BILL ANALYSIS                                                                                                                                                                                                    Ó



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          Date of Hearing:  June 22, 2016 


                           ASSEMBLY COMMITTEE ON EDUCATION


                              Patrick O'Donnell, Chair


          SB  
          884 (Beall) - As Amended May 31, 2016


          SENATE VOTE:  39-0


          SUBJECT:  Special education:  procedural safeguards and records:  
           mental health services




          SUMMARY:  Requires local educational agencies (LEAs) and special  
          education local plan areas (SELPAs) to collect and report  
          specific information relative to mental health services,  
          requires the California Department of Education (CDE) to monitor  
          and compare specific information relative to mental health  
          services, and requires LEAs to provide specified informational  
          materials to parents.  Specifically, this bill:  



          1)Requires each SELPA to require each LEA to provide parents  
            with informational materials, including procedural safeguards,  
            information regarding family empowerment centers, and parent  
            training and information centers in their community. 











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          2)Requires that this information be provided in the three most  
            common languages used by parents locally, and be made  
            available for LEAs to provide to parents in their annual  
            parent notification.



          3)Requires LEAs to ensure that a copy of each prior written  
            notice is included in the pupil's records.



          4)Requires each LEA to annually report to the CDE the actual  
            frequency and duration of each mental health service provided  
            to each student as required by their IEP.



          5)Requires SELPAs to document and report to the CDE all mental  
            health and special education services funding allocations and  
            expenditures and specify the dollar amount for each service.



          6)Requires the CDE to post this information on its website.



          7)Requires the CDE to align accounting code systems to allow the  
            department and school districts or SELPAs to accurately  
            document the amount of funds expended for the provision of  
            mental health and special education services from each funding  
            source.



          8)Requires each LEA to annually provide to the CDE data needed  
            to document specified outcomes for each student receiving  
            mental health services through their IEPs:








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             a)   graduation rate



             b)   dropout rate



             c)   statewide assessment results



             d)   suspension and expulsion rates



             e)   participation in general education classes



             f)   postschool outcomes



          1)Requires the CDE to monitor the number and frequency of mental  
            health services reported annually by LEAs and compare  
            year-to-year changes for each LEA.  Requires that if  
            year-to-year services decline significantly, the CDE  
            investigate the cause for the decline in service provision.  



          2)Requires, as part of its monitoring activities, the CDE to  
            review each LEA's procedures and documents used to meet the  
            prior written notice requirements and requires that CDE  
            require corrections to those procedures and documents if the  








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            department finds that the procedures or documents do not  
            fulfill statutory requirements.



          EXISTING LAW:   


          1)Federal and state law requires that every individual with  
            exceptional needs who is eligible to receive special education  
            instruction and related services receive that instruction and  
            those services through a free appropriate public education in  
            the least restrictive environment.  



          2)Federal law provides that related services means  
            transportation, and developmental, corrective, and other  
            supportive services, including speech-language pathology and  
            audiology services, interpreting services, psychological  
            services, physical and occupational therapy, recreation,  
            including therapeutic recreation, social work services, school  
            nurse services designed to enable a child with a disability to  
            receive a free appropriate public education as described in  
            the individualized education program (IEP) of the child,  
            counseling services, including rehabilitation counseling,  
            orientation and mobility services, and medical services.  

          3)Requires the Superintendent of Public Instruction (SPI) to  
            ensure that student and program performance results are  
            monitored at the state and local levels by evaluating student  
            performance against key performance indicators.



          4)Requires the SPI, as part of state monitoring and enforcement,  
            to use quantifiable indicators, and qualitative indicators as  
            needed, to adequately measure performance in the indicators  
            established by the United States Secretary of Education in the  








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            priority areas, as described.



          5)Requires each SELPA to submit to the SPI at least annually  
            information in order for the SPI to carry out the evaluation  
            responsibilities described above.



