BILL NUMBER: SB 804	INTRODUCED
	BILL TEXT


INTRODUCED BY   Committee on Health (Senators Hernandez (Chair),
Hall, Mitchell, Monning, Nguyen, Nielsen, Pan, Roth, and Wolk)

                        MARCH 26, 2015

   An act to amend Sections 11801, 11830.1, 11835, 103577, 104151,
and 128456 of, and to repeal Sections 130316 and 130317 of, the
Health and Safety Code, and to amend Sections 4033, 4040, 4095,
4096.5, 5326.95, 5400, 5585.22, 5601, 5611, 5664, 5701.1, 5701.2,
5717, 5750, 5845, 5847, 5848, 5848.5, 5892, 5899, 5902, 11467, 11469,
14021.4, 14124.24, 14251, 14499.71, 14707, 14711, 14717, 14718,
14725, 15204.8, 15847.7, and 17604 of the Welfare and Institutions
Code, relating to health.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 804, as introduced, Committee on Health. Health.
   (1) Existing law regulates provision of programs and services
relating to mental health and alcohol and drug abuse at the state and
local levels and serving various populations. These provisions
contain various obsolete references to the California Mental Health
Directors Association, the County Alcohol and Drug Program
Administrators' Association of California, and similar entities.
   This bill would delete those obsolete references and would refer
instead to the County Behavioral Health Directors Association of
California, and would make additional conforming changes.
   (2) Existing law requires the State Department of Health Care
Services to provide, no later than January 10 and concurrently with
the May Revision of the annual budget, the fiscal committees of the
Legislature with an estimate package for the Every Woman Counts
Program for early detection of breast and cervical cancer.
   This bill would require the department additionally to provide to
the fiscal and appropriate policy committees of the Legislature
quarterly updates on caseload, estimated expenditures, and related
program monitoring data for the Every Woman Counts Program, as
prescribed. The bill would declare the intent of the Legislature that
these provisions supersede similar reporting requirements imposed on
the State Department of Public Health by specified uncodified
legislation.
   (3) Existing law, for purposes of Medi-Cal provisions relating to
entities that provide payment for certain covered services on behalf
of eligible persons, enrollees or subscribers, includes a nonprofit
hospital service plan within the descriptions of a fiscal
intermediary, a prepaid health plan, and group health coverage.
   This bill would delete a nonprofit hospital service plan from
inclusion as a fiscal intermediary, prepaid health plan, or group
health coverage, under the above circumstances.
   (4) Existing law establishes the State Department of Public Health
and sets forth its powers and duties, including, but not limited to,
duties as State Registrar relating to the uniform administration of
provisions relating to vital records and health statistics. Existing
law requires the State Registrar, local registrar, or county recorder
to, upon request and payment of the required fee, supply to an
applicant a certified copy of the record of a birth, fetal death,
death, marriage, or marriage dissolution registered with the
official. Existing law authorizes the issuance of certain records
without payment of the fee.
   Existing law, on and after July 1, 2015, requires each local
registrar or county recorder to issue, without a fee, a certified
record of live birth to any person who can verify his or her status
as a homeless person or a homeless child or youth, as defined.
    This bill would specify that no issuance or other related fee
would be changed under the above circumstances.
    (5) Under the Health Insurance Portability and Accountability
Implementation Act of 2001, the Office of HIPAA Implementation
assumes statewide leadership, coordination, policy formulation,
direction, and oversight responsibilities for HIPAA implementation,
and exercises full authority relative to state entities to establish
policy, provide direction to state entities, monitor progress, and
report on implementation efforts. Under existing law, these duties
have been assumed by a successor entity, the Office of Health
Information Integrity. These provisions become inoperative and are
repealed as of June 30, 2016, at which time funds appropriated for
purposes of the act that remain unexpended and unencumbered, revert
to the General Fund.
   This bill would indefinitely extend the act and the operation of
the office by deleting the June 30, 2016 repeal date.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 11801 of the Health and Safety Code is amended
to read:
   11801.  The alcohol and drug program administrator, acting through
administrative channels designated pursuant to Section 11795, shall
do all of the following:
   (a) Coordinate and be responsible for the preparation of the
county contract.
   (b) Ensure compliance with applicable laws relating to
discrimination against any person because of any characteristic
listed or defined in Section 11135 of the Government Code.
   (c) Submit an annual report to the board of supervisors reporting
all activities of the alcohol and other drug program, including a
financial accounting of expenditures, number of persons served, and a
forecast of anticipated needs for the upcoming year.
   (d) Be directly responsible for the administration of all alcohol
or other drug program funds allocated to the county under this part,
administration of county operated programs, and coordination and
monitoring of programs that have contracts with the county to provide
alcohol and other drug services.
   (e) Ensure the evaluation of alcohol and other drug programs,
including the collection of appropriate and necessary client data and
program information, pursuant to Chapter 6 (commencing with Section
11825).
   (f) Ensure program quality in compliance with appropriate
standards pursuant to Chapter 7 (commencing with Section 11830).
   (g) Participate and represent the county in meetings of the
 County Alcohol and Drug Program Administrators' 
 County Behavioral Health Directors  Association of
California pursuant to Section 11811.5 for the purposes of
representing the counties in their relationship with the state with
respect to policies, standards, and administration for alcohol and
other drug abuse services.
   (h) Perform any other acts that may be necessary, desirable, or
proper to carry out the purposes of this part.
  SEC. 2.  Section 11830.1 of the Health and Safety Code is amended
to read:
   11830.1.  In order to ensure quality assurance of alcohol and
other drug programs and expand the availability of funding resources,
the department shall implement a program certification procedure for
alcohol and other drug treatment recovery services. The department,
after consultation with the  County Alcohol and Drug Program
Administrators   County Behavioral Health Directors
 Association of California, and other interested organizations
and individuals, shall develop standards and regulations for the
alcohol and other drug treatment recovery services describing the
minimal level of service quality required of the service providers to
qualify for and obtain state certification. The standards shall be
excluded from the rulemaking requirements of the Administrative
Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1
of Division 3 of Title 2 of the Government Code). Compliance with
these standards shall be voluntary on the part of programs. For the
purposes of Section 2626.2 of the Unemployment Insurance Code,
certification shall be equivalent to program review.
  SEC. 3.  Section 11835 of the Health and Safety Code is amended to
read:
   11835.  (a) The purposes of any regulations adopted by the
department shall be to implement, interpret, or make specific the
provisions of this part and shall not exceed the authority granted to
the department pursuant to this part. To the extent possible, the
regulations shall be written in clear and concise language and
adopted only when necessary to further the purposes of this part.
   (b) Except as provided in this section and Sections 11772, 11798,
11798.2, 11814, 11817.8, 11852.5, the department may adopt
regulations in accordance with the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of the Title 2 of the Government Code)
necessary for the proper execution of the powers and duties granted
to and imposed upon the department by this part. However, these
regulations may be adopted only upon the following conditions:
   (1) Prior to adoption of regulations, the department shall consult
with  county alcohol and drug program administrators
  the County Behavioral Health Directors Association of
California  and may consult with any other appropriate persons
relating to the proposed regulations.
   (2) If an absolute majority of the designated county 
alcohol and drug program administrators   behavioral
health directors  who represent counties that have submitted
county contracts, vote at a public meeting called by the department,
for which 45 days' advance notice shall be given by the department,
to reject the proposed regulations, the department shall refer the
matter for a decision to a committee, consisting of a representative
of the county  alcohol and drug program administrators,
  behavioral health directors,  the director, the
secretary, and one designee of the secretary. The decision shall be
made by a majority vote of this committee at a public meeting
convened by the department. Upon a majority vote of the committee
recommending adoption of the proposed regulations, the department may
then adopt them. Upon a majority vote recommending that the
department not adopt the proposed regulations, the department shall
then consult again with the  county alcohol and drug program
administrators   County Behavioral Health Directors
Association of California  and resubmit the proposed regulations
to the  administrators   county behavioral
health directors  for a vote pursuant to this subdivision.
   (3) In the voting process described in paragraph (2), no proxies
shall be allowed nor may anyone other than the designated county
 alcohol and drug program administrator,  
behavioral health director,  director, secretary, and secretary'
s designee vote at the meetings.
  SEC. 4.  Section 103577 of the Health and Safety Code is amended to
read:
   103577.  (a) On or after July 1, 2015, each local registrar or
county recorder shall, without  a   an issuance
fee or any other associated  fee, issue a certified record of
live birth to any person who can verify his or her status as a
homeless person or a homeless child or youth. A homeless services
provider that has knowledge of a person's housing status shall verify
a person's status for the purposes of this subdivision. In
accordance with all other application requirements as set forth in
Section 103526, a request for a certified record of live birth made
pursuant to this subdivision shall be made by a homeless person or a
homeless child or youth on behalf of themselves, or by any person
lawfully entitled to request a certified record of live birth on
behalf of a child, if the child has been verified as a homeless
person or a homeless child or youth pursuant to this section. A
person applying for a certified record of live birth under this
subdivision is entitled to one birth record, per application, for
each eligible person verified as a homeless person or a homeless
child or youth. For purposes of this subdivision, an affidavit
developed pursuant to subdivision (b) shall constitute sufficient
verification that a person is a homeless person or a homeless child
or youth. A person applying for a certified record of live birth
under this subdivision shall not be charged a fee for verification of
his or her eligibility.
   (b) The State Department of Public Health shall develop an
affidavit attesting to an applicant's status as a homeless person or
homeless child or youth. For purposes of this section, the affidavit
shall not be deemed complete unless it is signed by both the person
making a request for a certified record of live birth pursuant to
subdivision (a) and a homeless services provider that has knowledge
of the applicant's housing status.
   (c) Notwithstanding the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code),
the department may implement and administer this section through an
all-county letter or similar instructions from the director or State
Registrar without taking regulatory action.
   (d) For the purposes of this section, the following definitions
apply:
   (1) A "homeless child or youth" has the same meaning as the
definition of "homeless children and youths" as set forth in the
federal McKinney-Vento Homeless Assistance Act (42 U.S.C. Sec. 11301
et seq.).
   (2) A "homeless person" has the same meaning as the definition of
that term set forth in the federal McKinney-Vento Homeless Assistance
Act (42 U.S.C. Sec. 11301 et seq.).
   (3) A "homeless services provider" includes:
   (A) A governmental or nonprofit agency receiving federal, state,
or county or municipal funding to provide services to a "homeless
person" or "homeless child or youth," or that is otherwise sanctioned
to provide those services by a local homeless continuum of care
organization.
   (B) An attorney licensed to practice law in this state.
   (C) A local educational agency liaison for homeless children and
 youth designated as such   youth, 
pursuant to Section 11432(g)(1)(J)(ii) of Title 42 of the United
States Code, or a school social worker.
   (D) A human services provider or public social services provider
funded by the State of California to provide homeless children or
youth services, health services, mental or behavioral health
services, substance use disorder services, or public assistance or
employment services.
   (E) A law enforcement officer designated as a liaison to the
homeless population by a local police department or sheriff's
department within the state.
  SEC. 5.  Section 104151 of the Health and Safety Code is amended to
read:
   104151.   (a)    Notwithstanding Section 10231.5
of the Government Code, each year, by no later than January 10 and
concurrently with the release of the May Revision, the State
Department of Health Care Services shall provide the fiscal
committees of the Legislature with an estimate package for the Every
Woman Counts Program. This estimate package shall include all
significant assumptions underlying the estimate for the Every Woman
Counts Program's current-year and budget-year proposals, and shall
contain concise information identifying applicable estimate
components, such as caseload; a breakout of costs, including, but not
limited to, clinical service activities, including office visits and
consults, screening mammograms, diagnostic mammograms, diagnostic
breast procedures, case management, and other clinical services;
policy changes; contractor information; General Fund, special fund,
and federal fund information; and other assumptions necessary to
support the estimate. 
   (b) Notwithstanding Section 10231.5 of the Government Code, each
year, the State Department of Health Care Services shall provide the
fiscal and appropriate policy committees of the Legislature with
quarterly updates on caseload, estimated expenditures, and related
program monitoring data for the Every Woman Counts Program. These
updates shall be provided no later than November 30, February 28, May
31, and August 31 of each year. The purpose of the updates is to
provide the Legislature with the most recent information on the
program, and shall include a breakdown of expenditures for each
quarter for clinical service activities, including, but not limited
to, office visits and consults, screening mammograms, diagnostic
mammograms, diagnostic breast procedures, case management, and other
clinical services. This subdivision supersedes the requirements of
Section 169 of Chapter 717 of the Statutes of 2010 (S.B. 853). 
  SEC. 6.  Section 128456 of the Health and Safety Code is amended to
read:
   128456.  In developing the program established pursuant to this
article, the Health Professions Education Foundation shall solicit
the advice of representatives of the Board of Behavioral Sciences,
the Board of Psychology, the State Department of Health Care
Services, the  California Mental   County
Behavioral  Health Directors Association  of Calif 
 ornia  , the California Mental Health Planning Council,
professional mental health care organizations, the California
Healthcare Association, the Chancellor of the California Community
Colleges, and the Chancellor of the California State University. The
foundation shall solicit the advice of representatives who reflect
the demographic, cultural, and linguistic diversity of the state.
  SEC. 7.  Section 130316 of the Health and Safety Code is repealed.

