BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1113| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- 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. SB 1113 Page 2 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 SB 1113 Page 3 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 SB 1113 Page 4 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 SB 1113 Page 5 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 SB 1113 Page 6 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 SB 1113 Page 7 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) SB 1113 Page 8 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 **** END ****