BILL ANALYSIS                                                                                                                                                                                                    Ó




           ----------------------------------------------------------------- 
          |SENATE RULES COMMITTEE            |                        SB 884|
          |Office of Senate Floor Analyses   |                              |
          |(916) 651-1520    Fax: (916)      |                              |
          |327-4478                          |                              |
           ----------------------------------------------------------------- 


                                UNFINISHED BUSINESS 


          Bill No:  SB 884
          Author:   Beall (D) 
          Amended:  8/1/16  
          Vote:     21 

           SENATE EDUCATION COMMITTEE:  9-0, 4/6/16
           AYES:  Liu, Block, Hancock, Huff, Leyva, Mendoza, Monning, Pan,  
            Vidak

           SENATE APPROPRIATIONS COMMITTEE:  7-0, 5/27/16
           AYES:  Lara, Bates, Beall, Hill, McGuire, Mendoza, Nielsen

           SENATE FLOOR:  39-0, 6/2/16
           AYES:  Allen, Anderson, Bates, Beall, Berryhill, Block,  
            Cannella, De León, Fuller, Gaines, Galgiani, Glazer, Hall,  
            Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson,  
            Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning,  
            Moorlach, Morrell, Nguyen, Nielsen, Pan, Pavley, Roth, Stone,  
            Vidak, Wieckowski, Wolk
           NO VOTE RECORDED:  Runner

           ASSEMBLY FLOOR:  77-0, 8/18/16 - See last page for vote

           SUBJECT:   Special education:  mental health services


          SOURCE:    Author


          DIGEST:  This bill requires that funding for mental health  
          services for students with individualized education programs  
          (IEPs) be subject to existing state and federal audit  
          requirements, 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  








                                                                     SB 884 
                                                                    Page  2



          health services for students, requires the CDE to create a  
          report on pupil outcomes for students receiving mental health  
          services, and requires the CDE to include a link to information  
          on family empowerment centers on its sample procedural  
          safeguards.


          Assembly Amendments delete the contents of the bill; provide  
          that specified funding for mental health services be subject to  
          existing state and federal audit requirements; require the audit  
          guide to include an audit procedure to review whether specified  
          funding was used for its intended purpose; require the  
          Superintendent of Public Instruction (SPI) to ensure that the  
          local educational agency (LEA) has either corrected or developed  
          a plan of correction; require the CDE to include on its Web site  
          a link on the sample procedural safeguards to a list of family  
          empowerment centers; require the CDE to create a report on its  
          compliance findings and corrective action plans; and, require  
          the CDE to create a report on student outcomes, as specified.


          ANALYSIS:   Existing federal and state law provides that every  
          individual with exceptional needs who is eligible to receive  
          special education instruction and related services shall receive  
          that instruction and those services through a free appropriate  
          public education in the least restrictive environment.  (United  
          States Code, Title 20, § 1412; Code of Federal Regulations,  
          Title 34, § 300.101 and § 300.114; Education Code § 56040 and §  
          56040.1)


          Existing 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  
          IEP of the child, counseling services, including rehabilitation  
          counseling, orientation and mobility services, and medical  
          services, except that such medical services shall be for  








                                                                     SB 884  
                                                                    Page  3



          diagnostic and evaluation purposes only) as may be required to  
          assist a child with a disability to benefit from special  
          education, and includes early identification and assessment of  
          disabling conditions in children.  (United States Code, Title 20  
          § 1401(26); Code of Federal Regulations, Title 34 § 300.34)


          Existing state law: 

          1)Requires the 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.

          2)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  
            specified priority areas.  (EC § 56600.6)

          This bill:


          1)Requires funding for mental health services for students with  
            an IEP to be subject to existing state and federal audit  
            requirements, and requires 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 these audit procedures to be included in future  
            fiscal years if the addition of these procedures is  
            recommended by the State Controller. 




          3)Requires the SPI, if any mental health audit findings are  
            generated through this process, to ensure that the LEA has  
            either corrected or developed a plan of correction for state  








                                                                     SB 884  
                                                                    Page  4



            and federal mental health funds.




          4)Requires the CDE to create a report on its compliance findings  
            and corrective action plans related to the provision of mental  
            health services for students with an IEP using data the CDE  
            collects through its verification and comprehensive reviews,  
            including those targeted and any randomly chosen for review.   
            This bill 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 student outcomes for  
            students receiving mental health services through an IEP using  
            data already maintained by the CDE.  This bill requires the  
            outcomes to include all of the following:  




             a)   Graduation rates.


             b)   Dropout rates.


             c)   Statewide assessment results.


             d)   Suspension and expulsion rates.


             e)   Participation in general education classes.


             f)   Post-school outcomes.  









                                                                     SB 884  
                                                                    Page  5




          6)Requires the CDE to provide the report described in 5) above  
            to the appropriate fiscal and policy committees of the  
            Legislature by June 30, 2017.




          7)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.


          Comments
          
          Recent state audit.  AB 114 (Committee on Budget, Chapter 43,  
          Statutes of 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.










                                                                     SB 884  
                                                                    Page  6



          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:


          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  








                                                                     SB 884  
                                                                    Page  7



            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  
            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 deviates from the existing  
          process and requires specific procedures to be included in the  
          guide for the 2016-17 fiscal year only.  Procedures for the  
          review of mental health expenditures, as specified, could be  
          included in future years but only upon the recommendation of the  
          Controller. 


          FISCAL EFFECT:   Appropriation:    No          Fiscal  
          Com.:YesLocal:   No


          According to the Assembly Appropriations Committee:  









                                                                     SB 884  
                                                                    Page  8




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


          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.




          SUPPORT:   (Verified8/19/16)


          None received


          OPPOSITION:   (Verified8/19/16)


          None received




          ASSEMBLY FLOOR:  77-0, 8/18/16
          AYES:  Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,  
            Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,  
            Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,  
            Cooper, Dababneh, Dahle, Daly, Dodd, Frazier, Beth Gaines,  
            Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson,  
            Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Holden,  
            Irwin, Jones, Jones-Sawyer, Kim, Lackey, Levine, Linder,  
            Lopez, Low, Maienschein, Mathis, Mayes, McCarty, Medina,  
            Melendez, Mullin, Nazarian, Obernolte, O'Donnell, Olsen,  
            Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth,  
            Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk,  
            Williams, Wood, Rendon
          NO VOTE RECORDED:  Eggman, Roger Hernández, Patterson








                                                                     SB 884  
                                                                    Page  9





          Prepared by:Lynn Lorber / ED. / (916) 651-4105
          8/19/16 18:19:39


                                   ****  END  ****