AB 727: Mental Health Services Act: housing assistance.
- Session Year: 2017-2018
- House: Assembly
- Latest Version Date: 2017-10-02
The Mental Health Services Act (MHSA), an initiative statute enacted by the voters as Proposition 63 at the November 2, 2004, statewide general election, imposes a 1% tax on that portion of a taxpayers taxable annual income that exceeds $1,000,000 and requires that the revenue from that tax be deposited in the Mental Health Services Fund. Existing law specifies the manner in which counties are to use the funds distributed from the Mental Health Services Fund, including using the majority of the funds for services provided by county mental health programs. Existing law specifies a target population for these programs, including seriously emotionally disturbed children or adolescents and adults or older adults who have a serious mental disorder.
This bill would clarify that counties may spend MHSA moneys on housing assistance, as defined, for people in the target population.
This bill would incorporate additional changes to Section 5892 of the Welfare and Institutions Code proposed by AB 1688 to be operative only if this bill and AB 1688 are enacted and this bill is enacted last.
The Mental Health Services Act (MHSA), an initiative statute enacted by the voters as Proposition 63 at the November 2, 2004, statewide general election, imposes a 1% tax on that portion of a taxpayers taxable annual income that exceeds $1,000,000 and requires that the revenue from that tax be deposited in the Mental Health Services Fund. Existing law specifies the manner in which counties are to use the funds distributed from the Mental Health Services Fund, including using the majority of the funds for services provided by county mental health programs. Existing law specifies a target population for these programs, including seriously emotionally disturbed children or adolescents and adults or older adults who have a serious mental disorder.
This bill would clarify that counties may spend MHSA moneys on housing assistance, as defined, for people in the target population.
This bill would incorporate additional changes to Section 5892 of the Welfare and Institutions Code proposed by AB 1688 to be operative only if this bill and AB 1688 are enacted and this bill is enacted last.
The Mental Health Services Act (MHSA), an initiative statute enacted by the voters as Proposition 63 at the November 2, 2004, statewide general election, imposes a 1% tax on that portion of a taxpayers taxable annual income that exceeds $1,000,000 and requires that the revenue from that tax be deposited in the Mental Health Services Fund. Existing law specifies the manner in which counties are to use the funds distributed from the Mental Health Services Fund, including using the majority of the funds for services provided by county mental health programs. Existing law specifies a target population for these programs, including seriously emotionally disturbed children or adolescents and adults or older adults who have a serious mental disorder.
This bill would clarify that counties may spend MHSA moneys on housing assistance, as defined, for people in the target population.
This bill would incorporate additional changes to Section 5892 of the Welfare and Institutions Code proposed by AB 1688 to be operative only if this bill and AB 1688 are enacted and this bill is enacted last.
The Mental Health Services Act (MHSA), an initiative statute enacted by the voters as Proposition 63 at the November 2, 2004, statewide general election, imposes a 1% tax on that portion of a taxpayers taxable annual income that exceeds $1,000,000 and requires that the revenue from that tax be deposited in the Mental Health Services Fund. Existing law specifies the manner in which counties are to use the funds distributed from the Mental Health Services Fund, including using the majority of the funds for services provided by county mental health programs. Existing law specifies a target population for these programs, including seriously emotionally disturbed children or adolescents and adults or older adults who have a serious mental disorder.
This bill would clarify that counties may spend MHSA moneys on housing assistance, as defined, for people in the target population.
The Mental Health Services Act (MHSA), an initiative measure statute enacted by the voters as Proposition 63 at the November 2, 2004, statewide general election, imposes a 1% tax on that portion of a taxpayers taxable annual income that exceeds $1,000,000 and requires that the revenue from that tax be deposited in the Mental Health Services Fund. Existing law specifies the manner in which counties are to use the funds distributed from the Mental Health Services Fund, including using the majority of the funds for services provided by county mental health programs. Existing law specifies a target population for these programs, including seriously emotionally disturbed children or adolescents and adults or older adults who have a serious mental disorder.
This bill would clarify that counties may spend MHSA moneys on housing assistance, as defined, for people in the target population.
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 taxpayers taxable income that exceeds $1,000,000 and requires that the revenue from that tax be deposited in the Mental Health Services Fund. Existing law specifies the manner in which counties are to use the funds distributed from the Mental Health Services Fund, including using the majority of the funds for services provided by county mental health programs. Existing law specifies a target population for these programs, including seriously emotionally disturbed children or adolescents and adults or older adults who have a serious mental disorder.
This bill would clarify that counties may spend MHSA moneys on housing assistance, as defined, for people in the target population.
(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 200506, 200607, and in 200708, 10 percent shall be placed in a trust fund to be expended for education and training programs pursuant to Part 3.1.
(2)In 200506, 200607, and in 200708, 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.
(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 childrens 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) of this division, shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.
(b)In any year after 200708, 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 200405, 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)(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 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.
(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 countys 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 countys 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 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 commissions adopted plan that furthers the purposes of this act.
(j)For the 201112 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 201112 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 201112 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 201112 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 201112 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 201112 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 201112 fiscal year that exceed this obligation shall be distributed to counties for remaining fiscal year 201112 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. 1.5.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 200506, 200607, and in 200708, 10 percent shall be placed in a trust fund to be expended for education and training programs pursuant to Part 3.1.
(2)In 200506, 200607, and in 200708, 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.
(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 childrens 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) of this division, shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.
(b)In any year after 200708, 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 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) 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 200405, 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)(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 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.
(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 countys 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 countys 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 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 commissions adopted plan that furthers the purposes of this act.
(j)For the 201112 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 201112 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 201112 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 201112 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 201112 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 201112 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 201112 fiscal year that exceed this obligation shall be distributed to counties for remaining fiscal year 201112 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 1.5 of this bill incorporates amendments to Section 5892 of the Welfare and Institutions Code proposed by both this bill and Assembly Bill 1688. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 5892 of the Welfare and Institutions Code, and (3) this bill is enacted after Assembly Bill 1688, in which case Section 1 of this bill shall not become operative.
(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 200506, 200607, and in 200708, 10 percent shall be placed in a trust fund to be expended for education and training programs pursuant to Part 3.1.
(2)In 200506, 200607, and in 200708, 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.
(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 childrens 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) of this division, shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.
(b)In any year after 200708, 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 200405, 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)(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 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.
(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 countys 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 countys 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 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 commissions adopted plan that furthers the purposes of this act.
(j)For the 201112 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 201112 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 201112 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 201112 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 201112 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 201112 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 201112 fiscal year that exceed this obligation shall be distributed to counties for remaining fiscal year 201112 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. 1.5.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 200506, 200607, and in 200708, 10 percent shall be placed in a trust fund to be expended for education and training programs pursuant to Part 3.1.
(2)In 200506, 200607, and in 200708, 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.
(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 childrens 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) of this division, shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.
(b)In any year after 200708, 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 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) 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 200405, 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)(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 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.
(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 countys 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 countys 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 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 commissions adopted plan that furthers the purposes of this act.
(j)For the 201112 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 201112 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 201112 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 201112 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 201112 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 201112 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 201112 fiscal year that exceed this obligation shall be distributed to counties for remaining fiscal year 201112 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 1.5 of this bill incorporates amendments to Section 5892 of the Welfare and Institutions Code proposed by both this bill and Assembly Bill 1688. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 5892 of the Welfare and Institutions Code, and (3) this bill is enacted after Assembly Bill 1688, in which case Section 1 of this bill shall not become operative.
(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 200506, 200607, and in 200708, 10 percent shall be placed in a trust fund to be expended for education and training programs pursuant to Part 3.1.
(2)In 200506, 200607, and in 200708, 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.
(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 childrens 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) of this division, shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.
(b)In any year after 200708, 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 200405, 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)(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 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.
(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 countys 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 countys 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 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 commissions adopted plan that furthers the purposes of this act.
(j)For the 201112 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 201112 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 201112 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 201112 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 201112 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 201112 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 201112 fiscal year that exceed this obligation shall be distributed to counties for remaining fiscal year 201112 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. 1.5.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 200506, 200607, and in 200708, 10 percent shall be placed in a trust fund to be expended for education and training programs pursuant to Part 3.1.
(2)In 200506, 200607, and in 200708, 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.
(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 childrens 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) of this division, shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.
(b)In any year after 200708, 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 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) 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 200405, 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)(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 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.
(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 countys 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 countys 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 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 commissions adopted plan that furthers the purposes of this act.
(j)For the 201112 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 201112 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 201112 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 201112 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 201112 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 201112 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 201112 fiscal year that exceed this obligation shall be distributed to counties for remaining fiscal year 201112 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 1.5 of this bill incorporates amendments to Section 5892 of the Welfare and Institutions Code proposed by both this bill and Assembly Bill 1688. That section shall only become operative if (1) both bills are enacted and become effective on or before January 1, 2018, (2) each bill amends Section 5892 of the Welfare and Institutions Code, and (3) this bill is enacted after Assembly Bill 1688, in which case Section 1 of this bill shall not become operative.
(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 200506, 200607, and in 200708, 10 percent shall be placed in a trust fund to be expended for education and training programs pursuant to Part 3.1.
(2)In 200506, 200607, and in 200708, 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.
(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 childrens 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) of this division, shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.
