal year are eligible for funding
to continue their programs if they have successfully demonstrated
the effectiveness of their grants received in that year and to expand
their programs if they also demonstrate significant continued unmet
need and capacity for expansion without compromising quality or
effectiveness of care.

(2) In any year in which funds are appropriated for this purpose
through the annual Budget Act, other counties or portions of
counties, or cities that operate independent public mental health
programs pursuant to Section 5615 of the Welfare and Institutions
Code, are eligible for funding to establish programs if a county or
eligible city demonstrates that it can provide comprehensive
services, as set forth in this part, to a substantial number of adults
who are severely mentally ill, as defined in Section 5600.3, and
are homeless or recently released from the county jail or who are
untreated, unstable, and at significant risk of incarceration or
homelessness unless treatment is provided.

(b) (1) Counties eligible for funding pursuant to subdivision
(a) shall be those that have or can develop integrated adult service
programs that meet the criteria for an adult system of care, as set
forth in Section 5806, and that have, or can develop, integrated
forensic programs with similar characteristics for parolees and
those recently released from county jail who meet the target
population requirements of Section 5600.3 and are at risk of
incarceration unless the services are provided. Before a city or
county submits a proposal to the state to establish or expand a
program, the proposal shall be reviewed by a local advisory
committee or mental health board, which may be an existing body,
that includes clients, family members, private providers of services,
and other relevant stakeholders. Local enrollment for integrated
adult service programs and for integrated forensic programs funded
pursuant to subdivision (a) shall adhere to all conditions set forth
by the department, including the total number of clients to be
enrolled, the providers to which clients are enrolled and the
maximum cost for each provider, the maximum number of clients
to be served at any one time, the outreach and screening process
used to identify enrollees, and the total cost of the program. Local
enrollment of each individual for integrated forensic programs
shall be subject to the approval of the county begin delete mental end delete begin insert behavioral end insert
health director or his or her designee.

(2) Each county shall ensure that funds provided by these grants
are used to expand existing integrated service programs that meet
the criteria of the adult system of care to provide new services in
accordance with the purpose for which they were appropriated and
allocated, and that none of these funds shall be used to supplant
existing services to severely mentally ill adults. In order to ensure
that this requirement is met, the department shall develop methods
and contractual requirements, as it determines necessary. At a
minimum, these assurances shall include that state and federal
requirements regarding tracking of funds are met and that patient
records are maintained in a manner that protects privacy and
confidentiality, as required under federal and state law.

(c) Each county selected to receive a grant pursuant to this
section shall provide data as the department may require, that
demonstrates the outcomes of the adult system of care programs,
shall specify the additional numbers of severely mentally ill adults
to whom they will provide comprehensive services for each million
dollars of additional funding that may be awarded through either
an integrated adult service grant or an integrated forensic grant,
and shall agree to provide services in accordance with Section
5806. Each county’s plan shall identify and include sufficient
funding to provide housing for the individuals to be served, and
shall ensure that any hospitalization of individuals participating
in the program are coordinated with the provision of other mental
health services provided under the program.

begin delete SEC. 23. end delete
begin insert SEC. 53. end insert   

Section 5845 of the Welfare and Institutions Code is
amended to read:

5845.  

(a) The Mental Health Services Oversight and
Accountability Commission is hereby established to oversee Part
3 (commencing with Section 5800), the Adult and Older Adult
Mental Health System of Care Act; Part 3.1 (commencing with
Section 5820), Human Resources, Education, and Training
Programs; Part 3.2 (commencing with Section 5830), Innovative
Programs; Part 3.6 (commencing with Section 5840), Prevention
and Early Intervention Programs; and Part 4 (commencing with
Section 5850), the Children’s Mental Health Services Act. The
commission shall replace the advisory committee established
pursuant to Section 5814. The commission shall consist of 16
voting members as follows:

(1) The Attorney General or his or her designee.

(2) The Superintendent of Public Instruction or his or her
designee.

(3) The Chairperson of the Senate Health and Human Services
Committee or another begin delete member end delete begin insert Member end insert of the Senate selected by
the President pro Tempore of the Senate.

(4) The Chairperson of the Assembly Health Committee or
another member of the Assembly selected by the Speaker of the
Assembly.

(5) Two persons with a severe mental illness, a family member
of an adult or senior with a severe mental illness, a family member
of a child who has or has had a severe mental illness, a physician
specializing in alcohol and drug treatment, a mental health
professional, a county sheriff, a superintendent of a school district,
a representative of a labor organization, a representative of an
employer with less than 500 employees and a representative of an
employer with more than 500 employees, and a representative of
a health care services plan or insurer, all appointed by the
Governor. In making appointments, the Governor shall seek
individuals who have had personal or family experience with
mental illness.

(b) Members shall serve without compensation, but shall be
reimbursed for all actual and necessary expenses incurred in the
performance of their duties.

(c) The term of each member shall be three years, to be
staggered so that approximately one-third of the appointments
expire in each year.

(d) In carrying out its duties and responsibilities, the commission
may do all of the following:

(1) Meet at least once each quarter at any time and location
convenient to the public as it may deem appropriate. All meetings
of the commission shall be open to the public.

(2) Within the limit of funds allocated for these purposes,
pursuant to the laws and regulations governing state civil service,
employ staff, including any clerical, legal, and technical assistance
as may appear necessary. The commission shall administer its
operations separate and apart from the State Department of Health
Care Services and the California Health and Human Services
Agency.

(3) Establish technical advisory committees, such as a committee
of consumers and family members.

(4) Employ all other appropriate strategies necessary or
convenient to enable it to fully and adequately perform its duties
and exercise the powers expressly granted, notwithstanding any
authority expressly granted to any officer or employee of state
government.

(5) Enter into contracts.

(6) Obtain data and information from the State Department of
Health Care Services, the Office of Statewide Health Planning and
Development, or other state or local entities that receive Mental
Health Services Act funds, for the commission to utilize in its
oversight, review, training and technical assistance, accountability,
and evaluation capacity regarding projects and programs supported
with Mental Health Services Act funds.

(7) Participate in the joint state-county decisionmaking process,
as contained in Section 4061, for training, technical assistance,
and regulatory resources to meet the mission and goals of the
state’s mental health system.

(8) Develop strategies to overcome stigma and discrimination,
and accomplish all other objectives of Part 3.2 (commencing with
Section 5830), begin insert Part end insert 3.6 (commencing with Section 5840), and the
other provisions of the act establishing this commission.

(9) At any time, advise the Governor or the Legislature regarding
actions the state may take to improve care and services for people
with mental illness.

(10) If the commission identifies a critical issue related to the
performance of a county mental health program, it may refer the
issue to the State Department of Health Care Services pursuant to
Section 5655.

(11) Assist in providing technical assistance to accomplish the
purposes of the Mental Health Services Act, Part 3 (commencing
with Section begin delete 5800), end delete begin insert 5800) end insert and Part 4 (commencing with Section
5850) in collaboration with the State Department of Health Care
Services and in consultation with the County Behavioral Health
Directors Association of California.

(12) Work in collaboration with the State Department of Health
Care Services and the California Mental Health Planning Council,
and in consultation with the County Behavioral Health Directors
Association of California, in designing a comprehensive joint plan
for a coordinated evaluation of client outcomes in the
community-based mental health system, including, but not limited
to, parts listed in subdivision (a). The California Health and Human
Services Agency shall lead this comprehensive joint plan effort.

begin delete SEC. 24. end delete
begin insert SEC. 54. end insert   

Section 5847 of the Welfare and Institutions Code is
amended to read:

5847.  

Integrated Plans for Prevention, Innovation, and System
of Care Services.

(a) Each county mental health program shall prepare and submit
a three-year program and expenditure plan, and annual updates,
adopted by the county board of supervisors, to the Mental Health
Services Oversight and Accountability Commission within 30 days
after adoption.

(b) The three-year program and expenditure plan shall be based
on available unspent funds and estimated revenue allocations
provided by the state and in accordance with established
stakeholder engagement and planning requirements as required in
Section 5848. The three-year program and expenditure plan and
annual updates shall include all of the following:

(1) A program for prevention and early intervention in
accordance with Part 3.6 (commencing with Section 5840).

(2) A program for services to children in accordance with Part
4 (commencing with Section 5850), to include a program pursuant
to Chapter 4 (commencing with Section 18250) of Part 6 of
Division 9 or provide substantial evidence that it is not feasible to
establish a wraparound program in that county.

(3) A program for services to adults and seniors in accordance
with Part 3 (commencing with Section 5800).

(4) A program for innovations in accordance with Part 3.2
(commencing with Section 5830).

(5) A program for technological needs and capital facilities
needed to provide services pursuant to Part 3 (commencing with
Section 5800), Part 3.6 (commencing with Section 5840), and Part
4 (commencing with Section 5850). All plans for proposed facilities
with restrictive settings shall demonstrate that the needs of the
people to be served cannot be met in a less restrictive or more
integrated setting.

(6) Identification of shortages in personnel to provide services
pursuant to the above programs and the additional assistance
needed from the education and training programs established
pursuant to Part 3.1 (commencing with Section 5820).

(7) Establishment and maintenance of a prudent reserve to
ensure the county program will continue to be able to serve
children, adults, and seniors that it is currently serving pursuant
to Part 3 (commencing with Section 5800), the Adult and Older
Adult Mental Health System of Care Act, Part 3.6 (commencing
with Section 5840), Prevention and Early Intervention Programs,
and Part 4 (commencing with Section 5850), the Children’s Mental
Health Services Act, during years in which revenues for the Mental
Health Services Fund are below recent averages adjusted by
changes in the state population and the California Consumer Price
Index.

(8) Certification by the county begin delete mental end delete begin insert behavioral end insert health director,
which ensures that the county has complied with all pertinent
regulations, laws, and statutes of the Mental Health Services Act,
including stakeholder participation and nonsupplantation
requirements.

(9) Certification by the county begin delete mental end delete begin insert behavioral end insert health director
and by the county auditor-controller that the county has complied
with any fiscal accountability requirements as directed by the State
Department of Health Care Services, and that all expenditures are
consistent with the requirements of the Mental Health Services
Act.

(c) The programs established pursuant to paragraphs (2) and
(3) of subdivision (b) shall include services to address the needs
of transition age youth begin delete ages 16 to 25. end delete begin insert 16 to 25 years of age. end insert In
implementing this subdivision, county mental health programs
shall consider the needs of transition age foster youth.

(d) Each year, the State Department of Health Care Services
shall inform the County Behavioral Health Directors Association
of California and the Mental Health Services Oversight and
Accountability Commission of the methodology used for revenue
allocation to the counties.

(e) Each county mental health program shall prepare expenditure
plans pursuant to Part 3 (commencing with Section 5800) for adults
and seniors, Part 3.2 (commencing with Section 5830) for
innovative programs, Part 3.6 (commencing with Section 5840)
for prevention and early intervention programs, and Part 4
(commencing with Section 5850) for services for children, and
updates to the plans developed pursuant to this section. Each
expenditure update shall indicate the number of children, adults,
and seniors to be served pursuant to Part 3 (commencing with
Section 5800), and Part 4 (commencing with Section 5850), and
the cost per person. The expenditure update shall include utilization
of unspent funds allocated in the previous year and the proposed
expenditure for the same purpose.

(f) A county mental health program shall include an allocation
of funds from a reserve established pursuant to paragraph (7) of
subdivision (b) for services pursuant to paragraphs (2) and (3) of
subdivision (b) in years in which the allocation of funds for services
pursuant to subdivision (e) are not adequate to continue to serve
the same number of individuals as the county had been serving in
the previous fiscal year.

begin delete SEC. 25. end delete
begin insert SEC. 55. end insert   

Section 5848 of the Welfare and Institutions Code is
amended to read:

5848.  

(a) Each three-year program and expenditure plan and
update shall be developed with local stakeholders, including adults
and seniors with severe mental illness, families of children, adults,
and seniors with severe mental illness, providers of services, law
enforcement agencies, education, social services agencies, veterans,
representatives from veterans organizations, providers of alcohol
and drug services, health care organizations, and other important
interests. Counties shall demonstrate a partnership with constituents
and stakeholders throughout the process that includes meaningful
stakeholder involvement on mental health policy, program
planning, and implementation, monitoring, quality improvement,
evaluation, and budget allocations. A draft plan and update shall
be prepared and circulated for review and comment for at least 30
days to representatives of stakeholder interests and any interested
party who has requested a copy of the draft plans.

