BILL ANALYSIS                                                                                                                                                                                                    Ó



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          SENATE THIRD READING


          SB  
          1113 (Beall)


          As Amended  August 15, 2016


          Majority vote


          SENATE VOTE:  39-0


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Education       |7-0  |O'Donnell, Olsen,     |                    |
          |                |     |Kim, McCarty,         |                    |
          |                |     |Santiago, Thurmond,   |                    |
          |                |     |Weber                 |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Health          |17-0 |Wood, Maienschein,    |                    |
          |                |     |Bonilla, Burke,       |                    |
          |                |     |Campos, Chiu, Gomez,  |                    |
          |                |     |Roger Hernández,      |                    |
          |                |     |Lackey, Nazarian,     |                    |
          |                |     |Patterson,            |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |Ridley-Thomas,        |                    |
          |                |     |Rodriguez, Santiago,  |                    |
          |                |     |Steinorth, Thurmond,  |                    |








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          |                |     |Waldron               |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Appropriations  |20-0 |Gonzalez, Bigelow,    |                    |
          |                |     |Bloom, Bonilla,       |                    |
          |                |     |Bonta, Calderon,      |                    |
          |                |     |Chang, Daly, Eggman,  |                    |
          |                |     |Gallagher, Eduardo    |                    |
          |                |     |Garcia, Holden,       |                    |
          |                |     |Jones, Obernolte,     |                    |
          |                |     |Quirk, Santiago,      |                    |
          |                |     |Wagner, Weber, Wood,  |                    |
          |                |     |McCarty               |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
           ------------------------------------------------------------------ 


          SUMMARY:  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 establishes  
          the County and Local Educational Agency Partnership Fund in the  
          State Treasury.  Specifically, this bill:  


          1)Authorizes an LEA to enter into a partnership with a county,  
            or a qualified provider operating as part of the county mental  
            health plan network, that includes all of the following: 


             a)   The county mental health plan, or the qualified  
               provider, and the LEA use designated governmental funds for  
               eligible Medi-Cal EPSDT program 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. 








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             b)   An agreement between the county mental health plan, or  
               the qualified provider, 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.  Authorizes the agreement  
               to include provisions for the delivery of campus-based  
               mental health services through qualified providers or  
               qualified professionals to provide on-campus support to  
               identify a student with a 504 plan and students not in  
               special education who a teacher believes may require those  
               services and, with parental consent, to provide mental  
               health services to those students. 


             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, or  
               the qualified provider, and the LEA addresses how to cover  
               the costs of mental health provider services not covered 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, or the qualified provider, 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, or  
               the qualified provider, and the LEA fulfills reporting and  
               all other 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  








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               the goals in a student's individualized education program  
               (IEP) or relevant plan for students without an IEP. 


             f)   The county mental health plan, or the qualified  
               provider, and LEA participate in the EPSDT performance  
               outcome system to measure results of services provided  
               under the partnership agreement.


             g)   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.  



          1)Establishes the County and Local Educational Agency  
            Partnership Fund in the State Treasury.  States that moneys in  
            the fund, upon appropriation by the Legislature, would be  
            available to the California Department of Education (CDE) for  
            the purpose of funding the partnerships established by the  
            bill, through a competitive grant program.  


          2)Requires the Superintendent of Public Instruction (SPI),  
            starting in the 2017-18 fiscal year, to allocate funds  
            appropriated in the Budget Act or another measure for purposes  
            of the partnerships established by this bill to the County and  
            Local Educational Agency Partnership Fund.


          3)Authorizes other funds identified and appropriated by the  
            Legislature to be deposited into the County and Local  
            Educational Agency Partnership Fund. 


          4)Requires that funds made available in the annual Budget Act  
            for the purpose of providing educationally related mental  
            health services, including out-of-home residential services  








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            for emotionally disturbed pupils, required by an  
            individualized education program, be used only for that  
            purpose and not be deposited into the County and Local  
            Educational Agency Partnership Fund.