(b)In any year after 200708, 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 200405, 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)(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 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.
(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 countys 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 countys 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 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 commissions adopted plan that furthers the purposes of this act.
(j)For the 201112 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 201112 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 201112 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 201112 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 201112 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 201112 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 201112 fiscal year that exceed this obligation shall be distributed to counties for remaining fiscal year 201112 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.
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 200506, 200607, and in 200708, 10 percent shall be placed in a trust fund to be expended for education and training programs pursuant to Part 3.1.(2)In 200506, 200607, and in 200708, 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.(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 childrens 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) of this division, shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.(b)In any year after 200708, 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 200405, 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 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 commissions adopted plan that furthers the purposes of this act.(j)For the 201112 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 201112 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 201112 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 201112 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 201112 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 201112 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 201112 fiscal year that exceed this obligation shall be distributed to counties for remaining fiscal year 201112 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.(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 200506, 200607, and in 200708, 10 percent shall be placed in a trust fund to be expended for education and training programs pursuant to Part 3.1.
(2)In 200506, 200607, and in 200708, 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.
(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 childrens 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) of this division, shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.
(b)In any year after 200708, 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 200405, 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 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 commissions adopted plan that furthers the purposes of this act.
(j)For the 201112 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 201112 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 201112 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 201112 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 201112 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 201112 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 201112 fiscal year that exceed this obligation shall be distributed to counties for remaining fiscal year 201112 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.
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 200506, 200607, and in 200708, 10 percent shall be placed in a trust fund to be expended for education and training programs pursuant to Part 3.1.(2)In 200506, 200607, and in 200708, 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.(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 childrens 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) of this division, shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.(b)In any year after 200708, 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 200405, 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 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 commissions adopted plan that furthers the purposes of this act.(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 200506, 200607, and in 200708, 10 percent shall be placed in a trust fund to be expended for education and training programs pursuant to Part 3.1.
(2)In 200506, 200607, and in 200708, 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.
(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 childrens 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) of this division, shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.
(b)In any year after 200708, 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 200405, 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 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 commissions adopted plan that furthers the purposes of this act.
(j)For the 201112 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 201112 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 201112 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 201112 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 201112 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 201112 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 201112 fiscal year that exceed this obligation shall be distributed to counties for remaining fiscal year 201112 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.|
Date
|
Status
|
|---|---|
| Oct 2, 2017 | Chaptered by Secretary of State - Chapter 410, Statutes of 2017. |
| Oct 2, 2017 | Approved by the Governor. |
| Sep 25, 2017 | Enrolled and presented to the Governor at 12 p.m. |
| Sep 14, 2017 | Senate amendments concurred in. To Engrossing and Enrolling. |
| Sep 14, 2017 | Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 78. Noes 0. Page 3373.). |
| Sep 13, 2017 | Assembly Rule 77(a) suspended. |
| Sep 13, 2017 | In Assembly. Concurrence in Senate amendments pending. May be considered on or after September 15 pursuant to Assembly Rule 77. |
| Sep 12, 2017 | Read third time. Passed. Ordered to the Assembly. |
| Sep 6, 2017 | Read second time. Ordered to third reading. |
| Sep 5, 2017 | Read third time and amended. Ordered to second reading. |
| Jul 20, 2017 | Read second time. Ordered to third reading. |
| Jul 19, 2017 | Read third time and amended. Ordered to second reading. |
| Jun 12, 2017 | Read second time and amended. Ordered to consent calendar. |
| Jun 8, 2017 | From committee: Amend, and do pass as amended. To Consent Calendar. (Ayes 9. Noes 0.) (June 7). |
| May 10, 2017 | Referred to Com. on HEALTH. |
| Apr 20, 2017 | In Senate. Read first time. To Com. on RLS. for assignment. |
| Apr 20, 2017 | Read third time. Passed. Ordered to the Senate. (Ayes 73. Noes 0. Page 1128.) |
| Apr 6, 2017 | Read second time. Ordered to third reading. |
| Apr 5, 2017 | From committee: Do pass. (Ayes 14. Noes 0.) (April 4). |
| Mar 2, 2017 | Referred to Com. on HEALTH. |
| Feb 16, 2017 | From printer. May be heard in committee March 18. |
| Feb 15, 2017 | Read first time. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Sep 14, 2017 | AB 727 NAZARIAN Concurrence in Senate Amendments | Assembly Floor |
Passed |
|
| Sep 12, 2017 | Assembly 3rd Reading AB727 Nazarian By Hernandez | Senate Floor |
Passed |
|
| Jun 7, 2017 | Do pass as amended, and be ordered to the Consent Calendar | Senate Standing Committee on Health |
Passed |
|
| Apr 20, 2017 | Favorable With Amendment(s) (Judiciary Committee) | Assembly Floor |
Passed |
|
| Apr 4, 2017 | Do pass. | Assembly Standing Committee on Health |
Passed |
This list shows positions taken on this bill by organizations on the date displayed, which is linked to the original source.
Positions by individuals are not included.
|
Organization
|
Position
|
Date
|
|---|---|---|
| Association Of Regional Center Agencies | ** Support | Sep 6, 2017 |
| California Access Coalition | ** Support | Sep 6, 2017 |
| California Council Of Community Behavioral Health Agencies | ** Support | Sep 6, 2017 |
| California Psychological Association | ** Support | Sep 6, 2017 |
| California State Association Of Counties | ** Support | Sep 6, 2017 |
| CaliforniaHealth+ Advocates | ** Support | Sep 6, 2017 |
| City of Santa Monica | ** Support | Sep 6, 2017 |
| County Behavioral Health Directors Association | ** Support | Mar 31, 2017 |
| County Behavioral Health Directors Association of California | ** Support | Sep 6, 2017 |
| County Of Los Angeles | ** Support | Sep 6, 2017 |
| Health Officers Association Of California | ** Support | Sep 6, 2017 |
| National Alliance on Mental Illness California | ** Support | Sep 6, 2017 |
| Pacific Clinics | ** Support | Sep 6, 2017 |
| SEIU California | ** Support | Sep 6, 2017 |
| tri-city mental health authority | ** Support | Sep 6, 2017 |
| Tri-City Mental Health Services | ** Support | Mar 31, 2017 |
| Urban Counties of California | ** Support | Sep 6, 2017 |
CONCURRENCE IN SENATE AMENDMENTS
CSA1 Bill Id:AB 727
Author:(Nazarian)
As Amended Ver:September 5, 2017
Majority vote
ASSEMBLY: | 73-0 | (April 20, 2017) | SENATE: | 40-0 | (September 12, 2017) |
Original Committee Reference: HEALTH
SUMMARY: Clarifies that counties may spend funds on housing assistance for people in the target population for programs funded by the Mental Health Services Act (MHSA), including programs that serve seriously emotionally disturbed children or adolescents and adults or older adults who have a serious mental disorder.
The Senate amendments retain existing statute that appropriated MHSA funds in Fiscal Year 2011-12 for other state programs that serve populations with mental illness and language regarding the reversion of funds by counties and makes changes to avoid chaptering out conflicts with AB 1688 (Committee on Health) of the current legislative session since this bill and AB 1688 both amend the same code sections.
EXISTING LAW:
- Establishes the MHSA, enacted by voters in 2004 as Proposition 63, to provide funds to counties to expand services, develop innovative programs, and integrated service plans for mentally ill children, adults, and seniors through a 1% income tax on personal income above $1 million.
- Establishes the Mental Health Services Oversight and Accountability Commission (Commission) to oversee the implementation of MHSA, made up of 16 individuals appointed by the Governor, as specified.
- Establishes the Mental Health Services Fund (Fund) to be disbursed as follows:
- Twenty percent of funds distributed to counties to be used for prevention and early intervention programs;
- Five percent of the total funding for each county mental health program to be utilized for innovative programs;
- Requires the balance of funds to be distributed to county mental health programs for services to persons with severe mental illnesses, for the children's system of care, and for the adult and older adult system of care;
- Permits no more than 20% of the average amount of funds allocated to a county for the previous five years to be used for technological needs and capital facilities, human resource needs, and for counties to establish 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;
- Permits up to 5% of funds to be used for planning costs including 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; and,
- Requires, prior to making the allocations in a) through d) above, up to 5% of funds to be reserved for the costs for the State Department of Health Care Services (DHCS), the California Mental Health Planning Council, the Office of Statewide Health Planning and Development, the Commission, the State Department of Public Health, and any other state agency to implement all duties pursuant to the MHSA.
- Requires all expenditures for county mental health programs to be consistent with a currently approved mental health plan or update.
FISCAL EFFECT: None
COMMENTS: According to the author, this bill recognizes that housing is a key factor in the recovery and rehabilitation of clients who live with serious mental health issues. By extending the availability of housing assistance to all individuals with serious mental illness, regardless of which level of programs/services they participate in, we can close the gap in the continuum of care. Doing so will ensure that some of our most vulnerable continue to receive the critical care they need – while avoiding homelessness – on the road to a more stable life.