(b) The mental health board established pursuant to Section
5604 shall conduct a public hearing on the draft three-year program
and expenditure plan and annual updates at the close of the 30-day
comment period required by subdivision (a). Each adopted
three-year program and expenditure plan and update shall include
any substantive written recommendations for revisions. The
adopted three-year program and expenditure plan or update shall
summarize and analyze the recommended revisions. The mental
health board shall review the adopted plan or update and make
recommendations to the county mental health department for
revisions.

(c) The plans shall include reports on the achievement of
performance outcomes for services pursuant to Part 3 (commencing
with Section 5800), Part 3.6 (commencing with Section 5840),
and Part 4 (commencing with Section 5850) funded by the Mental
Health Services Fund and established jointly by the State
Department of Health Care Services and the Mental Health Services
Oversight and Accountability Commission, in collaboration with
the County Behavioral Health Directors Association of California.

(d) Mental health services provided pursuant to Part 3
(commencing with Section begin delete 5800), end delete begin insert 5800) end insert and Part 4 (commencing
with Section begin delete 5850), end delete begin insert 5850) end insert shall be included in the review of
program performance by the California Mental Health Planning
Council required by paragraph (2) of subdivision (c) of Section
5772 and in the local mental health board’s review and comment
on the performance outcome data required by paragraph (7) of
subdivision (a) of Section 5604.2.

begin delete SEC. 26. end delete
begin insert SEC. 56. end insert   

Section 5848.5 of the Welfare and Institutions Code
is amended to read:

5848.5.  

(a) The Legislature finds and declares all of the
following:

(1) California has realigned public community mental health
services to counties and it is imperative that sufficient
community-based resources be available to meet the mental health
needs of eligible individuals.

(2) Increasing access to effective outpatient and crisis
stabilization services provides an opportunity to reduce costs
associated with expensive inpatient and emergency room care and
to better meet the needs of individuals with mental health disorders
in the least restrictive manner possible.

(3) Almost one-fifth of people with mental health disorders visit
a hospital emergency room at least once per year. If an adequate
array of crisis services is not available, it leaves an individual with
little choice but to access an emergency room for assistance and,
potentially, an unnecessary inpatient hospitalization.

(4) Recent reports have called attention to a continuing problem
of inappropriate and unnecessary utilization of hospital emergency
rooms in California due to limited community-based services for
individuals in psychological distress and acute psychiatric crisis.
Hospitals report that 70 percent of people taken to emergency
rooms for psychiatric begin delete evacuation end delete begin insert evaluation end insert can be stabilized and
transferred to a less intensive level of crisis care. Law enforcement
personnel report that their personnel need to stay with people in
the emergency room waiting area until a placement is found, and
that less intensive levels of care tend not to be available.

(5) Comprehensive public and private partnerships at both local
and regional levels, including across physical health services,
mental health, substance use disorder, law enforcement, social
services, and related supports, are necessary to develop and
maintain high quality, patient-centered, and cost-effective care for
individuals with mental health disorders that facilitates their
recovery and leads towards wellness.

(6) The recovery of individuals with mental health disorders is
important for all levels of government, business, and the local
community.

(b) This section shall be known, and may be cited, as the
Investment in Mental Health Wellness Act of 2013. The objectives
of this section are to do all of the following:

(1) Expand access to early intervention and treatment services
to improve the client experience, achieve recovery and wellness,
and reduce costs.

(2) Expand the continuum of services to address crisis
intervention, crisis stabilization, and crisis residential treatment
needs that are wellness, resiliency, and recovery oriented.

(3) Add at least 25 mobile crisis support teams and at least 2,000
crisis stabilization and crisis residential treatment beds to bolster
capacity at the local level to improve access to mental health crisis
services and address unmet mental health care needs.

(4) Add at least 600 triage personnel to provide intensive case
management and linkage to services for individuals with mental
health care disorders at various points of access, such as at
designated community-based service points, homeless shelters,
and clinics.

(5) Reduce unnecessary hospitalizations and inpatient days by
appropriately utilizing community-based services and improving
access to timely assistance.

(6) Reduce recidivism and mitigate unnecessary expenditures
of local law enforcement.

(7) Provide local communities with increased financial resources
to leverage additional public and private funding sources to achieve
improved networks of care for individuals with mental health
disorders.

(c) Through appropriations provided in the annual Budget Act
for this purpose, it is the intent of the Legislature to authorize the
California Health Facilities Financing Authority, hereafter referred
to as the authority, and the Mental Health Services Oversight and
Accountability Commission, hereafter referred to as the
commission, to administer competitive selection processes as
provided in this section for capital capacity and program expansion
to increase capacity for mobile crisis support, crisis intervention,
crisis stabilization services, crisis residential treatment, and
specified personnel resources.

(d) Funds appropriated by the Legislature to the authority for
purposes of this section shall be made available to selected
counties, or counties acting jointly. The authority may, at its
discretion, also give consideration to private nonprofit corporations
and public agencies in an area or region of the state if a county, or
counties acting jointly, affirmatively supports this designation and
collaboration in lieu of a county government directly receiving
grant funds.

(1) Grant awards made by the authority shall be used to expand
local resources for the development, capital, equipment acquisition,
and applicable program startup or expansion costs to increase
capacity for client assistance and services in the following areas:

(A) Crisis intervention, as authorized by Sections 14021.4,
14680, and 14684.

(B) Crisis stabilization, as authorized by Sections 14021.4,
14680, and 14684.

(C) Crisis residential treatment, as authorized by Sections
14021.4, 14680, and 14684.

(D) Rehabilitative mental health services, as authorized by
Sections 14021.4, 14680, and 14684.

(E) Mobile crisis support teams, including personnel and
equipment, such as the purchase of vehicles.

(2) The authority shall develop selection criteria to expand local
resources, including those described in paragraph (1), and processes
for awarding grants after consulting with representatives and
interested stakeholders from the mental health community,
including, but not limited to, the County Behavioral Health
Directors Association of California, service providers, consumer
organizations, and other appropriate interests, such as health care
providers and law enforcement, as determined by the authority.
The authority shall ensure that grants result in cost-effective
expansion of the number of community-based crisis resources in
regions and communities selected for funding. The authority shall
also take into account at least the following criteria and factors
when selecting recipients of grants and determining the amount
of grant awards:

(A) Description of need, including, at a minimum, a
comprehensive description of the project, community need,
population to be served, linkage with other public systems of health
and mental health care, linkage with local law enforcement, social
services, and related assistance, as applicable, and a description
of the request for funding.

(B) Ability to serve the target population, which includes
individuals eligible for Medi-Cal and individuals eligible for county
health and mental health services.

(C) Geographic areas or regions of the state to be eligible for
grant awards, which may include rural, suburban, and urban areas,
and may include use of the five regional designations utilized by
the County Behavioral Health Directors Association of California.

(D) Level of community engagement and commitment to project
completion.

(E) Financial support that, in addition to a grant that may be
awarded by the authority, will be sufficient to complete and operate
the project for which the grant from the authority is awarded.

(F) Ability to provide additional funding support to the project,
including public or private funding, federal tax credits and grants,
foundation support, and other collaborative efforts.

(G) Memorandum of understanding among project partners, if
applicable.

(H) Information regarding the legal status of the collaborating
partners, if applicable.

(I) Ability to measure key outcomes, including improved access
to services, health and mental health outcomes, and cost benefit
of the project.

(3) The authority shall determine maximum grants awards,
which shall take into consideration the number of projects awarded
to the grantee, as described in paragraph (1), and shall reflect
reasonable costs for the project and geographic region. The
authority may allocate a grant in increments contingent upon the
phases of a project.

(4) Funds awarded by the authority pursuant to this section may
be used to supplement, but not to supplant, existing financial and
resource commitments of the grantee or any other member of a
collaborative effort that has been awarded a grant.

(5) All projects that are awarded grants by the authority shall
be completed within a reasonable period of time, to be determined
by the authority. Funds shall not be released by the authority until
the applicant demonstrates project readiness to the authority’s
satisfaction. If the authority determines that a grant recipient has
failed to complete the project under the terms specified in awarding
the grant, the authority may require remedies, including the return
of all or a portion of the grant.

(6) A grantee that receives a grant from the authority under this
section shall commit to using that capital capacity and program
expansion project, such as the mobile crisis team, crisis
stabilization unit, or crisis residential treatment program, for the
duration of the expected life of the project.

(7) The authority may consult with a technical assistance entity,
as described in paragraph (5) of subdivision (a) of Section 4061,
for purposes of implementing this section.

(8) The authority may adopt emergency regulations relating to
the grants for the capital capacity and program expansion projects
described in this section, including emergency regulations that
define eligible costs and determine minimum and maximum grant
amounts.

(9) The authority shall provide reports to the fiscal and policy
committees of the Legislature on or before May 1, 2014, and on
or before May 1, 2015, on the progress of implementation, that
begin delete includes, end delete begin insert include, end insert but are not limited to, the following:

(A) A description of each project awarded funding.

(B) The amount of each grant issued.

(C) A description of other sources of funding for each project.

(D) The total amount of grants issued.

(E) A description of project operation and implementation,
including who is being served.

(10) A recipient of a grant provided pursuant to paragraph (1)
shall adhere to all applicable laws relating to scope of practice,
licensure, certification, staffing, and building codes.

(e) Funds appropriated by the Legislature to the commission
for purposes of this section shall be allocated for triage personnel
to provide intensive case management and linkage to services for
individuals with mental health disorders at various points of access.
These funds shall be made available to selected counties, counties
acting jointly, or city mental health departments, as determined
by the commission through a selection process. It is the intent of
the Legislature for these funds to be allocated in an efficient manner
to encourage early intervention and receipt of needed services for
individuals with mental health disorders, and to assist in navigating
the local service sector to improve efficiencies and the delivery of
services.

(1) Triage personnel may provide targeted case management
services face to face, by telephone, or by telehealth with the
individual in need of assistance or his or her significant support
person, and may be provided anywhere in the community. These
service activities may include, but are not limited to, the following:

(A) Communication, coordination, and referral.

(B) Monitoring service delivery to ensure the individual accesses
and receives services.

(C) Monitoring the individual’s progress.

(D) Providing placement service assistance and service plan
development.

(2) The commission shall take into account at least the following
criteria and factors when selecting recipients and determining the
amount of grant awards for triage personnel as follows:

(A) Description of need, including potential gaps in local service
connections.

(B) Description of funding request, including personnel and use
of peer support.

(C) Description of how triage personnel will be used to facilitate
linkage and access to services, including objectives and anticipated
outcomes.

(D) Ability to obtain federal Medicaid reimbursement, when
applicable.

(E) Ability to administer an effective service program and the
degree to which local agencies and service providers will support
and collaborate with the triage personnel effort.

(F) Geographic areas or regions of the state to be eligible for
grant awards, which shall include rural, suburban, and urban areas,
and may include use of the five regional designations utilized by
the County Behavioral Health Directors Association of California.

(3) The commission shall determine maximum grant awards,
and shall take into consideration the level of need, population to
be served, and related criteria, as described in paragraph (2), and
shall reflect reasonable costs.

(4) Funds awarded by the commission for purposes of this
section may be used to supplement, but not supplant, existing
financial and resource commitments of the county, counties acting
jointly, or city mental health department that received the grant.

(5) Notwithstanding any other law, a county, counties acting
jointly, or city mental health department that receives an award of
funds for the purpose of supporting triage personnel pursuant to
this subdivision is not required to provide a matching contribution
of local funds.

(6) Notwithstanding any other law, the commission, without
taking any further regulatory action, may implement, interpret, or
make specific this section by means of informational letters,
bulletins, or similar instructions.

(7) The commission shall provide a status report to the fiscal
and policy committees of the Legislature on the progress of
implementation no later than March 1, 2014.

begin delete SEC. 27. end delete
begin insert SEC. 57. end insert   

Section 5892 of the Welfare and Institutions Code is
amended to read:

5892.  

(a) In order to promote efficient implementation of this
act, the county shall use funds distributed from the Mental Health
Services Fund as follows:

(1) In 2005-06, 2006-07, and in begin delete 2007-08 end delete begin insert 2007-08, end insert 10 percent
shall be placed in a trust fund to be expended for education and
training programs pursuant to Part 3.1.

(2) In 2005-06, begin delete 2006-07 end delete begin insert 2006-07, end insert and in begin delete 2007-08 end delete begin insert 2007-08, end insert
10 percent for capital facilities and technological needs distributed
to counties in accordance with a formula developed in consultation
with the County Behavioral Health Directors Association of
California to implement plans developed pursuant to Section 5847.