   130316.  Any funds appropriated for the purpose of this division
that remain unexpended or unencumbered on June 30, 2016, shall revert
to the General Fund on that date unless a statute that is enacted
before June 30, 2016, extends the provisions of this division.

  SEC. 8.  Section 130317 of the Health and Safety Code is repealed.

   130317.  This division shall become inoperative on June 30, 2016,
and as of that date is repealed, unless a later enacted statute, that
is enacted before June 30, 2016, deletes or extends the dates on
which it becomes inoperative and is repealed. 
  SEC. 9.  Section 4033 of the Welfare and Institutions Code is
amended to read:
   4033.  (a) The State Department of Health Care Services shall, to
the extent resources are available, comply with the Substance Abuse
and Mental Health Services Administration federal planning
requirements. The department shall update and issue a state plan,
which may also be any federally required state service plan, so that
citizens may be informed regarding the implementation of, and
long-range goals for, programs to serve mentally ill persons in the
state. The department shall gather information from counties
necessary to comply with this section.
   (b) (1) If the State Department of Health Care Services makes a
decision not to comply with any Substance Abuse and Mental Health
Services Administration federal planning requirement to which this
section applies, the State Department of Health Care Services shall
submit the decision, for consultation, to the  California
Mental   County Behavioral  Health Directors
Association  of California  , the California Mental Health
Planning Council, and affected mental health entities.
   (2) The State Department of Health Care Services shall not
implement any decision not to comply with the Substance Abuse and
Mental Health Services Administration federal planning requirements
sooner than 30 days after notification of that decision, in writing,
by the Department of Finance, to the chairperson of the committee in
each house of the Legislature  which   that
 considers appropriations, and the Chairperson of the Joint
Legislative Budget Committee.
  SEC. 10.  Section 4040 of the Welfare and Institutions Code is
amended to read:
   4040.  The State Department of Health Care Services or State
Department of State Hospitals may conduct, or contract for, research
or evaluation studies that have application to mental health policy
and management issues. In selecting areas for study the department
shall be guided by the information needs of state and local
policymakers and managers, and suggestions from the 
California Mental   County Behavioral  Health
Directors Association of California.
  SEC. 11.  Section 4095 of the Welfare and Institutions Code is
amended to read:
   4095.  (a) It is the intent of the Legislature that essential and
culturally relevant mental health assessment, case management, and
treatment services be available to wards of the court and dependent
children of the court placed out of home or who are at risk of
requiring out-of-home care. This can be best achieved at the
community level through the active collaboration of county social
service, probation, education, mental health agencies, and foster
care providers.
   (b) Therefore, using the Children's Mental Health Services Act
(Part 4 (commencing with Section 5850) of Division 5) as a guideline,
the State Department of Health Care Services, in consultation with
the  California Mental   County Behavioral 
Health Directors Association  of California  , the State
Department of Social Services, the County Welfare Directors
Association, the Chief Probation Officers of California, 
county alcohol and drug program administrators,  and foster
care providers, shall do all of the following:
   (1) By July 1, 1994, develop an individualized mental health
treatment needs assessment protocol for wards of the court and
dependent children of the court.
   (2) Define supplemental services to be made available to the
target population, including, but not limited to, services defined in
Section 540 and following of Title 9 of the California Code of
Regulations as of January 1, 1994, family therapy, prevocational
services, and crisis support activities.
   (3) Establish statewide standardized rates for the various types
of services defined by the department in accordance with paragraph
(2), and provided pursuant to this section. The rates shall be
designed to reduce the impact of competition for scarce treatment
resources on the cost and availability of care. The rates shall be
implemented only when the state provides funding for the services
described in this section.
   (4) By January 1, 1994, to the extent state funds are available to
implement this section, establish, by regulation, all of the
following:
   (A) Definitions of priority ranking of subsets of the court wards
and dependents target population.
   (B) A procedure to certify the mental health programs.
   (c) (1) Only those individuals within the target population as
defined in regulation and determined to be eligible for services as a
result of a mental health treatment needs assessment may receive
services pursuant to this section.
   (2) Allocation of funds appropriated for the purposes of this
section shall be based on the number of wards and dependents and may
be adjusted in subsequent fiscal years to reflect costs.
   (3) The counties shall be held harmless for failure to provide any
assessment, case management, and treatment services to those
children identified in need of services for whom there is no funding.

   (d) (1) The State Department of Health Care Services shall make
information available to the Legislature, on request, on the service
populations provided mental health treatment services pursuant to
this section, the types and costs of services provided, and the
number of children identified in need of treatment services who did
not receive the services.
   (2) The information required by paragraph (1) may include
information on need, cost, and service impact experience from the
following:
   (A) Family preservation pilot programs.
   (B) Pilot programs implemented under the former Children's Mental
Health Services Act, as contained in Chapter 6.8 (commencing with
Section 5565.10) of Part 1 of Division 5.
   (C) Programs implemented under Chapter 26 (commencing with Section
7570) of Division 7 of Title 1 of the Government Code and Section
11401.
   (D) County experience in the implementation of Section 4096.
  SEC. 12.  Section 4096.5 of the Welfare and Institutions Code is
amended to read:
   4096.5.  (a) The State Department of Health Care Services shall
make a determination, within 45 days of receiving a request from a
group home to be classified at RCL 13 or RCL 14 pursuant to Section
11462.01, to certify or deny certification that the group home
program includes provisions for mental health treatment services that
meet the needs of seriously emotionally disturbed children. The
department shall issue each certification for a period of one year
and shall specify the effective date the program met the
certification requirements. A program may be recertified if the
program continues to meet the criteria for certification.
   (b) The State Department of Health Care Services shall, in
consultation with  the California Mental  
County Behavioral  Health Directors Association  of
California  and representatives of provider organizations,
develop the criteria for the certification required by subdivision
(a) by July 1, 1992.
   (c) (1) The State Department of Health Care Services may, upon the
request of a county, delegate to that county the certification task.

   (2) Any county to which the certification task is delegated
pursuant to paragraph (1) shall use the criteria and format developed
by the department.
   (d) The State Department of Health Care Services or delegated
county shall notify the State Department of Social Services Community
Care Licensing Division immediately upon the termination of any
certification issued in accordance with subdivision (a).
   (e) Upon receipt of notification from the State Department of
Social Services Community Care Licensing Division of any adverse
licensing action taken after the finding of noncompliance during an
inspection conducted pursuant to Section 1538.7 of the Health and
Safety Code, the State Department of Health Care Services or the
delegated county shall review the certification issued pursuant to
this section.
  SEC. 13.  Section 5326.95 of the Welfare and Institutions Code is
amended to read:
   5326.95.  The Director of State Hospitals shall adopt regulations
to carry out the provisions of this chapter, including standards
defining excessive use of convulsive treatment which shall be
developed in consultation with the State Department of Health Care
Services and the  California Mental   County
Behavioral  Health Directors Association  of California
 .
  SEC. 14.  Section 5400 of the Welfare and Institutions Code is
amended to read:
   5400.  (a) The Director of Health Care Services shall administer
this part and shall adopt rules, regulations, and standards as
necessary. In developing rules, regulations, and standards, the
Director of Health Care Services shall consult with the 
California Mental   Count   y Behavioral 
Health Directors  Association,   Association of
California,  the California Mental Health Planning Council, and
the office of the Attorney General. Adoption of these standards,
rules, and regulations shall require approval by the 
California Mental   County Behavioral  Health
Directors Association  of California  by majority vote of
those present at an official session.
   (b) Wherever feasible and appropriate, rules, regulations, and
standards adopted under this part shall correspond to comparable
rules, regulations, and standards adopted under the
Bronzan-McCorquodale Act. These corresponding rules, regulations, and
standards shall include qualifications for professional personnel.
   (c) Regulations adopted pursuant to this part may provide
standards for services for persons with chronic alcoholism that
differ from the standards for services for persons with mental health
disorders.
  SEC. 15.  Section 5585.22 of the Welfare and Institutions Code is
amended to read:
   5585.22.  The Director of Health Care Services, in consultation
with the  California Mental   County Behavioral
 Health Directors Association  of California  , may
develop the appropriate educational materials and a training
curriculum, and may provide training as necessary to ensure that
those persons providing services pursuant to this part fully
understand its purpose.
  SEC. 16.  Section 5601 of the Welfare and Institutions Code is
amended to read:
   5601.  As used in this part:
   (a) "Governing body" means the county board of supervisors or
boards of supervisors in the case of counties acting jointly; and in
the case of a city, the city council or city councils acting jointly.