- Proposition 63. Proposition 63 was passed by voters in November 2004. The MHSA imposes a 1% income tax on personal income in excess of $1 million and creates the 16 member Commission charged with overseeing the implementation of MHSA. The 2016-17 Governor's Budget projected that $1.9 billion in revenue would be deposited into the Fund in fiscal year 2017-18. The MHSA addresses a broad continuum of prevention, early intervention, and service needs, as well as provided funding for infrastructure, technology, and training needs for the community mental health system. In addition to local programs, the MHSA authorizes up to 5% of revenues for state administrative functions performed by a variety of state entities such as the DHCS and Office of Statewide Health Planning and Development. It also funds evaluation of the MHSA by the Commission, which was established by the MHSA.
- Funding. The MHSA provides funding for programs within five components:
- Community Services and Supports: Provides direct mental health services to the severely and seriously mentally ill, such as mental health treatment, cost of health care treatment, and housing supports. Regulation requires counties to direct the majority of its Community Services and Supports funds to Full-Service Partnerships (FSPs). FSPs are county coordinated plans, in collaboration with the client and the family to provide the full spectrum of community services. These services consist of mental health services and supports, such as peer support and crisis intervention services; and non-mental health services and supports, such as food, clothing, housing, and the cost of medical treatment;
- Prevention and Early Intervention: Provides services to mental health clients in order to help prevent mental illness from becoming severe and disabling;
- Innovation: Provides services and approaches that are creative in an effort to address mental health clients' persistent issues, such as improving services for underserved or unserved populations within the community;
- Capital Facilities and Technological Needs: Creates additional county infrastructure such as additional clinics and facilities and/or development of a technological infrastructure for the mental health system, such as electronic health records for mental health services; and,
- Workforce Education and Training: Provides training for existing county mental health employees, outreach and recruitment to increase employment in the mental health system, and financial incentives to recruit or retain employees within the public mental health system.
The County Behavioral Health Directors Association (CBHDA), cosponsors of this bill, states that this bill expands the availability of housing assistance for individuals with serious mental illness by authorizing the use of MHSA funding for subsidies outside of the FSPs. This bill will help counties offer a "no wrong door" approach to assisting consumers with housing in MHSA programs, and is consistent with the evidence-based practice of offering "housing first" when engaging individuals who are or are at risk of homelessness. This bill seeks to further a goal of the voters when passing Proposition 63 in 2004: "no adult or senior should have to become disabled or homeless to get mental health services." CBHDA states that unfortunately MHSA regulations promulgated by the former California Department of Mental Health in 2012 restrict counties' use of local MHSA funds for rental subsidies and housing assistance only to those individuals participating in MHSA FSP or Planning, Outreach, and Engagement services.
The County of Los Angeles, cosponsor of this bill, state that this bill would authorize counties to use Community Services and Support funds for housing assistances. Examples of "housing assistance" include rental assistance or subsidies, security deposits, utility deposits, utility payments, and capital funding to build or rehabilitate housing for homeless, mentally ill persons or mentally ill persons who are at risk of being homeless.
There is no known opposition to this bill.
Analysis Prepared by: Paula Villescaz / HEALTH / (916) 319-2097 FN: 0001974
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 727
Amended: 9/5/17 in Senate
SENATE HEALTH COMMITTEE: 9-0, 6/7/17
AYES: Hernandez, Nguyen, Atkins, Leyva, Mitchell, Monning, Newman, Nielsen, Roth
ASSEMBLY FLOOR: 73-0, 4/20/17 - See last page for vote
SOURCE: County Behavioral Health Directors Association of California
County of Los Angeles
DIGEST:
This bill expands the ability of counties to use Mental Health Services Act funds on housing assistance by permitting counties to use Community Services and Supports funds on housing assistance regardless of whether a person participates in a Full-Service Partnership.
Senate Floor Amendments of 9/5/17 address chaptering out issues with AB 1688 (Committee on Health) and make appropriate technical amendments.
Existing law:
- Establishes the Mental Health Services Act (MHSA), enacted by voters in 2004 as Proposition 63, which provides funds to counties to expand services and develop innovative programs and integrated service plans for mentally ill children, adults, and seniors through a 1% income tax on personal income above $1 million.
- Establishes the Mental Health Services Oversight and Accountability Commission (MHSOAC) to oversee the implementation of the MHSA, develop strategies to overcome stigma, and advise the Governor and the Legislature on mental health policy.
- Requires each county mental health program to prepare and submit a three-year program and expenditure plan, with annual updates, adopted by the county board of supervisors, to the MHSOAC within 30 days after adoption.
- Requires, through regulations, the Community Service and Supports (CSS) component of the MHSA to contain the following service categories: Full-Service Partnerships (FSPs), General System Development, Outreach and Engagement, and the MHSA Housing Program (which is no longer in operation).
- Requires counties, through regulations, to direct the majority of its CSS funds to FSPs, as specified, which allow funds to be used for services, including non-mental health services and supports such as housing, as specified.
- Permits counties, through regulations, to spend CSS funds on housing assistance for clients in an FSP only. Prohibits General System Development category funds from being used for housing assistance. Allows Outreach and Engagement funds to be used for shelter for clients in limited instances.
- Establishes and continuously appropriates the Supportive Housing Program Subaccount in the Mental Health Services Fund, known as “The No Place Like Home Program,” for counties to develop permanent supportive housing, as specified.
This bill permits all CSS funds from the MHSA to be used by counties for housing assistance services for the target populations identified in the MHSA, as specified.
Comments
- Author’s statement. According to the author, this bill recognizes that housing is a key factor in the recovery and rehabilitation of clients who live with serious mental health issues. By extending the availability of housing assistance to all individuals with serious mental illness, regardless of which level of programs or services they participate in, we can close the gap in the continuum of care. Doing so will ensure that some of our most vulnerable continue to receive the critical care they need while avoiding homelessness on the road to a more stable life.
- MHSA and target populations. The MHSA requires each county mental health program to prepare and submit a three-year plan to DHCS that must be updated each year and approved by DHCS after review and comment by the MHSOAC. In the three-year plans, counties are required to include a list of all programs for which MHSA funding is being requested and that identifies how the funds will be spent and which populations will be served. Counties also must submit their plans for approval to the MHSOAC before they can spend innovation program funding. MHSA target populations are identified as: seriously emotionally disturbed children or adolescents; adults or older adults who have a serious mental disorder, including mentally ill homeless persons and California veterans; adults or older adults who require or are at risk of requiring acute psychiatric inpatient care, residential treatment, or outpatient crisis intervention, as specified; and persons who need brief treatment as a result of a natural disaster or severe local emergency.
- CSS. This component of the MHSA, which receives the majority of MHSA funds, provides direct mental health services to the severely and seriously mentally ill in a service model generally referred to as “whatever it takes,” and includes the following categories:
- FSPs: Regulations require counties to direct the majority of CSS funds to FSPs, which are county coordinated plans, in collaboration with the client and the family, to provide a full spectrum of community services consisting of mental health services and supports, such as peer support and crisis intervention services, and non-mental health services and supports, such as food, clothing, the cost of medical treatment, and housing, including rent subsidies, housing vouchers and payments, and transitional and temporary housing.
- General System Development: This category funds mental health treatment, including alternative and culturally specific treatment; peer support; wellness centers; case management; family education services; and supportive services to assist clients in obtaining employment, housing, and/or education. Regulations prohibit funds from this category from funding client-based housing expenditures, including, but not limited to, housing vouchers, rental subsidies, utility startup deposits, utility costs, and furniture rental.
- Outreach and Engagement: This category is used by counties to develop and operate outreach programs and/or activities for the purpose of identifying unserved individuals in the MHSA target populations in order to engage them in the mental health system so that they receive appropriate services. These funds may be used to pay for the following: strategies to reduce ethnic/racial disparities; outreach to entities, such as community-based organizations, schools, and primary care providers; and outreach to individuals, such as community leaders, those who are homeless, and those who are incarcerated in county facilities. This category also allows for funds to pay for food, clothing, and shelter, but only when the purpose is to engage unserved individuals in the mental health system.
- MHSA Housing Program: This category was created in 2008 as a partnership between the former Department of Mental Health (which used to oversee the MHSA before being transferred to DHCS) and the California Housing Finance Authority (CalHFA). Regulations for this category limited the use of funds to acquire, rehabilitate, or construct permanent supportive housing for clients with serious mental illness and to provide operating subsidies. The category received a one-time MHSA appropriation of $400 million, administered by CalHFA, for mental health agencies to solicit housing proposals to create permanent supportive housing across the state. According to CalHFA’s Web site, since the implementation of the program, over $391 million has been allocated to housing proposals financed by MHSA capital development loans and long-term capitalized operating subsidy reserves. MHSA housing units created with these funds are typically located within larger affordable rental housing developments and restrict occupancy to MHSA clients. According to CalHFA’s Web site, this program sunseted on May 30, 2016, with the expiration of the eight-year Interagency Agreement between CalHFA and DHCS.