          FISCAL EFFECT:  




          According to the Senate Appropriations Committee:  




                 Mandate costs: This bill imposes several mandated  
               activities that would drive unknown but likely significant  
               costs to the state, potentially in the millions to low tens  
               of millions, if the Commission on State Mandates determines  
               these activities to be reimbursable.  If so, this could  
               also result in pressure to increase the K-12 mandate block  
               grant.  (Proposition 98) 




                 Administrative costs: The CDE estimates one-time costs  
               of $300,000 and ongoing costs of $400,000 to implement this  
               bill.  One-time activities include making changes to the  
               school accounting manual and software that collects  
               financial data.  (General Fund)


          COMMENTS:  








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          Recent state audit.  AB 114 (Chapter 43, Statutes of 2011),  
          which took effect in July 2011, transferred funding and  
          responsibility for providing mental health services for students  
          with IEPs from county mental health departments to LEAs.  


          In January, 2016, the Bureau of State Audits released a report,  
          requested by the author and other members of the Legislature, on  
          the effect of AB 114 on mental health services for students.   
          The report, titled Student Mental Health Services: Some  
          Students' Services Were Affected by a New State Law, and the  
          State Needs to Analyze Student Outcomes and Track Service Costs,  
          found that:


                 The most commonly offered types of mental health  
               services and the providers of those services generally did  
               not change.



                 The number of students who received these mental health  
               services remained steady or grew.



                 The provider of the most common mental health services  
               generally had already been, and continued to be, the LEA.



                 The majority of changes to services were unrelated to AB  
               114.



          The audit also found that for individual student records  








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          reviewed:
                 Although the most common types of mental health services  
               offered and the service providers generally did not change,  
               LEAs removed mental health services from student IEPs in  
               the two years after AB 114 took effect. 

                 Although most service reductions were not related to AB  
               114, such as those prompted by a student graduating, IEP  
               teams did not always record in the IEP document their  
               rationale of why a service was removed.
               . 
                 For 40 percent of the students who had a change to their  
               mental health services or their educational placement  
               within two years of AB 114's implementation, the IEP teams  
               did not document the rationale for the changes.

                 For 13 of the 44 students reviewed who had a mental  
               health service removed from their IEPs, either the LEAs  
               could not satisfactorily explain why the services were  
               removed or the removal was related to AB 114.  In three  
               cases, the LEA had no assurance that removing services  
               would not adversely affect access to education.
          
          Audit recommendations regarding data collection and monitoring.   
          The audit made several recommendations related to data  
          collection and monitoring of student mental health services:


                 Require LEAs to use six performance indicators to  
               perform analysis annually on the subset of students  
               receiving mental health services. 



                 Require CDE to analyze and report on the outcomes for  
               students receiving mental health services, including  
               outcomes across six performance indicators, in order to  
               demonstrate whether those services are effective. 









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                 Require CDE to collect information about the frequency  
               of the provision of each service contained in all students'  
               IEPs. 



                 Require CDE to annually review the frequency of mental  
               health services and follow up with SELPAs when it observes  
               a significant reduction in the frequency of services. 



                 Require CDE to develop, and require all LEAs to follow,  
               an accounting methodology to track and report expenditures  
               related to special education mental health services. 



          This bill includes some, but not all, of the recommendations in  
          the audit, and also includes requirements that were not  
          recommended by the audit.




          How schools provide mental health services? Most of the mental  
          health services provided by schools are related to services  
          required by a student's IEP.  Schools may employ staff directly  
          as well as contract with county mental health agencies or  
          private providers.

          Schools also have the discretion to provide counseling and  
          mental health services, or refer to outside providers, to  
          students who do not have an IEP.  These services may be provided  
          by a school counselor, psychologist or social worker, or other  
          qualified personnel employed by an outside entity.  









