BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          SB 1113 (Beall) - Pupil health:  mental health
          
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          |Version: April 14, 2016         |Policy Vote: ED. 8 - 1, HEALTH  |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: May 9, 2016       |Consultant: Jillian Kissee      |
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          This bill meets the criteria for referral to the Suspense File.


          Bill Summary:  This bill authorizes local educational agencies  
          (LEAs) to enter into partnerships, as specified, with county  
          mental health plans for the provision of Early and Periodic  
          Screening, Diagnosis, and Treatment (EPSDT) mental health  
          services and to expand the allowable uses of specified mental  
          health funds.  It also requires the California Department of  
          Education (CDE) and the Department of Health Care Services  
          (DHCS) to enter into an agreement and update their reporting  
          systems to track academic outcomes and other measures for  
          individuals enrolled in Medi-Cal and special education who  
          receive mental health services.

          Fiscal Summary:  
                 Unknown costs to implement the grant program as it would  
               depend upon the amount of funding that is transferred into  
               the County and Local Educational Agency Partnership Fund  
               (Partnership Fund).  The author's office intends for this  
               bill to fund about 10 LEAs at $600,000 each year for three  
               schools per LEA.  Under this scenario, costs would be $18  
               million per year.  Actual costs could be higher or lower  







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               depending upon available funding.  See staff comments.   
               (Proposition 98)
             
                 To the extent Partnership funds are used for mental  
               health services not required by an individualized education  
               program (IEP), there would be a cost pressure to increase  
               state funds by a similar amount that is transferred, to  
               backfill the special education program to meet the federal  
               maintenance of effort requirement.  (Proposition 98)

             
                 CDE estimates the costs to prepare and report required  
               data and to administer the competitive grant process, to be  
               up to $150,000 General Fund across several positions.   
               Unknown, potentially significant costs to the Department of  
               Health Care Services and CDE to enter into a data sharing  
               agreement.  Associated cost pressures and potential  
               significant mandate for LEAs to report the required data to  
               CDE (Proposition 98).

             
                 To the extent the use of moneys from the Partnership  
               Fund leads to increased access to federal Medi-Cal funds,  
               LEAs would presumably be able to provide additional  
               services to eligible students in their jurisdiction.   
               (Federal funds)

          Background:  This bill is in response to a finding of an audit  
          conducted by the Bureau of State Audits, 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, (January 2016) that LEAs and counties could  
          benefit financially and improve student access to mental health  
          services by collaborating to provide services to Medi-Cal  
          eligible students.  According to a survey conducted of the SELPA  
          Administrators of California members, six SELPAs report having  
          an EPSDT partnership in place.

          In 2011, AB 114 shifted the responsibility of providing  
          educationally-related mental health services from county mental  
          health agencies to LEAs.  LEAs are required to ensure services  
          are provided to students regardless of who provides or pays.

          The EPSDT program is a Medi-Cal benefit for people under the age  








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          of 21 who have "full scope" Medi-Cal eligibility.  This benefit  
          allows for periodic screenings to determine health care needs  
          and, based upon the identified health care need and diagnosis,  
          treatment services are provided.  EPSDT provides eligible  
          children access to a range of mental health services including,  
          mental health assessments, mental health services, therapy,  
          rehabilitation, therapeutic behavioral services, crisis  
          intervention/stabilization, day rehabilitation/day treatment,  
          medication support, and case management.