   (b) "Conference" means the  California Mental 
 County Behavioral  Health Directors Association  of
California  as established under former Section 5757.
   (c)  Unless the context requires otherwise, "to the extent
resources are available" means to the extent that funds deposited in
the mental health account of the local health and welfare fund are
available to an entity qualified to use those funds.
   (d) "Part 1" refers to the Lanterman-Petris-Short Act (Part 1
(commencing with Section 5000)).
   (e) "Director of Health Care Services" or "director" means the
Director of the State Department of Health Care Services.
   (f) "Institution" includes a general acute care hospital, a state
hospital, a psychiatric hospital, a psychiatric health facility, a
skilled nursing facility, including an institution for mental disease
as described in Chapter 1 (commencing with Section 5900) of Part 5,
an intermediate care facility, a community care facility or other
residential treatment facility, or a juvenile or criminal justice
institution.
   (g) "Mental health service" means any service directed toward
early intervention in, or alleviation or prevention of, mental
disorder, including, but not limited to, diagnosis, evaluation,
treatment, personal care, day care, respite care, special living
arrangements, community skill training, sheltered employment,
socialization, case management, transportation, information,
referral, consultation, and community services.
  SEC. 17.  Section 5611 of the Welfare and Institutions Code is
amended to read:
   5611.  (a) The Director of Mental Health shall establish a
Performance Outcome Committee, to be comprised of representatives
from the PL 99-660 Planning Council and the  California
Conference of Local Mental Health Directors.   County
Behavioral Health Directors Association of California.  Any
costs associated with the performance of the duties of the committee
shall be absorbed within the resources of the participants.
   (b) Major mental health professional organizations representing
licensed clinicians may participate as members of the committee at
their own expense.
   (c) The committee may seek private funding for costs associated
with the performance of its duties.
  SEC. 18.  Section 5664 of the Welfare and Institutions Code is
amended to read:
   5664.  In consultation with the  California Mental
  County Behavioral  Health Directors Association
 of California  , the State Department of Health Care
Services, the Mental Health Services Oversight and Accountability
Commission, the California Mental Health Planning Council, and the
California Health and Human Services Agency, county mental health
systems shall provide reports and data to meet the information needs
of the state, as necessary.
                                                                 SEC.
19.  Section 5701.1 of the Welfare and Institutions Code is amended
to read:
   5701.1.  Notwithstanding Section 5701, the State Department of
Health Care Services, in consultation with the  California
Mental   County Behavioral Health Directors
Association  of California  and the California Mental Health
Planning Council, may utilize funding from the Substance Abuse and
Mental Health Services Administration Block Grant, awarded to the
State Department of Health Care Services, above the funding level
provided in federal fiscal year 1998, for the development of
innovative programs for identified target populations, upon
appropriation by the Legislature.
  SEC. 20.  Section 5701.2 of the Welfare and Institutions Code is
amended to read:
   5701.2.  (a) The State Department of Mental Health, or its
successor, the State Department of State Hospitals, shall maintain
records of any transfer of funds or state hospital beds made pursuant
to Chapter 1341 of the Statutes of 1991.
   (b) Commencing with the 1991-92 fiscal year, the State Department
of Mental Health, or its successor, the State Department of State
Hospitals, shall maintain records that set forth that portion of each
county's allocation of state mental health moneys that represent the
dollar equivalent attributed to each county's state hospital beds or
bed days, or both, that were allocated as of May 1, 1991. The State
Department of Mental Health, or its successor, the State Department
of State Hospitals, shall provide a written summary of these records
to the appropriate committees of the Legislature and the 
California Mental   County Behavioral  Health
Directors Association of California  within 30 days after
the enactment of the annual Budget Act.
   (c) Nothing in this section is intended to change the counties'
base allocations as provided in subdivisions (a) and (b) of Section
17601.
  SEC. 21.  Section 5717 of the Welfare and Institutions Code is
amended to read:
   5717.  (a) Expenditures that may be funded from amounts allocated
to the county by the State Department of Health Care Services from
funds appropriated to the department shall include, salaries of
personnel, approved facilities and services provided through
contract, and operation, maintenance, and service costs, including
insurance costs or departmental charges for participation in a county
self-insurance program if the charges are not in excess of
comparable available commercial insurance premiums and on the
condition that any surplus reserves be used to reduce future year
contributions; depreciation of county facilities as established in
the state's uniform accounting manual, disregarding depreciation on
the facility to the extent it was financed by state funds under this
part; lease of facilities where there is no intention to, nor option
to, purchase; expenses incurred under this act by members of the
 California Mental   Co   unty
Behavioral  Health Directors Association  of California
 for attendance at regular meetings of these conferences;
expenses incurred by either the chairperson or elected representative
of the local mental health advisory boards for attendance at regular
meetings of the Organization of Mental Health Advisory Boards;
expenditures included in approved countywide cost allocation plans
submitted in accordance with the Controller's guidelines, including,
but not limited to, adjustments of prior year estimated general
county overhead to actual costs, but excluding allowable costs
otherwise compensated by state funding; net costs of conservatorship
investigation, approved by the Director of Health Care Services.
Except for expenditures made pursuant to Article 6 (commencing with
Section 129225) of Chapter 1 of Part 6 of Division 107 of the Health
and Safety Code, it shall not include expenditures for initial
capital improvements; the purchaser or construction of buildings
except for equipment items and remodeling expense as may be provided
for in regulations of the State Department of Health Care Services;
compensation to members of a local mental health advisory board,
except actual and necessary expenses incurred in the performance of
official duties that may include travel, lodging, and meals while on
official business; or expenditures for a purpose for which state
reimbursement is claimed under any other provision of law.
   (b) The Director of Health Care Services may make investigations
and audits of expenditures the director may deem necessary.
   (c) With respect to funds allocated to a county by the State
Department of Health Care Services from funds appropriated to the
department, the county shall repay to the state amounts found not to
have been expended in accordance with the requirements set forth in
this part. Repayment shall be within 30 days after it is determined
that an expenditure has been made that is not in accordance with the
requirements. In the event that repayment is not made in a timely
manner, the department shall offset any amount improperly expended
against the amount of any current or future advance payment or cost
report settlement from the state for mental health services.
Repayment provisions shall not apply to Short-Doyle funds allocated
by the department for fiscal years up to and including the 1990-91
fiscal year.
  SEC. 22.  Section 5750 of the Welfare and Institutions Code is
amended to read:
   5750.  The State Department of Health Care Services shall
administer this part and shall adopt standards for the approval of
mental health services, and rules and regulations necessary thereto.
However, these standards, rules, and regulations shall be adopted
only after consultation with the  California Mental 
 County Behavioral  Health Directors Association  of
California  and the California Mental Health Planning Council.
  SEC. 23.  Section 5845 of the Welfare and Institutions Code is
amended to read:
   5845.  (a) The Mental Health Services Oversight and Accountability
Commission is hereby established to oversee Part 3 (commencing with
Section 5800), the Adult and Older Adult Mental Health System of Care
Act; Part 3.1 (commencing with Section 5820), Human Resources,
Education, and Training Programs; Part 3.2 (commencing with Section
5830), Innovative Programs; Part 3.6 (commencing with Section 5840),
Prevention and Early Intervention Programs; and Part 4 (commencing
with Section 5850), the Children's Mental Health Services Act. The
commission shall replace the advisory committee established pursuant
to Section 5814. The commission shall consist of 16 voting members as
follows:
   (1) The Attorney General or his or her designee.
   (2) The Superintendent of Public Instruction or his or her
designee.
   (3) The Chairperson of the Senate Health and Human Services
Committee or another member of the Senate selected by the President
pro Tempore of the Senate.
   (4) The Chairperson of the Assembly Health Committee or another
member of the Assembly selected by the Speaker of the Assembly.
   (5) Two persons with a severe mental illness, a family member of
an adult or senior with a severe mental illness, a family member of a
child who has or has had a severe mental illness, a physician
specializing in alcohol and drug treatment, a mental health
professional, a county sheriff, a superintendent of a school
district, a representative of a labor organization, a representative
of an employer with less than 500 employees and a representative of
an employer with more than 500 employees, and a representative of a
health care services plan or insurer, all appointed by the Governor.
In making appointments, the Governor shall seek individuals who have
had personal or family experience with mental illness.
   (b) Members shall serve without compensation, but shall be
reimbursed for all actual and necessary expenses incurred in the
performance of their duties.
   (c) The term of each member shall be three years, to be staggered
so that approximately one-third of the appointments expire in each
year.
   (d) In carrying out its duties and responsibilities, the
commission may do all of the following:
   (1) Meet at least once each quarter at any time and location
convenient to the public as it may deem appropriate. All meetings of
the commission shall be open to the public.
   (2) Within the limit of funds allocated for these purposes,
pursuant to the laws and regulations governing state civil service,
employ staff, including any clerical, legal, and technical assistance
as may appear necessary. The commission shall administer its
operations separate and apart from the State Department of Health
Care Services and the California Health and Human Services Agency.
   (3) Establish technical advisory committees  ,  such as a
committee of consumers and family members.
   (4) Employ all other appropriate strategies necessary or
convenient to enable it to fully and adequately perform its duties
and exercise the powers expressly granted, notwithstanding any
authority expressly granted to any officer or employee of state
government.
   (5) Enter into contracts.
   (6) Obtain data and information from the State Department of
Health Care Services, the Office of Statewide Health Planning and
Development, or other state or local entities that receive Mental
Health Services Act funds, for the commission to utilize in its
oversight, review, training and technical assistance, accountability,
and evaluation capacity regarding projects and programs supported
with Mental Health Services Act funds.
   (7) Participate in the joint state-county decisionmaking process,
as contained in Section 4061, for training, technical assistance, and
regulatory resources to meet the mission and goals of the state's
mental health system.
   (8) Develop strategies to overcome stigma and discrimination, and
accomplish all other objectives of Part 3.2 (commencing with Section
5830), 3.6 (commencing with Section 5840), and the other provisions
of the act establishing this commission.
   (9) At any time, advise the Governor or the Legislature regarding
actions the state may take to improve care and services for people
with mental illness.
   (10) If the commission identifies a critical issue related to the
performance of a county mental health program, it may refer the issue
to the State Department of Health Care Services pursuant to Section
5655.
   (11) Assist in providing technical assistance to accomplish the
purposes of the Mental Health Services Act, Part 3 (commencing with
Section 5800), and Part 4 (commencing with Section 5850) in
collaboration with the State Department of Health Care Services and
in consultation with the  California Mental  
County Behavioral  Health Directors  Association.
  Association of California. 
   (12) Work in collaboration with the State Department of Health
Care Services and the California Mental Health Planning Council, and
in consultation with the  California Mental  
County   Behavioral  Health Directors Association 
of California  , in designing a comprehensive joint plan for a
coordinated evaluation of client outcomes in the community-based
mental health system, including, but not limited to, parts listed in
subdivision (a). The California Health and Human Services Agency
shall lead this comprehensive joint plan effort.
  SEC. 24.  Section 5847 of the Welfare and Institutions Code is
amended to read:
   5847.  Integrated Plans for Prevention, Innovation, and System of
Care Services.
   (a) Each county mental health program shall prepare and submit a
three-year program and expenditure plan, and annual updates, adopted
by the county board of supervisors, to the Mental Health Services
Oversight and Accountability Commission within 30 days after
adoption.
   (b) The three-year program and expenditure plan shall be based on
available unspent funds and estimated revenue allocations provided by
the state and in accordance with established stakeholder engagement
and planning requirements as required in Section 5848. The three-year
program and expenditure plan and annual updates shall include all of
the following:
   (1) A program for prevention and early intervention in accordance
with Part 3.6 (commencing with Section 5840).
   (2) A program for services to children in accordance with Part 4
(commencing with Section 5850), to include a program pursuant to
Chapter 4 (commencing with Section 18250) of Part 6 of Division 9 or
provide substantial evidence that it is not feasible to establish a
wraparound program in that county.
   (3) A program for services to adults and seniors in accordance
with Part 3 (commencing with Section 5800).
   (4) A program for innovations in accordance with Part 3.2
(commencing with Section 5830).
   (5) A program for technological needs and capital facilities
needed to provide services pursuant to Part 3 (commencing with
Section 5800), Part 3.6 (commencing with Section 5840), and Part 4
(commencing with Section 5850). All plans for proposed facilities
with restrictive settings shall demonstrate that the needs of the
people to be served cannot be met in a less restrictive or more
integrated setting.
   (6) Identification of shortages in personnel to provide services
pursuant to the above programs and the additional assistance needed
from the education and training programs established pursuant to Part
3.1 (commencing with Section 5820).
   (7) Establishment and maintenance of a prudent reserve to ensure
the county program will continue to be able to serve children,
adults, and seniors that it is currently serving pursuant to Part 3
(commencing with Section 5800), the Adult and Older Adult Mental
Health System of Care Act, Part 3.6 (commencing with Section 5840),
Prevention and Early Intervention Programs, and Part 4 (commencing
with Section 5850), the Children's Mental Health Services Act, during
years in which revenues for the Mental Health Services Fund are
below recent averages adjusted by changes in the state population and
the California Consumer Price Index.
   (8) Certification by the county mental health director, which
ensures that the county has complied with all pertinent regulations,
laws, and statutes of the Mental Health Services Act, including
stakeholder participation and nonsupplantation requirements.
   (9) Certification by the county mental health director and by the
county auditor-controller that the county has complied with any
fiscal accountability requirements as directed by the State
Department of Health Care Services, and that all expenditures are
consistent with the requirements of the Mental Health Services Act.
   (c) The programs established pursuant to paragraphs (2) and (3) of
subdivision (b) shall include services to address the needs of
transition age youth ages 16 to 25. In implementing this subdivision,
county mental health programs shall consider the needs of transition
age foster youth.
   (d) Each year, the State Department of Health Care Services shall
inform the  California Mental   County
Behavioral  Health Directors Association  of California
 and the Mental Health Services Oversight and Accountability
Commission of the methodology used for revenue allocation to the
counties.
   (e) Each county mental health program shall prepare expenditure
plans pursuant to Part 3 (commencing with Section 5800) for adults
and seniors, Part 3.2 (commencing with Section 5830) for innovative
programs, Part 3.6 (commencing with Section 5840) for prevention and
early intervention programs, and Part 4 (commencing with Section
5850) for services for children, and updates to the plans developed
pursuant to this section. Each expenditure update shall indicate the
number of children, adults, and seniors to be served pursuant to Part
3 (commencing with Section 5800), and Part 4 (commencing with
Section 5850), and the cost per person. The expenditure update shall
include utilization of unspent funds allocated in the previous year
and the proposed expenditure for the same purpose.
   (f) A county mental health program shall include an allocation of
funds from a reserve established pursuant to paragraph (7) of
subdivision (b) for services pursuant to paragraphs (2) and (3) of
subdivision (b) in years in which the allocation of funds for
services pursuant to subdivision (e) are not adequate to continue to
serve the same number of individuals as the county had been serving
in the previous fiscal year.
  SEC. 25.  Section 5848 of the Welfare and Institutions Code is
amended to read:
   5848.  (a) Each three-year program and expenditure plan and update
shall be developed with local stakeholders, including adults and
seniors with severe mental illness, families of children, adults, and
seniors with severe mental illness, providers of services, law
enforcement agencies, education, social services agencies, veterans,
representatives from veterans organizations, providers of alcohol and
drug services, health care organizations, and other important
interests. Counties shall demonstrate a partnership with constituents
and stakeholders throughout the process that includes meaningful
stakeholder involvement on mental health policy, program planning,
and implementation, monitoring, quality improvement, evaluation, and
budget allocations. A draft plan and update shall be prepared and
circulated for review and comment for at least 30 days to
representatives of stakeholder interests and any interested party who
has requested a copy of the draft plans.
   (b) The mental health board established pursuant to Section 5604
shall conduct a public hearing on the draft three-year program and
expenditure plan and annual updates at the close of the 30-day
comment period required by subdivision (a). Each adopted three-year
program and expenditure plan and update shall include any substantive
written recommendations for revisions. The adopted three-year
program and expenditure plan or update shall summarize and analyze
the recommended revisions. The mental health board shall review the
adopted plan or update and make recommendations to the county mental
health department for revisions.
   (c) The plans shall include reports on the achievement of
performance outcomes for services pursuant to Part 3 (commencing with
Section 5800), Part 3.6 (commencing with Section 5840), and Part 4
(commencing with Section 5850) funded by the Mental Health Services
Fund and established jointly by the State Department of Health Care
Services and the Mental Health Services Oversight and Accountability
Commission, in collaboration with the  California Mental
  County Behavioral  Health Directors 
Association.  Association of California. 
   (d) Mental health services provided pursuant to Part 3 (commencing
with Section 5800), and Part 4 (commencing with Section 5850), shall
be included in the review of program performance by the California
Mental Health Planning Council required by paragraph (2) of
subdivision (c) of Section 5772 and in the local mental health board'
s review and comment on the performance outcome data required by
paragraph (7) of subdivision (a) of Section 5604.2.
  SEC. 26.  Section 5848.5 of the Welfare and Institutions Code is
amended to read:
   5848.5.  (a) The Legislature finds and declares all of the
following:
   (1) California has realigned public community mental health
services to counties and it is imperative that sufficient
community-based resources be available to meet the mental health
needs of eligible individuals.
   (2) Increasing access to effective outpatient and crisis
stabilization services provides an opportunity to reduce costs
associated with expensive inpatient and emergency room care and to
better meet the needs of individuals with mental health disorders in
the least restrictive manner possible.
   (3) Almost one-fifth of people with mental health disorders visit
a hospital emergency room at least once per year. If an adequate
array of crisis services is not available, it leaves an individual
with little choice but to access an emergency room for assistance
and, potentially, an unnecessary inpatient hospitalization.
   (4) Recent reports have called attention to a continuing problem
of inappropriate and unnecessary utilization of hospital emergency
rooms in California due to limited community-based services for
individuals in psychological distress and acute psychiatric crisis.
Hospitals report that 70 percent of people taken to emergency rooms
for psychiatric evacuation can be stabilized and transferred to a
less intensive level of crisis care. Law enforcement personnel report
that their personnel need to stay with people in the emergency room
waiting area until a placement is found, and that less intensive
levels of care tend not to be available.
   (5) Comprehensive public and private partnerships at both local
and regional levels, including across physical health services,
