BILL ANALYSIS                                                                                                                                                                                                    Ó






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          |SENATE RULES COMMITTEE            |                       SB 1113|
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                                   THIRD READING 


          Bill No:  SB 1113
          Author:   Beall (D) 
          Amended:  4/14/16  
          Vote:     21 

           SENATE EDUCATION COMMITTEE:  8-1, 4/6/16
           AYES:  Liu, Block, Hancock, Huff, Leyva, Mendoza, Monning, Pan
           NOES:  Vidak

           SENATE HEALTH COMMITTEE:  9-0, 4/20/16
           AYES:  Hernandez, Nguyen, Hall, Mitchell, Monning, Nielsen,  
            Pan, Roth, Wolk

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

           SUBJECT:   Pupil health:  mental health


          SOURCE:    California Council of Community Behavioral Health  
          Agencies


          DIGEST:  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, and  
          requires the California Department of Education (CDE) to expand  
          its reporting system for mental health services to include  
          academic performance and other measures.










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          ANALYSIS:  


          Existing law:


          1)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.


          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 the  
            priority areas described in 1) above.  (Education Code §  
            56600.6)


          3)Establishes the Medi-Cal EPSDT program for eligible people  
            under 21 years of age to provide periodic screenings to  
            determine health care needs and based upon the identified  
            health care need and diagnosis, treatment services are  
            provided.  Existing law provides that EPSDT services are to be  
            administered through local county mental health plans under  
            contract with the State Department of Health Care Services  
            (DHCS).  (Welfare and Institutions Code § 14700, et seq.)


          This bill: 


          1)Authorizes an LEA to enter into a partnership that includes  
            all of the following:


             a)   An agreement between the county mental health plan and  
               the LEA that establishes a Medi-Cal mental health provider  
               that is county operated or county contracted, for the  
               provision of mental health services to students of the LEA.  
                This bill authorizes the agreement to include provisions  
               for the delivery of campus-based mental health services  
               through qualified providers or qualified professionals to  







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               provide on-campus support to identify a student not in  
               special education who a teacher believes may require those  
               services and, with parental consent, to provide mental  
               health services to those students.


             b)   The county mental health plan and the LEA use designated  
               governmental funds as required match for eligible Medi-Cal  
               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, and  
               for students not part of special education if the services  
               are provided by a provider pursuant to the agreement  
               described above.


             c)   The LEA, with permission of the student's parent,  
               provides the county mental health plan provider with the  
               information of the health insurance carrier for each  
               student.


             d)   The agreement between the county mental health plan and  
               the LEA addresses how to cover the costs of mental health  
               provider services not reimbursed by governmental funds in  
               the event that mental health service costs exceed the  
               agreed upon funding outlined in the partnership agreement  
               between the county mental health plan and the LEA following  
               a year-end cost reconciliation process, and in the event  
               that the LEA does not elect to provide the services through  
               other means. 


             e)   The agreement between the county mental health plan and  
               the LEA fulfills reporting requirements under state and  
               federal law and Medi-Cal EPSDT provisions, and measures the  
               effect of the mental health intervention and how that  
               intervention meets the goals in a student's individualized  
               education program (IEP) or relevant plan for students  
               without an IEP.


             f)   The county mental health plan participates in any  
               performance outcome system established by the DHCS to  







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               measure results of services provided under the partnership  
               agreement between the county mental health plan and the  
               LEA.


             g)   The LEA participates in any performance system  
               established by the CDE to measure performance of special  
               education mental health services and other mental health  
               services provided under the partnership agreement between  
               the county mental health plan and the LEA.  


             h)   The LEA also reports applicable information to the  
               performance outcome system established by the DHCS for  
               those students whose information is not reported pursuant  
               to (f).


             i)   A plan to establish a partnership in at least one school  
               within the LEA in the first year and to expand the  
               partnership to three additional schools within three years.  
                


          2)Requires funds made available in the annual Budget Act for the  
            purpose of providing educationally related mental health  
            services required by an IEP to be used only for that purpose  
            unless the State Board of Education grants a waiver allowing  
            those funds to be expended for other purposes.


          3)Requires the SPI, for the 2017-18 fiscal year and each fiscal  
            year thereafter, to the extent there is an appropriation in  
            the annual Budget Act for purposes of educationally related  
            mental health services, to allocate funds from that  
            appropriation to the County and Local Educational Agency  
            Partnership Fund (Partnership Fund).


          4)Authorizes other funds identified and appropriated by the  
            Legislature to also be deposited into the Partnership Fund.