          FISCAL EFFECT:  


          According to the Assembly Appropriations Committee:


          1)Proposition 98/General Fund (GF) cost pressure, in the  
            millions of dollars, to implement a competitive grant program  
            to fund county and LEA partnerships.  The author's office  
            estimates approximately $1.8 million would be needed per LEA.   
            This bill intends for at least three LEAs to be funded.   
            Actual costs could be higher or lower depending upon available  
            funding. 
            This bill establishes a Partnership Fund to provide  
            competitive grants to partnerships, available upon  
            appropriation by the Legislature.  The 2016-17 Budget Act does  
            not provide funding for this purpose.  The bill does not  
            specify a fund source for the Partnership Fund and does not  
            expressly prohibit the use of Proposition 98/GF, thereby  
            creating cost pressure on state funds. 


          2)Annual administrative costs to the CDE of approximately  
            $150,000 to administer the competitive grant process. 
          COMMENTS:


          Need for the bill.  According to the author, "A key finding of  
          the audit (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) was that LEAs and counties could benefit financially and  
          improve student access to mental health services by  








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          collaborating to provide services to Medi-Cal eligible students.  
           Although successful models have demonstrated partnerships like  
          SB 1113 benefit both the counties and LEAs by increasing access  
          to necessary mental health services for all Medi-Cal eligible  
          school-age children, they are rarely implemented by LEAs.  LEAs  
          cannot access funding for those EPSDT services unless they  
          contract with their respective counties.  Some LEAs and counties  
          disagree over who should pay for the state match as required  
          under the EPSDT program." 


          Recent state audit on student mental health services.  AB 114  
          (Committee on Budget), Chapter 43, Statutes of 2011, transferred  
          the 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 continues to be, the LEA.










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          4)The majority of changes to services were unrelated to AB 114,  
            though IEP teams did not always record in the IEP document  
            their rationale for why a service was removed.


          The audit recommended that the Legislature require counties to  
          enter into agreements with California Special Education Local  
          Plan Areas (SELPAs) to allow SELPAs and LEAs to access EPSDT  
          funding through the county mental health programs by providing  
          EPSDT mental health services.  


          Audit recommendation regarding EPSDT program.  This bill relates  
          to the section of the audit that is specific to the EPSDT  
          program.  The audit recommended that the Legislature require  
          counties to enter into agreements with SELPAs to allow SELPAs  
          and LEAs to access EPSDT funding.  This bill does not require  
          that counties to enter into these agreements, but authorizes a  
          specific kind of such an agreement, and suggests that there will  
          be additional state funding to incentivize such agreements.


          EPSDT 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 Department of Healthcare Services (DHCS).  LEAs may  
          provide and bill for EPSDT mental health services only pursuant  
          to a contract with the county mental health plan.  EPSDT federal  
          funds must be matched by county funds.


          The audit noted that although LEAs cannot access funding for  
          EPSDT services unless they contract with their respective  








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          counties, such collaborations could financially benefit both  
          counties and LEAs and increase the provision of services to  
          children.  The audit cited the case of Desert Mountain SELPA,  
          which contracts with San Bernardino County to provide mental  
          health services to Medi-Cal eligible students using EPSDT funds.  
           Under this arrangement, Desert Mountain SELPA contributes to  
          the county's required match of federal funds.  According to the  
          Auditor, this arrangement is mutually beneficial:  San  
          Bernardino County does not need to provide the full match, and  
          Desert Mountain is able to access EPSDT funding to provide  
          mental health services to Medi-Cal eligible students with and  
          without IEPs.  The audit noted that "if California's other  
          SELPAs established agreements with their county mental health  
          plans, these entities in total could potentially receive  
          millions of dollars in federal reimbursements for mental health  
          services provided to Medi-Cal eligible children."


          According to the Special Opportunities for Access and Reform  
          Coalition (SOAR), a coalition which includes seven SELPAs, there  
          are several barriers to developing these partnerships.  They  
          note, "In those regions that have not been able to develop a  
          partnership, some of the hurdles center on county mental health  
          not being willing to contract/vendorize the LEA/SELPAs to  
          provide EPSDT services, or the county mental health agency  
          charging the LEA/SELPA a high indirect cost for developing this  
          partnership."  They note that there is no state policy on how an  
          LEA can seek direct access to the Medi-Cal funding for the EPSDT  
          program through county managed care, and that instead it is up  
          to each individual LEA or SELPA to negotiate directly with their  
          county mental health program.  They also note that under current  
          law there is no appeal or mediation process for circumstances  
          when the two agencies do not agree.




          Analysis Prepared by:                                             
                          Tanya Lieberman / ED. / (916) 319-2087  FN:  








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