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          LEAs may use multiple sources of funding to meet the mental  
          health needs of their students, including AB 114 funds, state or  
          federal special education funds, Local Control Funding Formula  
          revenue, local tax revenue, Medi-Cal funds through the Medi-Cal  
          LEA billing option program, Early and Periodic Screening  
          Diagnostic and Treatment (EPSDT) program funds through  
          partnership with county mental health agencies, and private  
          insurance.  The state audit referenced above found that LEAs do  
          indeed combine multiple funding sources to provide these  
          services.



          How do the requirements of this bill compare to current  
          practice? This bill establishes a number of requirements on LEAs  
          and CDE.  Some of these activities are already conducted, or are  
          conducted in a different manner, by those agencies, and some of  
          them constitute new activities.  Below is a comparison between  
          key provisions of this bill and current requirements:


                  Reporting on mental health services.   This bill requires  
               each LEA to annually report to the CDE the actual frequency  
               and duration of each mental health service provided to each  
               student as required by their IEP.  LEAs are currently  
               required by federal law to report services offered.   
               According to the SELPA Administrators Association, this  
               provision could mean that LEAs would be required to create  
               service logs to track the required information.  This would  
               require significant time and financial resources. 



                  Reporting on expenditures for mental health for all  
               students  .  This bill requires SELPAs to document and report  
               to the CDE all mental health and special education services  
               funding allocations and expenditures and specify the dollar  
               amount for each service.  LEAs are currently required to  








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               report on their expenditures of AB 114 funds to the CDE.  



                  Reporting on student outcomes.   This bill requires each  
               LEA to annually provide to the CDE data needed to document  
               specified outcomes for each student receiving mental health  
               services, including data on graduation rates, dropout  
               rates, statewide assessment results, suspension and  
               expulsion rates, participation in general education  
               classes, and post-school outcomes.  According to the CDE,  
               this data is already reported to the state and maintained  
               in either the CASEMIS or CALPADS data systems. 



                  State monitoring of mental health services  .  This bill  
               requires the CDE to monitor the number and frequency of  
               mental health services reported annually by LEAs and  
               compare year-to-year changes for each LEA.  Requires that  
               if year-to-year services decline significantly, then the  
               CDE investigate the cause for the decline in service  
               provision.  The CDE does not conduct verification reviews  
               (to monitor whether services planned in IEPs are being  
               provided) in all school districts, but does conduct them in  
               approximately 30-50 targeted districts per year, chosen  
               based on indications of compliance problems.  Expanding  
               verification reviews to all students with mental health  
               services indicated in their IEPs would be a significant  
               expansion of the department's monitoring role.  Opponents  
               of this bill also note that a year-to-year decline in  
               services can have many causes (such as natural enrollment  
               trends or early intervention programming which reduces  
               enrollment in special education).  It is unclear what is  
               envisioned by the requirement that CDE "investigate" such a  
               decline in services, but if this were interpreted to extend  
               beyond current monitoring practices it too would likely  
               significantly expand the state's monitoring function.









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                  Family empowerment centers information.   This bill  
               requires each SELPA to require each LEA to provide parents  
               with informational materials, including procedural  
               safeguards, information regarding family empowerment  
               centers, and parent training and information centers in  
               their community. The bill also requires this information to  
               be provided in the three most common languages used by  
               parents locally, and be made available for LEAs to provide  
               to parents in their annual parent notification.  The CDE  
               maintains translated versions of the procedural safeguards  
               on its website in four languages, and LEAs are currently  
               required to provide copies of procedural safeguards to  
               parents at times specified in the law.  
           


          Arguments in support.  The California Council of Community  
          Behavioral Health Agencies writes that since the enactment of AB  
          114 it is now "impossible to determine if the shift in services  
          has actually benefitted students," and that "SB 884 would  
          institute stringent standards for accountability, transparency,  
          and monitoring of services and spending, so the state can  
          accurately assess whether students' needs are being met.  The  
          bill also strengthens students' and parents' rights by requiring  
          schools to give them written notification of impending changes  
          to IEPs and to provide informational materials regarding their  
          rights."


