BILL ANALYSIS                                                                                                                                                                                                    Ó



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          SENATE THIRD READING


          SB  
          884 (Beall)


          As Amended  August 1, 2016


          Majority vote


          SENATE VOTE:  39-0


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Education       |7-0  |O'Donnell, Olsen,     |                    |
          |                |     |Kim, McCarty,         |                    |
          |                |     |Santiago, Thurmond,   |                    |
          |                |     |Weber                 |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |20-0 |Gonzalez, Bigelow,    |                    |
          |                |     |Bloom, Bonilla,       |                    |
          |                |     |Bonta, Calderon,      |                    |
          |                |     |Chang, Daly, Eggman,  |                    |
          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Holden,       |                    |
          |                |     |Jones, Obernolte,     |                    |
          |                |     |Quirk, Santiago,      |                    |
          |                |     |Wagner, Weber, Wood,  |                    |
          |                |     |Chau                  |                    |
          |                |     |                      |                    |








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          SUMMARY:  Requires that funding for mental health services for  
          students with individualized education programs (IEPs) be  
          subject to local audit in the 2016-17 fiscal year, requires the  
          California Department of Education (CDE) to create a report on  
          its compliance findings and corrective action plans related to  
          the provision of mental health services for students with IEPs,  
          requires the CDE to create a report on pupil outcomes for  
          students receiving mental health services pursuant to their  
          IEPs, and requires the CDE to include a link to information on  
          family empowerment centers on its sample procedural safeguards.




          1)Requires that funding for mental health services for students  
            with disabilities be subject to existing state and federal  
            audit requirements, and that audit procedures be included in  
            the audit guide to review whether this funding was used for  
            its intended purposes in the 2016-17 fiscal year. 




          2)Requires that these audit procedures be included in future  
            fiscal years if the addition of these procedures is  
            recommended by the State Controller. 


          3)Requires that if any audit findings are generated through this  
            process, the Superintendent of Public Instruction ensure that  
            the local educational agency (LEA) has either corrected them  
            or has developed a plan of correction.


          4)Requires the CDE to create a report on its compliance findings  








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            and corrective action plans related to the provision of mental  
            health services for students with IEPs using data the  
            department collects through its verification and comprehensive  
            reviews, including those targeted and any randomly chosen for  
            review.  Requires the CDE to provide this report to the  
            appropriate fiscal and policy committees of the Legislature by  
            June 30, 2017.




          5)Requires the CDE to create a report on pupil outcomes for  
            students receiving mental health services through an IEP using  
            data already maintained by the department.  Requires the  
            outcomes to include all of the following:  graduation rates,  
            dropout rates, statewide assessment results, suspension and  
            expulsion rates, participation in general education classes,  
            and postschool outcomes.  Requires the CDE to provide this  
            report to the appropriate fiscal and policy committees of the  
            Legislature by June 30, 2017.


          6)Requires the CDE to include a link on the sample procedural  
            safeguards form maintained on its Web site to the page on its  
            Web site that lists family empowerment centers, and to include  
            this link on all sample procedural safeguard forms for which  
            it maintains translations. 


          FISCAL EFFECT:  




          According to the Assembly Appropriations Committee:  


          1)Minor/absorbable costs to the Controller's Office to add an  
            additional item to the annual K-12 audit guide.








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          2)Minor General Fund administrative costs to CDE of  
            approximately $10,000 to $20,000 to report on compliance  
            findings and corrective action plans and to report on pupil  
            outcomes, as specified, since reports are based on existing  
            data.


          COMMENTS:  


          Recent state audit.  AB 114 (Committee on Budget), 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:


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


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


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









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


          The audit also found that for individual student records  
          reviewed:


          1)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. 


          2)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.


          3)For 40% 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.


          4)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:










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


          2)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. 


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


          4)Require CDE to annually review the frequency of mental health  
            services and follow up with Special Education Local Plan Areas  
            (SELPAs) when it observes a significant reduction in the  
            frequency of services. 


          5)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.


          K-12 Audit Guide process.  Existing law requires the State  
          Controller's Office, the Department of Finance, the CDE, and  
          certain education stakeholders to propose the content of the  
          K-12 audit guide for annual financial and compliance audits of  
          school districts, county offices of education, and other local  
          education agencies.  This bill would deviate from the existing  
          process and require specific procedures to be included in the  
          guide for the 2016-17 fiscal year only.  Procedures for the  








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          review of mental health expenditures, as specified, could be  
          included in future years but only upon the recommendation of the  
          Controller. 




           Analysis Prepared by:                                            
                          Tanya Lieberman / ED. / (916) 319-2087  FN:  
          0004064