mental health, substance use disorder, law enforcement, social
services, and related supports, are necessary to develop and maintain
high quality, patient-centered, and cost-effective care for
individuals with mental health disorders that facilitates their
recovery and leads towards wellness.
   (6) The recovery of individuals with mental health disorders is
important for all levels of government, business, and the local
community.
   (b) This section shall be known, and may be cited, as the
Investment in Mental Health Wellness Act of 2013. The objectives of
this section are to do all of the following:
   (1) Expand access to early intervention and treatment services to
improve the client experience, achieve recovery and wellness, and
reduce costs.
   (2) Expand the continuum of services to address crisis
intervention, crisis stabilization, and crisis residential treatment
needs that are wellness, resiliency, and recovery oriented.
   (3) Add at least 25 mobile crisis support teams and at least 2,000
crisis stabilization and crisis residential treatment beds to
bolster capacity at the local level to improve access to mental
health crisis services and address unmet mental health care needs.
   (4) Add at least 600 triage personnel to provide intensive case
management and linkage to services for individuals with mental health
care disorders at various points of access, such as at designated
community-based service points, homeless shelters, and clinics.
   (5) Reduce unnecessary hospitalizations and inpatient days by
appropriately utilizing community-based services and improving access
to timely assistance.
   (6) Reduce recidivism and mitigate unnecessary expenditures of
local law enforcement.
   (7) Provide local communities with increased financial resources
to leverage additional public and private funding sources to achieve
improved networks of care for individuals with mental health
disorders.
   (c) Through appropriations provided in the annual Budget Act for
this purpose, it is the intent of the Legislature to authorize the
California Health Facilities Financing Authority, hereafter referred
to as the authority, and the Mental Health Services Oversight and
Accountability Commission, hereafter referred to as the commission,
to administer competitive selection processes as provided in this
section for capital capacity and program expansion to increase
capacity for mobile crisis support, crisis intervention, crisis
stabilization services, crisis residential treatment, and specified
personnel resources.
   (d) Funds appropriated by the Legislature to the authority for
purposes of this section shall be made available to selected
counties, or counties acting jointly. The authority may, at its
discretion, also give consideration to private nonprofit corporations
and public agencies in an area or region of the state if a county,
or counties acting jointly, affirmatively supports this designation
and collaboration in lieu of a county government directly receiving
grant funds.
   (1) Grant awards made by the authority shall be used to expand
local resources for the development, capital, equipment acquisition,
and applicable program startup or expansion costs to increase
capacity for client assistance and services in the following areas:
   (A) Crisis intervention, as authorized by Sections 14021.4, 14680,
and 14684.
   (B) Crisis stabilization, as authorized by Sections 14021.4,
14680, and 14684.
   (C) Crisis residential treatment, as authorized by Sections
14021.4, 14680, and 14684.
   (D) Rehabilitative mental health services, as authorized by
Sections 14021.4, 14680, and 14684.
   (E) Mobile crisis support teams, including personnel and
equipment, such as the purchase of vehicles.
   (2) The authority shall develop selection criteria to expand local
resources, including those described in paragraph (1), and processes
for awarding grants after consulting with representatives and
interested stakeholders from the mental health community, including,
but not limited to,  county mental health directors,
  the County Behavioral Health Directors Association of
California,  service providers, consumer organizations, and
other appropriate interests, such as health care providers and law
enforcement, as determined by the authority. The authority shall
ensure that grants result in cost-effective expansion of the number
of community-based crisis resources in regions and communities
selected for funding. The authority shall also take into account at
least the following criteria and factors when selecting recipients of
grants and determining the amount of grant awards:
   (A) Description of need, including, at a minimum, a comprehensive
description of the project, community need, population to be served,
linkage with other public systems of health and mental health care,
linkage with local law enforcement, social services, and related
assistance, as applicable, and a description of the request for
funding.
   (B) Ability to serve the target population, which includes
individuals eligible for Medi-Cal and individuals eligible for county
health and mental health services.
   (C) Geographic areas or regions of the state to be eligible for
grant awards, which may include rural, suburban, and urban areas, and
may include use of the five regional designations utilized by the
 California Mental   County Behavioral 
Health Directors  Association.   Association of
California. 
   (D) Level of community engagement and commitment to project
completion.
   (E) Financial support that, in addition to a grant that may be
awarded by the authority, will be sufficient to complete and operate
the project for which the grant from the authority is awarded.
   (F) Ability to provide additional funding support to the project,
including public or private funding, federal tax credits and grants,
foundation support, and other collaborative efforts.
           (G) Memorandum of understanding among project partners, if
applicable.
   (H) Information regarding the legal status of the collaborating
partners, if applicable.
   (I) Ability to measure key outcomes, including improved access to
services, health and mental health outcomes, and cost benefit of the
project.
   (3) The authority shall determine maximum grants awards, which
shall take into consideration the number of projects awarded to the
grantee, as described in paragraph (1), and shall reflect reasonable
costs for the project and geographic region. The authority may
allocate a grant in increments contingent upon the phases of a
project.
   (4) Funds awarded by the authority pursuant to this section may be
used to supplement, but not to supplant, existing financial and
resource commitments of the grantee or any other member of a
collaborative effort that has been awarded a grant.
   (5) All projects that are awarded grants by the authority shall be
completed within a reasonable period of time, to be determined by
the authority. Funds shall not be released by the authority until the
applicant demonstrates project readiness to the authority's
satisfaction. If the authority determines that a grant recipient has
failed to complete the project under the terms specified in awarding
the grant, the authority may require remedies, including the return
of all or a portion of the grant.
   (6) A grantee that receives a grant from the authority under this
section shall commit to using that capital capacity and program
expansion project, such as the mobile crisis team, crisis
stabilization unit, or crisis residential treatment program, for the
duration of the expected life of the project.
   (7) The authority may consult with a technical assistance entity,
as described in paragraph (5) of subdivision (a) of Section 4061, for
purposes of implementing this section.
   (8) The authority may adopt emergency regulations relating to the
grants for the capital capacity and program expansion projects
described in this section, including emergency regulations that
define eligible costs and determine minimum and maximum grant
amounts.
   (9) The authority shall provide reports to the fiscal and policy
committees of the Legislature on or before May 1, 2014, and on or
before May 1, 2015, on the progress of implementation, that includes,
but are not limited to, the following:
   (A) A description of each project awarded funding.
   (B) The amount of each grant issued.
   (C) A description of other sources of funding for each project.
   (D) The total amount of grants issued.
   (E) A description of project operation and implementation,
including who is being served.
   (10) A recipient of a grant provided pursuant to paragraph (1)
shall adhere to all applicable laws relating to scope of practice,
licensure, certification, staffing, and building codes.
   (e) Funds appropriated by the Legislature to the commission for
purposes of this section shall be allocated for triage personnel to
provide intensive case management and linkage to services for
individuals with mental health disorders at various points of access.
These funds shall be made available to selected counties, counties
acting jointly, or city mental health departments, as determined by
the commission through a selection process. It is the intent of the
Legislature for these funds to be allocated in an efficient manner to
encourage early intervention and receipt of needed services for
individuals with mental health disorders, and to assist in navigating
the local service sector to improve efficiencies and the delivery of
services.
   (1) Triage personnel may provide targeted case management services
face to face, by telephone, or by telehealth with the individual in
need of assistance or his or her significant support person, and may
be provided anywhere in the community. These service activities may
include, but are not limited to, the following:
   (A) Communication, coordination, and referral.
   (B) Monitoring service delivery to ensure the individual accesses
and receives services.
   (C) Monitoring the individual's progress.
   (D) Providing placement service assistance and service plan
development.
   (2) The commission shall take into account at least the following
criteria and factors when selecting recipients and determining the
amount of grant awards for triage personnel as follows:
   (A) Description of need, including potential gaps in local service
connections.
   (B) Description of funding request, including personnel and use of
peer support.
   (C) Description of how triage personnel will be used to facilitate
linkage and access to services, including objectives and anticipated
outcomes.
   (D) Ability to obtain federal Medicaid reimbursement, when
applicable.
   (E) Ability to administer an effective service program and the
degree to which local agencies and service providers will support and
collaborate with the triage personnel effort.
   (F) Geographic areas or regions of the state to be eligible for
grant awards, which shall include rural, suburban, and urban areas,
and may include use of the five regional designations utilized by the
 California Mental   County B  
ehavioral  Health Directors  Association.  
Association of California. 
   (3) The commission shall determine maximum grant awards, and shall
take into consideration the level of need, population to be served,
and related criteria, as described in paragraph (2), and shall
reflect reasonable costs.
   (4) Funds awarded by the commission for purposes of this section
may be used to supplement, but not supplant, existing financial and
resource commitments of the county, counties acting jointly, or city
mental health department that received the grant.
   (5) Notwithstanding any other law, a county, counties acting
jointly, or city mental health department that receives an award of
funds for the purpose of supporting triage personnel pursuant to this
subdivision is not required to provide a matching contribution of
local funds.
   (6) Notwithstanding any other law, the commission, without taking
any further regulatory action, may implement, interpret, or make
specific this section by means of informational letters, bulletins,
or similar instructions.
   (7) The commission shall provide a status report to the fiscal and
policy committees of the Legislature on the progress of
implementation no later than March 1, 2014.
  SEC. 27.  Section 5892 of the Welfare and Institutions Code is
amended to read:
   5892.  (a) In order to promote efficient implementation of this
act, the county shall use funds distributed from the Mental Health
Services Fund as follows:
   (1) In 2005-06, 2006-07, and in 2007-08 10 percent shall be placed
in a trust fund to be expended for education and training programs
pursuant to Part 3.1.
   (2) In 2005-06, 2006-07 and in 2007-08 10 percent for capital
facilities and technological needs distributed to counties in
accordance with a formula developed in consultation with the 
California Mental   County Behavioral  Health
Directors Association  of California  to implement plans
developed pursuant to Section 5847.
   (3) Twenty percent of funds distributed to the counties pursuant
to subdivision (c) of Section 5891 shall be used for prevention and
early intervention programs in accordance with Part 3.6 (commencing
with Section 5840) of this division.
   (4) The expenditure for prevention and early intervention may be
increased in any county in which the department determines that the
increase will decrease the need and cost for additional services to
severely mentally ill persons in that county by an amount at least
commensurate with the proposed increase.
   (5) The balance of funds shall be distributed to county mental
health programs for services to persons with severe mental illnesses
pursuant to Part 4 (commencing with Section 5850), for the children's
system of care and Part 3 (commencing with Section 5800), for the
adult and older adult system of care.
   (6) Five percent of the total funding for each county mental
health program for Part 3 (commencing with Section 5800), Part 3.6
(commencing with Section 5840), and Part 4 (commencing with Section
5850) of this division, shall be utilized for innovative programs in
accordance with Sections 5830, 5847, and 5848.
   (b) In any year after 2007-08, programs for services pursuant to
Part 3 (commencing with Section 5800), and Part 4 (commencing with
Section 5850) of this division may include funds for technological
needs and capital facilities, human resource needs, and a prudent
reserve to ensure services do not have to be significantly reduced in
years in which revenues are below the average of previous years. The
total allocation for purposes authorized by this subdivision shall
not exceed 20 percent of the average amount of funds allocated to
that county for the previous five years pursuant to this section.
   (c) The allocations pursuant to subdivisions (a) and (b) shall
include funding for annual planning costs pursuant to Section 5848.
The total of these costs shall not exceed 5 percent of the total of
annual revenues received for the fund. The planning costs shall
include funds for county mental health programs to pay for the costs
of consumers, family members, and other stakeholders to participate
in the planning process and for the planning and implementation
required for private provider contracts to be significantly expanded
to provide additional services pursuant to Part 3 (commencing with
Section 5800), and Part 4 (commencing with Section 5850) of this
division.
   (d) Prior to making the allocations pursuant to subdivisions (a),
(b), and (c), funds shall be reserved for the costs for the State
Department of Health Care Services, the California Mental Health
Planning Council, the Office of Statewide Health Planning and
Development, the Mental Health Services Oversight and Accountability
Commission, the State Department of Public Health, and any other
state agency to implement all duties pursuant to the programs set
forth in this section. These costs shall not exceed 5 percent of the
total of annual revenues received for the fund. The administrative
costs shall include funds to assist consumers and family members to
ensure the appropriate state and county agencies give full
consideration to concerns about quality, structure of service
delivery, or access to services. The amounts allocated for
administration shall include amounts sufficient to ensure adequate
research and evaluation regarding the effectiveness of services being
provided and achievement of the outcome measures set forth in Part 3
(commencing with Section 5800), Part 3.6 (commencing with Section
5840), and Part 4 (commencing with Section 5850) of this division.
The amount of funds available for the purposes of this subdivision in
any fiscal year shall be subject to appropriation in the annual
Budget Act.
   (e) In 2004-05 funds shall be allocated as follows:
   (1)  Forty-five percent for education and training pursuant to
Part 3.1 (commencing with Section 5820) of this division.
   (2)  Forty-five percent for capital facilities and technology
needs in the manner specified by paragraph (2) of subdivision (a).
   (3)  Five percent for local planning in the manner specified in
subdivision (c).
   (4) Five percent for state implementation in the manner specified
in subdivision (d).
   (f) Each county shall place all funds received from the State
Mental Health Services Fund in a local Mental Health Services Fund.
The Local Mental Health Services Fund balance shall be invested
consistent with other county funds and the interest earned on the
investments shall be transferred into the fund. The earnings on
investment of these funds shall be available for distribution from
the fund in future years.
   (g) All expenditures for county mental health programs shall be
consistent with a currently approved plan or update pursuant to
Section 5847.
   (h) Other than funds placed in a reserve in accordance with an
approved plan, any funds allocated to a county  which
  that  have not been spent for their authorized
purpose within three years shall revert to the state to be deposited
into the fund and available for other counties in future years,
provided however, that funds for capital facilities, technological
needs, or education and training may be retained for up to 10 years
before reverting to the fund.
   (i) If there are still additional revenues available in the fund
after the Mental Health Services Oversight and Accountability
Commission has determined there are prudent reserves and no unmet
needs for any of the programs funded pursuant to this section,
including all purposes of the Prevention and Early Intervention
Program, the commission shall develop a plan for expenditures of
these revenues to further the purposes of this act and the
Legislature may appropriate these funds for any purpose consistent
with the commission's adopted plan  which   that
 furthers the purposes of this act.
   (j) For the 2011-12 fiscal year, General Fund revenues will be
insufficient to fully fund many existing mental health programs,
including Early and Periodic Screening, Diagnosis, and Treatment
(EPSDT), Medi-Cal Specialty Mental Health Managed Care, and mental
health services provided for special education pupils. In order to
adequately fund those programs for the 2011-12 fiscal year and avoid
deeper reductions in programs that serve individuals with severe
mental illness and the most vulnerable, medically needy citizens of
the state, prior to distribution of funds under paragraphs (1) to
(6), inclusive, of subdivision (a), effective July 1, 2011, moneys
shall be allocated from the Mental Health Services Fund to the
counties as follows:
   (1) Commencing July 1, 2011, one hundred eighty-three million six
hundred thousand dollars ($183,600,000) of the funds available as of
July 1, 2011, in the Mental Health Services Fund, shall be allocated
in a manner consistent with subdivision (c) of Section 5778 and based
on a formula determined by the state in consultation with the
 California Mental   County Behavioral 
Health Directors Association  of California  to meet the
fiscal year 2011-12 General Fund obligation for Medi-Cal Specialty
Mental Health Managed Care.
   (2) Upon completion of the allocation in paragraph (1), the
Controller shall distribute to counties ninety-eight million five
hundred eighty-six thousand dollars ($98,586,000) from the Mental
Health Services Fund for mental health services for special education
pupils based on a formula determined by the state in consultation
with the  California Mental   County Behavioral
 Health Directors Association  of California  .
   (3) Upon completion of the allocation in paragraph (2), the
Controller shall distribute to counties 50 percent of their 2011-12
Mental Health Services Act component allocations consistent with
Sections 5847 and 5891, not to exceed four hundred eighty-eight
million dollars ($488,000,000). This allocation shall commence
beginning August 1, 2011.
   (4) Upon completion of the allocation in paragraph (3), and as
revenues are deposited into the Mental Health Services Fund, the
Controller shall distribute five hundred seventy-nine million dollars
($579,000,000) from the Mental Health Services Fund to counties to
meet the General Fund obligation for EPSDT for fiscal year 2011-12.
These revenues shall be distributed to counties on a quarterly basis
and based on a formula determined by the state in consultation with
the  California Mental   County Behavioral 
Health Directors Association  of California  . These funds
shall not be subject to reconciliation or cost settlement.
   (5) The Controller shall distribute to counties the remaining
2011-12 Mental Health Services Act component allocations consistent
with Sections 5847 and 5891, beginning no later than April 30, 2012.
These remaining allocations shall be made on a monthly basis.
   (6) The total one-time allocation from the Mental Health Services
Fund for EPSDT, Medi-Cal Specialty Mental Health Managed Care, and
mental health services provided to special education pupils as
referenced shall not exceed eight hundred sixty-two million dollars
($862,000,000). Any revenues deposited in the Mental Health Services
Fund in fiscal year 2011-12 that exceed this obligation shall be
distributed to counties for remaining fiscal year 2011-12 Mental
Health Services Act component allocations, consistent with Sections
5847 and 5891.
   (k) Subdivision (j) shall not be subject to repayment.
   (  l  ) Subdivision (j) shall become inoperative on July
1, 2012.
  SEC. 28.  Section 5899 of the Welfare and Institutions Code is
amended to read:
   5899.  (a) The State Department of Health Care Services, in
consultation with the Mental Health Services Oversight and
Accountability Commission and the  California Mental
  County Behavioral  Health Directors Association
 of California  , shall develop and administer instructions
for the Annual Mental Health Services Act Revenue and Expenditure
Report. This report shall be submitted electronically to the
department and to the Mental Health Services Oversight and
Accountability Commission.
   (b) The purpose of the Annual Mental Health Services Act Revenue
and Expenditure Report is as follows:
   (1) Identify the expenditures of Mental Health Services Act (MHSA)
funds that were distributed to each county.
   (2) Quantify the amount of additional funds generated for the
mental health system as a result of the MHSA.
   (3) Identify unexpended funds, and interest earned on MHSA funds.
   (4) Determine reversion amounts, if applicable, from prior fiscal
year distributions.
   (c) This report is intended to provide information that allows for