          The Western Center on Law and Poverty writes, "There is simply  
          too little data to determine whether the LEAs are meeting their  
          responsibility to provide necessary mental health services to  
          school children in special education," and supports SB 884  
          because it would strengthen requirements for accountability,  
          transparency, and monitoring of services and spending.










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          Arguments in opposition.  The Coalition for Adequate Funding for  
          Special Education writes, "The Coalition believes this bill will  
          result in significant new unfunded state mandates to LEAs by  
          requiring greater levels of administrative reporting by teachers  
          and administrators that will take critical time away from the  
          classroom and our most vulnerable at-risk children.  
          Additionally, new unfunded special education service  
          requirements will place additional fiscal pressures on an LEA's  
          local budget and result in the diversion of Local Control  
          Funding Formula funding to backfill the cost of these new  
          mandates."


          The California Teachers Association writes, "CTA believes  
          implementation of this bill would divert funding from  
          Proposition 98 and limited special education funding,  
          unnecessarily burden service providers which would impact the  
          quality and delivery of individual instruction, inappropriately  
          increase the workload for special education teachers regarding  
          duplicative data reporting, and impact the local priorities in  
          each LEA's Local Control and Accountability Plan, which is  
          developed with community stakeholders and teachers to meet the  
          educational needs of all students, including pupils with  
          disabilities."


          Recommended amendments.  To addressing the author's interest in  
          improved fiscal and programmatic accountability for student  
          mental health services, while also addressing the above concerns  
          about mandated costs, duplicative requirements, and the  
          diversion of resources away from instruction and delivery of  
          services, staff recommends the following amendments:


          Delete the current contents of the bill and replace with the  
          following:


          1)Require that the K-12 education audit guide include an audit  








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            procedure that reviews whether the funding received by an LEA  
            for educationally related mental health services required by  
            an IEP (AB 114 funds) was used for its intended purpose.  



          2)Require that the CDE create a report to the Legislature on its  
            compliance findings and corrective action plans related to the  
            provision of mental health services for students with IEPs,  
            based on the data they currently collect through their  
            verification reviews of a subset of districts.  



          3)Require CDE create a report to the Legislature on the student  
            outcomes for which data is currently available for students  
            receiving mental health services through their IEPs.  

          4)Require the CDE to include a link to the page on its website  
            which lists family empowerment centers on its sample  
            procedural safeguards, in all languages for which it maintains  
            a translation.


           


          Related legislation.  SB 1113 (Beall) of this Session authorizes  
          LEAs to enter into partnerships, as specified, with county  
          mental health plans for the provision of EPSDT mental health  
          services.  That bill was approved by this Committee on April  
          15th and is pending in the Assembly Health Committee.


          AB 2091 (Lopez) of this Session requires LEAs to provide parents  
          with a translated copy of an IEP and other specified documents,  
          upon request, and requires that the IEP and related documents be  
          translated by a qualified translator.  This bill is pending in  
          the Senate Appropriations Committee.








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          REGISTERED SUPPORT / OPPOSITION:




          Support


          California Council of Community Behavioral Health Agencies  
          (sponsor)


          California State PTA


          California Youth Empowerment Network


          Community Health Partnership


          National Alliance on Mental Illness, California


          Steinberg Institute


          Western Center on Law and Poverty


          One individual











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          Opposition


          Alta Loma School District


          Association of California School Administrators


          California Association of School Business Officials


          California Teachers Association


          Clovis Unified School District


          Coalinga-Huron Unified School District


          Coalition for Adequate Funding for Special Education


          Dinuba Unified School District


          Glendora Unified School District


          Kern County Superintendent of Schools


          Sacramento City Unified School District


          Special Education Local Plan Area Administrators









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          Analysis Prepared by:Tanya Lieberman / ED. / (916)  
          319-2087