BILL ANALYSIS Ó ----------------------------------------------------------------- |SENATE RULES COMMITTEE | SB 1113| |Office of Senate Floor Analyses | | |(916) 651-1520 Fax: (916) | | |327-4478 | | ----------------------------------------------------------------- VETO 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 SENATE FLOOR: 39-0, 8/25/16 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 ASSEMBLY FLOOR: 77-0, 8/18/16 - See last page for vote SB 1113 Page 2 SUBJECT: Pupil health: mental health SOURCE: California Council of Community Behavioral Health Agencies DIGEST: This bill authorizes a county, or a qualified provider 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. 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.) SB 1113 Page 3 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. SB 1113 Page 4 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 SB 1113 Page 5 to provide students who do not have IEPs, but are in need of 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] SB 1113 Page 6 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 SB 1113 Page 7 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. SUPPORT: (Verified8/19/16) California Council of Community Behavioral Health Agencies (source) OPPOSITION: (Verified8/19/16) None received GOVERNOR'S VETO MESSAGE: I am returning the following four bills without my signature: Assembly Bill 1198 Assembly Bill 1783 Assembly Bill 2182 Senate Bill 1113 Each of these bills creates unfunded new programs. Despite significant funding increases for local educational agencies over the past few years, the Local Control Funding SB 1113 Page 8 Formula remains only 96 percent funded. Given the precarious balance of the state budget, establishing new programs with the expectation of funding in the future is counterproductive to the Administration's efforts to sustain a balanced budget and to fully fund the Local Control Funding Formula. Additional spending to support new programs must be considered in the annual budget process. 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 Prepared by:Lynn Lorber / ED. / (916) 651-4105 10/14/16 12:33:05 **** END ****