          LEAs are prohibited from directly providing or billing for EPSDT  
          services unless the county mental health department chooses to  
          contract with the LEA for those services.  EPSDT is considered  
          specialty mental health.  According to CDE, LEAs can use one or  
          more of the following options for sourcing mental health  
          services to Medi-Cal eligible students: (1) provide and pay for  
          services without seeking Medi-Cal reimbursement; (2) use the LEA  
          Medi-Cal Billing Option Program (which does not cover as many  
          services as EPSDT); or (3) for EPSDT services, collaborate with  
          county mental health departments to secure the specialty mental  
          health services through the county mental health plan.  LEAs can  
          do this by entering into a Memorandum of Understanding with the  
          county mental health plan for specialty mental health services.   
          In this case, county mental health plans provide the service and  
          incur the cost, and bill Medi-Cal for federal reimbursement.   
          The LEA can also request to be a certified provider of Medi-Cal  
          specialty mental health services from the county mental health  
          plan.  This would allow the LEA to provide the specialty mental  
          health services through an LEA qualified employee and submit a  
          claim to the county mental health plan for federal  
          reimbursement.
          Proposed Law:
                 Requires the CDE to expand its reporting system to  
               include academic performance and any measures with the  
               DHCS' EPSDT mental health services performance outcome  
               system, as specified.
                 Requires the CDE and the DHCS to enter into an agreement  
               to provide relevant academic data, to the DHCS for  
               utilization in its performance outcome system regarding  
               individuals enrolled in Medi-Cal and special education who  
               receive mental health services.









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                 Authorizes a county and LEA to enter into a partnership  
               that, among other things, utilizes designated governmental  
               funds for eligible EPSDT reimbursement for services  
               provided to students enrolled in Medi-Cal, for mental  
               health service costs for non-Medi-Cal enrolled students in  
               special education with IEPs, and for students not part of  
               special education; utilizes, with consent, information of  
               the health insurance carrier for each student; allows  
               participation of the county mental health plan and the LEA  
               in a performance outcome system, as specified. 

                 This bill creates the Partnership Fund for which moneys  
               are available upon appropriation by the Legislature to the  
               CDE to fund these partnerships through a competitive grant  
               program.

                 This bill requires that to the extent there is an  
               appropriation in the annual budget act for educationally  
               related mental health services, the Superintendent of  
               Public Instruction allocate these funds to the Partnership  
               Fund.  This bill also requires that funding for  
               educationally related mental health services pursuant to an  
               IEP provided in the budget be used only for that purpose  
               unless the State Board of Education grants a waiver  
               allowing these funds to be expended for other purposes.

          Related Legislation:  SB 884 (Beall) requires, among other  
          things, LEAs and SELPAs to collect and report specific  
          information relative to mental health services, and requires CDE  
          to monitor and compare specified information related to the  
          level of special education services being provided.  SB 884 is  
          scheduled to be heard by this Committee on May 9, 2016. 

          Staff Comments:  The bill requires, to the extent educationally  
          related mental health services funding is appropriated in the  
          budget (which has been an ongoing appropriation for several  
          years), those funds are to be transferred into the Partnership  
          Fund.  Though the current year budget provides $431 million for  
          this purpose, it is unclear how much would be transferred into  
          the new fund.  The bill provides that agreements entered into  
          between the county mental health plan and the LEA may include  
          provisions for the delivery of mental health services to  
          students not in special education.  However, this bill requires  
          that before providing services outside an IEP using these funds,  








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          a waiver must first be granted by the State Board of Education.

          Staff notes that the federal Individuals with Disabilities  
          Education Act prohibits states from providing state financial  
          support for special education and related services below the  
          amount of the preceding fiscal year.  Therefore the state would  
          not be able to count mental health services provided to students  
          not required by an IEP towards the maintenance of effort (MOE)  
          requirement.  This would either require a Proposition 98  
          backfill to maintain the same level of state program support, or  
          the state could be required to return the portion of federal  
          funds to the United States Department of Education that it fell  
          short from meeting the MOE requirement.  LEAs are also held to a  
          similar MOE requirement at the local level.

          This bill authorizes the partnerships to address how to cover  
          the costs of mental health provider services not reimbursed by  
          Medi-Cal EPSDT and how to pay the required match.  Though these  
          obstacles are similar to those experienced today, in order to  
          receive a grant pursuant to this bill, counties and LEAs would  
          have to come to an agreement, locally, on the provision of  
          services and the corresponding financial responsibility.


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