(3) Twenty percent of funds distributed to the counties pursuant
to subdivision (c) of Section 5891 shall be used for prevention and
early intervention programs in accordance with Part 3.6
(commencing with Section 5840) of this division.

(4) The expenditure for prevention and early intervention may
be increased in any county in which the department determines
that the increase will decrease the need and cost for additional
services to severely mentally ill persons in that county by an
amount at least commensurate with the proposed increase.

(5) The balance of funds shall be distributed to county mental
health programs for services to persons with severe mental illnesses
pursuant to Part 4 (commencing with Section begin delete 5850), end delete begin insert 5850) end insert for the
children’s system of care and Part 3 (commencing with Section
begin delete 5800), end delete begin insert 5800) end insert for the adult and older adult system of care.

(6) Five percent of the total funding for each county mental
health program for Part 3 (commencing with Section 5800), Part
3.6 (commencing with Section 5840), and Part 4 (commencing
with Section 5850) of this division, shall be utilized for innovative
programs in accordance with Sections 5830, 5847, and 5848.

(b) In any year after 2007-08, programs for services pursuant
to Part 3 (commencing with Section begin delete 5800), end delete begin insert 5800) end insert and Part 4
(commencing with Section 5850) of this division may include
funds for technological needs and capital facilities, human resource
needs, and a prudent reserve to ensure services do not have to be
significantly reduced in years in which revenues are below the
average of previous years. The total allocation for purposes
authorized by this subdivision shall not exceed 20 percent of the
average amount of funds allocated to that county for the previous
five years pursuant to this section.

(c) The allocations pursuant to subdivisions (a) and (b) shall
include funding for annual planning costs pursuant to Section 5848.
The total of these costs shall not exceed 5 percent of the total of
annual revenues received for the fund. The planning costs shall
include funds for county mental health programs to pay for the
costs of consumers, family members, and other stakeholders to
participate in the planning process and for the planning and
implementation required for private provider contracts to be
significantly expanded to provide additional services pursuant to
Part 3 (commencing with Section begin delete 5800), end delete begin insert 5800) end insert and Part 4
(commencing with Section 5850) of this division.

(d) Prior to making the allocations pursuant to subdivisions (a),
(b), and (c), funds shall be reserved for the costs for the State
Department of Health Care Services, the California Mental Health
Planning Council, the Office of Statewide Health Planning and
Development, the Mental Health Services Oversight and
Accountability Commission, the State Department of Public Health,
and any other state agency to implement all duties pursuant to the
programs set forth in this section. These costs shall not exceed 5
percent of the total of annual revenues received for the fund. The
administrative costs shall include funds to assist consumers and
family members to ensure the appropriate state and county agencies
give full consideration to concerns about quality, structure of
service delivery, or access to services. The amounts allocated for
administration shall include amounts sufficient to ensure adequate
research and evaluation regarding the effectiveness of services
being provided and achievement of the outcome measures set forth
in Part 3 (commencing with Section 5800), Part 3.6 (commencing
with Section 5840), and Part 4 (commencing with Section 5850)
of this division. The amount of funds available for the purposes
of this subdivision in any fiscal year shall be subject to
appropriation in the annual Budget Act.

(e) In begin delete 2004-05 end delete begin insert 2004-05, end insert funds shall be allocated as follows:

(1)  Forty-five percent for education and training pursuant to
Part 3.1 (commencing with Section 5820) of this division.

(2)  Forty-five percent for capital facilities and technology needs
in the manner specified by paragraph (2) of subdivision (a).

(3)  Five percent for local planning in the manner specified in
subdivision (c).

(4) Five percent for state implementation in the manner specified
in subdivision (d).

(f) Each county shall place all funds received from the State
Mental Health Services Fund in a local Mental Health Services
Fund. The Local Mental Health Services Fund balance shall be
invested consistent with other county funds and the interest earned
on the investments shall be transferred into the fund. The earnings
on investment of these funds shall be available for distribution
from the fund in future years.

(g) All expenditures for county mental health programs shall
be consistent with a currently approved plan or update pursuant
to Section 5847.

(h) Other than funds placed in a reserve in accordance with an
approved plan, any funds allocated to a county that have not been
spent for their authorized purpose within three years shall revert
to the state to be deposited into the fund and available for other
counties in future years, provided however, that funds for capital
facilities, technological needs, or education and training may be
retained for up to 10 years before reverting to the fund.

(i) If there are still additional revenues available in the fund
after the Mental Health Services Oversight and Accountability
Commission has determined there are prudent reserves and no
unmet needs for any of the programs funded pursuant to this
section, including all purposes of the Prevention and Early
Intervention Program, the commission shall develop a plan for
expenditures of these revenues to further the purposes of this act
and the Legislature may appropriate these funds for any purpose
consistent with the commission’s adopted plan that furthers the
purposes of this act.

(j) For the 2011-12 fiscal year, General Fund revenues will be
insufficient to fully fund many existing mental health programs,
including Early and Periodic Screening, Diagnosis, and Treatment
(EPSDT), Medi-Cal Specialty Mental Health Managed Care, and
mental health services provided for special education pupils. In
order to adequately fund those programs for the 2011-12 fiscal
year and avoid deeper reductions in programs that serve individuals
with severe mental illness and the most vulnerable, medically
needy citizens of the state, prior to distribution of funds under
paragraphs (1) to (6), inclusive, of subdivision (a), effective July
1, 2011, moneys shall be allocated from the Mental Health Services
Fund to the counties as follows:

(1) Commencing July 1, 2011, one hundred eighty-three million
six hundred thousand dollars ($183,600,000) of the funds available
as of July 1, 2011, in the Mental Health Services Fund, shall be
allocated in a manner consistent with subdivision (c) of Section
5778 and based on a formula determined by the state in
consultation with the County Behavioral Health Directors
Association of California to meet the fiscal year 2011-12 General
Fund obligation for Medi-Cal Specialty Mental Health Managed
Care.

(2) Upon completion of the allocation in paragraph (1), the
Controller shall distribute to counties ninety-eight million five
hundred eighty-six thousand dollars ($98,586,000) from the Mental
Health Services Fund for mental health services for special
education pupils based on a formula determined by the state in
consultation with the County Behavioral Health Directors
Association of California.

(3) Upon completion of the allocation in paragraph (2), the
Controller shall distribute to counties 50 percent of their 2011-12
Mental Health Services Act component allocations consistent with
Sections 5847 and 5891, not to exceed four hundred eighty-eight
million dollars ($488,000,000). This allocation shall commence
beginning August 1, 2011.

(4) Upon completion of the allocation in paragraph (3), and as
revenues are deposited into the Mental Health Services Fund, the
Controller shall distribute five hundred seventy-nine million dollars
($579,000,000) from the Mental Health Services Fund to counties
to meet the General Fund obligation for EPSDT for begin delete fiscal year
2011-12. end delete begin insert the 2011-12 fiscal year. end insert These revenues shall be
distributed to counties on a quarterly basis and based on a formula
determined by the state in consultation with the County Behavioral
Health Directors Association of California. These funds shall not
be subject to reconciliation or cost settlement.

(5) The Controller shall distribute to counties the remaining
2011-12 Mental Health Services Act component allocations
consistent with Sections 5847 and 5891, beginning no later than
April 30, 2012. These remaining allocations shall be made on a
monthly basis.

(6) The total one-time allocation from the Mental Health
Services Fund for EPSDT, Medi-Cal Specialty Mental Health
Managed Care, and mental health services provided to special
education pupils as referenced shall not exceed eight hundred
sixty-two million dollars ($862,000,000). Any revenues deposited
in the Mental Health Services Fund in begin delete fiscal year end delete begin insert the end insert 2011-12
begin insert fiscal year end insert that exceed this obligation shall be distributed to
counties for remaining fiscal year 2011-12 Mental Health Services
Act component allocations, consistent with Sections 5847 and
5891.

(k) Subdivision (j) shall not be subject to repayment.

(l) Subdivision (j) shall become inoperative on July 1, 2012.

begin delete SEC. 28. end delete
begin insert SEC. 58. end insert   

Section 5899 of the Welfare and Institutions Code is
amended to read:

5899.  

(a) The State Department of Health Care Services, in
consultation with the Mental Health Services Oversight and
Accountability Commission and the County Behavioral Health
Directors Association of California, shall develop and administer
instructions for the Annual Mental Health Services Act Revenue
and Expenditure Report. This report shall be submitted
electronically to the department and to the Mental Health Services
Oversight and Accountability Commission.

(b) The purpose of the Annual Mental Health Services Act
Revenue and Expenditure Report is as follows:

(1) Identify the expenditures of Mental Health Services Act
(MHSA) funds that were distributed to each county.

(2) Quantify the amount of additional funds generated for the
mental health system as a result of the MHSA.

(3) Identify unexpended funds, and interest earned on MHSA
funds.

(4) Determine reversion amounts, if applicable, from prior fiscal
year distributions.

(c) This report is intended to provide information that allows
for the evaluation of all of the following:

(1) Children’s systems of care.

(2) Prevention and early intervention strategies.

(3) Innovative projects.

(4) Workforce education and training.

(5) Adults and older adults systems of care.

(6) Capital facilities and technology needs.

begin delete SEC. 29. end delete
begin insert SEC. 59. end insert   

Section 5902 of the Welfare and Institutions Code is
amended to read:

5902.  

(a) In the 1991-92 fiscal year, funding sufficient to
cover the cost of the basic level of care in institutions for mental
disease at the rate established by the State Department of Health
begin insert Care end insert Services shall be made available to the department for skilled
nursing facilities, plus the rate established for special treatment
programs. The department may authorize a county to administer
institutions for mental disease services if the county with the
consent of the affected providers makes a request to administer
services and an allocation is made to the county for these services.
The department shall continue to contract with these providers for
the services necessary for the operation of the institutions for
mental disease.

(b) In the 1992-93 fiscal year, the department shall consider
county-specific requests to continue to provide administrative
services relative to institutions for mental disease facilities when
no viable alternatives are found to exist.

(c) (1) By October 1, 1991, the department, in consultation
with the County Behavioral Health Directors Association of
California and the California Association of Health Facilities, shall
develop and publish a county-specific allocation of institutions for
mental disease funds that will take effect on July 1, 1992.

(2) By November 1, 1991, counties shall notify the providers
of any intended change in service levels to be effective on July 1,
1992.

(3) By April 1, 1992, counties and providers shall have entered
into contracts for basic institutions for mental disease services at
the rate described in subdivision (e) for the 1992-93 fiscal year at
the level expressed on or before November 1, 1991, except that a
county shall be permitted additional time, until June 1, 1992, to
complete the processing of the contract, when any of the following
conditions are met:

(A) The county and the affected provider have agreed on all
substantive institutions for mental disease contract issues by April
1, 1992.

(B) Negotiations are in process with the county on April 1, 1992,
and the affected provider has agreed in writing to the extension.

(C) The service level committed to on November 1, 1991,
exceeds the affected provider’s bed capacity.

(D) The county can document that the affected provider has
refused to enter into negotiations by April 1, 1992, or has
substantially delayed negotiations.

(4) If a county and a provider are unable to reach agreement on
substantive contract issues by June 1, 1992, the department may,
upon request of either the affected county or the provider, mediate
the disputed issues.

(5)  begin delete Where end delete begin insert When end insert contracts for service at the level committed to
on November 1, 1991, have not been completed by April 1, 1992,
and additional time is not permitted pursuant to the exceptions
specified in paragraph (3) the funds allocated to those counties
shall revert for reallocation in a manner that shall promote equity
of funding among counties. With respect to counties with
exceptions permitted pursuant to paragraph (3), funds shall not
revert unless contracts are not completed by June 1, 1992. In no
event shall funds revert under this section if there is no harm to
the provider as a result of the county contract not being completed.
During the 1992-93 fiscal year, funds reverted under this paragraph
shall be used to purchase institution for mental disease/skilled
nursing/special treatment program services in existing facilities.

(6) Nothing in this section shall apply to negotiations regarding
supplemental payments beyond the rate specified in subdivision
(e).

(d) On or before April 1, 1992, counties may complete contracts
with facilities for the direct purchase of services in the 1992-93
fiscal year. Those counties for which facility contracts have not
been completed by that date shall be deemed to continue to accept
financial responsibility for those patients during the subsequent
fiscal year at the rate specified in subdivision (a).