- The No Place Like Home Program. Pursuant to AB 1628 (Committee on Budget, Chapter 322, Statutes of 2016) this program requires the Department of Housing and Community Development to administer a competitive program and distribution program, as specified, for awarding a total amount not to exceed $2 billion from the MHSA among counties to finance capital costs including, but not limited to, acquisition, design, construction, rehabilitation, or preservation, and to capitalize operating reserves, of permanent supportive housing for the MHSA target population.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
County Behavioral Health Directors Association of California (co-source)
County of Los Angeles (co-source)
Association of Regional Center Agencies
California Access Coalition
California Chapter of the American College of Emergency Physicians
California Council of Community Behavioral Health Agencies
CaliforniaHealth+ Advocates
California Psychological Association
California State Association of Counties
City of Santa Monica
Health Officers Association of California
National Alliance on Mental Illness California
Pacific Clinics
SEIU California
Tri-City Mental Health Authority
Urban Counties of California
None received
ARGUMENTS IN SUPPORT: The sponsors and other supporters of this bill, largely comprised of mental health service providers, argue that this bill is consistent with the original intent of the MHSA and evidence-based practices of offering housing first, and will help counties offer a no-wrong-door approach to assisting consumers with housing in MHSA-funded programs. Supporters further state that many individuals with serious and disabling mental illness who are extremely low-income often need a supplement in the form of a rental subsidy to avoid homelessness. Supporters state that a key provision of the MHSA is to assist individuals before they become disabled or homeless in order to get mental health services. Supporters also state that CSS regulations promulgated by the former Department of Mental Health restrict counties from using CSS funds for rental subsidies and housing assistance unless an individual participates in an FSP or planning, outreach, and engagement services. Supporters state that this unnecessary restriction creates a barrier for those who are ready to transition out of an FSP to lower levels of service for fear of losing housing assistance, as well as assumes that only those participating in FSPs can benefit from housing assistance.
ASSEMBLY FLOOR: 73-0, 4/20/17
AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Burke, Caballero, Calderon, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gomez, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Voepel, Waldron, Weber, Wood, Rendon
NO VOTE RECORDED: Brough, Gallagher, Jones-Sawyer, Mathis, Obernolte, Ridley-Thomas, Ting
Prepared by:
9/6/17 16:09:50
**** END ****
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 727
Amended: 7/19/17 in Senate
SENATE HEALTH COMMITTEE: 9-0, 6/7/17
AYES: Hernandez, Nguyen, Atkins, Leyva, Mitchell, Monning, Newman, Nielsen, Roth
ASSEMBLY FLOOR: 73-0, 4/20/17 - See last page for vote
SOURCE: County Behavioral Health Directors Association of California
County of Los Angeles
DIGEST:
This bill expands the ability of counties to use Mental Health Services Act funds on housing assistance by permitting counties to use Community Services and Supports funds on housing assistance regardless of whether a person participates in a Full-Service Partnership.
Senate Floor Amendments of 7/19/17 conform the changes made in AB 114 (Committee on Budget, Chapter 38, Statutes of 2017), a Budget Trailer Bill enacted on July 10, 2017.
Existing law:
- Establishes the Mental Health Services Act (MHSA), enacted by voters in 2004 as Proposition 63, which provides funds to counties to expand services and develop innovative programs and integrated service plans for mentally ill children, adults, and seniors through a 1% income tax on personal income above $1 million.
- Establishes the Mental Health Services Oversight and Accountability Commission (MHSOAC) to oversee the implementation of the MHSA, develop strategies to overcome stigma, and advise the Governor and the Legislature on mental health policy.
- Requires each county mental health program to prepare and submit a three-year program and expenditure plan, with annual updates, adopted by the county board of supervisors, to the MHSOAC within 30 days after adoption.
- Requires, through regulations, the Community Service and Supports (CSS) component of the MHSA to contain the following service categories: Full-Service Partnerships (FSPs), General System Development, Outreach and Engagement, and the MHSA Housing Program (which is no longer in operation).
- Requires counties, through regulations, to direct the majority of its CSS funds to FSPs, as specified, which allow funds to be used for services, including non-mental health services and supports such as housing, as specified.
- Permits counties, through regulations, to spend CSS funds on housing assistance for clients in an FSP only. Prohibits General System Development category funds from being used for housing assistance. Allows Outreach and Engagement funds to be used for shelter for clients in limited instances.
- Establishes and continuously appropriates the Supportive Housing Program Subaccount in the Mental Health Services Fund, known as “The No Place Like Home Program,” for counties to develop permanent supportive housing, as specified.
This bill permits all CSS funds from the MHSA to be used by counties for housing assistance services for the target populations identified in the MHSA, as specified.
Comments
- Author’s statement. According to the author, this bill recognizes that housing is a key factor in the recovery and rehabilitation of clients who live with serious mental health issues. By extending the availability of housing assistance to all individuals with serious mental illness, regardless of which level of programs or services they participate in, we can close the gap in the continuum of care. Doing so will ensure that some of our most vulnerable continue to receive the critical care they need while avoiding homelessness on the road to a more stable life.
- MHSA and target populations. The MHSA requires each county mental health program to prepare and submit a three-year plan to DHCS that must be updated each year and approved by DHCS after review and comment by the MHSOAC. In the three-year plans, counties are required to include a list of all programs for which MHSA funding is being requested and that identifies how the funds will be spent and which populations will be served. Counties also must submit their plans for approval to the MHSOAC before they can spend innovation program funding. MHSA target populations are identified as: seriously emotionally disturbed children or adolescents; adults or older adults who have a serious mental disorder, including mentally ill homeless persons and California veterans; adults or older adults who require or are at risk of requiring acute psychiatric inpatient care, residential treatment, or outpatient crisis intervention, as specified; and persons who need brief treatment as a result of a natural disaster or severe local emergency.
- CSS. This component of the MHSA, which receives the majority of MHSA funds, provides direct mental health services to the severely and seriously mentally ill in a service model generally referred to as “whatever it takes,” and includes the following categories:
- FSPs: Regulations require counties to direct the majority of CSS funds to FSPs, which are county coordinated plans, in collaboration with the client and the family, to provide a full spectrum of community services consisting of mental health services and supports, such as peer support and crisis intervention services, and non-mental health services and supports, such as food, clothing, the cost of medical treatment, and housing, including rent subsidies, housing vouchers and payments, and transitional and temporary housing.
- General System Development: This category funds mental health treatment, including alternative and culturally specific treatment; peer support; wellness centers; case management; family education services; and supportive services to assist clients in obtaining employment, housing, and/or education. Regulations prohibit funds from this category from funding client-based housing expenditures, including, but not limited to, housing vouchers, rental subsidies, utility startup deposits, utility costs, and furniture rental.
- Outreach and Engagement: This category is used by counties to develop and operate outreach programs and/or activities for the purpose of identifying unserved individuals in the MHSA target populations in order to engage them in the mental health system so that they receive appropriate services. These funds may be used to pay for the following: strategies to reduce ethnic/racial disparities; outreach to entities, such as community-based organizations, schools, and primary care providers; and outreach to individuals, such as community leaders, those who are homeless, and those who are incarcerated in county facilities. This category also allows for funds to pay for food, clothing, and shelter, but only when the purpose is to engage unserved individuals in the mental health system.
- MHSA Housing Program: This category was created in 2008 as a partnership between the former Department of Mental Health (which used to oversee the MHSA before being transferred to DHCS) and the California Housing Finance Authority (CalHFA). Regulations for this category limited the use of funds to acquire, rehabilitate, or construct permanent supportive housing for clients with serious mental illness and to provide operating subsidies. The category received a one-time MHSA appropriation of $400 million, administered by CalHFA, for mental health agencies to solicit housing proposals to create permanent supportive housing across the state. According to CalHFA’s Web site, since the implementation of the program, over $391 million has been allocated to housing proposals financed by MHSA capital development loans and long-term capitalized operating subsidy reserves. MHSA housing units created with these funds are typically located within larger affordable rental housing developments and restrict occupancy to MHSA clients. According to CalHFA’s Web site, this program sunseted on May 30, 2016, with the expiration of the eight-year Interagency Agreement between CalHFA and DHCS.
- The No Place Like Home Program. Pursuant to AB 1628 (Committee on Budget, Chapter 322, Statutes of 2016) this program requires the Department of Housing and Community Development to administer a competitive program and distribution program, as specified, for awarding a total amount not to exceed $2 billion from the MHSA among counties to finance capital costs including, but not limited to, acquisition, design, construction, rehabilitation, or preservation, and to capitalize operating reserves, of permanent supportive housing for the MHSA target population.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
County Behavioral Health Directors Association of California (co-source)
County of Los Angeles (co-source)
Association of Regional Center Agencies
California Access Coalition
California Chapter of the American College of Emergency Physicians
California Council of Community Behavioral Health Agencies
CaliforniaHealth+ Advocates
California Psychological Association
California State Association of Counties
City of Santa Monica
Health Officers Association of California
National Alliance on Mental Illness California
Pacific Clinics
Tri-City Mental Health Authority
Urban Counties of California
OPPOSITION: (Verified 7/24/17)
None received
ARGUMENTS IN SUPPORT: The sponsors and other supporters of this bill, largely comprised of mental health service providers, argue that this bill is consistent with the original intent of the MHSA and evidence-based practices of offering housing first, and will help counties offer a no-wrong-door approach to assisting consumers with housing in MHSA-funded programs. Supporters further state that many individuals with serious and disabling mental illness who are extremely low-income often need a supplement in the form of a rental subsidy to avoid homelessness. Supporters state that a key provision of the MHSA is to assist individuals before they become disabled or homeless in order to get mental health services. Supporters also state that CSS regulations promulgated by the former Department of Mental Health restrict counties from using CSS funds for rental subsidies and housing assistance unless an individual participates in an FSP or planning, outreach, and engagement services. Supporters state that this unnecessary restriction creates a barrier for those who are ready to transition out of an FSP to lower levels of service for fear of losing housing assistance, as well as assumes that only those participating in FSPs can benefit from housing assistance.
