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SB-539 Mental Health Services Act: workforce education and training funds.(2019-2020)

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Date Published: 04/11/2019 09:00 PM
SB539:v98#DOCUMENT

Amended  IN  Senate  April 11, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill No. 539


Introduced by Senator Caballero

February 21, 2019


An act to amend Sections 5890 and 5892 of the Welfare and Institutions Code, relating to mental health, and making an appropriation therefor.


LEGISLATIVE COUNSEL'S DIGEST


SB 539, as amended, Caballero. Mental Health Services Act: workforce education and training funds.
Existing law, the Mental Health Services Act (MHSA), an initiative measure enacted by the voters as Proposition 63 at the November 2, 2004, statewide general election, imposes a 1% tax on that portion of a taxpayer’s taxable annual income that exceeds $1,000,000 and requires that the revenue from that tax be deposited in the Mental Health Services Fund to fund various county mental health programs. The MHSA requires the Office of Statewide Health Planning and Development (OSHPD), in coordination with the California Behavioral Health Planning Council, to identify the total statewide needs for each professional and other occupational category utilizing county needs assessment information and develop a 5-year education and training development plan. Existing law requires OSHPD to include in the 5-year plan, among other things, expansion plans for the capacity of postsecondary education to meet the needs of identified mental health occupational shortages and curriculum to train and retrain staff to provide services in accordance with the provisions and principles of the MHSA. 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.
This bill would amend the MHSA by requiring the Controller, in any fiscal year in which the Department of Finance estimates that the revenues to be deposited into the Mental Health Services Fund for the fiscal year will exceed the revenues deposited into the fund in the prior fiscal year, base amount of $1,900,000,000, to, no later than the last day of each month and before any transfer or expenditure from the fund for any other purpose for the following month, set aside reserve in the fund an amount that is equal to 25% 15% of 1/12 of the estimated amount of increased revenue. revenue for the fiscal year, except as specified. The bill would require, at the end of each fiscal year, the Controller to transfer 25% 15% of the amount reported by the Department of Finance to be the actual increased revenue amount amount of revenue that exceeded the base amount from the fund to the Mental Health Services Workforce Education and Training Account, which the bill would establish as an account in the fund and continuously appropriate money to the Office of Statewide Health Planning and Development to implement its 5-year education and training development plan. The bill would require the base amount to be recalculated every 5 years to reflect the average revenue amount deposited into the Mental Health Services Fund for the previous 5 years to correspond with the commencement of each plan. The bill would prohibit moneys in the account from being loaned to the General Fund.
The MHSA authorizes a county’s allocation of MHSA funds for community supports and services to include funds for technological needs and capital facilities, human resource needs, and a prudent reserve, and limits the total allocation for those specified purposes to 20% of the average amount of funds allocated to that county for the previous 5 years.
The bill would amend the MHSA by authorizing a county to transfer funds allocated for community supports and services to the Mental Health Services Workforce Education and Training Account if included in the county’s plan, and exempting that transfer of funds from the 20% limitation described above.
The bill would additionally appropriate $70,000,000 from the General Fund to OSHPD for the purpose of funding the 5-year education and training development plan.
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 5890 of the Welfare and Institutions Code is amended to read:

5890.
 (a) The Mental Health Services Fund is hereby created in the State Treasury. The fund shall be administered by the state. Notwithstanding Section 13340 of the Government Code, all moneys in the fund are, except as provided in subdivision (d) of Section 5892, continuously appropriated, without regard to fiscal years, for the purpose of funding the following programs and other related activities as designated by other provisions of this division:
(1) Part 3 (commencing with Section 5800), the Adult and Older Adult Mental Health System of Care Act.
(2) Part 3.1 (commencing with Section 5820), Human Resources, Education, and Training Programs.
(3) Part 3.2 (commencing with Section 5830), Innovative Programs.
(4) Part 3.6 (commencing with Section 5840), Prevention and Early Intervention Programs.
(5) Part 3.9 (commencing with Section 5849.1), No Place Like Home Program.
(6) Part 4 (commencing with Section 5850), the Children’s Mental Health Services Act.
(b) The establishment of this fund and any other provisions of the act establishing it or the programs funded shall not be construed to modify the obligation of health care service plans and disability insurance policies to provide coverage for mental health services, including those services required under Section 1374.72 of the Health and Safety Code and Section 10144.5 of the Insurance Code, related to mental health parity. This act shall not be construed to modify the oversight duties of the Department of Managed Health Care or the duties of the Department of Insurance with respect to enforcing these obligations of plans and insurance policies.
(c) This act shall not be construed to modify or reduce the existing authority or responsibility of the State Department of Health Care Services.
(d) The State Department of Health Care Services shall seek approval of all applicable federal Medicaid approvals to maximize the availability of federal funds and eligibility of participating children, adults, and seniors for medically necessary care.
(e) Share of costs for services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850), shall be determined in accordance with the Uniform Method of Determining Ability to Pay applicable to other publicly funded mental health services, unless this Uniform Method is replaced by another method of determining copayments, in which case, the new method applicable to other mental health services shall be applicable to services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850).
(f) (1) The Supportive Housing Program Subaccount is hereby created in the Mental Health Services Fund. Notwithstanding Section 13340 of the Government Code, all moneys in the subaccount are reserved and continuously appropriated, without regard to fiscal years, to the California Health Facilities Financing Authority to provide funds to meet its financial obligations pursuant to any service contracts entered into pursuant to Section 5849.35. Notwithstanding any other law, including any other provision of this section, no later than the last day of each month, the Controller shall, before any transfer or expenditure from the fund for any other purpose for the following month, transfer from the Mental Health Services Fund to the Supportive Housing Program Subaccount an amount that has been certified by the California Health Facilities Financing Authority pursuant to paragraph (3) of subdivision (a) of Section 5849.35, but not to exceed an aggregate amount of one hundred forty million dollars ($140,000,000) per year. If in any month the amounts in the Mental Health Services Fund are insufficient to fully transfer to the subaccount or the amounts in the subaccount are insufficient to fully pay the amount certified by the California Health Facilities Financing Authority, the shortfall shall be carried over to the next month, to be transferred by the Controller with any transfer required by the preceding sentence. Moneys in the Supportive Housing Program Subaccount shall not be loaned to the General Fund pursuant to Section 16310 or 16381 of the Government Code.
(2) Prior to the issuance of any bonds pursuant to Section 15463 of the Government Code, the Legislature may appropriate for transfer funds in the Mental Health Services Fund to the Supportive Housing Program Subaccount in an amount up to one hundred forty million dollars ($140,000,000) per year. Any amount appropriated for transfer pursuant to this paragraph and deposited in the No Place Like Home Fund shall reduce the authorized but unissued amount of bonds that the California Health Facilities Financing Authority may issue pursuant to Section 15463 of the Government Code by a corresponding amount. Notwithstanding Section 13340 of the Government Code, all moneys in the subaccount transferred pursuant to this paragraph are reserved and continuously appropriated, without regard to fiscal years, for transfer to the No Place Like Home Fund, to be used for purposes of Part 3.9 (commencing with Section 5849.1). The Controller shall, before any transfer or expenditure from the fund for any other purpose for the following month, but after any transfer from the fund for purposes of paragraph (1), transfer moneys appropriated from the Mental Health Services Fund to the subaccount pursuant to this paragraph in equal amounts over the following 12-month period, beginning no later than 90 days after the effective date of the appropriation by the Legislature. If in any month the amounts in the Mental Health Services Fund are insufficient to fully transfer to the subaccount or the amounts in the subaccount are insufficient to fully pay the amount appropriated for transfer pursuant to this paragraph, the shortfall shall be carried over to the next month.
(3) The sum of any transfers described in paragraphs (1) and (2) shall not exceed an aggregate of one hundred forty million dollars ($140,000,000) per year.
(4) Paragraph (2) shall become inoperative once any bonds authorized pursuant to Section 15463 of the Government Code are issued.
(g) (1) The Mental Health Services Workforce Education and Training Account is hereby created in the Mental Health Services Fund. Notwithstanding Section 13340 of the Government Code, all moneys in the account are hereby continuously appropriated, without regard to fiscal years, to the Office of Statewide Health Planning and Development for the purpose of funding the five-year education and training development plan developed pursuant to Part 3.1 (commencing with Section 5820).
(2) The account shall consist of the following:
(A) Funds transferred pursuant to paragraph (3).
(B) Funds transferred from a county pursuant to paragraph (3) of subdivision (b) of Section 5892.
(C) Any other federal, state, or private funds received for the purposes specified in paragraph (1).
(3) Notwithstanding any other law, in any fiscal year in which the Department of Finance estimates that the revenues to be deposited into the Mental Health Services Fund for the fiscal year will exceed the revenues deposited into the fund in the prior fiscal year, no later than the last day of each month, the Controller shall, before any transfer or expenditure from the fund for any other purpose for the following month, reserve in the fund an amount that is equal to 25 percent of one-twelfth of the estimated amount of increased revenue for the fiscal year. At the end of the fiscal year, the Department of Finance shall report to the Controller the actual amount of revenues deposited into the fund in the fiscal year that exceeded the revenues deposited into the fund in the prior fiscal year, and the Controller shall transfer 25 except subdivision (f), in any fiscal year in which the Department of Finance estimates that the revenues into the Mental Health Services Fund for the fiscal year will exceed the base amount of one billion nine hundred million dollars ($1,900,000,000), no later than the last day of each month, the Controller shall, before any transfer or expenditure from the fund for any other purpose, except pursuant to subdivision (f), for the following month, reserve in the fund an amount that is equal to 15 percent of one-twelfth of the estimated amount of increased revenue for the fiscal year. At the end of the fiscal year, the Department of Finance shall report to the Controller the actual amount of revenues, excluding funds pursuant to subdivision (f), deposited into the fund in the fiscal year that exceeded the base amount of one billion nine hundred million dollars ($1,900,000,000), and the Controller shall transfer 15 percent of the amount reported by the Department of Finance from the fund to the Mental Health Services Workforce Education and Training Account. This paragraph shall not apply in a fiscal year in which the balance of the Mental Health Services Workforce Education and Training Account exceeds three hundred million dollars ($300,000,000) or in which the Director of Statewide Health Planning and Development makes a determination that additional funds are not needed in the following fiscal year in order to implement the five-year education and training development plan developed pursuant to Part 3.1 (commencing with Section 5820). The base amount shall be recalculated every five years to reflect the average revenue amount deposited into the Mental Health Services Fund for the previous five years to correspond with the commencement of each plan. Moneys in the Mental Health Services Workforce Education and Training Account shall not be loaned to the General Fund pursuant to Section 16310 or 16381 of the Government Code.

