SB 192: Mental Health Services Fund.
- Session Year: 2017-2018
- House: Senate
- Latest Version Date: 2018-09-10
Existing law, the Mental Health Services Act (the MHSA), an initiative measure enacted by the voters as Proposition 63 at the November 2, 2004, statewide general election, establishes the continuously appropriated Mental Health Services Fund to fund various county mental health programs by imposing a tax of 1% on incomes above $1,000,000. Existing law requires the State Department of Health Care Services, among other things, to implement specified mental health services through contracts with county mental health programs or counties acting jointly. The MHSA establishes the Mental Health Services Oversight and Accountability Commission to oversee various parts of the act, as specified.
Under the MHSA, funds are distributed to counties for local assistance for designated mental health programs according to a specified county plan. The MHSA authorizes a county to maintain a prudent reserve to ensure that services do not have to be significantly reduced in years in which revenues are below the average of previous years. The MHSA, except as specified, requires any funds allocated to a county that have not been spent for their authorized purpose within 3 years to revert to the state to be deposited into the fund and available for other counties in future years. The MHSA permits amendment by the Legislature by a 2/3 vote of each house if the amendment is consistent with, and furthers the intent of, the MHSA, and also permits the Legislature to add provisions to clarify procedures and terms of the MHSA by a majority vote.
This bill would clarify that the value of a prudent reserve for a Local Mental Health Services Fund shall not exceed 33% of the average community services and support revenue received for the fund, in the preceding 5 years. The bill would require the county to reassess the maximum amount of the prudent reserve every 5 years and to certify the reassessment as part of its 3-year program and expenditure plan required by the MHSA. By requiring a new assessment and certification to be made by the counties, this bill would impose a state-mandated local program.
This bill would establish the Reversion Account within the fund, and would require that MHSA funds reverting from the counties, and the interest accrued on those funds, be placed in that account.
Existing law deems all unspent MHSA funds that were subject to reversion as of July 1, 2017, as having been reverted and reallocated to the county of origin for the purposes for which they were originally allocated. Existing law requires each county with these reallocated funds, by July 1, 2018, to prepare a plan to expend those funds before July 1, 2020.
This bill would require the counties to submit the plans to expend the reallocated funds to the commission. The bill would require the reallocated funds to revert to the state if a county has not submitted a plan for the expenditure of the reallocated funds by January 1, 2019. Additionally, the bill would require the reallocated funds in the plan that have not been spent or encumbered by July 1, 2020, to revert to the state, as specified.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law, the Mental Health Services Act (the MHSA), an initiative measure enacted by the voters as Proposition 63 at the November 2, 2004, statewide general election, establishes the continuously appropriated Mental Health Services Fund to fund various county mental health programs by imposing a tax of 1% on incomes above $1,000,000. Existing law requires the State Department of Health Care Services, among other things, to implement specified mental health services through contracts with county mental health programs or counties acting jointly. The MHSA establishes the Mental Health Services Oversight and Accountability Commission to oversee various parts of the act, as specified.
Under the MHSA, funds are distributed to counties for local assistance for designated mental health programs according to a specified county plan. The MHSA authorizes a county to maintain a prudent reserve to ensure that services do not have to be significantly reduced in years in which revenues are below the average of previous years. The MHSA, except as specified, requires any funds allocated to a county that have not been spent for their authorized purpose within 3 years to revert to the state to be deposited into the fund and available for other counties in future years. The MHSA permits amendment by the Legislature by a 2/3 vote of each house if the amendment is consistent with, and furthers the intent of, the MHSA, and also permits the Legislature to add provisions to clarify procedures and terms of the MHSA by a majority vote.
This bill would clarify that the value of a prudent reserve for a Local Mental Health Services Fund shall not exceed 33% of the average community services and support revenue received for the fund, in the preceding 5 years. The bill would require the county to reassess the maximum amount of the prudent reserve every 5 years and to certify the reassessment as part of its 3-year program and expenditure plan required by the MHSA. By requiring a new assessment and certification to be made by the counties, this bill would impose a state-mandated local program.
This bill would establish the Reversion Account within the fund, and would require that MHSA funds reverting from the counties, and the interest accrued on those funds, be placed in that account.
Existing law deems all unspent MHSA funds that were subject to reversion as of July 1, 2017, as having been reverted and reallocated to the county of origin for the purposes for which they were originally allocated. Existing law requires each county with these reallocated funds, by July 1, 2018, to prepare a plan to expend those funds before July 1, 2020.