the evaluation of all of the following:
   (1) Children's systems of care.
   (2) Prevention and early intervention strategies.
   (3) Innovative projects.
   (4) Workforce education and training.
   (5) Adults and older adults systems of care.
   (6) Capital facilities and technology needs.
  SEC. 29.  Section 5902 of the Welfare and Institutions Code is
amended to read:
   5902.  (a) In the 1991-92 fiscal year, funding sufficient to cover
the cost of the basic level of care in institutions for mental
disease at the rate established by the State Department of Health
Services shall be made available to the department for skilled
nursing facilities, plus the rate established for special treatment
programs. The department may authorize a county to administer
institutions for mental disease services if the county with the
consent of the affected providers makes a request to administer
services and an allocation is made to the county for these services.
The department shall continue to contract with these providers for
the services necessary for the operation of the institutions for
mental disease.
   (b) In the 1992-93 fiscal year, the department shall consider
county-specific requests to continue to provide administrative
services relative to institutions for mental disease facilities when
no viable alternatives are found to exist.
   (c) (1) By October 1, 1991, the department, in consultation with
the  California Conference of Local Mental Health Directors
  County Behavioral Health Directors Association of
California  and the California Association of Health Facilities,
shall develop and publish a county-specific allocation of
institutions for mental disease funds  which  
that  will take effect on July 1, 1992.
   (2) By November 1, 1991, counties shall notify the providers of
any intended change in service levels to be effective on July 1,
1992.
   (3) By April 1, 1992, counties and providers shall have entered
into contracts for basic institutions for mental disease services at
the rate described in subdivision (e) for the 1992-93 fiscal year at
the level expressed on or before November 1, 1991, except that a
county shall be permitted additional time, until June 1, 1992, to
complete the processing of the contract, when any of the following
conditions are met:
   (A) The county and the affected provider have agreed on all
substantive institutions for mental disease contract issues by April
1, 1992.
   (B) Negotiations are in process with the county on April 1, 1992,
and the affected provider has agreed in writing to the extension.
   (C) The service level committed to on November 1, 1991, exceeds
the affected provider's bed capacity.
   (D) The county can document that the affected provider has refused
to enter into negotiations by April 1, 1992, or has substantially
delayed negotiations.
   (4) If a county and a provider are unable to reach agreement on
substantive contract issues by June 1, 1992, the department may, upon
request of either the affected county or the provider, mediate the
disputed issues.
   (5) Where contracts for service at the level committed to on
November 1, 1991, have not been completed by April 1, 1992, and
additional time is not permitted pursuant to the exceptions specified
in paragraph (3) the funds allocated to those counties shall revert
for reallocation in a manner that shall promote equity of funding
among counties. With respect to counties with exceptions permitted
pursuant to paragraph (3), funds shall not revert unless contracts
are not completed by June 1, 1992. In no event shall funds revert
under this section if there is no harm to the provider as a result of
the county contract not being completed. During the 1992-93 fiscal
year, funds reverted under this paragraph shall be used to purchase
institution for mental disease/skilled nursing/special treatment
program services in existing facilities.
   (6) Nothing in this section shall apply to negotiations regarding
supplemental payments beyond the rate specified in subdivision (e).
   (d) On or before April 1, 1992, counties may complete contracts
with facilities for the direct purchase of services in the 1992-93
fiscal year. Those counties for which facility contracts have not
been completed by that date shall be deemed to continue to accept
financial responsibility for those patients during the subsequent
fiscal year at the rate specified in subdivision (a).
   (e) As long as contracts with institutions for mental disease
providers require the facilities to maintain skilled nursing facility
licensure and certification, reimbursement for basic services shall
be at the rate established by the State Department of Health
Services. Except as provided in this section, reimbursement rates for
services in institutions for mental diseases shall be the same as
the rates in effect on July 31, 2004. Effective July 1, 2005, through
June 30, 2008, the reimbursement rate for institutions for mental
disease shall increase by 6.5 percent annually. Effective July 1,
2008, the reimbursement rate for institutions for mental disease
shall increase by 4.7 percent annually.
   (f) (1) Providers that agree to contract with the county for
services under an alternative mental health program pursuant to
Section 5768 that does not require skilled nursing facility licensure
shall retain return rights to licensure as skilled nursing
facilities.
   (2) Providers participating in an alternative program that elect
to return to skilled nursing facility licensure shall only be
required to meet those requirements under which they previously
operated as a skilled nursing facility.
   (g) In the 1993-94 fiscal year and thereafter, the department
shall consider requests to continue administrative services related
to institutions for mental disease facilities from counties with a
population of 150,000 or less based on the most recent available
estimates of population data as determined by the Population Research
Unit of the Department of Finance.
  SEC. 30.  Section 11467 of the Welfare and Institutions Code is
amended to read:
   11467.  (a) The State Department of Social Services, with the
advice and assistance of the County Welfare Directors Association,
the Chief Probation Officer's Association, the  California
Mental   County Behavioral  Health Directors
Association  of California  , research entities, foster
youth and advocates for foster youth, foster care provider business
entities organized and operated on a nonprofit basis, tribes, and
other stakeholders, shall establish a working group to develop
performance standards and outcome measures for providers of
out-of-home care placements made under the AFDC-FC program,
including, but not limited to, foster family agency, group home, and
THP-Plus providers, and for the effective and efficient
administration of the AFDC-FC program.
   (b) The performance standards and outcome measures shall employ
the applicable performance standards and outcome measures as set
forth in Sections 11469 and 11469.1, designed to identify the degree
to which foster care providers, including business entities organized
and operated on a nonprofit basis, are providing out-of-home
placement services that meet the needs of foster children, and the
degree to which these services are supporting improved outcomes,
including those identified by the California Child and Family Service
Review System.
   (c) In addition to the process described in subdivision (a), the
working group may also develop the following:
   (1) A means of identifying the child's needs and determining which
is the most appropriate out-of-home placement for a child.
   (2) A procedure for identifying children who have been in
congregate care for one year or longer, determining the reasons each
child remains in congregate care, and developing a plan for each
child to transition to a less restrictive, more family-like setting.
   (d) The department shall provide updates regarding its progress
toward meeting the requirements of this section during the 2013 and
2014 budget hearings.
   (e) Notwithstanding the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
13340) of Part 1 of Division 3 of Title 2 of the Government Code),
until the enactment of applicable state law, or October 1, 2015,
whichever is earlier, the department may implement the changes made
pursuant to this section through all-county letters, or similar
instructions from the director.
  SEC. 31.  Section 11469 of the Welfare and Institutions Code is
amended to read:
   11469.  (a) The department, in consultation with group home
providers, the County Welfare Directors Association, the Chief
Probation Officers of California, the  California Mental
  County Behavioral  Health Directors Association
 of California  , and the State Department of Health Care
Services, shall develop performance standards and outcome measures
for determining the
effectiveness of the care and supervision, as defined in subdivision
(b) of Section 11460, provided by group homes under the AFDC-FC
program pursuant to Sections 11460 and 11462. These standards shall
be designed to measure group home program performance for the client
group that the group home program is designed to serve.
   (1) The performance standards and outcome measures shall be
designed to measure the performance of group home programs in areas
over which the programs have some degree of influence, and in other
areas of measurable program performance that the department can
demonstrate are areas over which group home programs have meaningful
managerial or administrative influence.
   (2) These standards and outcome measures shall include, but are
not limited to, the effectiveness of services provided by each group
home program, and the extent to which the services provided by the
group home assist in obtaining the child welfare case plan objectives
for the child.
   (3) In addition, when the group home provider has identified as
part of its program for licensing, ratesetting, or county placement
purposes, or has included as a part of a child's case plan by mutual
agreement between the group home and the placing agency, specific
mental health, education, medical, and other child-related services,
the performance standards and outcome measures may also measure the
effectiveness of those services.
   (b) Regulations regarding the implementation of the group home
performance standards system required by this section shall be
adopted no later than one year prior to implementation. The
regulations shall specify both the performance standards system and
the manner by which the AFDC-FC rate of a group home program shall be
adjusted if performance standards are not met.
   (c) Except as provided in subdivision (d), effective July 1, 1995,
group home performance standards shall be implemented. Any group
home program not meeting the performance standards shall have its
AFDC-FC rate, set pursuant to Section 11462, adjusted according to
the regulations required by this section.
   (d) Effective July 1, 1995, group home programs shall be
classified at rate classification level 13 or 14 only if all of the
following are met:
   (1) The program generates the requisite number of points for rate
classification level 13 or 14.
   (2) The program only accepts children with special treatment needs
as determined through the assessment process pursuant to paragraph
(2) of subdivision (a) of Section 11462.01.
   (3) The program meets the performance standards designed pursuant
to this section.
   (e) Notwithstanding subdivision (c), the group home program
performance standards system shall not be implemented prior to the
implementation of the AFDC-FC performance standards system.
   (f) By January 1, 2016, the department, in consultation with the
County Welfare Directors Association, the Chief Probation Officers of
California, the  California Mental   County
Behavioral  Health Directors Association  of California
 , research entities, foster youth and advocates for foster
youth, foster care provider business entities organized and operated
on a nonprofit basis, Indian tribes, and other stakeholders, shall
develop additional performance standards and outcome measures that
require group homes to implement programs and services to minimize
law enforcement contacts and delinquency petition filings arising
from incidents of allegedly unlawful behavior by minors occurring in
group homes or under the supervision of group home staff, including
individualized behavior management programs, emergency intervention
plans, and conflict resolution processes.
  SEC. 32.  Section 14021.4 of the Welfare and Institutions Code is
amended to read:
   14021.4.  (a) California's plan for federal Medi-Cal grants for
medical assistance programs, pursuant to Subchapter XIX (commencing
with Section 1396) of Title 42 of the United States Code, shall
accomplish the following objectives:
   (1) Expansion of the location and type of therapeutic services
offered to persons with mental illnesses under Medi-Cal by the
category of "other diagnostic, screening, preventative, and
rehabilitative services"  which   that  is
available to states under the federal Social Security Act and its
implementing regulations (42 U.S.C. Sec. 1396d(a)(13); 42 C.F.R.
440.130).
   (2) Expansion of federal financial participation in the costs of
specialty mental health services provided by local mental health
plans or under contract with the mental health plans.
   (3) Expansion of the location where reimbursable specialty mental
health services can be provided, including home, school, and
community based sites.
   (4) Expansion of federal financial participation for services
 which   that  meet the rehabilitation
needs of persons with mental illnesses, including, but not limited
to, medication management, functional rehabilitation assessments of
clients, and rehabilitative services  which  
that  include remedial services directed at restoration to the
highest possible functional level for persons with mental illnesses
and maximum reduction of symptoms of mental illness.
   (5) Improvement of fiscal systems and accountability structures
for specialty mental health services, costs, and rates, with the goal
of achieving federal fiscal requirements.
   (b) The department's state plan revision shall be completed with
review and comments by the  California Mental  
County Behavioral  Health Directors Association  of
California  and other appropriate groups.
   (c)  Services under the rehabilitative option shall be limited to
specialty mental health plans certified to provide Medi-Cal under
this option.
   (d) It is the intent of the Legislature that the rehabilitation
option of the state Medicaid plan be implemented to expand and
provide flexibility to treatment services and to increase the federal
participation without increasing the costs to the General Fund.
   (e) The department shall review and revise the quality assurance
standards and guidelines required by Section 14725 to ensure that
quality services are delivered to the eligible population. Any
reviews shall include, but not be limited to, appropriate use of
mental health professionals, including psychiatrists, in the
treatment and rehabilitation of clients under this model. The
existing quality assurance standards and guidelines shall remain in
effect until the adoption of the new quality assurance standards and
guidelines.
   (f) Consistent with services offered to persons with mental
illnesses under the Medi-Cal program, as required by this section, it
is the intent of the Legislature for the department to include care
and treatment of persons with mental illnesses who are eligible for
the Medi-Cal program in facilities with a bed capacity of 16 beds or
less.
  SEC. 33.  Section 14124.24 of the Welfare and Institutions Code is
amended to read:
   14124.24.  (a) For purposes of this section, "Drug Medi-Cal
reimbursable services" means the substance use disorder services
described in the California State Medicaid Plan and includes, but is
not limited to, all of the following services, administered by the
department, and to the extent consistent with state and federal law:
   (1) Narcotic treatment program services, as set forth in Section
14021.51.
   (2) Day care rehabilitative services.
   (3) Perinatal residential services for pregnant women and women in
the postpartum period.
   (4) Naltrexone services.
   (5) Outpatient drug-free services.
   (6) Other services upon approval of a federal Medicaid state plan
amendment or waiver authorizing federal financial participation.
   (b) (1) While seeking federal approval for any federal Medicaid
state plan amendment or waiver associated with Drug Medi-Cal
services, the department shall consult with the counties and
stakeholders in the development of the state plan amendment or
waiver.
   (2) Upon federal approval of a federal Medicaid state plan
amendment authorizing federal financial participation in the
following services, and subject to appropriation of funds, "Drug
Medi-Cal reimbursable services" shall also include the following
services, administered by the department, and to the extent
consistent with state and federal law:
   (A) Notwithstanding subdivision (a) of Section 14132.90, day care
habilitative services, which, for purposes of this paragraph, are
outpatient counseling and rehabilitation services provided to persons
with substance use disorder diagnoses.
   (B) Case management services, including supportive services to
assist persons with substance use disorder diagnoses in gaining
access to medical, social, educational, and other needed services.
   (C) Aftercare services.
   (c) (1) The nonfederal share for Drug Medi-Cal services shall be
funded through a county's Behavioral Health Subaccount of the Support
Services Account of the Local Revenue Fund 2011, and any other
available county funds eligible under federal law for federal
Medicaid reimbursement. The funds contained in each county's
Behavioral Health Subaccount of the Support Services Account of the
Local Revenue Fund 2011 shall be considered state funds distributed
by the principal state agency for the purposes of receipt of the
federal block grant funds for prevention and treatment of substance
abuse found at Subchapter XVII of Chapter 6A of Title 42 of the
United States Code. Pursuant to applicable federal Medicaid law and
regulations including Section 433.51 of Title 42 of the Code of
Federal Regulations, counties may claim allowable Medicaid federal
financial participation for Drug Medi-Cal services based on the
counties certifying their actual total funds expenditures for
eligible Drug Medi-Cal services to the department.
   (2) (A) If the director determines that a county's provision of
Drug Medi-Cal treatment services are disallowed by the federal
government or by state or federal audit or review, the impacted
county shall be responsible for repayment of all disallowed federal
funds. In addition to any other recovery methods available,
including, but not limited to, offset of Medicaid federal financial
participation funds owed to the impacted county, the director may
offset these amounts in accordance with Section 12419.5 of the
Government Code.
   (B) A county subject to an action by the director pursuant to
subparagraph (A) may challenge that action by requesting a hearing in
writing no later than 30 days from receipt of notice of the
department's action. The proceeding shall be conducted in accordance
with Chapter 5 (commencing with Section 11500) of Part 1 of Division
3 of Title 2 of the Government Code, and the director has all the
powers granted therein. Upon a county's timely request for hearing,
the county's obligation to make payment as determined by the director
shall be stayed pending the county's exhaustion of administrative
remedies provided herein but no longer than will ensure the
department's compliance with Section 1903(d)(2)(C) of the federal
Social Security Act (42 U.S.C. Sec. 1396b).
   (d) Drug Medi-Cal services are only reimbursable to Drug Medi-Cal
providers with an approved Drug Medi-Cal contract.
   (e) Counties shall negotiate contracts only with providers
certified to provide Drug Medi-Cal services.
   (f) The department shall develop methods to ensure timely payment
of Drug Medi-Cal claims.
   (g) (1) A county or a contracted provider, except for a provider
to whom subdivision (h) applies, shall submit accurate and complete
cost reports for the previous fiscal year by November 1, following
the end of the fiscal year. The department may settle Drug Medi-Cal
reimbursable services, based on the cost report as the final
amendment to the approved county Drug Medi-Cal contract.
   (2) Amounts paid for services provided to Drug Medi-Cal
beneficiaries shall be audited by the department in the manner and
form described in Section 14170.
   (3) Administrative appeals to review grievances or complaints
arising from the findings of an audit or examination made pursuant to
this section shall be subject to Section 14171.
   (h) Certified narcotic treatment program providers that are
exclusively billing the state or the county for services rendered to
persons subject to Section 1210.1 or 3063.1 of the Penal Code or
Section 14021.52 of this code shall submit accurate and complete
performance reports for the previous state fiscal year by November 1
following the end of that fiscal year. A provider to which this
subdivision applies shall estimate its budgets using the uniform
state daily reimbursement rate. The format and content of the
performance reports shall be mutually agreed to by the department,
the County  Alcohol and Drug Program Administrators'
  Behavioral Health Directors  Association of
California, and representatives of the treatment providers.
   (i) Contracts entered into pursuant to this section shall be
exempt from the requirements of Chapter 1 (commencing with Section
10100) and Chapter 2 (commencing with Section 10290) of Part 2 of
Division 2 of the Public Contract Code.
   (j) Annually, the department shall publish procedures for
contracting for Drug Medi-Cal services with certified providers and
for claiming payments, including procedures and specifications for
electronic data submission for services rendered.
   (k) If the department commences a preliminary criminal
investigation of a certified provider, the department shall promptly
notify each county that currently contracts with the provider for
Drug Medi-Cal services that a preliminary criminal investigation has
commenced. If the department concludes a preliminary criminal
investigation of a certified provider, the department shall promptly
notify each county that currently contracts with the provider for
Drug Medi-Cal services that a preliminary criminal investigation has
concluded.
   (1) Notice of the commencement and conclusion of a preliminary
criminal investigation pursuant to this section shall be made to the
county behavioral health director or his or her equivalent.
   (2) Communication between the department and a county specific to
the commencement or conclusion of a preliminary criminal
investigation pursuant to this section shall be deemed confidential
and shall not be subject to any disclosure request, including, but
not limited to, the Information Practices Act of 1997 (Chapter 1
(commencing with Section 1798) of Title 1.8 of Part 4 of Division 3
of the Code of Civil Procedure), the California Public Records Act
(Chapter 3.5 (commencing with Section 6250) of Division 7 of Title 1
of the Government Code), requests pursuant to a subpoena, or for any
other public purpose, including, but not limited to, court testimony.