(e) As long as contracts with institutions for mental disease
providers require the facilities to maintain skilled nursing facility
licensure and certification, reimbursement for basic services shall
be at the rate established by the State Department of Health begin insert Care end insert
Services. Except as provided in this section, reimbursement rates
for services in institutions for mental diseases shall be the same
as the rates in effect on July 31, 2004. Effective July 1, 2005,
through June 30, 2008, the reimbursement rate for institutions for
mental disease shall increase by 6.5 percent annually. Effective
July 1, 2008, the reimbursement rate for institutions for mental
disease shall increase by 4.7 percent annually.

(f) (1) Providers that agree to contract with the county for
services under an alternative mental health program pursuant to
Section 5768 that does not require skilled nursing facility licensure
shall retain return rights to licensure as skilled nursing facilities.

(2) Providers participating in an alternative program that elect
to return to skilled nursing facility licensure shall only be required
to meet those requirements under which they previously operated
as a skilled nursing facility.

(g) In the 1993-94 fiscal year and thereafter, the department
shall consider requests to continue administrative services related
to institutions for mental disease facilities from counties with a
population of 150,000 or less based on the most recent available
estimates of population data as determined by the Population
Research Unit of the Department of Finance.

begin insert

begin insert SEC. 60. end insert   

end insert

begin insert Section 6002.25 of the end insert begin insert Welfare and Institutions Code end insert
begin insert is amended to read: end insert

6002.25.  

The independent clinical review shall be conducted
by a licensed psychiatrist with training and experience in treating
psychiatric adolescent patients, who is a neutral party to the review,
having no direct financial relationship with the treating clinician,
nor a personal or financial relationship with the patient, or his or
her parents or guardian. Nothing in this section shall prevent a
psychiatrist affiliated with a health maintenance organization, as
defined in subdivision (b) of Section 1373.10 of the Health and
Safety Code, from providing the independent clinical review where
the admitting, treating, and reviewing psychiatrists are affiliated
with a health maintenance organization that predominantly serves
members of a prepaid health care service plan. The independent
clinical reviewer shall be assigned, on a rotating basis, from a list
prepared by the facility, and submitted to the county begin delete mental end delete
begin insert behavioral end insert health director prior to March 1, 1990, and annually
thereafter, or more frequently when necessary. The county begin delete mental end delete
begin insert behavioral end insert health director shall, on an annual basis, or at the
request of the facility, review the facility’s list of independent
clinical reviewers. The county begin delete mental end delete begin insert behavioral end insert health director
shall approve or disapprove the list of reviewers within 30 days
of submission. If there is no response from the county begin delete mental end delete
begin insert behavioral end insert health director, the facility’s list shall be deemed
approved. If the county begin delete mental end delete begin insert behavioral end insert health director
disapproves one or more of the persons on the list of reviewers,
the county begin delete mental end delete begin insert behavioral end insert health director shall notify the facility
in writing of the reasons for the disapproval. The county begin delete mental end delete
begin insert behavioral end insert health director, in consultation with the facility, may
develop a list of one or more additional reviewers within 30 days.
The final list shall be mutually agreeable to the county begin delete mental end delete
begin insert behavioral end insert health director and the facility. Sections 6002.10 to
6002.40, inclusive, shall not be construed to prohibit the treatment
of minors prior to the existence of an approved list of independent
clinical reviewers. The independent clinical reviewer may be an
active member of the medical staff of the facility who has no direct
financial relationship, including, but not limited to, an employment
or other contract arrangement with the facility except for
compensation received for the service of providing clinical reviews.

begin insert

begin insert SEC. 61. end insert   

end insert

begin insert Section 8103 of the end insert begin insert Welfare and Institutions Code end insert begin insert is
amended to read: end insert

8103.  

(a) (1) No person who after October 1, 1955, has been
adjudicated by a court of any state to be a danger to others as a
result of a mental disorder or mental illness, or who has been
adjudicated to be a mentally disordered sex offender, shall purchase
or receive, or attempt to purchase or receive, or have in his or her
possession, custody, or control a firearm or any other deadly
weapon unless there has been issued to the person a certificate by
the court of adjudication upon release from treatment or at a later
date stating that the person may possess a firearm or any other
deadly weapon without endangering others, and the person has
not, subsequent to the issuance of the certificate, again been
adjudicated by a court to be a danger to others as a result of a
mental disorder or mental illness.

(2) The court shall notify the Department of Justice of the court
order finding the individual to be a person described in paragraph
(1) as soon as possible, but not later than one court day after issuing
the order. The court shall also notify the Department of Justice of
any certificate issued as described in paragraph (1) as soon as
possible, but not later than one court day after issuing the
certificate.

(b) (1) No person who has been found, pursuant to Section
1026 of the Penal Code or the law of any other state or the United
States, not guilty by reason of insanity of murder, mayhem, a
violation of Section 207, 209, or 209.5 of the Penal Code in which
the victim suffers intentionally inflicted great bodily injury,
carjacking or robbery in which the victim suffers great bodily
injury, a violation of Section 451 or 452 of the Penal Code
involving a trailer coach, as defined in Section 635 of the Vehicle
Code, or any dwelling house, a violation of paragraph (1) or (2)
of subdivision (a) of Section 262 or paragraph (2) or (3) of
subdivision (a) of Section 261 of the Penal Code, a violation of
Section 459 of the Penal Code in the first degree, assault with
intent to commit murder, a violation of Section 220 of the Penal
Code in which the victim suffers great bodily injury, a violation
of Section 18715, 18725, 18740, 18745, 18750, or 18755 of the
Penal Code, or of a felony involving death, great bodily injury, or
an act which poses a serious threat of bodily harm to another
person, or a violation of the law of any other state or the United
States that includes all the elements of any of the above felonies
as defined under California law, shall purchase or receive, or
attempt to purchase or receive, or have in his or her possession or
under his or her custody or control any firearm or any other deadly
weapon.

(2) The court shall notify the Department of Justice of the court
order finding the person to be a person described in paragraph (1)
as soon as possible, but not later than, one court day after issuing
the order.

(c) (1) No person who has been found, pursuant to Section 1026
of the Penal Code or the law of any other state or the United States,
not guilty by reason of insanity of any crime other than those
described in subdivision (b) shall purchase or receive, or attempt
to purchase or receive, or shall have in his or her possession,
custody, or control any firearm or any other deadly weapon unless
the court of commitment has found the person to have recovered
sanity, pursuant to Section 1026.2 of the Penal Code or the law of
any other state or the United States.

(2) The court shall notify the Department of Justice of the court
order finding the person to be a person described in paragraph (1)
as soon as possible, but not later than one court day after issuing
the order. The court shall also notify the Department of Justice
when it finds that the person has recovered his or her sanity as
soon as possible, but not later than one court day after making the
finding.

(d) (1) No person found by a court to be mentally incompetent
to stand trial, pursuant to Section 1370 or 1370.1 of the Penal Code
or the law of any other state or the United States, shall purchase
or receive, or attempt to purchase or receive, or shall have in his
or her possession, custody, or control, any firearm or any other
deadly weapon, unless there has been a finding with respect to the
person of restoration to competence to stand trial by the committing
court, pursuant to Section 1372 of the Penal Code or the law of
any other state or the United States.

(2) The court shall notify the Department of Justice of the court
order finding the person to be mentally incompetent as described
in paragraph (1) as soon as possible, but not later than one court
day after issuing the order. The court shall also notify the
Department of Justice when it finds that the person has recovered
his or her competence as soon as possible, but not later than one
court day after making the finding.

(e) (1) No person who has been placed under conservatorship
by a court, pursuant to Section 5350 or the law of any other state
or the United States, because the person is gravely disabled as a
result of a mental disorder or impairment by chronic alcoholism,
shall purchase or receive, or attempt to purchase or receive, or
shall have in his or her possession, custody, or control, any firearm
or any other deadly weapon while under the conservatorship if, at
the time the conservatorship was ordered or thereafter, the court
that imposed the conservatorship found that possession of a firearm
or any other deadly weapon by the person would present a danger
to the safety of the person or to others. Upon placing a person
under conservatorship, and prohibiting firearm or any other deadly
weapon possession by the person, the court shall notify the person
of this prohibition.

(2) The court shall notify the Department of Justice of the court
order placing the person under conservatorship and prohibiting
firearm or any other deadly weapon possession by the person as
described in paragraph (1) as soon as possible, but not later than
one court day after placing the person under conservatorship. The
notice shall include the date the conservatorship was imposed and
the date the conservatorship is to be terminated. If the
conservatorship is subsequently terminated before the date listed
in the notice to the Department of Justice or the court subsequently
finds that possession of a firearm or any other deadly weapon by
the person would no longer present a danger to the safety of the
person or others, the court shall notify the Department of Justice
as soon as possible, but not later than one court day after
terminating the conservatorship.

(3) All information provided to the Department of Justice
pursuant to paragraph (2) shall be kept confidential, separate, and
apart from all other records maintained by the Department of
Justice, and shall be used only to determine eligibility to purchase
or possess firearms or other deadly weapons. A person who
knowingly furnishes that information for any other purpose is
guilty of a misdemeanor. All the information concerning any person
shall be destroyed upon receipt by the Department of Justice of
notice of the termination of conservatorship as to that person
pursuant to paragraph (2).

(f) (1) No person who has been (A) taken into custody as
provided in Section 5150 because that person is a danger to himself,
herself, or to others, (B) assessed within the meaning of Section
5151, and (C) admitted to a designated facility within the meaning
of Sections 5151 and 5152 because that person is a danger to
himself, herself, or others, shall own, possess, control, receive, or
purchase, or attempt to own, possess, control, receive, or purchase
any firearm for a period of five years after the person is released
from the facility. A person described in the preceding sentence,
however, may own, possess, control, receive, or purchase, or
attempt to own, possess, control, receive, or purchase any firearm
if the superior court has, pursuant to paragraph (5), found that the
people of the State of California have not met their burden pursuant
to paragraph (6).

(2) (A) For each person subject to this subdivision, the facility
shall, within 24 hours of the time of admission, submit a report to
the Department of Justice, on a form prescribed by the Department
of Justice, containing information that includes, but is not limited
to, the identity of the person and the legal grounds upon which the
person was admitted to the facility.

Any report submitted pursuant to this paragraph shall be
confidential, except for purposes of the court proceedings described
in this subdivision and for determining the eligibility of the person
to own, possess, control, receive, or purchase a firearm.

(B) Commencing July 1, 2012, facilities shall submit reports
pursuant to this paragraph exclusively by electronic means, in a
manner prescribed by the Department of Justice.

(3) Prior to, or concurrent with, the discharge, the facility shall
inform a person subject to this subdivision that he or she is
prohibited from owning, possessing, controlling, receiving, or
purchasing any firearm for a period of five years. Simultaneously,
the facility shall inform the person that he or she may request a
hearing from a court, as provided in this subdivision, for an order
permitting the person to own, possess, control, receive, or purchase
a firearm. The facility shall provide the person with a form for a
request for a hearing. The Department of Justice shall prescribe
the form. Where the person requests a hearing at the time of
discharge, the facility shall forward the form to the superior court
unless the person states that he or she will submit the form to the
superior court.

(4) The Department of Justice shall provide the form upon
request to any person described in paragraph (1). The Department
of Justice shall also provide the form to the superior court in each
county. A person described in paragraph (1) may make a single
request for a hearing at any time during the five-year period. The
request for hearing shall be made on the form prescribed by the
department or in a document that includes equivalent language.

(5) A person who is subject to paragraph (1) who has requested
a hearing from the superior court of his or her county of residence
for an order that he or she may own, possess, control, receive, or
purchase firearms shall be given a hearing. The clerk of the court
shall set a hearing date and notify the person, the Department of
Justice, and the district attorney. The people of the State of
California shall be the plaintiff in the proceeding and shall be
represented by the district attorney. Upon motion of the district
attorney, or on its own motion, the superior court may transfer the
hearing to the county in which the person resided at the time of
his or her detention, the county in which the person was detained,
or the county in which the person was evaluated or treated. Within
seven days after the request for a hearing, the Department of Justice
shall file copies of the reports described in this section with the
superior court. The reports shall be disclosed upon request to the
person and to the district attorney. The court shall set the hearing
within 30 days of receipt of the request for a hearing. Upon
showing good cause, the district attorney shall be entitled to a
continuance not to exceed 14 days after the district attorney was
notified of the hearing date by the clerk of the court. If additional
continuances are granted, the total length of time for continuances
shall not exceed 60 days. The district attorney may notify the
county begin delete mental end delete begin insert behavioral end insert health director of the hearing who shall
provide information about the detention of the person that may be
relevant to the court and shall file that information with the superior
court. That information shall be disclosed to the person and to the
district attorney. The court, upon motion of the person subject to
paragraph (1) establishing that confidential information is likely
to be discussed during the hearing that would cause harm to the
person, shall conduct the hearing in camera with only the relevant
parties present, unless the court finds that the public interest would
be better served by conducting the hearing in public.
Notwithstanding any other law, declarations, police reports,
including criminal history information, and any other material and
relevant evidence that is not excluded under Section 352 of the
Evidence Code shall be admissible at the hearing under this section.

