BILL ANALYSIS Ó SB 1113 Page 1 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, | | SB 1113 Page 2 | | |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. SB 1113 Page 3 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 SB 1113 Page 4 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 SB 1113 Page 5 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 SB 1113 Page 6 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. SB 1113 Page 7 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 SB 1113 Page 8 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: SB 1113 Page 9 0004106