ASSEMBLY FLOOR: 73-0, 4/20/17
AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Burke, Caballero, Calderon, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gomez, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Voepel, Waldron, Weber, Wood, Rendon
NO VOTE RECORDED: Brough, Gallagher, Jones-Sawyer, Mathis, Obernolte, Ridley-Thomas, Ting
Prepared by:
8/17/17 11:33:46
**** END ****
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | AB |
THIRD READING
Bill No: AB 727
:
SENATE HEALTH COMMITTEE: 9-0, 6/7/17
AYES: Hernandez, Nguyen, Atkins, Leyva, Mitchell, Monning, Newman, Nielsen, Roth
ASSEMBLY FLOOR: 73-0, 4/20/17 - See last page for vote
SOURCE: County Behavioral Health Directors Association of California
County of Los Angeles
DIGEST:
This bill expands the ability of counties to use Mental Health Services Act funds on housing assistance by permitting counties to use Community Services and Supports funds on housing assistance regardless of whether a person participates in a Full-Service Partnership.
Existing law:
- Establishes the Mental Health Services Act (MHSA), enacted by voters in 2004 as Proposition 63, which provides funds to counties to expand services and develop innovative programs and integrated service plans for mentally ill children, adults, and seniors through a 1% income tax on personal income above $1 million.
- Establishes the Mental Health Services Oversight and Accountability Commission (MHSOAC) to oversee the implementation of the MHSA, develop strategies to overcome stigma, and advise the Governor and the Legislature on mental health policy.
- Requires each county mental health program to prepare and submit a three-year program and expenditure plan, with annual updates, adopted by the county board of supervisors, to the MHSOAC within 30 days after adoption.
- Requires, through regulations, the Community Service and Supports (CSS) component of the MHSA to contain the following service categories: Full-Service Partnerships (FSPs), General System Development, Outreach and Engagement, and the MHSA Housing Program (which is no longer in operation).
- Requires counties, through regulations, to direct the majority of its CSS funds to FSPs, as specified, which allow funds to be used for services, including non-mental health services and supports such as housing, as specified.
- Permits counties, through regulations, to spend CSS funds on housing assistance for clients in an FSP only. Prohibits General System Development category funds from being used for housing assistance. Allows Outreach and Engagement funds to be used for shelter for clients in limited instances.
- Establishes and continuously appropriates the Supportive Housing Program Subaccount in the Mental Health Services Fund, known as “The No Place Like Home Program,” for counties to develop permanent supportive housing, as specified.
This bill permits all CSS funds from the MHSA to be used by counties for housing assistance services for the target populations identified in the MHSA, as specified.
Comments
- Author’s statement. According to the author, this bill recognizes that housing is a key factor in the recovery and rehabilitation of clients who live with serious mental health issues. By extending the availability of housing assistance to all individuals with serious mental illness, regardless of which level of programs or services they participate in, we can close the gap in the continuum of care. Doing so will ensure that some of our most vulnerable continue to receive the critical care they need while avoiding homelessness on the road to a more stable life.
- MHSA and target populations. The MHSA requires each county mental health program to prepare and submit a three-year plan to DHCS that must be updated each year and approved by DHCS after review and comment by the MHSOAC. In the three-year plans, counties are required to include a list of all programs for which MHSA funding is being requested and that identifies how the funds will be spent and which populations will be served. Counties also must submit their plans for approval to the MHSOAC before they can spend innovation program funding. MHSA target populations are identified as: seriously emotionally disturbed children or adolescents; adults or older adults who have a serious mental disorder, including mentally ill homeless persons and California veterans; adults or older adults who require or are at risk of requiring acute psychiatric inpatient care, residential treatment, or outpatient crisis intervention, as specified; and persons who need brief treatment as a result of a natural disaster or severe local emergency.
- CSS. This component of the MHSA, which receives the majority of MHSA funds, provides direct mental health services to the severely and seriously mentally ill in a service model generally referred to as “whatever it takes,” and includes the following categories:
- FSPs: Regulations require counties to direct the majority of CSS funds to FSPs, which are county coordinated plans, in collaboration with the client and the family, to provide a full spectrum of community services consisting of mental health services and supports, such as peer support and crisis intervention services, and non-mental health services and supports, such as food, clothing, the cost of medical treatment, and housing, including rent subsidies, housing vouchers and payments, and transitional and temporary housing.
- General System Development: This category funds mental health treatment, including alternative and culturally specific treatment; peer support; wellness centers; case management; family education services; and supportive services to assist clients in obtaining employment, housing, and/or education. Regulations prohibit funds from this category from funding client-based housing expenditures, including, but not limited to, housing vouchers, rental subsidies, utility startup deposits, utility costs, and furniture rental.
- Outreach and Engagement: This category is used by counties to develop and operate outreach programs and/or activities for the purpose of identifying unserved individuals in the MHSA target populations in order to engage them in the mental health system so that they receive appropriate services. These funds may be used to pay for the following: strategies to reduce ethnic/racial disparities; outreach to entities, such as community-based organizations, schools, and primary care providers; and outreach to individuals, such as community leaders, those who are homeless, and those who are incarcerated in county facilities. This category also allows for funds to pay for food, clothing, and shelter, but only when the purpose is to engage unserved individuals in the mental health system.
- MHSA Housing Program: This category was created in 2008 as a partnership between the former Department of Mental Health (which used to oversee the MHSA before being transferred to DHCS) and the California Housing Finance Authority (CalHFA). Regulations for this category limited the use of funds to acquire, rehabilitate, or construct permanent supportive housing for clients with serious mental illness and to provide operating subsidies. The category received a one-time MHSA appropriation of $400 million, administered by CalHFA, for mental health agencies to solicit housing proposals to create permanent supportive housing across the state. According to CalHFA’s Web site, since the implementation of the program, over $391 million has been allocated to housing proposals financed by MHSA capital development loans and long-term capitalized operating subsidy reserves. MHSA housing units created with these funds are typically located within larger affordable rental housing developments and restrict occupancy to MHSA clients. According to CalHFA’s Web site, this program sunseted on May 30, 2016, with the expiration of the eight-year Interagency Agreement between CalHFA and DHCS.
- The No Place Like Home Program. Pursuant to AB 1628 (Committee on Budget, Chapter 322, Statutes of 2016) this program requires the Department of Housing and Community Development to administer a competitive program and distribution program, as specified, for awarding a total amount not to exceed $2 billion from the MHSA among counties to finance capital costs including, but not limited to, acquisition, design, construction, rehabilitation, or preservation, and to capitalize operating reserves, of permanent supportive housing for the MHSA target population.
Related/Prior Legislation
SB 688 (Moorlach, 2017) requires MHSA funds allocated for administration, as specified, to include amounts sufficient for DHCS to establish a contract and an interagency data sharing agreement with the University of California to ensure adequate research and evaluation, as specified. SB 688 is pending in the Senate Health Committee.
SB 192 (Beall, 2017) establishes the Mental Health Services Act Reversion Fund into which reverted unspent funds, as specified, will be deposited for allocation by the Legislature to specified counties for services and supports targeting youth populations, as specified. Requires annual reporting to the Legislature about the funds, as well as recommendations to the Legislature from specified entities on the allocation of the funds. SB 192 is pending in the Assembly Health Committee.
AB 974 (Quirk-Silva, 2017) requires counties to report spending on mental health services for veterans from MHSA funds. AB 974 is pending in the Senate Health Committee.
AB 1628 (Committee on Budget, Chapter 322, Statutes of 2016) among other things, established and continuously appropriated The No Place Like Home Program in the Mental Health Services Fund for counties to develop permanent supportive housing, as specified.
AB 745 (Chau of 2015) would have required the Governor to appoint an additional member to the MHSOAC who has experience providing supportive housing to persons with a severe mental illness. AB 745 was vetoed by the Governor who stated, while supportive housing can help improve the lives of those with serious mental illness, I believe that the current 16 members of the MHSOAC are adequate to the task.
AB 253 (Roger Hernández of 2015) would have made changes to the MHSA, including adding two additional members to the MHSOAC, one of whom would have been required to have knowledge and experience in reducing mental health disparities. AB 253 was not heard in the Senate Transportation and Housing Committee.
SB 82 (Committee on Budget and Fiscal Review, Chapter 34, Statutes of 2013) made a one-time appropriation of $500,000 from the General Fund to the California Health Facilities Financing Authority to implement grant programs to support the development, capital, equipment acquisition, and applicable program startup or expansion costs to increase capacity for client assistance and services for individuals with mental health disorders.
