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SB-192 Mental health.(2017-2018)

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Date Published: 01/30/2017 09:00 PM
SB192:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Senate Bill No. 192


Introduced by Senator Beall

January 30, 2017


An act to amend Section 5892 of, and to add Section 5892.3 to, the Welfare and Institutions Code, relating to mental health, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


SB 192, as introduced, Beall. Mental health.
Existing law, the Mental Health Services Act (the MHSA), an initiative measure, was approved by the voters in November 2004 as Proposition 63. The MHSA establishes the Mental Health Oversight and Accountability Commission, and imposes a tax of 1% on incomes above $1,000,000 for the purpose of financing new or expanded mental health services. Under the MHSA, the former State Department of Mental Health is required, among other things, to distribute funds for local assistance for designated mental health programs according to a local plan. The MHSA, except as specified, requires any funds allocated to a county that have not been spent for their authorized purpose within 3 years to revert to the state to be deposited into the fund and available for other counties in future years. The MHSA permits amendment by the Legislature by a 2/3 vote of each house if the amendment is consistent with and furthers the intent of the MHSA, and also permits the Legislature to clarify procedures and terms of the MHSA by a majority vote.
This bill would amend the MHSA by instead requiring that any funds allocated to a large or medium county, as defined, that have not been spent for the authorized purpose within 3 years, and any funds allocated to a small county, as defined, that have not been spent for their authorized purpose within 5 years, to revert to the state for deposit into the newly established Mental Health Services Reversion Fund. The bill would require the commission to establish and administer a grant program, as specified, to fund prevention and early intervention or innovative programs that are consistent with mental health funding priorities established by the Legislature and the Mental Health Services Act. The bill would continuously appropriate the moneys in the Mental Health Services Reversion Fund to the commission to fund the grant program.
Vote: 2/3   Appropriation: YES   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 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 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. 5840).
(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, 5850), shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.
(b) In any fiscal year after 2007–08, the 2007—08 fiscal year, 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 fiscal 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. 5850).
(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. 5850). The amount of funds available for the purposes of this subdivision in any fiscal year shall be is subject to appropriation in the annual Budget Act.
(e) In 2004–05, the 2004—05 fiscal year, 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. 5820).
(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 fiscal years.
(g) All expenditures for county mental health programs shall be consistent with a currently approved plan or update pursuant to Section 5847.
(h) (1) Other than funds placed in a reserve in accordance with an approved plan, any funds allocated to a large or medium county that have not been spent for their authorized purpose within three years years of being allocated, and any funds allocated to a small county that have not been spent for their authorized purpose within five years of being allocated, shall revert to the state to be deposited into the fund and available for other counties in future years, Mental Health Services Reversion Fund established pursuant to Section 5892.3, 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. Mental Health Services Reversion Fund established pursuant to Section 5892.3.
(2) For purposes of this subdivision, “large county,” “medium county,” and “small county” have the same meaning as in Section 5849.6.
(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 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 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 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 the 2011–12 fiscal year. These revenues shall be distributed to counties on a quarterly basis and based on a formula determined by the state in consultation with the 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 the 2011–12 fiscal year 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. 2.

 Section 5892.3 is added to the Welfare and Institutions Code, to read:

5892.3.
 (a) There is hereby established in the State Treasury, the Mental Health Services Reversion Fund.
(b) Notwithstanding Section 13340 of the Government Code, the Mental Health Services Reversion Fund is hereby continuously appropriated, without regard to fiscal years, to the Mental Health Services Oversight and Accountability Commission, to fund the grant program established pursuant to subdivision (c).
(c) (1) The commission shall establish and administer a grant program consistent with this subdivision for the purpose of distributing funds reverted to the Mental Health Services Reversion Fund to counties to fund prevention and early intervention or innovative programs that are consistent with mental health funding priorities established by the Legislature and the Mental Health Services Act, including, but not limited to, all of the following:
(A) Providing early intervention and prevention services to children under five years of age.
(B) Providing mental health services in schools.
(C) Providing mental health services for youth involved in the juvenile justice system.
(2) (A) The commission shall establish maximum grant amounts for small, medium, and large counties.
(B) For purposes of this paragraph, “large county,” “medium county,” and “small county” have the same meaning as in Section 5849.6.
(3) Counties shall be required to submit an application for a grant to the commission.
(4) Counties that have previously been awarded a grant under this subdivision shall only be eligible for a subsequent grant if the county improved outcomes with the use of the previously awarded grant.
(5) In order to evaluate the success of the grant program, the commission shall require counties to submit outcome data from the use of the grant within one year of receiving funding.