          5)Requires the CDE to expand its reporting system for mental  







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            health services provided pursuant to a student's IEP to  
            include academic performance and any measures included within  
            the EPSDT mental health services performance outcome system.  


          6)Requires the CDE to enter into an agreement with the DHCS to  
            provide academic performance data to DHCS for use in its  
            performance outcome system regarding students who are enrolled  
            in Medi-Cal and special education who receive mental health  
            services.


          7)Requires the Mental Health Services Oversight and  
            Accountability Commission to provide guidance and  
            best-practices guidelines for counties that choose to  
            implement partnership programs for early intervention and  
            prevention with LEAs and public schools.


          8)States legislative intent, where applicable and to the extent  
            mutually agreed to by a school district and a plan or insurer,  
            that a health care service plan or a health insurer be  
            authorized to participate in the partnerships pursuant to this  
            bill.


          Comments


          Recent state audit and EPSDT.  The Bureau of State Audits  
          released a report in January 2016, 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.  This bill relates to the section of the audit  
          that is specific to the EPSDT program, which is a Medi-Cal  
          benefit for people under the age of 21 who have "full-scope"  
          Medi-Cal eligibility.  The EPSDT program provides eligible  
          children access to a range of mental health services that  
          include, among other things, mental health assessment, mental  
          health services, therapy, rehabilitation, therapeutic behavioral  
          services, crisis intervention/stabilization, day  
          rehabilitation/day treatment, medication support and case  
          management.  EPSDT services are administered through county  
          mental health plans under contract with the DHCS; LEAs may  







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          provide and bill for EPSDT mental health services only pursuant  
          to a contract with the county mental health plan (either the  
          county mental health plan provides and bills for the service, or  
          the LEA becomes a certified provider via the county mental  
          health plan and the LEA provides and bills for the service).


          The audit noted that although LEAs cannot access funding for  
          EPSDT services unless they contract with their respective  
          counties, such collaborations could financially benefit both  
          counties and LEAs and increase the provision of services to  
          children.  This audit recommended that the Legislature require  
          counties to enter into agreements with special education local  
          plan areas (SELPAs) to allow SELPAs and their LEAs to access  
          EPSDT funding through the county mental health programs by  
          providing EPSDT mental health services.   
          [http://www.bsa.ca.gov/pdfs/reports/2015-112.pdf]


          Partnerships.  According to the recent State audit, the  
          Children's Center at Desert Mountain SELPA's collaboration with  
          San Bernardino County is financially beneficial for both the  
          SELPA and the county.  The SELPA contributes a portion of San  
          Bernardino's match of federal reimbursements, saving the county  
          funds that it would otherwise have to contribute as the local  
          entity.  Under the terms of its agreement with San Bernardino,  
          Desert Mountain was able to access approximately $4 million in  
          federal EPSDT funds to provide mental health services in fiscal  
          year 2014-15.  This arrangement enables Desert Mountain to  
          provide mental health services to Medi-Cal-eligible students  
          with and without IEPs.  The State audit also describes a  
          contractual agreement between Mt. Diablo Unified School District  
          and the county mental health department for Mt. Diablo to  
          receive Medi-Cal funds as a provider of EPSDT services to  
          Medi-Cal-eligible students.


          IEP funds for non-IEP based services?  Existing law restricts  
          the use of AB 114 (Budget Committee, Chapter 43, Statutes of  
          2011) funds by providing that they may only be used to provide  
          IEP-based mental health services.  The audit found that some  
          LEAs had not spent all of the state mental health funds it had  
          received, but did not specifically recommend expanding the  
          allowable uses of AB 114 funds.  This bill contains conflicting  







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          provisions regarding the use of AB 114 funds for non-IEP-based  
          mental health services.  




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


          According to the Senate Appropriations Committee:


           Unknown costs to implement the grant program as it would  
            depend upon the amount of funding that is transferred into the  
            Partnership Fund.  (Proposition 98)

          
           To the extent Partnership funds are used for mental health  
            services not required by an 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 DHCS 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)










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          SUPPORT:   (Verified5/27/16)


          California Council of Community Behavioral Health Agencies  
          (source)
          California Association of Marriage and Family Therapists
          California Youth Empowerment Network
          Community Health Partnership
          Mental Health America of California
          Steinberg Institute


          OPPOSITION:   (Verified5/27/16)


          None received



          Prepared by:Lynn Lorber / ED. / (916) 651-4105
          5/28/16 16:45:59


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