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 ****