(6) The people shall bear the burden of showing by a
preponderance of the evidence that the person would not be likely
to use firearms in a safe and lawful manner.

(7) If the court finds at the hearing set forth in paragraph (5)
that the people have not met their burden as set forth in paragraph
(6), the court shall order that the person shall not be subject to the
five-year prohibition in this section on the ownership, control,
receipt, possession, or purchase of firearms, and that person shall
comply with the procedure described in Chapter 2 (commencing
with Section 33850) of Division 11 of Title 4 of Part 6 of the Penal
Code for the return of any firearms. A copy of the order shall be
submitted to the Department of Justice. Upon receipt of the order,
the Department of Justice shall delete any reference to the
prohibition against firearms from the person’s state mental health
firearms prohibition system information.

(8) Where the district attorney declines or fails to go forward
in the hearing, the court shall order that the person shall not be
subject to the five-year prohibition required by this subdivision
on the ownership, control, receipt, possession, or purchase of
firearms. A copy of the order shall be submitted to the Department
of Justice. Upon receipt of the order, the Department of Justice
shall, within 15 days, delete any reference to the prohibition against
firearms from the person’s state mental health firearms prohibition
system information, and that person shall comply with the
procedure described in Chapter 2 (commencing with Section
33850) of Division 11 of Title 4 of Part 6 of the Penal Code for
the return of any firearms.

(9) Nothing in this subdivision shall prohibit the use of reports
filed pursuant to this section to determine the eligibility of persons
to own, possess, control, receive, or purchase a firearm if the person
is the subject of a criminal investigation, a part of which involves
the ownership, possession, control, receipt, or purchase of a
firearm.

(g) (1) No person who has been certified for intensive treatment
under Section 5250, 5260, or 5270.15 shall own, possess, control,
receive, or purchase, or attempt to own, possess, control, receive,
or purchase, any firearm for a period of five years.

Any person who meets the criteria contained in subdivision (e)
or (f) who is released from intensive treatment shall nevertheless,
if applicable, remain subject to the prohibition contained in
subdivision (e) or (f).

(2) (A) For each person certified for intensive treatment under
paragraph (1), the facility shall, within 24 hours of the certification,
submit a report to the Department of Justice, on a form prescribed
by the department, containing information regarding the person,
including, but not limited to, the legal identity of the person and
the legal grounds upon which the person was certified. A report
submitted pursuant to this paragraph shall only be used for the
purposes specified in paragraph (2) of subdivision (f).

(B) Commencing July 1, 2012, facilities shall submit reports
pursuant to this paragraph exclusively by electronic means, in a
manner prescribed by the Department of Justice.

(3) Prior to, or concurrent with, the discharge of each person
certified for intensive treatment under paragraph (1), the facility
shall inform the person of that information specified in paragraph
(3) of subdivision (f).

(4) A person who is subject to paragraph (1) may petition the
superior court of his or her county of residence for an order that
he or she may own, possess, control, receive, or purchase firearms.
At the time the petition is filed, the clerk of the court shall set a
hearing date and notify the person, the Department of Justice, and
the district attorney. The people of the State of California shall be
the respondent in the proceeding and shall be represented by the
district attorney. Upon motion of the district attorney, or on its
own motion, the superior court may transfer the petition to the
county in which the person resided at the time of his or her
detention, the county in which the person was detained, or the
county in which the person was evaluated or treated. Within seven
days after receiving notice of the petition, the Department of Justice
shall file copies of the reports described in this section with the
superior court. The reports shall be disclosed upon request to the
person and to the district attorney. The district attorney shall be
entitled to a continuance of the hearing to a date of not less than
14 days after the district attorney was notified of the hearing date
by the clerk of the court. The district attorney may notify the county
begin delete mental end delete begin insert behavioral end insert health director of the petition, and the county
begin delete mental end delete begin insert behavioral end insert health director shall provide information about
the detention of the person that may be relevant to the court and
shall file that information with the superior court. That information
shall be disclosed to the person and to the district attorney. The
court, upon motion of the person subject to paragraph (1)
establishing that confidential information is likely to be discussed
during the hearing that would cause harm to the person, shall
conduct the hearing in camera with only the relevant parties
present, unless the court finds that the public interest would be
better served by conducting the hearing in public. Notwithstanding
any other law, any declaration, police reports, including criminal
history information, and any other material and relevant evidence
that is not excluded under Section 352 of the Evidence Code, shall
be admissible at the hearing under this section. If the court finds
by a preponderance of the evidence that the person would be likely
to use firearms in a safe and lawful manner, the court may order
that the person may own, control, receive, possess, or purchase
firearms, and that person shall comply with the procedure described
in Chapter 2 (commencing with Section 33850) of Division 11 of
Title 4 of Part 6 of the Penal Code for the return of any firearms.
A copy of the order shall be submitted to the Department of Justice.
Upon receipt of the order, the Department of Justice shall delete
any reference to the prohibition against firearms from the person’s
state mental health firearms prohibition system information.

(h) (1) For all persons identified in subdivisions (f) and (g),
facilities shall report to the Department of Justice as specified in
those subdivisions, except facilities shall not report persons under
subdivision (g) if the same persons previously have been reported
under subdivision (f).

(2) Additionally, all facilities shall report to the Department of
Justice upon the discharge of persons from whom reports have
been submitted pursuant to subdivision (f) or (g). However, a report
shall not be filed for persons who are discharged within 31 days
after the date of admission.

(i) Every person who owns or possesses or has under his or her
custody or control, or purchases or receives, or attempts to purchase
or receive, any firearm or any other deadly weapon in violation of
this section shall be punished by imprisonment pursuant to
subdivision (h) of Section 1170 of the Penal Code or in a county
jail for not more than one year.

(j) “Deadly weapon,” as used in this section, has the meaning
prescribed by Section 8100.

(k) Any notice or report required to be submitted to the
Department of Justice pursuant to this section shall be submitted
in an electronic format, in a manner prescribed by the Department
of Justice.

begin delete SEC. 30. end delete
begin insert SEC. 62. end insert   

Section 11467 of the Welfare and Institutions Code
is amended to read:

11467.  

(a) The State Department of Social Services, with the
advice and assistance of the County Welfare Directors begin delete Association, end delete
begin insert Association of California, end insert the Chief Probation begin delete Officer’s
Association, end delete begin insert Officers of California, end insert the County Behavioral Health
Directors Association of California, research entities, foster youth
and advocates for foster youth, foster care provider business entities
organized and operated on a nonprofit basis, tribes, and other
stakeholders, shall establish a working group to develop
performance standards and outcome measures for providers of
out-of-home care placements made under the AFDC-FC program,
including, but not limited to, foster family agency, group home,
and THP-Plus providers, and for the effective and efficient
administration of the AFDC-FC program.

(b) The performance standards and outcome measures shall
employ the applicable performance standards and outcome
measures as set forth in Sections 11469 and 11469.1, designed to
identify the degree to which foster care providers, including
business entities organized and operated on a nonprofit basis, are
providing out-of-home placement services that meet the needs of
foster children, and the degree to which these services are
supporting improved outcomes, including those identified by the
California Child and Family Service Review System.

(c) In addition to the process described in subdivision (a), the
working group may also develop the following:

(1) A means of identifying the child’s needs and determining
which is the most appropriate out-of-home placement for a child.

(2) A procedure for identifying children who have been in
congregate care for one year or longer, determining the reasons
each child remains in congregate care, and developing a plan for
each child to transition to a less restrictive, more family-like setting.

(d) The department shall provide updates regarding its progress
toward meeting the requirements of this section during the 2013
and 2014 budget hearings.

(e) Notwithstanding the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with
Section 13340) of Part 1 of Division 3 of Title 2 of the Government
Code), until the enactment of applicable state law, or October 1,
2015, whichever is earlier, the department may implement the
changes made pursuant to this section through all-county letters,
or similar instructions from the director.

begin delete SEC. 31. end delete
begin insert SEC. 63. end insert   

Section 11469 of the Welfare and Institutions Code
is amended to read:

11469.  

(a) The department, in consultation with group home
providers, the County Welfare Directors begin delete Association, end delete begin insert Association
of California, end insert the Chief Probation Officers of California, the
County Behavioral Health Directors Association of California,
and the State Department of Health Care Services, shall develop
performance standards and outcome measures for determining the
effectiveness of the care and supervision, as defined in subdivision
(b) of Section 11460, provided by group homes under the
AFDC-FC program pursuant to Sections 11460 and 11462. These
standards shall be designed to measure group home program
performance for the client group that the group home program is
designed to serve.

(1) The performance standards and outcome measures shall be
designed to measure the performance of group home programs in
areas over which the programs have some degree of influence, and
in other areas of measurable program performance that the
department can demonstrate are areas over which group home
programs have meaningful managerial or administrative influence.

(2) These standards and outcome measures shall include, but
are not limited to, the effectiveness of services provided by each
group home program, and the extent to which the services provided
by the group home assist in obtaining the child welfare case plan
objectives for the child.

(3) In addition, when the group home provider has identified
as part of its program for licensing, ratesetting, or county placement
purposes, or has included as a part of a child’s case plan by mutual
agreement between the group home and the placing agency,
specific mental health, education, medical, and other child-related
services, the performance standards and outcome measures may
also measure the effectiveness of those services.

(b) Regulations regarding the implementation of the group home
performance standards system required by this section shall be
adopted no later than one year prior to implementation. The
regulations shall specify both the performance standards system
and the manner by which the AFDC-FC rate of a group home
program shall be adjusted if performance standards are not met.

(c) Except as provided in subdivision (d), effective July 1, 1995,
group home performance standards shall be implemented. Any
group home program not meeting the performance standards shall
have its AFDC-FC rate, set pursuant to Section 11462, adjusted
according to the regulations required by this section.

(d) Effective July 1, 1995, group home programs shall be
classified at rate classification level 13 or 14 only if all of the
following are met:

(1) The program generates the requisite number of points for
rate classification level 13 or 14.

(2) The program only accepts children with special treatment
needs as determined through the assessment process pursuant to
paragraph (2) of subdivision (a) of Section 11462.01.

(3) The program meets the performance standards designed
pursuant to this section.

(e) Notwithstanding subdivision (c), the group home program
performance standards system shall not be implemented prior to
the implementation of the AFDC-FC performance standards
system.

(f) By January 1, 2016, the department, in consultation with the
County Welfare Directors begin delete Association, end delete begin insert Association of California, end insert
the Chief Probation Officers of California, the County Behavioral
Health Directors Association of California, research entities, foster
youth and advocates for foster youth, foster care provider business
entities organized and operated on a nonprofit basis, Indian tribes,
and other stakeholders, shall develop additional performance
standards and outcome measures that require group homes to
implement programs and services to minimize law enforcement
contacts and delinquency petition filings arising from incidents of
allegedly unlawful behavior by minors occurring in group homes
or under the supervision of group home staff, including
individualized behavior management programs, emergency
intervention plans, and conflict resolution processes.

begin delete SEC. 32. end delete
begin insert SEC. 64. end insert   

Section 14021.4 of the Welfare and Institutions Code
is amended to read:

14021.4.  

(a) California’s plan for federal Medi-Cal grants for
medical assistance programs, pursuant to Subchapter XIX
(commencing with Section 1396) of Title 42 of the United States
Code, shall accomplish the following objectives:

(1) Expansion of the location and type of therapeutic services
offered to persons with mental illnesses under Medi-Cal by the
category of “other diagnostic, screening, preventative, and
rehabilitative services” that is available to states under the federal
Social Security Act and its implementing regulations (42 U.S.C.
Sec. 1396d(a)(13); 42 C.F.R. 440.130).

(2) Expansion of federal financial participation in the costs of
specialty mental health services provided by local mental health
plans or under contract with the mental health plans.

(3) Expansion of the location where reimbursable specialty
mental health services can be provided, including home, school,
and begin delete community based end delete begin insert community-based end insert sites.

