BILL ANALYSIS                                                                                                                                                                                                    Ó




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                                UNFINISHED BUSINESS 


          Bill No:  SB 1113
          Author:   Beall (D) 
          Amended:  8/15/16  
          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

           SENATE FLOOR:  39-0, 5/31/16
           AYES:  Allen, Anderson, Bates, Beall, Berryhill, Block,  
            Cannella, De León, Fuller, Gaines, Galgiani, Glazer, Hall,  
            Hancock, Hernandez, Hertzberg, Hill, Hueso, Huff, Jackson,  
            Lara, Leno, Leyva, Liu, McGuire, Mendoza, Mitchell, Monning,  
            Moorlach, Morrell, Nguyen, Nielsen, Pan, Pavley, Roth, Stone,  
            Vidak, Wieckowski, Wolk
           NO VOTE RECORDED:  Runner

           ASSEMBLY FLOOR:  77-0, 8/18/16 - See last page for vote

           SUBJECT:   Pupil health:  mental health


          SOURCE:    California Council of Community Behavioral Health  
          Agencies


          DIGEST:  This bill authorizes a county, or a qualified provider  








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          operating as part of the county mental health plan network, and  
          a local educational agency (LEA) to enter into a partnership for  
          the provision of Early and Periodic Screening, Diagnosis, and  
          Treatment (EPSDT) mental health services.
          Assembly Amendments expand the authority to enter into  
          partnerships to include a qualified provider operating as part  
          of the county mental health plan network; add, delete, and  
          modify required elements of the partnership; eliminate the  
          condition on the use of specified educationally-related mental  
          health funds and thereby prohibit those funds for the purposes  
          of this bill; and, make other changes.

          ANALYSIS:   


          Existing law:

          1)Shifts responsibility for providing mental health services to  
            students from counties to LEAs.  (Government Code § 7570 et  
            seq)

          2)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.

          3)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)

          4)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.    
            (Welfare & Institutions Code § 14700, et seq.)









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          This bill:

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

             a)   The county mental health plan, or the qualified  
               provider, and the LEA utilize designated governmental funds  
               for eligible Medi-Cal EPSDT services provided to students  
               enrolled in Medi-Cal for mental health service costs, for  
               non-Medi-Cal enrolled students in special education with  
               individualized education programs (IEPs), and for students  
               not part of special education if the services are provided  
               by a provider specified in (b).

             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.  The agreement may include  
               provisions for the delivery of campus-based mental health  
               services through qualified providers or qualified  
               professionals to provide on-campus support to identify  
               students 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 addresses how to cover the costs of mental  
               health provider services not reimbursed by governmental  
               funds or from insurers 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. 









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             e)   The agreement fulfills reporting and all other  
               requirements under state and federal Individuals with  
               Disabilities Education Act 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  
               IEP or relevant plan for students without an IEP.

             f)   The county mental health plan, or the qualified  
               provider, and the LEA participate in the performance  
               outcome system established by the Department of Health Care  
               Services to measure results of services provided under the  
               partnership agreement between the county mental health  
               plan, or the qualified provider, and the LEA.

             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.  
                
             
          2)Establishes the County and Local Educational Agency  
            Partnership Fund in the State Treasury, and provides that  
            moneys in the fund are available, upon appropriation by the  
            Legislature, to the California Department of Education (CDE)  
            for the purpose of funding the partnerships pursuant to this  
            bill.  This bill requires the CDE to fund partnerships through  
            a competitive grant program.

          3)Requires the SPI, for the 2017-18 fiscal year and each fiscal  
            year thereafter, to the extent there is an appropriation for  
            this purpose, to allocate funds from that appropriation to the  
            County and Local Educational Agency Partnership Fund.  This  
            bill authorizes other funds identified and appropriated by the  
            Legislature to also be deposited into the Fund and used for  
            partnerships.

          4)Limits the use of funds for providing educationally related  
            mental health services required by an IEP to only be used for  
            that purpose, and prohibits those funds from being deposited  
            in the County and Local Educational Agency Partnership Fund.

          5)Encourages partnerships to look for opportunities and funding  
            to provide students who do not have IEPs, but are in need of  








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            and could benefit from prevention and early intervention  
            services, with those services.  This bill also encourages the  
            CDE and Department of Health Care Services to work toward the  
            development of protocols to identify students who are Medi-Cal  
            beneficiaries receiving educationally related mental health  
            services as part of an IEP for the purposes of data tracking.

          Comments
          
          Recent State Audit and EPSDT.  The Bureau of State Audits  
          released a report in January 2016, 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 California  
          Department of Health Care Services; LEAs may 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]









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          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. 

          This bill establishes a framework for partnerships and  
          authorizes a county, or a qualified provider operating as part  
          of the county mental health plan network, and LEAs to enter into  
          such partnerships.

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

          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  








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            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.




          SUPPORT:   (Verified8/19/16)




          California Council of Community Behavioral Health Agencies  
          (source)




          OPPOSITION:   (Verified8/19/16)


          None received



          ASSEMBLY FLOOR:  77-0, 8/18/16
          AYES:  Achadjian, Alejo, Travis Allen, Arambula, Atkins, Baker,  
            Bigelow, Bloom, Bonilla, Bonta, Brough, Brown, Burke,  
            Calderon, Campos, Chang, Chau, Chávez, Chiu, Chu, Cooley,  
            Cooper, Dahle, Daly, Dodd, Eggman, Frazier, Beth Gaines,  
            Gallagher, Cristina Garcia, Eduardo Garcia, Gatto, Gipson,  
            Gomez, Gonzalez, Gordon, Gray, Grove, Hadley, Harper, Holden,  
            Irwin, Jones, Jones-Sawyer, Lackey, Levine, Linder, Lopez,  
            Low, Maienschein, Mathis, Mayes, McCarty, Medina, Melendez,  
            Mullin, Nazarian, Obernolte, O'Donnell, Olsen, Patterson,  
            Quirk, Ridley-Thomas, Rodriguez, Salas, Santiago, Steinorth,  
            Mark Stone, Thurmond, Ting, Wagner, Waldron, Weber, Wilk,  
            Williams, Wood, Rendon
          NO VOTE RECORDED:  Dababneh, Roger Hernández, Kim









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          Prepared by:Lynn Lorber / ED. / (916) 651-4105
          8/19/16 19:37:27


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