   (3) Information shared by the department with a county regarding a
preliminary criminal investigation shall be maintained in a manner
to ensure protection of the confidentiality of the criminal
investigation.
   (4) The information provided to a county pursuant to this section
shall only include the provider name, national provider identifier
(NPI) number, address, and the notice that an investigation has
commenced or concluded.
   (5) A county shall not take any adverse action against a provider
based solely upon the preliminary criminal investigation information
disclosed to the county pursuant to this section.
   (6) In the event of a preliminary criminal investigation of a
county owned or operated program, the department has the option to,
but is not required to, notify the county pursuant to this section
when the department commences or concludes a preliminary criminal
investigation.
   (7) This section shall not limit the voluntary or otherwise
legally mandated or contractually mandated sharing of information
between the department and a county of information regarding audits
and investigations of Drug Medi-Cal providers.
   (8) "Commenced" means the time at which a complaint or allegation
is assigned to an investigator for a field investigation.
   (9) "Preliminary criminal investigation" means an investigation to
gather information to determine if criminal law or statutes have
been violated.
  SEC. 34.  Section 14251 of the Welfare and Institutions Code is
amended to read:
   14251.   (a)     (1)   
"Prepaid health plan" means  any plan which   a
plan that  meets all of the following criteria: 
   (a) 
    (A)   Licensed   Is licensed 
as a health care service plan by the Director of the Department of
Managed Health Care pursuant to the Knox-Keene Health Care Service
Plan Act of 1975 (Chapter 2.2 (commencing with Section 1340),
Division 2, Health and Safety Code), other than a plan organized and
operating pursuant to Section 10810 of the Corporations Code 
which   that  substantially indemnifies
subscribers or enrollees for the cost of provided services, or has an
application for licensure pending and was registered under the
Knox-Mills Health Plan Act prior to its  repeal (Chapter 941,
Statutes of 1975) or licensed as a nonprofit hospital service plan
by the Insurance Commissioner pursuant to Section 11493(e) and
Sections 11501 to 11505 of the Insurance Code.   repeal.
 