(4) Expansion of federal financial participation for services that
meet the rehabilitation needs of persons with mental illnesses,
including, but not limited to, medication management, functional
rehabilitation assessments of clients, and rehabilitative services
that include remedial services directed at restoration to the highest
possible functional level for persons with mental illnesses and
maximum reduction of symptoms of mental illness.

(5) Improvement of fiscal systems and accountability structures
for specialty mental health services, costs, and rates, with the goal
of achieving federal fiscal requirements.

(b) The department’s state plan revision shall be completed with
review and comments by the County Behavioral Health Directors
Association of California and other appropriate groups.

(c)  Services under the rehabilitative option shall be limited to
specialty mental health plans certified to provide Medi-Cal under
this option.

(d) It is the intent of the Legislature that the rehabilitation option
of the state Medicaid plan be implemented to expand and provide
flexibility to treatment services and to increase the federal
participation without increasing the costs to the General Fund.

(e) The department shall review and revise the quality assurance
standards and guidelines required by Section 14725 to ensure that
quality services are delivered to the eligible population. Any
reviews shall include, but not be limited to, appropriate use of
mental health professionals, including psychiatrists, in the treatment
and rehabilitation of clients under this model. The existing quality
assurance standards and guidelines shall remain in effect until the
adoption of the new quality assurance standards and guidelines.

(f) Consistent with services offered to persons with mental
illnesses under the Medi-Cal program, as required by this section,
it is the intent of the Legislature for the department to include care
and treatment of persons with mental illnesses who are eligible
for the Medi-Cal program in facilities with a bed capacity of 16
beds or less.

begin delete SEC. 33. end delete
begin insert SEC. 65. end insert   

Section 14124.24 of the Welfare and Institutions
Code is amended to read:

14124.24.  

(a) For purposes of this section, “Drug Medi-Cal
reimbursable services” means the substance use disorder services
described in the California begin delete State Medicaid end delete begin insert Medicaid State end insert Plan
and includes, but is not limited to, all of the following services,
administered by the department, and to the extent consistent with
state and federal law:

(1) Narcotic treatment program services, as set forth in Section
14021.51.

(2) Day care rehabilitative services.

(3) Perinatal residential services for pregnant women and women
in the postpartum period.

(4) Naltrexone services.

(5) Outpatient drug-free services.

(6) Other services upon approval of a federal Medicaid state
plan amendment or waiver authorizing federal financial
participation.

(b) (1) While seeking federal approval for any federal Medicaid
state plan amendment or waiver associated with Drug Medi-Cal
services, the department shall consult with the counties and
stakeholders in the development of the state plan amendment or
waiver.

(2) Upon federal approval of a federal Medicaid state plan
amendment authorizing federal financial participation in the
following services, and subject to appropriation of funds, “Drug
Medi-Cal reimbursable services” shall also include the following
services, administered by the department, and to the extent
consistent with state and federal law:

(A) Notwithstanding subdivision (a) of Section 14132.90, day
care habilitative services, which, for purposes of this paragraph,
are outpatient counseling and rehabilitation services provided to
persons with substance use disorder diagnoses.

(B) Case management services, including supportive services
to assist persons with substance use disorder diagnoses in gaining
access to medical, social, educational, and other needed services.

(C) Aftercare services.

(c) (1) The nonfederal share for Drug Medi-Cal services shall
be funded through a county’s Behavioral Health Subaccount of
the Support Services Account of the Local Revenue Fund 2011,
and any other available county funds eligible under federal law
for federal Medicaid reimbursement. The funds contained in each
county’s Behavioral Health Subaccount of the Support Services
Account of the Local Revenue Fund 2011 shall be considered state
funds distributed by the principal state agency for the purposes of
receipt of the federal block grant funds for prevention and treatment
of substance abuse found at Subchapter XVII of Chapter 6A of
Title 42 of the United States Code. Pursuant to applicable federal
Medicaid law and regulations including Section 433.51 of Title
42 of the Code of Federal Regulations, counties may claim
allowable Medicaid federal financial participation for Drug
Medi-Cal services based on the counties certifying their actual
total funds expenditures for eligible Drug Medi-Cal services to
the department.

(2) (A) If the director determines that a county’s provision of
Drug Medi-Cal treatment services are disallowed by the federal
government or by state or federal audit or review, the impacted
county shall be responsible for repayment of all disallowed federal
funds. In addition to any other recovery methods available,
including, but not limited to, offset of Medicaid federal financial
participation funds owed to the impacted county, the director may
offset these amounts in accordance with Section 12419.5 of the
Government Code.

(B) A county subject to an action by the director pursuant to
subparagraph (A) may challenge that action by requesting a hearing
in writing no later than 30 days from receipt of notice of the
department’s action. The proceeding shall be conducted in
accordance with Chapter 5 (commencing with Section 11500) of
Part 1 of Division 3 of Title 2 of the Government Code, and the
director has all the powers granted therein. Upon a county’s timely
request for hearing, the county’s obligation to make payment as
determined by the director shall be stayed pending the county’s
exhaustion of administrative remedies provided herein but no
longer than will ensure the department’s compliance with Section
1903(d)(2)(C) of the federal Social Security Act (42 U.S.C. Sec.
1396b).

(d) Drug Medi-Cal services are only reimbursable to Drug
Medi-Cal providers with an approved Drug Medi-Cal contract.

(e) Counties shall negotiate contracts only with providers
certified to provide Drug Medi-Cal services.

(f) The department shall develop methods to ensure timely
payment of Drug Medi-Cal claims.

(g) (1) A county or a contracted provider, except for a provider
to whom subdivision (h) applies, shall submit accurate and
complete cost reports for the previous fiscal year by November 1,
following the end of the fiscal year. The department may settle
Drug Medi-Cal reimbursable services, based on the cost report as
the final amendment to the approved county Drug Medi-Cal
contract.

(2) Amounts paid for services provided to Drug Medi-Cal
beneficiaries shall be audited by the department in the manner and
form described in Section 14170.

(3) Administrative appeals to review grievances or complaints
arising from the findings of an audit or examination made pursuant
to this section shall be subject to Section 14171.

(h) Certified narcotic treatment program providers that are
exclusively billing the state or the county for services rendered to
persons subject to Section 1210.1 or 3063.1 of the Penal Code or
Section 14021.52 of this code shall submit accurate and complete
performance reports for the previous state fiscal year by November
1 following the end of that fiscal year. A provider to which this
subdivision applies shall estimate its budgets using the uniform
state daily reimbursement rate. The format and content of the
performance reports shall be mutually agreed to by the department,
the County Behavioral Health Directors Association of California,
and representatives of the treatment providers.

(i) Contracts entered into pursuant to this section shall be exempt
from the requirements of Chapter 1 (commencing with Section
10100) and Chapter 2 (commencing with Section 10290) of Part
2 of Division 2 of the Public Contract Code.

(j) Annually, the department shall publish procedures for
contracting for Drug Medi-Cal services with certified providers
and for claiming payments, including procedures and specifications
for electronic data submission for services rendered.

(k) If the department commences a preliminary criminal
investigation of a certified provider, the department shall promptly
notify each county that currently contracts with the provider for
Drug Medi-Cal services that a preliminary criminal investigation
has commenced. If the department concludes a preliminary criminal
investigation of a certified provider, the department shall promptly
notify each county that currently contracts with the provider for
Drug Medi-Cal services that a preliminary criminal investigation
has concluded.

(1) Notice of the commencement and conclusion of a
preliminary criminal investigation pursuant to this section shall
be made to the county behavioral health director or his or her
equivalent.

(2) Communication between the department and a county
specific to the commencement or conclusion of a preliminary
criminal investigation pursuant to this section shall be deemed
confidential and shall not be subject to any disclosure request,
including, but not limited to, the Information Practices Act of begin delete 1997 end delete
begin insert 1977 end insert (Chapter 1 (commencing with Section 1798) of Title 1.8 of
Part 4 of Division 3 of the begin delete Code of Civil Procedure), end delete begin insert Civil Code), end insert
the California Public Records Act (Chapter 3.5 (commencing with
Section 6250) of Division 7 of Title 1 of the Government Code),
requests pursuant to a subpoena, or for any other public purpose,
including, but not limited to, court testimony.

(3) Information shared by the department with a county
regarding a preliminary criminal investigation shall be maintained
in a manner to ensure protection of the confidentiality of the
criminal investigation.

(4) The information provided to a county pursuant to this section
shall only include the provider name, national provider identifier
(NPI) number, address, and the notice that an investigation has
commenced or concluded.

(5) A county shall not take any adverse action against a provider
based solely upon the preliminary criminal investigation
information disclosed to the county pursuant to this section.

(6) In the event of a preliminary criminal investigation of a
county owned or operated program, the department has the option
to, but is not required to, notify the county pursuant to this section
when the department commences or concludes a preliminary
criminal investigation.

(7) This section shall not limit the voluntary or otherwise legally
mandated or contractually mandated sharing of information
between the department and a county of information regarding
audits and investigations of Drug Medi-Cal providers.

(8) “Commenced” means the time at which a complaint or
allegation is assigned to an investigator for a field investigation.

(9) “Preliminary criminal investigation” means an investigation
to gather information to determine if criminal law or statutes have
been violated.

begin delete SEC. 34. end delete
begin insert SEC. 66. end insert   

Section 14251 of the Welfare and Institutions Code
is amended to read:

14251.  

(a) (1) “Prepaid health plan” means a plan that meets
all of the following criteria:

(A)  Is licensed as a health care service plan by the Director of
the Department of Managed Health Care pursuant to the
Knox-Keene Health Care Service Plan Act of 1975 (Chapter 2.2
(commencing with Section begin delete 1340), end delete begin insert 1340) of end insert Division begin delete 2, end delete begin insert 2 of the end insert
Health and Safety Code), other than a plan organized and operating
pursuant to Section 10810 of the Corporations Code that
substantially indemnifies subscribers or enrollees for the cost of
provided services, or has an application for licensure pending and
was registered under the Knox-Mills Health Plan Act prior to its
repeal.

(B) Meets the requirements for participation in the Medicaid
Program (Title XIX of the Social Security Act) on an at risk basis.

(C) Agrees with the State Department of Health Care Services
to furnish directly or indirectly health services to Medi-Cal
beneficiaries on a predetermined periodic rate basis.

(2) “Prepaid health plan” includes any organization that is
licensed as a plan pursuant to the Knox-Keene Health Care Service
Plan Act of 1975 and is subject to regulation by the Department
of Managed Health Care pursuant to that act, and that contracts
with the State Department of Health Care Services solely as a fiscal
intermediary at risk.

(b) (1) Except for the requirement of licensure pursuant to the
Knox-Keene begin delete Act, end delete begin insert Health Care Service Plan Act of 1975, end insert the State
Director of Health Care Services may waive any provision of this
chapter that the director determines is inappropriate for a fiscal
intermediary at risk. An exemption or waiver shall be set forth in
the fiscal intermediary begin delete at risk end delete begin insert at-risk end insert contract with the State
Department of Health Care Services.

(2) “Fiscal intermediary at risk” means any entity that entered
into a contract with the State Department of Health Care Services
on a pilot basis pursuant to subdivision (f) of Section 14000, as in
effect June 1, 1973, in accordance with which the entity received
capitated payments from the state and reimbursed providers of
health care services on a fee-for-service or other basis for at least
the basic scope of health care services, as defined in Section 14256,
provided to all beneficiaries covered by the contract residing within
a specified geographic region of the state. The fiscal intermediary
at risk shall be at risk for the cost of administration and utilization
of services or the cost of services, or both, for at least the basic
scope of health care services, as defined in Section 14256, provided
to all beneficiaries covered by the contract residing within a
specified geographic region of the state. The fiscal intermediary
at risk may share the risk with providers or reinsuring agencies or
both. Eligibility of beneficiaries shall be determined by the State
Department of Health Care Services and capitation payments shall
be based on the number of beneficiaries so determined.

begin delete SEC. 35. end delete
begin insert SEC. 67. end insert   

Section 14499.71 of the Welfare and Institutions
Code is amended to read:

14499.71.  

For the purposes of this article, “fiscal intermediary”
means an entity that agrees to pay for covered services provided
to Medi-Cal eligibles in exchange for a premium, subscription
charge, or capitation payment; to assume an underwriting risk; and
is licensed by the Director of the Department of Managed Health
Care under the Knox-Keene Health Care Service Plan Act of 1975
(Chapter 2.2 (commencing with Section 1340) of Division 2 of
the Health and Safety Code).

begin insert

begin insert SEC. 68. end insert   

end insert

begin insert Section 14682.1 of the end insert begin insert Welfare and Institutions Code end insert
begin insert is amended to read: end insert

14682.1.  