This bill would require the counties to submit the plans to expend the reallocated funds to the commission. The bill would require the reallocated funds to revert to the state if a county has not submitted a plan for the expenditure of the reallocated funds by January 1, 2019. Additionally, the bill would require the reallocated funds in the plan that have not been spent or encumbered by July 1, 2020, to revert to the state, as specified.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law, the Mental Health Services Act (the MHSA), an initiative measure enacted by the voters as Proposition 63 at the November 2, 2004, statewide general election, establishes the continuously appropriated Mental Health Services Fund to fund various county mental health programs by imposing a tax of 1% on incomes above $1,000,000. Existing law requires the State Department of Health Care Services, among other things, to implement specified mental health services through contracts with county mental health programs or counties acting jointly. The MHSA establishes the Mental Health Services Oversight and Accountability Commission to oversee various parts of the act, as specified.
Under the MHSA, funds are distributed to counties for local assistance for designated mental health programs according to a specified county plan. The MHSA authorizes a county to maintain a prudent reserve to ensure that services do not have to be significantly reduced in years in which revenues are below the average of previous years. The MHSA, except as specified, requires any funds allocated to a county that have not been spent for their authorized purpose within 3 years to revert to the state to be deposited into the fund and available for other counties in future years. The MHSA permits amendment by the Legislature by a 2/3 vote of each house if the amendment is consistent with, and furthers the intent of, the MHSA, and also permits the Legislature to add provisions to clarify procedures and terms of the MHSA by a majority vote.
This bill would clarify that the value of a prudent reserve for a Local Mental Health Services Fund shall not exceed the greatest reduction in revenue received pursuant to the MHSA in the last 10 years and 33% of the average community services and support revenue received for the fund, in the preceding 5 years. The bill would require the county to reassess the maximum amount of the prudent reserve every 5 years. years and to certify the reassessment as part of its 3-year program and expenditure plan required by the MHSA. By requiring a new assessment and certification to be made by the counties, this bill would impose a state-mandated local program.
This bill would establish the Reversion Account within the fund, and would require that MHSA funds reverting from the counties, and the interest accrued on those funds, be placed in that account.
Existing law deems all unspent MHSA funds that were subject to reversion as of July 1, 2017, as having been reverted and reallocated to the county of origin for the purposes for which they were originally allocated. Existing law requires each county with these reallocated funds, by July 1, 2018, to prepare a plan to expend those funds before July 1, 2020.
This bill would require the counties to submit the plans to expend the reallocated funds to the commission. The bill would require the reallocated funds to revert to the state if a county has not submitted a plan for the expenditure of the reallocated funds by January 1, 2019. Additionally, the bill would require the reallocated funds in the plan that have not been spent or encumbered by July 1, 2020, to revert to the state, as specified.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law, the Mental Health Services Act (the MHSA), an initiative measure enacted by the voters as Proposition 63 at the November 2, 2004, statewide general election, establishes the continuously appropriated Mental Health Services Fund to fund various county mental health programs by imposing a tax of 1% on incomes above $1,000,000. Existing law requires the State Department of Health Care Services, among other things, to implement specified mental health services through contracts with county mental health programs or counties acting jointly. The MHSA establishes the Mental Health Services Oversight and Accountability Commission to oversee various parts of the act, as specified.
Under the MHSA, funds are distributed to counties for local assistance for designated mental health programs according to a specified county plan. The MHSA authorizes a county to maintain a prudent reserve to ensure that services do not have to be significantly reduced in years in which revenues are below the average of previous years. The MHSA, except as specified, requires any funds allocated to a county that have not been spent for their authorized purpose within 3 years to revert to the state to be deposited into the fund and available for other counties in future years. The MHSA permits amendment by the Legislature by a 2/3 vote of each house if the amendment is consistent with, and furthers the intent of, the MHSA, and also permits the Legislature to add provisions to clarify procedures and terms of the MHSA by a majority vote.