   (b) 
    (B)  Meets the requirements for participation in the
Medicaid Program (Title XIX of the Social Security Act) on an at risk
basis. 
   (c) 
    (C)  Agrees with the State Department of Health 
Care  Services to furnish directly or indirectly health services
to Medi-Cal beneficiaries on a predetermined periodic rate basis.
 "Prepaid 
    (2)    "Prepaid health plan" includes any
organization  which   that  is licensed as
a plan pursuant to the Knox-Keene Health Care Service Plan Act of
1975 and is subject to regulation by the Department of Managed Health
Care pursuant to that act, and  which   that
 contracts with the State Department of Health  Care 
Services solely as a fiscal intermediary at risk.  Except

    (b)     (1)    Except for the
requirement of licensure pursuant to the Knox-Keene Act, the State
Director of Health  Care  Services may waive any provision
of this chapter  which   that  the director
determines is inappropriate for a fiscal intermediary at risk.
 Any such   An  exemption or waiver shall
be set forth in the fiscal intermediary at risk contract with the
State Department of Health  Care  Services.  "Fiscal

    (2)    "Fiscal intermediary at risk" means any
entity  which   that  entered into a
contract with the State Department of Health  Care  Services
on a pilot basis pursuant to subdivision (f) of Section 14000, as in
effect June 1, 1973, in accordance with which the entity received
capitated payments from the state and reimbursed providers of health
care services on a fee-for-service or other basis for at least the
basic scope of health care services, as defined in Section 14256,
provided to all beneficiaries covered by the contract residing within
a specified geographic region of the state. The fiscal intermediary
at risk shall be at risk for the cost of administration and
utilization of services or the cost of services, or both, for at
least the basic scope of health care services, as defined in Section
14256, provided to all beneficiaries covered by the contract residing
within a specified geographic region of the state. The fiscal
intermediary at risk may share the risk with providers or reinsuring
agencies or both. Eligibility of beneficiaries shall be determined by
the State Department of Health  Care  Services and
capitation payments shall be based on the number of beneficiaries so
determined.
  SEC. 35.  Section 14499.71 of the Welfare and Institutions Code is
amended to read:
   14499.71.  For the purposes of this article, "fiscal intermediary"
means an entity that agrees to pay for covered services provided to
Medi-Cal eligibles in exchange for a premium, subscription charge, or
capitation payment; to assume an underwriting risk; and is 
either  licensed by the Director of the Department of
Managed Health Care under the Knox-Keene Health Care Service Plan Act
of 1975  (Chapter 2.2 (commencing with Section 1340) of
Division 2 of the Health and Safety Code) or is licensed as a
nonprofit hospital service plan by the Insurance Commissioner
pursuant to subdivision (e) of Section 11493 of the Insurance Code
and Sections 11501 to 11505, inclusive, of the Insurance Code.
  (Chapter 2.2 (commencing with Section 1340) of
Division 2 of the Health and Safety Code). 
  SEC. 36.  Section 14707 of the Welfare and Institutions Code is
amended to read:
   14707.  (a) In the case of federal audit exceptions, the
department shall follow federal audit appeal processes unless the
department, in consultation with the  California Mental
  County Behavioral  Health Directors Association
 of Cali   fornia  , determines that those appeals
are not cost beneficial.
   (b) Whenever there is a final federal audit exception against the
state resulting from expenditure of federal funds by individual
counties, the department may offset federal reimbursement and request
the Controller's office to offset the distribution of funds to the
counties from the Mental Health Subaccount, the Mental Health Equity
Subaccount, and the Vehicle License Collection Account of the Local
Revenue Fund, funds from the Mental Health Account and the Behavioral
Health Subaccount of the Local Revenue Fund 2011, and any other
mental health realignment funds from which the Controller makes
distributions to the counties by the amount of the exception. The
department shall provide evidence to the Controller that the county
has been notified of the amount of the audit exception no less than
30 days before the offset is to occur. The department shall involve
the appropriate counties in developing responses to any draft federal
audit reports that directly impact the county.
  SEC. 37.  Section 14711 of the Welfare and Institutions Code is
amended to read:
   14711.  (a) The department shall develop, in consultation with the
 California Mental   County Behavioral 
Health Directors Association  of California  , a
reimbursement methodology for use in the Medi-Cal claims processing
and interim payment system that maximizes federal funding and
utilizes, as much as practicable, federal Medicaid and Medicare
reimbursement principles. The department shall work with the federal
Centers for Medicare and Medicaid Services in the development of the
methodology required by this section.
   (b) Reimbursement amounts developed through the methodology
required by this section shall be consistent with federal Medicaid
requirements and the approved Medicaid state plan and waivers.
   (c) Administrative costs shall be claimed separately in a manner
consistent with federal Medicaid requirements and the approved
Medicaid state plan and waivers and shall be limited to 15 percent of
the total actual cost of direct client services.
   (d) The cost of performing quality assurance and utilization
review activities shall be reimbursed separately and shall not be
included in administrative cost.
   (e) The reimbursement methodology established pursuant to this
section shall be based upon certified public expenditures, which
encourage economy and efficiency in service delivery.
   (f) The reimbursement amounts established for direct client
services pursuant to this section shall be based on increments of
time for all noninpatient services.
   (g) The reimbursement methodology shall not be implemented until
it has received any necessary federal approvals.
   (h) This section shall become operative on July 1, 2012.
  SEC. 38.  Section 14717 of the Welfare and Institutions Code is
amended to read:
   14717.  (a) In order to facilitate the receipt of medically
necessary specialty mental health services by a foster child who is
placed outside his or her county of original jurisdiction, the
department shall take all of the following actions:
   (1) On or before July 1, 2008, create all of the following items,
in consultation with stakeholders, including, but not limited to, the
California Institute for Mental Health, the Child and Family Policy
Institute, the  California Mental   County
Behavioral  Health Directors Association  of California
 , and the California Alliance of Child and Family Services:
   (A) A standardized contract for the purchase of medically
necessary specialty mental health services from organizational
providers, when a contract is required.
   (B) A standardized specialty mental health service authorization
procedure.
   (C) A standardized set of documentation standards and forms,
including, but not limited to, forms for treatment plans, annual
treatment plan updates, day treatment intensive and day treatment
rehabilitative progress notes, and treatment authorization requests.
   (2) On or before January 1, 2009, use the standardized items as
described in paragraph (1) to provide medically necessary specialty
mental health services to a foster child who is placed outside his or
her county of original jurisdiction, so that organizational
providers who are already certified by a mental health plan are not
required to be additionally certified by the mental health plan in
the county of original jurisdiction.
   (3) (A) On or before January 1, 2009, use the standardized items
described in paragraph (1) to provide medically necessary specialty
mental health services to a foster child placed outside his or her
county of original jurisdiction to constitute a complete contract,
authorization procedure, and set of documentation standards and
forms, so that no additional documents are required.
   (B) Authorize a county mental health plan to be exempt from
subparagraph (A) and have an addendum to a contract, authorization
procedure, or set of documentation standards and forms, if the county
mental health plan has an externally placed requirement, such as a
requirement from a federal integrity agreement, that would affect one
of these documents.
   (4) Following consultation with stakeholders, including, but not
limited to, the California Institute for Mental Health, the Child and
Family Policy Institute, the  California Mental 
 County Behavioral  Health Directors Association  of
California  , the California State Association of Counties, and
the California Alliance of Child and Family Services, require the use
of the standardized contracts, authorization procedures, and
documentation standards and forms as specified in paragraph (1) in
the 2008-09 state-county mental health plan contract and each
state-county mental health plan contract thereafter.
                                                       (5) The mental
health plan shall complete a standardized contract, as provided in
paragraph (1), if a contract is required, or another mechanism of
payment if a contract is not required, with a provider or providers
of the county's choice, to deliver approved specialty mental health
services for a specified foster child, within 30 days of an approved
treatment authorization request.
   (b) The California Health and Human Services Agency shall
coordinate the efforts of the department and the State Department of
Social Services to do all of the following:
   (1) Participate with the stakeholders in the activities described
in this section.
   (2) During budget hearings in 2008 and 2009, report to the
Legislature regarding the implementation of this section and
subdivision (c) of Section 14716.
   (3) On or before July 1, 2008, establish the following, in
consultation with stakeholders, including, but not limited to, the
 California Mental   County Behavioral 
Health Directors Association  of California  , the
California Alliance of Child and Family Services, and the County
Welfare Directors Association of California:
   (A) Informational materials that explain to foster care providers
how to arrange for specialty mental health services on behalf of the
beneficiary in their care.
   (B) Informational materials that county child welfare agencies can
access relevant to the provision of services to children in their
care from the out-of-county local mental health plan that is
responsible for providing those services, including, but not limited
to, receiving a copy of the child's treatment plan within 60 days
after requesting services.
   (C) It is the intent of the Legislature to ensure that foster
children who are adopted or placed permanently with relative
guardians, and who move to a county outside their original county of
residence, can access specialty mental health services in a timely
manner. It is the intent of the Legislature to enact this section as
a temporary means of ensuring access to these services, while the
appropriate stakeholders pursue a long-term solution in the form of a
change to the Medi-Cal Eligibility Data System that will allow these
children to receive specialty mental health services through their
new county of residence.
  SEC. 39.  Section 14718 of the Welfare and Institutions Code is
amended to read:
   14718.  (a) This section shall be limited to specialty mental
health services reimbursed to a mental health plan that certifies
public expenditures subject to cost settlement or specialty mental
health services reimbursed through the department's fiscal
intermediary.
   (b) The following provisions shall apply to matters related to
specialty mental health services provided under the approved Medi-Cal
state plan and the Specialty Mental Health Services Waiver,
including, but not limited to, reimbursement and claiming procedures,
reviews and oversight, and appeal processes for mental health plans
(MHPs) and MHP subcontractors.
   (1) As determined by the department, the MHP shall submit claims
for reimbursement to the Medi-Cal program for eligible services.
   (2) The department may offset the amount of any federal
disallowance, audit exception, or overpayment against subsequent
claims from the MHP. The department may offset the amount of any
state disallowance, or audit exception or overpayment against
subsequent claims from the mental health plan, through the 2010-11
fiscal year. This offset may be done at any time, after the
department has invoiced or otherwise notified the mental health plan
about the audit exception, disallowance, or overpayment. The
department shall determine the amount that may be withheld from each
payment to the mental health plan. The maximum withheld amount shall
be 25 percent of each payment as long as the department is able to
comply with the federal requirements for repayment of federal
financial participation pursuant to Section 1903(d)(2) of the federal
Social Security Act (42 U.S.C. Sec. 1396b(d)(2)). The department may
increase the maximum amount when necessary for compliance with
federal laws and regulations.
   (3) (A) Oversight by the department of the MHPs may include client
record reviews of Early Periodic Screening Diagnosis and Treatment
(EPSDT) specialty mental health services rendered by MHPs and MHP
subcontractors under the Medi-Cal specialty mental health services
waiver in addition to other audits or reviews that are conducted.
   (B) The department may contract with an independent,
nongovernmental entity to conduct client record reviews. The contract
awarded in connection with this section shall be on a competitive
bid basis, pursuant to the Department of General Services contracting
requirements, and shall meet both of the following additional
requirements:
   (i) Require the entity awarded the contract to comply with all
federal and state privacy laws, including, but not limited to, the
federal Health Insurance Portability and Accountability Act (HIPAA;
42 U.S.C. Sec. 1320d et seq.) and its implementing regulations, the
Confidentiality of Medical Information Act (Part 2.6 (commencing with
Section 56) of Division 1 of the Civil Code), and Section 1798.81.5
of the Civil Code. The entity shall be subject to existing penalties
for violation of these laws.
   (ii) Prohibit the entity awarded the contract from using or
disclosing client records or client information for a purpose other
than the one for which the record was given.
   (iii) Prohibit the entity awarded the contract from selling client
records or client information.
   (C) For purposes of this paragraph, the following terms shall have
the following meanings:
   (i) "Client record" means a medical record, chart, or similar
file, as well as other documents containing information regarding an
individual recipient of services, including, but not limited to,
clinical information, dates and times of services, and other
information relevant to the individual and services provided and that
evidences compliance with legal requirements for Medi-Cal
reimbursement.
   (ii) "Client record review" means examination of the client record
for a selected individual recipient for the purpose of confirming
the existence of documents that verify compliance with legal
requirements for claims submitted for Medi-Cal reimbursement.
   (D) The department shall recover overpayments of federal financial
participation from MHPs within the timeframes required by federal
law and regulation for repayment to the federal Centers for Medicare
and Medicaid Services.
   (4) (A) The department, in consultation with mental health
stakeholders, the  California Mental   County
Behavioral  Health Directors Association  of California
 , and MHP subcontractor representatives, shall provide an
appeals process that specifies a progressive process for resolution
of disputes about claims or recoupments relating to specialty mental
health services under the Medi-Cal specialty mental health services
waiver.
   (B) The department shall provide MHPs and MHP subcontractors the
opportunity to directly appeal findings in accordance with procedures
that are similar to those described in Article 1.5 (commencing with
Section 51016) of Chapter 3 of Subdivision 1 of Division 3 of Title
22 of the California Code of Regulations, until new regulations for a
progressive appeals process are promulgated. When an MHP
subcontractor initiates an appeal, it shall give notice to the MHP.
The department shall propose a rulemaking package consistent with the
department's appeals process that is in effect on July 1, 2012 by no
later than the end of the 2013-14 fiscal year. The reference in this
subparagraph to the procedures described in Article 1.5 (commencing
with Section 51016) of Chapter 3 of Subdivision 1 of Division 3 of
Title 22 of the California Code of Regulations, shall only apply to
those appeals addressed in this subparagraph.
   (C) The department shall develop regulations as necessary to
implement this paragraph.
   (5) The department shall conduct oversight of utilization controls
as specified in Section 14133. The MHP shall include a requirement
in any subcontracts that all inpatient subcontractors maintain
necessary licensing and certification. MHPs shall require that
services delivered by licensed staff are within their scope of
practice. Nothing in this chapter shall prohibit the MHPs from
establishing standards that are in addition to the federal and state
requirements, provided that these standards do not violate federal
and state requirements and guidelines.
   (6) (A)  Subject to federal approval and consistent with state
requirements, the MHP may negotiate rates with providers of specialty
mental health services.
   (B) Any excess in the distribution of funds over the expenditures
for services by the mental health plan shall be spent for the
provision of specialty mental health services and related
administrative costs.
   (7) Nothing in this chapter shall limit the MHP from being
reimbursed appropriate federal financial participation for any
qualified services. To receive federal financial participation, the
mental health plan shall certify its public expenditures for
specialty mental health services to the department.
   (8) Notwithstanding Section 14115, claims for federal
reimbursement for service pursuant to this chapter shall be submitted
by MHPs within the timeframes required by federal Medicaid
requirements and the approved Medicaid state plan and waivers.
   (9) The MHP shall use the fiscal intermediary of the Medi-Cal
program of the State Department of Health Care Services for the
processing of claims for inpatient psychiatric hospital services
rendered in fee-for-service Medi-Cal hospitals. The department shall
request the Controller to offset the distribution of funds to the
counties from the Mental Health Subaccount, the Mental Health Equity
Subaccount, or the Vehicle License Collection Account of the Local
Revenue Fund, or funds from the Mental Health Account or the
Behavioral Health Subaccount of the Local Revenue Fund 2011 for the
nonfederal financial participation share for these claims.
   (c) Counties may set aside funds for self-insurance, audit
settlement, and statewide program risk pools. The counties shall
assume all responsibility and liability for appropriate
administration of the funds. Special consideration may be given to
small counties with a population of less than 200,000. Nothing in the
paragraph shall in any way make the state or department liable for
mismanagement or loss of funds by the entity designated by counties
under this subdivision.
   (d) The department shall consult with the California Mental Health
Directors Association in February and September of each year to
obtain data and methodology necessary to forecast future fiscal
trends in the provision of specialty mental health services provided
under the Medi-Cal specialty mental health services waiver, to
estimate yearly specialty mental health services related costs, and
to estimate the annual amount of federal funding participation to
reimburse costs of specialty mental health services provided under
the Medi-Cal specialty mental health services waiver. This shall
include a separate presentation of the data and methodology necessary
to forecast future fiscal trends in the provision of Early Periodic
Screening, Diagnosis, and Treatment specialty mental health services
provided under the Medi-Cal specialty mental health services waiver,
to estimate annual EPSDT specialty mental health services related
costs, and to estimate the annual amount of EPSDT specialty mental
health services provided under the state Medi-Cal specialty mental
health services waiver, including federal funding participation to
reimburse costs of EPSDT.
   (e) When seeking federal approval for any federal Medicaid state
plan amendment or waiver associated with Medi-Cal specialty mental
health services, the department shall consult with staff of the
Legislature, counties, providers, and other stakeholders in the
development of the state plan amendment or waiver.
   (f) This section shall become operative on July 1, 2012.
  SEC. 40.  Section 14725 of the Welfare and Institutions Code is
amended to read:
   14725.  (a) The State Department of Health Care Services shall
develop a quality assurance program to govern the delivery of
Medi-Cal specialty mental health services, in order to assure quality
patient care based on community standards of practice.
   (b) The department shall issue standards and guidelines for local
quality assurance activities. These standards and guidelines shall be
reviewed and revised in consultation with the  California
Mental   County Behavioral  Health Directors
Association  of   California,  as well as other
stakeholders from the mental health community, including, but not
limited to, individuals who receive services, family members,
providers, mental health advocacy groups, and other interested
parties. The standards and guidelines shall be based on federal
Medicaid requirements.
   (c) The standards and guidelines developed by the department shall
reflect the special problems that small rural counties have in
undertaking comprehensive quality assurance systems.
  SEC. 41.  Section 15204.8 of the Welfare and Institutions Code is
amended to read:
   15204.8.  (a) The Legislature may appropriate annually in the
Budget Act funds to support services provided pursuant to Sections
11325.7 and 11325.8.
   (b) Funds appropriated pursuant to subdivision (a) shall be
allocated to the counties separately and shall be available for
expenditure by the counties for services provided during the budget
year. A county may move funds between the two accounts during the
budget year for expenditure if necessary to meet the particular
circumstances in the county. Any unexpended funds may be retained by
each county for expenditure for the same purposes during the
succeeding fiscal year. By November 20, 1998, each county shall
report to the department on the use of these funds.
   (c) Beginning January 10, 1999, the Department of Finance shall
report annually to the Legislature on the extent to which funds
available under subdivision (a) have not been spent and may
reallocate the unexpended balances so as to better meet the need for
services.
   (d) No later than September 1, 2001, the department in
consultation with relevant stakeholders, which may include the County
Welfare Directors  Association, the California Association
of Mental Health Directors, and the County Alcohol and Drug Program
Administrators Association,   Association and the County
Behavioral Health Directors Association of California,  shall
develop the allocation methodology for these funds, including the
specific components to be considered in allocating the funds.
  SEC. 42.  Section 15847.7 of the Welfare and Institutions Code is
amended to read:
   15847.7.  (a) For purposes of Sections 15847, 15847.3, and
15847.5, "group health coverage" includes any  nonprofit
hospital service plan,  health care service plan,
self-insured employee welfare benefit plan, or disability insurance
providing medical or hospital benefits.
   (b) This section shall become operative on July 1, 2014.
  SEC. 43.  Section 17604 of the Welfare and Institutions Code is
amended to read:
   17604.  (a) All motor vehicle license fee revenues collected in
the 1991-92 fiscal year that are deposited to the credit of the Local
Revenue Fund shall be credited to the Vehicle License Fee Account of
that fund.
   (b) (1) For the 1992-93 fiscal year and fiscal years thereafter,
from vehicle license fee proceeds from revenues deposited to the
credit of the Local Revenue Fund, the Controller shall make monthly
deposits to the Vehicle License Fee Account of the Local Revenue Fund
until the deposits equal the amounts that were allocated to
counties, cities, and cities and counties as general purpose revenues
in the prior fiscal year pursuant to this chapter from the Vehicle
License Fee Account in the Local Revenue Fund and the Vehicle License
Fee Account and the Vehicle License Fee Growth Account in the Local
Revenue Fund.
   (2) Any excess vehicle fee revenues deposited into the Local
Revenue Fund pursuant to Section 11001.5 of the Revenue and Taxation
Code shall be deposited in the Vehicle License Fee Growth Account of
the Local Revenue Fund.
   (3) The Controller shall calculate the difference between the
total amount of vehicle license fee proceeds deposited to the credit
of the Local Revenue Fund, pursuant to paragraph (1) of subdivision
(a) of Section 11001.5 of the Revenue and Taxation Code, and
deposited into the Vehicle License Fee Account for the period of July
16, 2009, to July 15, 2010, inclusive, and the amount deposited for
the period of July 16, 2010, to July 15, 2011, inclusive.
   (4) Of vehicle license fee proceeds deposited to the Vehicle
License Fee Account after July 15, 2011, an amount equal to the
difference calculated in paragraph (3) shall be deemed to have been
deposited during the period of July 16, 2010, to July 15, 2011,
inclusive, and allocated to cities, counties, and a city and county
as if those proceeds had been received during the 2010-11 fiscal
year.
   (c) (1) On or before the 27th day of each month, the Controller
shall allocate to each county, city, or city and county, as general
purpose revenues the amounts deposited and remaining unexpended and
unreserved on the 15th day of the month in the Vehicle License Fee
Account of the Local Revenue Fund, in accordance with paragraphs (2)
and (3).
   (2) For the 1991-92 fiscal year, allocations shall be made in
accordance with the following schedule:
                                 Allocation
Jurisdiction                    Percentage
Alameda ....................      4.5046
Alpine .....................      0.0137
Amador .....................      0.1512
Butte ......................      0.8131
Calaveras ..................      0.1367
Colusa......................      0.1195
Contra Costa ...............      2.2386
Del Norte ..................      0.1340
El Dorado ..................      0.5228
Fresno .....................      2.3531
Glenn ......................      0.1391
Humboldt ...................      0.8929
Imperial ...................      0.8237
Inyo .......................      0.1869
Kern .......................      1.6362
Kings ......................      0.4084
Lake .......................      0.1752
Lassen .....................      0.1525
Los Angeles ................     37.2606
Madera .....................      0.3656
Marin.......................      1.0785
Mariposa ...................      0.0815
Mendocino ..................      0.2586
Merced .....................      0.4094
Modoc ......................      0.0923
Mono .......................      0.1342
Monterey ...................      0.8975
Napa .......................      0.4466
Nevada .....................      0.2734
Orange .....................      5.4304
Placer .....................      0.2806
Plumas .....................      0.1145
Riverside ..................      2.7867
Sacramento .................      2.7497
San Benito .................      0.1701
San Bernardino..............      2.4709
San Diego ..................      4.7771
San Francisco ..............      7.1450
San Joaquin ................      1.0810
San Luis Obispo ............      0.4811
San Mateo ..................      1.5937
Santa Barbara ..............      0.9418
Santa Clara ................      3.6238
Santa Cruz .................      0.6714
Shasta .....................      0.6732
Sierra .....................      0.0340
Siskiyou....................      0.2246
Solano .....................      0.9377
Sonoma .....................      1.6687
Stanislaus .................      1.0509
Sutter .....................      0.4460
Tehama .....................      0.2986
Trinity ....................      0.1388
Tulare .....................      0.7485
Tuolumne ...................      0.2357
Ventura ....................      1.3658
Yolo .......................      0.3522
Yuba .......................      0.3076
Berkeley ...................      0.0692
Long       Beach ...........      0.2918
Pasadena ...................      0.1385