FISCAL EFFECT: Appropriation: Fiscal Com.: Local:
County Behavioral Health Directors Association of California (co-source)
County of Los Angeles (co-source)
Association of Regional Center Agencies
California Access Coalition
California Chapter of the American College of Emergency Physicians
California Council of Community Behavioral Health Agencies
CaliforniaHealth+ Advocates
California Psychological Association
California State Association of Counties
City of Santa Monica
Health Officers Association of California
National Alliance on Mental Illness California
Pacific Clinics
Tri-City Mental Health Authority
Urban Counties of California
OPPOSITION: (Verified 6/13/17)
None received
ARGUMENTS IN SUPPORT: The sponsors and other supporters of this bill, largely comprised of mental health service providers, argue that this bill is consistent with the original intent of the MHSA and evidence-based practices of offering housing first, and will help counties offer a no-wrong-door approach to assisting consumers with housing in MHSA-funded programs. Supporters further state that many individuals with serious and disabling mental illness who are extremely low-income often need a supplement in the form of a rental subsidy to avoid homelessness. Supporters state that a key provision of the MHSA is to assist individuals before they become disabled or homeless in order to get mental health services. Supporters also state that CSS regulations promulgated by the former Department of Mental Health restrict counties from using CSS funds for rental subsidies and housing assistance unless an individual participates in an FSP or planning, outreach, and engagement services. Supporters state that this unnecessary restriction creates a barrier for those who are ready to transition out of an FSP to lower levels of service for fear of losing housing assistance, as well as assumes that only those participating in FSPs can benefit from housing assistance.
ASSEMBLY FLOOR: 73-0, 4/20/17
AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bloom, Bocanegra, Bonta, Burke, Caballero, Calderon, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dababneh, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Cristina Garcia, Eduardo Garcia, Gipson, Gloria, Gomez, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Kalra, Kiley, Lackey, Levine, Limón, Low, Maienschein, Mayes, McCarty, Medina, Melendez, Mullin, Muratsuchi, Nazarian, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Voepel, Waldron, Weber, Wood, Rendon
NO VOTE RECORDED: Brough, Gallagher, Jones-Sawyer, Mathis, Obernolte, Ridley-Thomas, Ting
Prepared by:
6/15/17 11:11:47
**** END ****
SENATE COMMITTEE ON HEALTH
Senator Ed Hernandez, O.D., Chair
BILL NO: AB 727
AUTHOR: | Nazarian | ||
VERSION: | February 15, 2017 | ||
HEARING DATE: | June 7, 2017 | ||
CONSULTANT: | Reyes Diaz | ||
SUBJECT: Mental Health Services Act: housing assistance
SUMMARY:
Expands the ability of counties to use Mental Health Services Act funds on housing assistance by permitting counties to use Community Services and Supports funds on housing assistance regardless of whether the assistance is part of a Full-Service Partnership.
Existing law:
- Establishes the Mental Health Services Act (MHSA), enacted by voters in 2004 as Proposition 63, which provides funds to counties to expand services and develop innovative programs and integrated service plans for mentally ill children, adults, and seniors through a 1% income tax on personal income above $1 million.
- Establishes the Mental Health Services Oversight and Accountability Commission (MHSOAC) to oversee the implementation of the MHSA, develop strategies to overcome stigma, and advise the Governor and the Legislature on mental health policy.
- Requires each county mental health program to prepare and submit a three-year program and expenditure plan, with annual updates, adopted by the county board of supervisors, to the MHSOAC within 30 days after adoption.
- Requires, through regulations, the Community Service and Supports (CSS) component of the MHSA to contain the following service categories: Full-Service Partnerships (FSPs), General System Development, Outreach and Engagement, and the MHSA Housing Program (which is no longer in operation).
- Requires counties, through regulations, to direct the majority of its CSS funds to FSPs, as specified, which allow funds to be used for services, including non-mental health services and supports such as housing, as specified.
- Permits counties, through regulations, to spend CSS funds on housing assistance for clients in an FSP only. Prohibits General System Development category funds from being used for housing assistance. Allows Outreach and Engagement funds to be used for shelter for clients in limited instances.
- Establishes and continuously appropriates the Supportive Housing Program Subaccount in the Mental Health Services Fund, known as “The No Place Like Home Program,” for counties to develop permanent supportive housing, as specified.
This bill:
- Permits all CSS funds from the MHSA to be used by counties for housing assistance services for the target populations identified in the MHSA, as specified.
- Cleans up MHSA statute by repealing obsolete and inactive provisions of law.
FISCAL EFFECT:
This bill has been keyed non-fiscal.
PRIOR VOTES:
Assembly Floor: | 73 - 0 |
Assembly Health Committee: | 14 - 0 |
COMMENTS:
- Author’s statement. According to the author, this bill recognizes that housing is a key factor in the recovery and rehabilitation of clients who live with serious mental health issues. By extending the availability of housing assistance to all individuals with serious mental illness, regardless of which level of programs or services they participate in, we can close the gap in the continuum of care. Doing so will ensure that some of our most vulnerable continue to receive the critical care they need while avoiding homelessness on the road to a more stable life.
- MHSA and target populations. The MHSA requires each county mental health program to prepare and submit a three-year plan to DHCS that must be updated each year and approved by DHCS after review and comment by the MHSOAC. In the three-year plans, counties are required to include a list of all programs for which MHSA funding is being requested and that identifies how the funds will be spent and which populations will be served. Counties also must submit their plans for approval to the MHSOAC before they can spend innovation program funding. MHSA target populations are identified as: seriously emotionally disturbed children or adolescents; adults or older adults who have a serious mental disorder, including mentally ill homeless persons and California veterans; adults or older adults who require or are at risk of requiring acute psychiatric inpatient care, residential treatment, or outpatient crisis intervention, as specified; and persons who need brief treatment as a result of a natural disaster or severe local emergency.
- CSS. This component of the MHSA, which receives the majority of MHSA funds, provides direct mental health services to the severely and seriously mentally ill in a service model generally referred to as “whatever it takes,” and includes the following categories:
- FSPs: Regulations require counties to direct the majority of CSS funds to FSPs, which are county coordinated plans, in collaboration with the client and the family, to provide a full spectrum of community services consisting of mental health services and supports, such as peer support and crisis intervention services, and non-mental health services and supports, such as food, clothing, the cost of medical treatment, and housing, including rent subsidies, housing vouchers and payments, and transitional and temporary housing.
- General System Development: This category funds mental health treatment, including alternative and culturally specific treatment; peer support; wellness centers; case management; family education services; and supportive services to assist clients in obtaining employment, housing, and/or education. Regulations prohibit funds from this category from funding client-based housing expenditures, including, but not limited to, housing vouchers, rental subsidies, utility startup deposits, utility costs, and furniture rental.
- Outreach and Engagement: This category is used by counties to develop and operate outreach programs and/or activities for the purpose of identifying unserved individuals in the MHSA target populations in order to engage them in the mental health system so that they receive appropriate services. These funds may be used to pay for the following: strategies to reduce ethnic/racial disparities; outreach to entities, such as community-based organizations, schools, and primary care providers; and outreach to individuals, such as community leaders, those who are homeless, and those who are incarcerated in county facilities. This category also allows for funds to pay for food, clothing, and shelter, but only when the purpose is to engage unserved individuals in the mental health system.
- MHSA Housing Program: This category was created in 2008 as a partnership between the former Department of Mental Health (which used to oversee the MHSA before being transferred to DHCS) and the California Housing Finance Authority (CalHFA). Regulations for this category limited the use of funds to acquire, rehabilitate, or construct permanent supportive housing for clients with serious mental illness and to provide operating subsidies. The category received a one-time MHSA appropriation of $400 million, administered by CalHFA, for mental health agencies to solicit housing proposals to create permanent supportive housing across the state. According to CalHFA’s Web site, since the implementation of the program, over $391 million has been allocated to housing proposals financed by MHSA capital development loans and long-term capitalized operating subsidy reserves. MHSA housing units created with these funds are typically located within larger affordable rental housing developments and restrict occupancy to MHSA clients. According to CalHFA’s Web site, this program sunseted on May 30, 2016, with the expiration of the eight-year Interagency Agreement between CalHFA and DHCS.
- The No Place Like Home Program. Pursuant to AB 1628 (Committee on Budget, Chapter 322, Statutes of 2016) this program requires the Department of Housing and Community Development to administer a competitive program and distribution program, as specified, for awarding a total amount not to exceed $2 billion from the MHSA among counties to finance capital costs including, but not limited to, acquisition, design, construction, rehabilitation, or preservation, and to capitalize operating reserves, of permanent supportive housing for the MHSA target population.
- Related legislation. SB 688 (Moorlach) would require MHSA funds allocated for administration, as specified, to include amounts sufficient for DHCS to establish a contract and an interagency data sharing agreement with the University of California to ensure adequate research and evaluation, as specified. SB 688 is pending in this committee.
SB 192 (Beall) establishes the Mental Health Services Act Reversion Fund into which reverted unspent funds, as specified, will be deposited for allocation by the Legislature to specified counties for services and supports targeting youth populations, as specified. Requires annual reporting to the Legislature about the funds, as well as recommendations to the Legislature from specified entities on the allocation of the funds. SB 192 is pending referral in the Assembly.
AB 974 (Quirk-Silva) would require counties to report spending on mental health services for veterans from MHSA funds. AB 974 is pending referral in the Senate.
- Prior legislation. AB 1628 (Committee on Budget, Chapter 322, Statutes of 2016) among other things, establishes and continuously appropriates The No Place Like Home Program in the Mental Health Services Fund for counties to develop permanent supportive housing, as specified.