This bill would amend the MHSA by instead requiring that any funds allocated since the 200809 fiscal year, except as specified, to a large, medium, small, or very small county, as defined, that have not been spent for their authorized purpose within 3 years of being allocated, and any interest earned on unspent funds, revert to the state for deposit into the newly established Mental Health Services Act Reversion Fund. The bill would authorize a very small county to apply for a waiver, subject to approval by the commission, requesting a delay of the reversion of funds, but not for more than 5 fiscal years from the time of allocation of funds. The bill would require the state to distribute the reverted funds to counties, or counties acting jointly, to fund prevention and early intervention or innovation programs that are consistent with mental health funding priorities established by the Legislature and the MHSA, as specified. The bill would make the amount of funds available to counties in any fiscal year subject to an annual appropriation by the Legislature in the annual Budget Act.This bill would require the counties, or counties jointly, seeking funding to demonstrate to the commission that funding will be used to create, or expand the capacity for, services and supports to address unmet community needs. The bill would impose certain restrictions on eligibility for subsequent funding for counties that previously have been allocated funds. The bill would authorize the Legislature to give specific consideration to very small counties and small counties when making an appropriation from the Mental Health Services Act Reversion Fund.This bill would require the commission to submit to the Legislature an annual report of its recommendations for recipients of funding and the amount of funding for each recipient in a manner that ensures that allocation of funds results in specified outcomes and to take into account certain criteria when recommending recipients and amounts of funding. The bill would also require the commission to require participating counties to submit outcome data within one year of receiving funding, and would require the commission to aggregate and report the outcome data to the Legislature, as specified. The bill would require the department to annually report to the Legislature and the commission the amount of funds that are subject to reversion and the interest earned by counties, and to update necessary regulations, processes, and guidance to allow counties to revise or correct their annual revenue and expenditure reports.This bill would also make conforming changes to related provisions.This bill would clarify that the value of a prudent reserve shall not exceed the greatest reduction in revenue received pursuant to the MHSA in the last 10 years and would require the county to reassess the maximum amount of the prudent reserve every 5 years. By requiring a new assessment to be made by the counties, this bill would impose a state-mandated local program.
This bill would establish the Reversion Account within the fund, and would require that MHSA funds reverting from the counties, and the interest accrued on those funds, be placed in that account.
Existing law deems all unspent MHSA funds that were subject to reversion as of July 1, 2017, as having been reverted and reallocated to the county of origin for the purposes for which they were originally allocated. Existing law requires each county with these reallocated funds, by July 1, 2018, to prepare a plan to expend those funds before July 1, 2020.
This bill would require the counties to submit the plans to expend the reallocated funds to the commission. The bill would require the reallocated funds to revert to the state if a county has not submitted a plan for the expenditure of the reallocated funds by January 1, 2019. Additionally, the bill would require the reallocated funds in the plan that have not been spent or encumbered by July 1, 2020, to revert to the state, as specified.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law, the Mental Health Services Act (the MHSA), an initiative measure enacted by the voters as Proposition 63 at the November 2, 2004, statewide general election, establishes the continuously appropriated Mental Health Services Fund to fund various county mental health programs by imposing a tax of 1% on incomes above $1,000,000. Existing law requires the State Department of Health Care Services, among other things, to implement specified mental health services through contracts with county mental health programs or counties acting jointly. The MHSA establishes the Mental Health Services Oversight and Accountability Commission to oversee various parts of the act, as specified.
Under the MHSA, funds are distributed to counties for local assistance for designated mental health programs according to a specified county plan. The MHSA, except as specified, requires any funds allocated to a county that have not been spent for their authorized purpose within 3 years to revert to the state to be deposited into the fund and available for other counties in future years. The MHSA permits amendment by the Legislature by a 2/3 vote of each house if the amendment is consistent with, and furthers the intent of, the MHSA, and also permits the Legislature to add provisions to clarify procedures and terms of the MHSA by a majority vote.
This bill would amend the MHSA by instead requiring that any funds allocated since the 200809 fiscal year, except as specified, to a large, medium, small, or very small county, as defined, that have not been spent for their authorized purpose within 3 years of being allocated, and any interest earned on unspent funds, revert to the state for deposit into the newly established Mental Health Services Act Reversion Fund. The bill would authorize a very small county to apply for a waiver, subject to approval by the commission, requesting a delay of the reversion of funds, but not for more than 5 fiscal years from the time of allocation of funds. The bill would require the state to distribute the reverted funds to counties, or counties acting jointly, to fund prevention and early intervention or innovative programs for youth innovation programs that are consistent with mental health funding priorities for youth established by the Legislature and the Mental Health Services Act, MHSA, as specified. The bill would make the amount of funds available to counties in any fiscal year subject to an annual appropriation by the Legislature in the annual Budget Act.