   (3) For the 1992-93, 1993-94, and 1994-95 fiscal years and fiscal
years thereafter, allocations shall be made in the same amounts as
were distributed from the Vehicle License Fee Account and the Vehicle
License Fee Growth Account in the prior fiscal year.
   (4) For the 1995-96 fiscal year, allocations shall be made in the
same amounts as distributed in the 1994-95 fiscal year from the
Vehicle License Fee Account and the Vehicle License Fee Growth
Account after adjusting the allocation amounts by the amounts
specified for the following counties:
Alpine ..........................     $(11,296)
Amador ..........................      25,417
Calaveras .......................      49,892
Del Norte .......................      39,537
Glenn ...........................      (12,238)
Lassen ..........................      17,886
Mariposa ........................       (6,950)
Modoc ...........................      (29,182)
Mono ............................       (6,950)
San Benito ......................      20,710
Sierra ..........................      (39,537)
Trinity .........................      (48,009)


   (5) (A) For the 1996-97 fiscal year and fiscal years thereafter,
allocations shall be made in the same amounts as were distributed
from the Vehicle License Fee Account and the Vehicle License Fee
Growth Account in the prior fiscal year.
   (B) Initial proceeds deposited in the Vehicle License Fee Account
in the 2003-04 fiscal year in the amount that would otherwise have
been transferred pursuant to former Section 10754 of the Revenue and
Taxation Code for the period June 20, 2003, to July 15, 2003,
inclusive, shall be deemed to have been deposited during the period
June 16, 2003, to July 15, 2003, inclusive, and allocated to cities,
counties, and a city and county during the 2002-03 fiscal year.
   (d) The Controller shall make monthly allocations from the amount
deposited in the Vehicle License Collection Account of the Local
Revenue Fund to each county in accordance with a schedule to be
developed by the State Department of State Hospitals in consultation
with the  California Mental   County Behavioral
 Health Directors Association  of California  , which
is compatible with the intent of the Legislature expressed in the act
adding this subdivision.
   (e) Before making the monthly allocations in accordance with
paragraph (5) of subdivision (c) and subdivision (d), and pursuant to
a schedule provided by the Department of Finance, the Controller
shall adjust the monthly distributions from the Vehicle License Fee
Account to reflect an equal exchange of sales and use tax funds from
the Social Services Subaccount to the Health Subaccount, as required
by subdivisions (d) and (e) of Section 17600.15, and of Vehicle
License Fee funds from the Health Account to the Social Services
Account. Adjustments made to the Vehicle License Fee distributions
pursuant to this subdivision shall not be used in calculating future
year allocations to the Vehicle License Fee Account.