AB 745 (Chau of 2015) would have required the Governor to appoint an additional member to the MHSOAC who has experience providing supportive housing to persons with a severe mental illness. AB 745 was vetoed by the Governor who stated, while supportive housing can help improve the lives of those with serious mental illness, I believe that the current 16 members of the MHSOAC are adequate to the task.
AB 253 (Roger Hernández, of 2015) would have made changes to the MHSA, including adding two additional members to the MHSOAC, one of whom would have been required to have knowledge and experience in reducing mental health disparities. AB 253 was not heard in the Senate Transportation and Housing Committee.
SB 82 (Committee on Budget and Fiscal Review, Chapter 34, Statutes of 2013) made a one-time appropriation of $500,000 from the General Fund to the California Health Facilities Financing Authority to implement grant programs to support the development, capital, equipment acquisition, and applicable program startup or expansion costs to increase capacity for client assistance and services for individuals with mental health disorders.
- Support. The sponsors and other supporters of this bill, largely comprised of mental health service providers, argue that this bill is consistent with the original intent of the MHSA and evidence-based practices of offering housing first, and will help counties offer a no-wrong-door approach to assisting consumers with housing in MHSA-funded programs. Supporters further state that many individuals with serious and disabling mental illness who are extremely low-income often need a supplement in the form of a rental subsidy to avoid homelessness. Supporters state that a key provision of the MHSA is to assist individuals before they become disabled or homeless in order to get mental health services. Supporters also state that CSS regulations promulgated by the former Department of Mental Health restrict counties from using CSS funds for rental subsidies and housing assistance unless an individual participates in an FSP or planning, outreach, and engagement services. Supporters state that this unnecessary restriction creates a barrier for those who are ready to transition out of an FSP to lower levels of service for fear of losing housing assistance, as well as assumes that only those participating in FSPs can benefit from housing assistance.
- Support if amended. One individual writes to support this bill if it is amended to be constitutional. The individual argues that, as written, this bill goes against the intent of the MHSA and voters. The individual believes that this bill would allow treatment funds to be used for housing, which would exacerbate the problem it is trying to address. The individual suggests that the bill instead tap capital, innovation, and prevention and early intervention funds from the MHSA for all housing expenditures. The individual states that using treatment funds for housing, if they are needed for treatment, is inconsistent with the MHSA and is unconstitutional, and suggests an amendment that requires other available funds for housing to be expended before treatment funds are used for housing.
- Technical amendments. The author may wish to consider technical amendments to retain existing statute that appropriated MHSA funds in Fiscal Year 2011-12 for other state programs that serve populations with mental illness. Other bills that have been passed out of this committee retained this language after receiving requests from concerned entities about deleting historical MHSA information.
- On page 4, retain lines 36 through 40, inclusive.
- On page 5, retain lines 1 through 39, inclusive.
- On page 6, retain lines 1 through 16, inclusive.
SUPPORT AND OPPOSITION:
Support: County Behavioral Health Directors Association of California (co-sponsor)
County of Los Angeles (co-sponsor)
Association of Regional Center Agencies
California Access Coalition
California Chapter of the American College of Emergency Physicians
California Council of Community Behavioral Health Agencies
CaliforniaHealth+ Advocates
California Psychological Association
California State Association of Counties
City of Santa Monica
Health Officers Association of California
National Alliance on Mental Illness California
Pacific Clinics
Tri-City Mental Health Authority
Urban Counties of California
Oppose: None received
-- END --
ASSEMBLY THIRD READING
ATR Bill Id:AB 727
Author:(Nazarian)
As Introduced Ver:February 15, 2017
Majority vote
Committee | Votes | Ayes | Noes |
Health | 14-0 | Wood, Maienschein, Bonta, Burke, Gallagher, Limón, McCarty, Nazarian, Patterson, Ridley-Thomas, Rodriguez, Santiago, Thurmond, Waldron |
SUMMARY: Clarifies that counties may spend funds on housing assistance for people in the target population for programs funded by the Mental Health Services Act (MHSA), including programs that serve seriously emotionally disturbed children or adolescents and adults or older adults who have a serious mental disorder.
EXISTING LAW:
- Establishes the MHSA, enacted by voters in 2004 as Proposition 63, to provide funds to counties to expand services, develop innovative programs, and integrated service plans for mentally ill children, adults, and seniors through a 1% income tax on personal income above $1 million.
- Establishes the Mental Health Services Oversight and Accountability Commission (Commission) to oversee the implementation of MHSA, made up of 16 individuals appointed by the Governor, as specified.
- Establishes the Mental Health Services Fund (Fund) to be disbursed as follows:
- Twenty percent of funds distributed to counties to be used for prevention and early intervention programs;
- Five percent of the total funding for each county mental health program to be utilized for innovative programs;
- Requires the balance of funds to be distributed to county mental health programs for services to persons with severe mental illnesses, for the children's system of care, and for the adult and older adult system of care;
- Permits no more than 20% of the average amount of funds allocated to a county for the previous five years to be used for technological needs and capital facilities, human resource needs, and for counties to establish 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;
- Permits up to 5% of funds to be used for planning costs including 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; and,
- Requires, prior to making the allocations in a) through d) above, up to 5% of funds to be reserved for the costs for the State Department of Health Care Services (DHCS), the California Mental Health Planning Council, the Office of Statewide Health Planning and Development, the Commission, the State Department of Public Health, and any other state agency to implement all duties pursuant to the MHSA.
- Requires all expenditures for county mental health programs to be consistent with a currently approved mental health plan or update.
FISCAL EFFECT: None
COMMENTS: According to the author, this bill recognizes that housing is a key factor in the recovery and rehabilitation of clients who live with serious mental health issues. By extending the availability of housing assistance to all individuals with serious mental illness, regardless of which level of programs/services they participate in, we can close the gap in the continuum of care. Doing so will ensure that some of our most vulnerable continue to receive the critical care they need—while avoiding homelessness—on the road to a more stable life.
- Proposition 63. Proposition 63 was passed by voters in November 2004. The MHSA imposes a 1% income tax on personal income in excess of $1 million and creates the 16 member Commission charged with overseeing the implementation of MHSA. The 2016-17 Governor's Budget projected that $1.9 billion in revenue would be deposited into the Fund in fiscal year 2017-18. The MHSA addresses a broad continuum of prevention, early intervention, and service needs, as well as provided funding for infrastructure, technology, and training needs for the community mental health system. In addition to local programs, the MHSA authorizes up to 5% of revenues for state administrative functions performed by a variety of state entities such as the DHCS and OSHPD. It also funds evaluation of the MHSA by the Commission, which was established by the MHSA.
- Funding. The MHSA provides funding for programs within five components:
- Community Services and Supports: Provides direct mental health services to the severely and seriously mentally ill, such as mental health treatment, cost of health care treatment, and housing supports. Regulation requires counties to direct the majority of its Community Services and Supports funds to Full‑Service Partnerships (FSPs). FSPs are county coordinated plans, in collaboration with the client and the family to provide the full spectrum of community services. These services consist of mental health services and supports, such as peer support and crisis intervention services; and non-mental health services and supports, such as food, clothing, housing, and the cost of medical treatment;
- Prevention and Early Intervention: Provides services to mental health clients in order to help prevent mental illness from becoming severe and disabling;
- Innovation: Provides services and approaches that are creative in an effort to address mental health clients' persistent issues, such as improving services for underserved or unserved populations within the community;
- Capital Facilities and Technological Needs: Creates additional county infrastructure such as additional clinics and facilities and/or development of a technological infrastructure for the mental health system, such as electronic health records for mental health services; and,
- Workforce Education and Training: Provides training for existing county mental health employees, outreach and recruitment to increase employment in the mental health system, and financial incentives to recruit or retain employees within the public mental health system.
The County Behavioral Health Directors Association (CBHDA), cosponsors of this bill, states that this bill expands the availability of housing assistance for individuals with serious mental illness by authorizing the use of MHSA funding for subsidies outside of the FSPs. This bill will help counties offer a "no wrong door" approach to assisting consumers with housing in MHSA programs, and is consistent with the evidence-based practice of offering "housing first" when engaging individuals who are or are at risk of homelessness. This bill seeks to further a goal of the voters when passing Proposition 63 in 2004: "no adult or senior should have to become disabled or homeless to get mental health services." CBHDA states that unfortunately MHSA regulations promulgated by the former California Department of Mental Health in 2012 restrict counties' use of local MHSA funds for rental subsidies and housing assistance only to those individuals participating in MHSA FSP or Planning, Outreach, and Engagement services.
The County of Los Angeles, cosponsor of this bill, state that this bill would authorize counties to use Community Services and Support funds for housing assistances. Examples of "housing assistance" include rental assistance or subsidies, security deposits, utility deposits, utility payments, and capital funding to build or rehabilitate housing for homeless, mentally ill persons or mentally ill persons who are at risk of being homeless.
Analysis Prepared by: Paula Villescaz / HEALTH / (916) 319-2097 FN: 0000095
Date of Hearing: April 4, 2017
ASSEMBLY COMMITTEE ON HEALTH
Jim Wood, Chair
ABPCA Bill Id:AB 727
Author:(Nazarian) – As Introduced Ver:February 15, 2017
SUBJECT: Mental Health Services Act: housing assistance.