This bill would require funding to be directed only to counties, or counties acting jointly, that provide evidence-based intervention services and supports for prevention, early detection, and treatment of psychosis, mood disorders, or other mental health issues for youth, as specified, and would require the counties This bill would require the counties, or counties jointly, seeking funding to demonstrate to the commission that funding will be used to create, or expand the capacity for, those services and supports. services and supports to address unmet community needs. The bill would impose certain restrictions on eligibility for subsequent funding for counties that previously have been allocated funds. The bill would authorize the Legislature to give specific consideration to very small counties and small counties when making an appropriation from the Mental Health Services Act Reversion Fund.
This bill would require the commission to submit to the Legislature an annual report of its recommendations for recipients of funding and the amount of funding for each recipient in a manner that ensures that allocation of funds results in specified outcomes and to take into account certain criteria when recommending recipients and amounts of funding. The bill would also require the commission to require participating counties to submit outcome data within one year of receiving funding, and would require the commission to aggregate and report the outcome data to the Legislature, as specified. The bill would require the department to annually report to the Legislature and the commission the amount of funds that are subject to reversion and the interest earned by counties, and to update necessary regulations, processes, and guidance to allow counties to revise or correct their annual revenue and expenditure reports.
This bill would also make conforming changes to related provisions.
Existing law, the Mental Health Services Act (the MHSA), an initiative measure, was approved by the voters in November 2004 as Proposition 63. The MHSA establishes the Mental Health Oversight and Accountability Commission, and imposes a tax of 1% on incomes above $1,000,000 for the purpose of financing new or expanded mental health services. Under measure enacted by the voters as Proposition 63 at the November 2, 2004, statewide general election, establishes the continuously appropriated Mental Health Services Fund to fund various county mental health programs by imposing a tax of 1% on incomes above $1,000,000. Existing law requires the State Department of Health Care Services, among other things, to implement specified mental health services through contracts with county mental health programs or counties acting jointly. The MHSA establishes the Mental Health Services Oversight and Accountability Commission to oversee various parts of the act, as specified.
Under the MHSA, the former State Department of Mental Health is required, among other things, to distribute funds are distributed to counties for local assistance for designated mental health programs according to a local specified county plan. The MHSA, except as specified, requires any funds allocated to a county that have not been spent for their authorized purpose within 3 years to revert to the state to be deposited into the fund and available for other counties in future years. The MHSA permits amendment by the Legislature by a 2/3 vote of each house if the amendment is consistent with with, and furthers the intent of of, the MHSA, and also permits the Legislature to add provisions to clarify procedures and terms of the MHSA by a majority vote.
This bill would amend the MHSA by instead requiring that any funds allocated to a large or medium since the 200809 fiscal year, except as specified, to a large, medium, small, or very small county, as defined, that have not been spent for the their authorized purpose within 3 years, and any funds allocated to a small county, as defined, that have not been spent for their authorized purpose within 5 years, to years of being allocated, and any interest earned on unspent funds, revert to the state for deposit into the newly established Mental Health Services Act Reversion Fund. The bill would authorize a very small county to apply for a waiver, subject to approval by the commission, requesting a delay of the reversion of funds, but not for more than 5 fiscal years from the time of allocation of funds. The bill would require the commission to establish and administer a grant program, as specified, state to distribute the reverted funds to counties, or counties acting jointly, to fund prevention and early intervention or innovative programs for youth that are consistent with mental health funding priorities for youth established by the Legislature and the Mental Health Services Act. The bill would continuously appropriate the moneys in the Mental Health Services Reversion Fund to the commission to fund the grant program. Act, as specified. The bill would make the amount of funds available to counties in any fiscal year subject to an annual appropriation by the Legislature in the annual Budget Act.
This bill would require funding to be directed only to counties, or counties acting jointly, that provide evidence-based intervention services and supports for prevention, early detection, and treatment of psychosis, mood disorders, or other mental health issues for youth, as specified, and would require the counties seeking funding to demonstrate to the commission that funding will be used to create, or expand the capacity for, those services and supports. The bill would impose certain restrictions on eligibility for subsequent funding for counties that previously have been allocated funds. The bill would authorize the Legislature to give specific consideration to very small counties and small counties when making an appropriation from the Mental Health Services Act Reversion Fund.
This bill would require the commission to submit to the Legislature an annual report of its recommendations for recipients of funding and the amount of funding for each recipient in a manner that ensures that allocation of funds results in specified outcomes and to take into account certain criteria when recommending recipients and amounts of funding. The bill would also require the commission to require participating counties to submit outcome data within one year of receiving funding, and would require the commission to aggregate and report the outcome data to the Legislature, as specified. The bill would require the department to annually report to the Legislature and the commission the amount of funds that are subject to reversion and the interest earned by counties, and to update necessary regulations, processes, and guidance to allow counties to revise or correct their annual revenue and expenditure reports.
