BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair


          SB 1136 (Steinberg) - Mental Health Services Act
          
          Amended: April 16, 2012         Policy Vote: Health 9-0
          Urgency: No                     Mandate: No
          Hearing Date: May 7, 2012       Consultant: Brendan McCarthy
          
          This bill meets the criteria for referral to the Suspense File.
          
          
          Bill Summary: SB 1136 makes many changes to the Mental Health 
          Services Act (Proposition 63, 2004) to clarify existing law, 
          codify existing practice, or reorganize state activities.

          Fiscal Impact: 
              Ongoing cost of $200,000 per year to establish a new Deputy 
              Director position (including staff support) in the 
              Department of Health Care Services (Mental Health Services 
              Fund).

          Background: In 2004, the voters enacted the Mental Health 
          Services Act (Proposition 63). Proposition 63 imposes an 
          additional 1 percent income tax on California residents making 
          more than $1 million per year. Revenues from Proposition 63 are 
          used to fund a variety of mental health programs at the state 
          and local level. One of the stated purposes of Proposition 63 is 
          to supplant, rather than replace, existing funding for mental 
          health programs.

          In 2011, AB 100 (Committee on Budget) Chapter 5 of 2011 
          allocated, for one year, $861 million to the counties to support 
          a variety of existing mental health programs. AB 100 also made 
          several changes to the administration of Proposition 64, 
          including a reduction in the cap on state administrative 
          expenses from 5.0 percent to 3.5 percent.

          The Governor's January Budget Proposal includes a proposal to 
          eliminate the Department of Mental Health and transfer a variety 
          of programs to other state agencies, including activities 
          relating to Proposition 63.

          Proposed Law: SB 1136 would make many changes to Proposition 64. 
          These changes shift certain activities at the state level from 








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          the Department of Mental Health to other state agencies. In 
          addition, the bill would make many changes to clarify existing 
          law or codify existing practice. Proposed changes would:

              Authorize the Governor or the Director of the Department of 
              Health Care Services to appoint a Deputy Director to oversee 
              mental health programs. This position would be subject to 
              Senate confirmation.
              Transfer mental health workforce education and training 
              programs to the Office of Statewide Health Planning and 
              Development.
              Transfer oversight of Prevention and Early Intervention 
              Program, Adult and Older Adult Mental Health System of Care 
              Program, and Innovative Programs to the Department of Health 
              Care Services.
              Give the Mental Health Services Act Oversight and 
              Accountability Commission (OAC) authority to provide 
              technical assistance to the counties, develop a plan for 
              evaluating program outcomes, and other activities.
              Make changes to the existing reporting requirements on 
              counties.
              Clarify that funding for Innovative Programs is included 
              (with all other Proposition 63 funds) in the existing 
              continuous appropriation.
              Make a number of changes to clarify and codify existing 
              procedures relating to allocation of funds, program 
              requirements, and accountability.

          Related Legislation: The Governor's January budget proposal 
          makes a variety of organizational changes to the state's mental 
          health programs, including changes to Propositions 63 programs.

          Staff Comments: Proposition 63 provides that the Legislature may 
          amend it to make changes that further its purposes with a 2/3rd 
          vote. Amendments to Proposition 63 that only clarify procedures 
          and terms may be enacted by majority vote. This bill has been 
          keyed as majority vote measure by Legislative Counsel.

          The Governor's January Budget Proposal includes some aspects of 
          this bill, as part of the proposed elimination of the Department 
          of Mental Health and the transfer of its duties to various other 
          state entities. In the budget proposal, the cost of a new deputy 
          director position in the Department of Health Care Services 
          would be offset by the elimination of an equivalent position in 








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          the new Department of State Hospitals. This bill does not 
          specifically eliminate any positions to offset the new deputy 
          director position it creates.