SUMMARY: Clarifies that counties may spend funds on housing assistance for people in the target population for programs funded by the Mental Health Services Act (MHSA), including programs that serve seriously emotionally disturbed children or adolescents and adults or older adults who have a serious mental disorder.
EXISTING LAW:
- Establishes the MHSA, enacted by voters in 2004 as Proposition 63, to provide funds to counties to expand services, develop innovative programs, and integrated service plans for mentally ill children, adults, and seniors through a 1% income tax on personal income above $1 million.
- Establishes the Mental Health Services Oversight and Accountability Commission (Commission) to oversee the implementation of MHSA, made up of 16 individuals appointed by the Governor, as specified.
- Specifies that the MHSA can only be amended by a two-thirds vote of both houses of the Legislature and only as long as the amendment is consistent with and furthers the intent of the MHSA. Permits provisions clarifying the procedures and terms of the MHSA to be added by majority vote.
- Establishes the Mental Health Services Fund (Fund) to be disbursed as follows:
- Twenty percent of funds distributed to counties to be used for prevention and early intervention programs;
- Five percent of the total funding for each county mental health program to be utilized for innovative programs;
- Requires the balance of funds to be distributed to county mental health programs for services to persons with severe mental illnesses, for the children’s system of care, and for the adult and older adult system of care;
- Permits no more than 20% of the average amount of funds allocated to a county for the previous five years to be used for technological needs and capital facilities, human resource needs, and for counties to establish 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;
- Permits up to 5% of funds to be used for planning costs including 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; and,
- Requires, prior to making the allocations in a) through d) above, up to 5% of funds to be reserved for the costs for the State Department of Health Care Services (DHCS), the California Mental Health Planning Council, the Office of Statewide Health Planning and Development (OHSPD), the Commission, the State Department of Public Health, and any other state agency to implement all duties pursuant to the MHSA.
- Requires all expenditures for county mental health programs to be consistent with a currently approved mental health plan or update.
- Requires any funds allocated to a county that have not been spent for their authorized purpose within three years to revert to the state to be deposited into the Fund and be made available for other counties in future years.
FISCAL EFFECT: None
COMMENTS:
- PURPOSE OF THIS BILL. According to the author, this bill recognizes that housing is a key factor in the recovery and rehabilitation of clients who live with serious mental health issues. By extending the availability of housing assistance to all individuals with serious mental illness, regardless of which level of programs/services they participate in, we can close the gap in the continuum of care. Doing so will ensure that some of our most vulnerable continue to receive the critical care they need—while avoiding homelessness—on the road to a more stable life.
- BACKGROUND.
- Proposition 63. Proposition 63 was passed by voters in November 2004. The MHSA imposes a 1% income tax on personal income in excess of $1 million and creates the 16 member Commission charged with overseeing the implementation of MHSA. The 2016-17 Governor’s Budget projected that $1.9 billion in revenue would be deposited into the Fund in fiscal year 2017-18. The MHSA addresses a broad continuum of prevention, early intervention, and service needs, as well as provided funding for infrastructure, technology, and training needs for the community mental health system. In addition to local programs, the MHSA authorizes up to 5% of revenues for state administrative functions performed by a variety of state entities such as the DHCS and OSHPD. It also funds evaluation of the MHSA by the Commission, which was established by the MHSA.
- Commission. MHSA requires each county mental health department to prepare and submit a three-year plan to DHCS that must be updated each year and approved by DHCS after review and comment by the Commission. In their three-year plans, counties are required to include a list of all programs for which MHSA funding is being requested and that identifies how the funds will be spent and which populations will be served. Counties must submit their plans for approval to the Commission before the counties may spend certain categories of funding.
- Funding. The MHSA provides funding for programs within five components:
- Community Services and Supports: Provides direct mental health services to the severely and seriously mentally ill, such as mental health treatment, cost of health care treatment, and housing supports. Regulation requires counties to direct the majority of its Community Services and Supports funds to Full‑Service Partnerships (FSPs). FSPs are county coordinated plans, in collaboration with the client and the family to provide the full spectrum of community services. These services consist of mental health services and supports, such as peer support and crisis intervention services; and non-mental health services and supports, such as food, clothing, housing, and the cost of medical treatment;
- Prevention and Early Intervention: Provides services to mental health clients in order to help prevent mental illness from becoming severe and disabling;
- Innovation: Provides services and approaches that are creative in an effort to address mental health clients’ persistent issues, such as improving services for underserved or unserved populations within the community;
- Capital Facilities and Technological Needs: Creates additional county infrastructure such as additional clinics and facilities and/or development of a technological infrastructure for the mental health system, such as electronic health records for mental health services; and,
- Workforce Education and Training: Provides training for existing county mental health employees, outreach and recruitment to increase employment in the mental health system, and financial incentives to recruit or retain employees within the public mental health system.
- SUPPORT. The County Behavioral Health Directors Association (CBHDA), cosponsors of this bill, states that this bill expands the availability of housing assistance for individuals with serious mental illness by authorizing the use of MHSA funding for subsidies outside of the FSPs. This bill will help counties offer a "no wrong door" approach to assisting consumers with housing in MHSA programs, and is consistent with the evidence-based practice of offering "housing first" when engaging individuals who are or are at risk of homelessness. This bill seeks to further a goal of the voters when passing Proposition 63 in 2004: "no adult or senior should have to become disabled or homeless to get mental health services." CBHDA states that unfortunately MHSA regulations promulgated by the former California Department of Mental Health in 2012 restrict counties' use of local MHSA funds for rental subsidies and housing assistance only to those individuals participating in MHSA FSP or Planning, Outreach, and Engagement services.
The County of Los Angeles, cosponsor of this bill, state that this bill would authorize counties to use Community Services and Support (CSS) funds for housing assistances. Examples of "housing assistance" include rental assistance or subsidies, security deposits, utility deposits, utility payments, and capital funding to build or rehabilitate housing for homeless, mentally ill persons or mentally ill persons who are at risk of being homeless.
- RELATED LEGISLATION.
- AB 462 (Thurmond) authorizes the Director of Employment Development Department to share information with the Commission related to quarterly wage data to assist the Commission in fulfilling its duties under the MHSA, to the extent permitted under applicable federal statute and regulation. Declares it the intent of the Legislature to authorize the Commission to receive information held by other state agencies, as it relates to outcomes established under the MHSA, for purposes of monitoring outcomes and improving the mental health system. AB 462 is pending in the Assembly Health Committee.
- AB 488 (Kiley) establishes the Mental Health Services Fund Transparency and Accountability Office within the California Health and Human Services Agency and transfers various functions of DHCS under the MHSA to the office, as specified. AB 488 is pending in the Assembly Health Committee.
- AB 850 (Chau) requires the Governor to appoint an additional member to the Commission who has knowledge and experience in reducing mental health disparities, especially for racial and ethnic communities. AB 850 is pending in the Assembly Health Committee.
- AB 860 (Cooley) authorizes the Commission to conduct a fact-finding tour of a facility or location that is not open to the public, as specified. AB 860 is pending in the Assembly Health Committee.
- AB 1134 (Gloria) authorizes the Commission to establish a fellowship program for the purpose of providing an experiential learning opportunity for a mental health consumer and a mental health professional. AB 1134 is pending in the Assembly Health Committee.
- PREVIOUS LEGISLATION.
- AB 745 (Chau) of 2015 would have required the Governor to appoint an additional member to the Commission who has experience providing supportive housing to persons with a severe mental illness. AB 745 was vetoed, by the Governor, who stated:
“I am returning Assembly Bill 745 without my signature. This bill would add an additional member to the Mental Health Services Oversight and Accountability Commission with experience in supportive housing. While supportive housing can help improve the lives of those with serious mental illness, I believe that the current commission -- with sixteen members -- is adequate to the task.” - AB 2279 (Cooley) of 2015 would have required DHCS to develop and administer instructions for the compilation of revenue and expenditure information related to the MHSA by counties, in consultation with the Commission and CBHDA, as specified. AB 2279 was vetoed, by the Governor, who stated:
- AB 745 (Chau) of 2015 would have required the Governor to appoint an additional member to the Commission who has experience providing supportive housing to persons with a severe mental illness. AB 745 was vetoed, by the Governor, who stated:
“I am returning Assembly Bill 2279 without my signature. This bill requires the DHCS to annually compile and publicly report financial data and program information from counties on their MHSA expenditures. DHCS is already in the process of collecting and posting county revenue and expenditure reports as well as updated three year program expenditure plans, which will provide much of the information outlined in this bill. I encourage the Legislature and interested stakeholders to continue to work with the department to identify useful information that can be integrated into the existing reports to improve transparency and accountability in the use of these funds.”
REGISTERED SUPPORT / OPPOSITION:
Support
County Behavioral Health Directors Association (cosponsor)
County of Los Angeles (cosponsor)
California Access Coalition
California Psychological Association
California State Association of Counties
National Alliance on Mental Illness – California
Tri-City Mental Health Services
Urban Counties of California
Opposition
None on file.
Analysis Prepared by: Paula Villescaz / HEALTH / (916) 319-2097
Discussed in Hearing
1MIN
Assembly Floor
2MIN
Senate Floor
2MIN
Assembly Floor
8MIN
Assembly Standing Committee on Health
Bill Author
Bill Co-Author(s):