(a) The State Department of Health Care Services
shall be designated as the state agency responsible for development,
consistent with the requirements of Section 4060, and
implementation of, mental health plans for Medi-Cal beneficiaries.

(b) The department shall convene a steering committee for the
purpose of providing advice and recommendations on the transition
and continuing development of the Medi-Cal mental health
managed care systems pursuant to subdivision (a). The committee
shall include work groups to advise the department of major issues
to be addressed in the managed mental health care plan, as well
as system transition and transformation issues pertaining to the
delivery of mental health care services to Medi-Cal beneficiaries,
including services to children provided through the Early and
Periodic Screening, Diagnosis and Treatment Program.

(c) The committee shall consist of diverse representatives of
concerned and involved communities, including, but not limited
to, beneficiaries, their families, providers, mental health
professionals, substance use disorder treatment professionals,
statewide representatives of health care service plans,
representatives of the California Mental Health Planning Council,
public and private organizations, county begin delete mental end delete begin insert behavioral end insert health
directors, and others as determined by the department. The
department has the authority to structure this steering committee
process in a manner that is conducive for addressing issues
effectively, and for providing a transparent, collaborative,
meaningful process to ensure a more diverse and representative
approach to problem-solving and dissemination of information.

begin delete SEC. 36. end delete
begin insert SEC. 69. end insert   

Section 14707 of the Welfare and Institutions Code
is amended to read:

14707.  

(a) In the case of federal audit exceptions, the
department shall follow federal audit appeal processes unless the
department, in consultation with the County Behavioral Health
Directors Association of California, determines that those appeals
are not cost beneficial.

(b) Whenever there is a final federal audit exception against the
state resulting from expenditure of federal funds by individual
counties, the department may offset federal reimbursement and
request the Controller’s office to offset the distribution of funds
to the counties from the Mental Health Subaccount, the Mental
Health Equity Subaccount, and the Vehicle License Collection
Account of the Local Revenue Fund, funds from the Mental Health
Account and the Behavioral Health Subaccount of the Local
Revenue Fund 2011, and any other mental health realignment
funds from which the Controller makes distributions to the counties
by the amount of the exception. The department shall provide
evidence to the Controller that the county has been notified of the
amount of the audit exception no less than 30 days before the offset
is to occur. The department shall involve the appropriate counties
in developing responses to any draft federal audit reports that
directly impact the county.

begin delete SEC. 37. end delete
begin insert SEC. 70. end insert   

Section 14711 of the Welfare and Institutions Code
is amended to read:

14711.  

(a) The department shall develop, in consultation with
the County Behavioral Health Directors Association of California,
a reimbursement methodology for use in the Medi-Cal claims
processing and interim payment system that maximizes federal
funding and utilizes, as much as practicable, federal Medicaid and
Medicare reimbursement principles. The department shall work
with the federal Centers for Medicare and Medicaid Services in
the development of the methodology required by this section.

(b) Reimbursement amounts developed through the methodology
required by this section shall be consistent with federal Medicaid
requirements and the approved Medicaid state plan and waivers.

(c) Administrative costs shall be claimed separately in a manner
consistent with federal Medicaid requirements and the approved
Medicaid state plan and waivers and shall be limited to 15 percent
of the total actual cost of direct client services.

(d) The cost of performing quality assurance and utilization
review activities shall be reimbursed separately and shall not be
included in administrative cost.

(e) The reimbursement methodology established pursuant to
this section shall be based upon certified public expenditures,
which encourage economy and efficiency in service delivery.

(f) The reimbursement amounts established for direct client
services pursuant to this section shall be based on increments of
time for all noninpatient services.

(g) The reimbursement methodology shall not be implemented
until it has received any necessary federal approvals.

(h) This section shall become operative on July 1, 2012.

begin delete SEC. 38. end delete
begin insert SEC. 71. end insert   

Section 14717 of the Welfare and Institutions Code
is amended to read:

14717.  

(a) In order to facilitate the receipt of medically
necessary specialty mental health services by a foster child who
is placed outside his or her county of original jurisdiction, the
department shall take all of the following actions:

(1) On or before July 1, 2008, create all of the following items,
in consultation with stakeholders, including, but not limited to,
the California Institute for Mental Health, the Child and Family
Policy begin delete Institute, end delete begin insert Institute of California, end insert the County Behavioral
Health Directors Association of California, and the California
Alliance of Child and Family Services:

(A) A standardized contract for the purchase of medically
necessary specialty mental health services from organizational
begin delete providers, end delete begin insert providers end insert when a contract is required.

(B) A standardized specialty mental health service authorization
procedure.

(C) A standardized set of documentation standards and forms,
including, but not limited to, forms for treatment plans, annual
treatment plan updates, day treatment intensive and day treatment
rehabilitative progress notes, and treatment authorization requests.

(2) On or before January 1, 2009, use the standardized items as
described in paragraph (1) to provide medically necessary specialty
mental health services to a foster child who is placed outside his
or her county of original jurisdiction, so that organizational
providers who are already certified by a mental health plan are not
required to be additionally certified by the mental health plan in
the county of original jurisdiction.

(3) (A) On or before January 1, 2009, use the standardized
items described in paragraph (1) to provide medically necessary
specialty mental health services to a foster child placed outside
his or her county of original jurisdiction to constitute a complete
contract, authorization procedure, and set of documentation
standards and forms, so that no additional documents are required.

(B) Authorize a county mental health plan to be exempt from
subparagraph (A) and have an addendum to a contract,
authorization procedure, or set of documentation standards and
forms, if the county mental health plan has an externally placed
requirement, such as a requirement from a federal integrity
agreement, that would affect one of these documents.

(4) Following consultation with stakeholders, including, but not
limited to, the California Institute for Mental Health, the Child and
Family Policy begin delete Institute, end delete begin insert Institute of California, end insert the County
Behavioral Health Directors Association of California, the
California State Association of Counties, and the California
Alliance of Child and Family Services, require the use of the
standardized contracts, authorization procedures, and
documentation standards and forms as specified in paragraph (1)
in the 2008-09 state-county mental health plan contract and each
state-county mental health plan contract thereafter.

(5) The mental health plan shall complete a standardized
contract, as provided in paragraph (1), if a contract is required, or
another mechanism of payment if a contract is not required, with
a provider or providers of the county’s choice, to deliver approved
specialty mental health services for a specified foster child, within
30 days of an approved treatment authorization request.

(b) The California Health and Human Services Agency shall
coordinate the efforts of the department and the State Department
of Social Services to do all of the following:

(1) Participate with the stakeholders in the activities described
in this section.

(2) During budget hearings in 2008 and 2009, report to the
Legislature regarding the implementation of this section and
subdivision (c) of Section 14716.

(3) On or before July 1, 2008, establish the following, in
consultation with stakeholders, including, but not limited to, the
County Behavioral Health Directors Association of California, the
California Alliance of Child and Family Services, and the County
Welfare Directors Association of California:

(A) Informational materials that explain to foster care providers
how to arrange for specialty mental health services on behalf of
the beneficiary in their care.

(B) Informational materials that county child welfare agencies
can access relevant to the provision of services to children in their
care from the out-of-county local mental health plan that is
responsible for providing those services, including, but not limited
to, receiving a copy of the child’s treatment plan within 60 days
after requesting services.

(C) It is the intent of the Legislature to ensure that foster children
who are adopted or placed permanently with relative guardians,
and who move to a county outside their original county of
residence, can access specialty mental health services in a timely
manner. It is the intent of the Legislature to enact this section as
a temporary means of ensuring access to these services, while the
appropriate stakeholders pursue a long-term solution in the form
of a change to the Medi-Cal Eligibility Data System that will allow
these children to receive specialty mental health services through
their new county of residence.

begin delete SEC. 39. end delete
begin insert SEC. 72. end insert   

Section 14718 of the Welfare and Institutions Code
is amended to read:

14718.  

(a) This section shall be limited to specialty mental
health services reimbursed to a mental health plan that certifies
public expenditures subject to cost settlement or specialty mental
health services reimbursed through the department’s fiscal
intermediary.

(b) The following provisions shall apply to matters related to
specialty mental health services provided under the approved
Medi-Cal state plan and the Specialty Mental Health Services
Waiver, including, but not limited to, reimbursement and claiming
procedures, reviews and oversight, and appeal processes for mental
health plans (MHPs) and MHP subcontractors.

(1) As determined by the department, the MHP shall submit
claims for reimbursement to the Medi-Cal program for eligible
services.

(2) The department may offset the amount of any federal
disallowance, audit exception, or overpayment against subsequent
claims from the MHP. The department may offset the amount of
any state disallowance, or audit exception or overpayment against
subsequent claims from the mental health plan, through the
2010-11 fiscal year. This offset may be done at any time, after the
department has invoiced or otherwise notified the mental health
plan about the audit exception, disallowance, or overpayment. The
department shall determine the amount that may be withheld from
each payment to the mental health plan. The maximum withheld
amount shall be 25 percent of each payment as long as the
department is able to comply with the federal requirements for
repayment of federal financial participation pursuant to Section
1903(d)(2) of the federal Social Security Act (42 U.S.C. Sec.
1396b(d)(2)). The department may increase the maximum amount
when necessary for compliance with federal laws and regulations.

(3) (A) Oversight by the department of the MHPs may include
client record reviews of Early begin insert and end insert Periodic begin delete Screening Diagnosis end delete
begin insert Screening, Diagnosis, end insert and Treatment (EPSDT) specialty mental
health services rendered by MHPs and MHP subcontractors under
the Medi-Cal specialty mental health services waiver in addition
to other audits or reviews that are conducted.

(B) The department may contract with an independent,
nongovernmental entity to conduct client record reviews. The
contract awarded in connection with this section shall be on a
competitive bid basis, pursuant to the Department of General
Services contracting requirements, and shall meet both of the
following additional requirements:

(i) Require the entity awarded the contract to comply with all
federal and state privacy laws, including, but not limited to, the
federal Health Insurance Portability and Accountability Act
(HIPAA; 42 U.S.C. Sec. 1320d et seq.) and its implementing
regulations, the Confidentiality of Medical Information Act (Part
2.6 (commencing with Section 56) of Division 1 of the Civil Code),
and Section 1798.81.5 of the Civil Code. The entity shall be subject
to existing penalties for violation of these laws.

(ii) Prohibit the entity awarded the contract from using or
disclosing client records or client information for a purpose other
than the one for which the record was given.

(iii) Prohibit the entity awarded the contract from selling client
records or client information.

(C) For purposes of this paragraph, the following terms shall
have the following meanings:

(i) “Client record” means a medical record, chart, or similar
file, as well as other documents containing information regarding
an individual recipient of services, including, but not limited to,
clinical information, dates and times of services, and other
information relevant to the individual and services provided and
that evidences compliance with legal requirements for Medi-Cal
reimbursement.

(ii) “Client record review” means examination of the client
record for a selected individual recipient for the purpose of
confirming the existence of documents that verify compliance with
legal requirements for claims submitted for Medi-Cal
reimbursement.

(D) The department shall recover overpayments of federal
financial participation from MHPs within the timeframes required
by federal law and regulation for repayment to the federal Centers
for Medicare and Medicaid Services.

(4) (A) The department, in consultation with mental health
stakeholders, the County Behavioral Health Directors Association
of California, and MHP subcontractor representatives, shall provide
an appeals process that specifies a progressive process for
resolution of disputes about claims or recoupments relating to
specialty mental health services under the Medi-Cal specialty
mental health services waiver.

(B) The department shall provide MHPs and MHP
subcontractors the opportunity to directly appeal findings in
accordance with procedures that are similar to those described in
Article 1.5 (commencing with Section 51016) of Chapter 3 of
Subdivision 1 of Division 3 of Title 22 of the California Code of
Regulations, until new regulations for a progressive appeals process
are promulgated. When an MHP subcontractor initiates an appeal,
it shall give notice to the MHP. The department shall propose a
rulemaking package consistent with the department’s appeals
process that is in effect on July 1, begin delete 2012 end delete begin insert 2012, end insert by no later than the
end of the 2013-14 fiscal year. The reference in this subparagraph
to the procedures described in Article 1.5 (commencing with
Section 51016) of Chapter 3 of Subdivision 1 of Division 3 of Title
22 of the California Code of Regulations, shall only apply to those
appeals addressed in this subparagraph.

(C) The department shall develop regulations as necessary to
implement this paragraph.