SEC. 2.

 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 the 2005–06, 2006–07, and 2007–08 fiscal years, 10 percent shall be placed in a trust fund to be expended for education and training programs pursuant to Part 3.1 (commencing with Section 5820).
(2) In the 2005–06, 2006–07, and 2007–08 fiscal years, 10 percent for capital facilities and technological needs shall be 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).
(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 persons with severe mental illness 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. These services may include housing assistance, as defined in Section 5892.5, to the target population specified in Section 5600.3.
(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), shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.
(b) (1) In any fiscal year after the 2007–08 fiscal year, programs for services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) 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.
(2) A county shall calculate an amount it establishes as the prudent reserve for its Local Mental Health Services Fund, not to exceed 33 percent of the average community services and support revenue received for the fund in the preceding five years. The county shall reassess the maximum amount of this reserve every five years and certify the reassessment as part of the three-year program and expenditure plan required pursuant to Section 5847.
(3) A county may transfer funds allocated for programs for services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) to the Mental Health Services Workforce Education and Training Account, as established pursuant to subdivision (g) of Section 5890, if included in the county’s plan pursuant to Section 5847. The 20-percent limitation specified in paragraph (1) shall not apply to any transfer of funds made pursuant to this paragraph.
(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).
(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 Behavioral 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). The amount of funds available for the purposes of this subdivision in any fiscal year is subject to appropriation in the annual Budget Act.
(e) In 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).
(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 county that have not been spent for their authorized purpose within three years, and the interest accruing on those funds, shall revert to the state to be deposited into the Reversion Account, hereby established in the fund, and available for other counties in future years, provided, however, that funds, including interest accrued on those funds, for capital facilities, technological needs, or education and training may be retained for up to 10 years before reverting to the Reversion Account.
(2) If a county receives approval from the Mental Health Services Oversight and Accountability Commission of a plan for innovative programs, pursuant to subdivision (e) of Section 5830, the county’s funds identified in that plan for innovative programs shall not revert to the state pursuant to paragraph (1) until three years after the date of the approval.
(3) Notwithstanding paragraph (1), any funds allocated to a county with a population of less than 200,000 that have not been spent for their authorized purpose within five years shall revert to the state as described in paragraph (1).
(4) Notwithstanding paragraphs (1) and (2), if a county with a population of less than 200,000 receives approval from the Mental Health Services Oversight and Accountability Commission of a plan for innovative programs, pursuant to subdivision (e) of Section 5830, the county’s funds identified in that plan for innovative programs shall not revert to the state pursuant to paragraph (1) until five years after the date of the approval.
(i) If there are 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.

SEC. 3.

 The Legislature hereby appropriates seventy million dollars ($70,000,000) from the General Fund to the Office of Statewide Health Planning and Development for the purpose of funding the five-year education and training development plan developed pursuant to Part 3.1 (commencing with Section 5820).