(5) The department shall conduct oversight of utilization controls
as specified in Section 14133. The MHP shall include a
requirement in any subcontracts that all inpatient subcontractors
maintain necessary licensing and certification. MHPs shall require
that services delivered by licensed staff are within their scope of
practice. Nothing in this chapter shall prohibit the MHPs from
establishing standards that are in addition to the federal and state
requirements, provided that these standards do not violate federal
and state requirements and guidelines.

(6) (A)  Subject to federal approval and consistent with state
requirements, the MHP may negotiate rates with providers of
specialty mental health services.

(B) Any excess in the distribution of funds over the expenditures
for services by the mental health plan shall be spent for the
provision of specialty mental health services and related
administrative costs.

(7) Nothing in this chapter shall limit the MHP from being
reimbursed appropriate federal financial participation for any
qualified services. To receive federal financial participation, the
mental health plan shall certify its public expenditures for specialty
mental health services to the department.

(8) Notwithstanding Section 14115, claims for federal
reimbursement for service pursuant to this chapter shall be
submitted by MHPs within the timeframes required by federal
Medicaid requirements and the approved Medicaid state plan and
waivers.

(9) The MHP shall use the fiscal intermediary of the Medi-Cal
program of the State Department of Health Care Services for the
processing of claims for inpatient psychiatric hospital services
rendered in fee-for-service Medi-Cal hospitals. The department
shall request the Controller to offset the distribution of funds to
the counties from the Mental Health Subaccount, the Mental Health
Equity Subaccount, or the Vehicle License Collection Account of
the Local Revenue Fund, or funds from the Mental Health Account
or the Behavioral Health Subaccount of the Local Revenue Fund
2011 for the nonfederal financial participation share for these
claims.

(c) Counties may set aside funds for self-insurance, audit
settlement, and statewide program risk pools. The counties shall
assume all responsibility and liability for appropriate administration
of the funds. Special consideration may be given to small counties
with a population of less than 200,000. begin delete Nothing in the paragraph
shall in any way end delete begin insert This subdivision shall not end insert make the state or
department liable for mismanagement or loss of funds by the entity
designated by counties under this subdivision.

(d) The department shall consult with the begin delete California Mental
Health Directors Association end delete begin insert County Behavioral Health Directors
Association of California end insert in February and September of each year
to obtain data and methodology necessary to forecast future fiscal
trends in the provision of specialty mental health services provided
under the Medi-Cal specialty mental health services waiver, to
estimate yearly specialty mental health services related costs, and
to estimate the annual amount of federal funding participation to
reimburse costs of specialty mental health services provided under
the Medi-Cal specialty mental health services waiver. This shall
include a separate presentation of the data and methodology
necessary to forecast future fiscal trends in the provision of Early
Periodic Screening, Diagnosis, and Treatment specialty mental
health services provided under the Medi-Cal specialty mental
health services waiver, to estimate annual EPSDT specialty mental
health services related costs, and to estimate the annual amount of
EPSDT specialty mental health services provided under the state
Medi-Cal specialty mental health services waiver, including federal
funding participation to reimburse costs of EPSDT.

(e) When seeking federal approval for any federal Medicaid
state plan amendment or waiver associated with Medi-Cal specialty
mental health services, the department shall consult with staff of
the Legislature, counties, providers, and other stakeholders in the
development of the state plan amendment or waiver.

(f) This section shall become operative on July 1, 2012.

begin delete SEC. 40. end delete
begin insert SEC. 73. end insert   

Section 14725 of the Welfare and Institutions Code
is amended to read:

14725.  

(a) The State Department of Health Care Services shall
develop a quality assurance program to govern the delivery of
Medi-Cal specialty mental health services, in order to begin delete assure end delete begin insert ensure end insert
quality patient care based on community standards of practice.

(b) The department shall issue standards and guidelines for local
quality assurance activities. These standards and guidelines shall
be reviewed and revised in consultation with the County Behavioral
Health Directors Association of California, as well as other
stakeholders from the mental health community, including, but
not limited to, individuals who receive services, family members,
providers, mental health advocacy groups, and other interested
parties. The standards and guidelines shall be based on federal
Medicaid requirements.

(c) The standards and guidelines developed by the department
shall reflect the special problems that small rural counties have in
undertaking comprehensive quality assurance systems.

begin delete SEC. 41. end delete
begin insert SEC. 74. end insert   

Section 15204.8 of the Welfare and Institutions Code
is amended to read:

15204.8.  

(a) The Legislature may appropriate annually in the
Budget Act funds to support services provided pursuant to Sections
11325.7 and 11325.8.

(b) Funds appropriated pursuant to subdivision (a) shall be
allocated to the counties separately and shall be available for
expenditure by the counties for services provided during the budget
year. A county may move funds between the two accounts during
the budget year for expenditure if necessary to meet the particular
circumstances in the county. Any unexpended funds may be
retained by each county for expenditure for the same purposes
during the succeeding fiscal year. By November 20, 1998, each
county shall report to the department on the use of these funds.

(c) Beginning January 10, 1999, the Department of Finance
shall report annually to the Legislature on the extent to which funds
available under subdivision (a) have not been spent and may
reallocate the unexpended balances so as to better meet the need
for services.

(d) No later than September 1, 2001, the department in
consultation with relevant stakeholders, which may include the
County Welfare Directors Association and the County Behavioral
Health Directors Association of California, shall develop the
allocation methodology for these funds, including the specific
components to be considered in allocating the funds.

begin delete SEC. 42. end delete
begin insert SEC. 75. end insert   

Section 15847.7 of the Welfare and Institutions Code
is amended to read:

15847.7.  

(a) For purposes of Sections 15847, 15847.3, and
15847.5, “group health coverage” includes any health care service
plan, self-insured employee welfare benefit plan, or disability
insurance providing medical or hospital benefits.

(b) This section shall become operative on July 1, 2014.

begin delete

SEC. 43.  

Section 17604 of the Welfare and Institutions Code
is amended to read:

17604.  

(a) All motor vehicle license fee revenues collected in
the 1991-92 fiscal year that are deposited to the credit of the Local
Revenue Fund shall be credited to the Vehicle License Fee Account
of that fund.

(b) (1) For the 1992-93 fiscal year and fiscal years thereafter,
from vehicle license fee proceeds from revenues deposited to the
credit of the Local Revenue Fund, the Controller shall make
monthly deposits to the Vehicle License Fee Account of the Local
Revenue Fund until the deposits equal the amounts that were
allocated to counties, cities, and cities and counties as general
purpose revenues in the prior fiscal year pursuant to this chapter
from the Vehicle License Fee Account in the Local Revenue Fund
and the Vehicle License Fee Account and the Vehicle License Fee
Growth Account in the Local Revenue Fund.

(2) Any excess vehicle fee revenues deposited into the Local
Revenue Fund pursuant to Section 11001.5 of the Revenue and
Taxation Code shall be deposited in the Vehicle License Fee
Growth Account of the Local Revenue Fund.

(3) The Controller shall calculate the difference between the
total amount of vehicle license fee proceeds deposited to the credit
of the Local Revenue Fund, pursuant to paragraph (1) of
subdivision (a) of Section 11001.5 of the Revenue and Taxation
Code, and deposited into the Vehicle License Fee Account for the
period of July 16, 2009, to July 15, 2010, inclusive, and the amount
deposited for the period of July 16, 2010, to July 15, 2011,
inclusive.

(4) Of vehicle license fee proceeds deposited to the Vehicle
License Fee Account after July 15, 2011, an amount equal to the
difference calculated in paragraph (3) shall be deemed to have
been deposited during the period of July 16, 2010, to July 15, 2011,
inclusive, and allocated to cities, counties, and a city and county
as if those proceeds had been received during the 2010-11 fiscal
year.

(c) (1) On or before the 27th day of each month, the Controller
shall allocate to each county, city, or city and county, as general
purpose revenues the amounts deposited and remaining unexpended
and unreserved on the 15th day of the month in the Vehicle License
Fee Account of the Local Revenue Fund, in accordance with
paragraphs (2) and (3).

(2) For the 1991-92 fiscal year, allocations shall be made in
accordance with the following schedule:

 

Jurisdiction	Allocation Percentage
Alameda	4.5046
Alpine	0.0137
Amador	0.1512
Butte	0.8131
Calaveras	0.1367
Colusa	0.1195
Contra Costa	2.2386
Del Norte	0.1340
El Dorado	0.5228
Fresno	2.3531
Glenn	0.1391
Humboldt	0.8929
Imperial	0.8237
Inyo	0.1869
Kern	1.6362
Kings	0.4084
Lake	0.1752
Lassen	0.1525
Los Angeles	37.2606
Madera	0.3656
Marin	1.0785
Mariposa	0.0815
Mendocino	0.2586
Merced	0.4094
Modoc	0.0923
Mono	0.1342
Monterey	0.8975
Napa	0.4466
Nevada	0.2734
Orange	5.4304
Placer	0.2806
Plumas	0.1145
Riverside	2.7867
Sacramento	2.7497
San Benito	0.1701
San Bernardino	2.4709
San Diego	4.7771
San Francisco	7.1450
San Joaquin	1.0810
San Luis Obispo	0.4811
San Mateo	1.5937
Santa Barbara	0.9418
Santa Clara	3.6238
Santa Cruz	0.6714
Shasta	0.6732
Sierra	0.0340
Siskiyou	0.2246
Solano	0.9377
Sonoma	1.6687
Stanislaus	1.0509
Sutter	0.4460
Tehama	0.2986
Trinity	0.1388
Tulare	0.7485
Tuolumne	0.2357
Ventura	1.3658
Yolo	0.3522
Yuba	0.3076
Berkeley	0.0692
Long Beach	0.2918
Pasadena	0.1385

 

(3) For the 1992-93, 1993-94, and 1994-95 fiscal years and
fiscal years thereafter, allocations shall be made in the same
amounts as were distributed from the Vehicle License Fee Account
and the Vehicle License Fee Growth Account in the prior fiscal
year.

(4) For the 1995-96 fiscal year, allocations shall be made in the
same amounts as distributed in the 1994-95 fiscal year from the
Vehicle License Fee Account and the Vehicle License Fee Growth
Account after adjusting the allocation amounts by the amounts
specified for the following counties:

 

Alpine	$(11,296)
Amador	25,417
Calaveras	49,892
Del Norte	39,537
Glenn	(12,238)
Lassen	17,886
Mariposa	(6,950)
Modoc	(29,182)
Mono	(6,950)
San Benito	20,710
Sierra	(39,537)
Trinity	(48,009)

 

(5) (A) For the 1996-97 fiscal year and fiscal years thereafter,
allocations shall be made in the same amounts as were distributed
from the Vehicle License Fee Account and the Vehicle License
Fee Growth Account in the prior fiscal year.

(B) Initial proceeds deposited in the Vehicle License Fee
Account in the 2003-04 fiscal year in the amount that would
otherwise have been transferred pursuant to former Section 10754
of the Revenue and Taxation Code for the period June 20, 2003,
to July 15, 2003, inclusive, shall be deemed to have been deposited
during the period June 16, 2003, to July 15, 2003, inclusive, and
allocated to cities, counties, and a city and county during the
2002-03 fiscal year.

(d) The Controller shall make monthly allocations from the
amount deposited in the Vehicle License Collection Account of
the Local Revenue Fund to each county in accordance with a
schedule to be developed by the State Department of State
Hospitals in consultation with the County Behavioral Health
Directors Association of California, which is compatible with the
intent of the Legislature expressed in the act adding this
subdivision.

(e) Before making the monthly allocations in accordance with
paragraph (5) of subdivision (c) and subdivision (d), and pursuant
to a schedule provided by the Department of Finance, the
Controller shall adjust the monthly distributions from the Vehicle
License Fee Account to reflect an equal exchange of sales and use
tax funds from the Social Services Subaccount to the Health
Subaccount, as required by subdivisions (d) and (e) of Section
17600.15, and of Vehicle License Fee funds from the Health
Account to the Social Services Account. Adjustments made to the
Vehicle License Fee distributions pursuant to this subdivision shall
not be used in calculating future year allocations to the Vehicle
License Fee Account.

end delete

begin insert

begin insert SEC. 76. end insert   

end insert begin insert

No reimbursement is required by this act pursuant
to Section 6 of Article XIII B of the California Constitution because
the only costs that may be incurred by a local agency or school
district will be incurred because this act creates a new crime or
infraction, eliminates a crime or infraction, or changes the penalty
for a crime or infraction, within the meaning of Section 17556 of
the Government Code, or changes the definition of a crime within
the meaning of Section 6 of Article XIII B of the California
Constitution.

end insert