This bill would also make conforming changes to related provisions.
Existing law, the Mental Health Services Act (the MHSA), an initiative measure, was approved by the voters in November 2004 as Proposition 63. The MHSA establishes the Mental Health Oversight and Accountability Commission, and imposes a tax of 1% on incomes above $1,000,000 for the purpose of financing new or expanded mental health services. Under the MHSA, the former State Department of Mental Health is required, among other things, to distribute funds for local assistance for designated mental health programs according to a local plan. The MHSA, except as specified, requires any funds allocated to a county that have not been spent for their authorized purpose within 3 years to revert to the state to be deposited into the fund and available for other counties in future years. The MHSA permits amendment by the Legislature by a 2/3 vote of each house if the amendment is consistent with and furthers the intent of the MHSA, and also permits the Legislature to clarify procedures and terms of the MHSA by a majority vote.
This bill would amend the MHSA by instead requiring that any funds allocated to a large or medium county, as defined, that have not been spent for the authorized purpose within 3 years, and any funds allocated to a small county, as defined, that have not been spent for their authorized purpose within 5 years, to revert to the state for deposit into the newly established Mental Health Services Reversion Fund. The bill would require the commission to establish and administer a grant program, as specified, to fund prevention and early intervention or innovative programs that are consistent with mental health funding priorities established by the Legislature and the Mental Health Services Act. The bill would continuously appropriate the moneys in the Mental Health Services Reversion Fund to the commission to fund the grant program.
(a)In order to promote efficient implementation of this act, the county shall use funds distributed from the Mental Health Services Fund as follows:
(1)In the 200506, 200607, and 200708 fiscal years, 10 percent shall be placed in a trust fund to be expended for education and training programs pursuant to Part 3.1 (commencing with Section 5820).
(2)In the 200506, 200607, and 200708 fiscal years, 10 percent for capital facilities and technological needs shall be distributed to counties in accordance with a formula developed in consultation with the County Behavioral Health Directors Association of California to implement plans developed pursuant to Section 5847.
(3)Twenty percent of funds distributed to the counties pursuant to subdivision (c) of Section 5891 shall be used for prevention and early intervention programs in accordance with Part 3.6 (commencing with Section 5840).
(4)The expenditure for prevention and early intervention may be increased in any county in which the department determines that the increase will decrease the need and cost for additional services to persons with severe mental illness in that county by an amount at least commensurate with the proposed increase.
(5)The balance of funds shall be distributed to county mental health programs for services to persons with severe mental illnesses pursuant to Part 4 (commencing with Section 5850) for the 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), shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.
(b)(1)In any fiscal year after the 200708 fiscal year, programs for services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) may include funds for technological needs and capital facilities, human resource needs, and a prudent reserve to ensure services do not have to be significantly reduced in years in which revenues are below the average of previous years. The total allocation for purposes authorized by this subdivision shall not exceed 20 percent of the average amount of funds allocated to that county for the previous five fiscal years pursuant to this section.
(2)A county shall calculate an amount it establishes as the prudent reserve for its Local Mental Health Services Fund, not to exceed 33 percent of the average community services and support revenue received for the fund in the preceding five years. The county shall reassess the maximum amount of this reserve every five years and certify the reassessment as part of the three-year program and expenditure plan required pursuant to Section 5847.
(c)The allocations pursuant to subdivisions (a) and (b) shall include funding for annual planning costs pursuant to Section 5848. The total of these costs shall not exceed 5 percent of the total of annual revenues received for the fund. The planning costs shall include funds for county mental health programs to pay for the costs of consumers, family members, and other stakeholders to participate in the planning process and for the planning and implementation required for private provider contracts to be significantly expanded to provide additional services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850).
(d)Prior to making the allocations pursuant to subdivisions (a), (b), and (c), funds shall be reserved for the costs for the State Department of Health Care Services, the California Behavioral Health Planning Council, the Office of Statewide Health Planning and Development, the Mental Health Services Oversight and Accountability Commission, the State Department of Public Health, and any other state agency to implement all duties pursuant to the programs set forth in this section. These costs shall not exceed 5 percent of the total of annual revenues received for the fund. The administrative costs shall include funds to assist consumers and family members to ensure the appropriate state and county agencies give full consideration to concerns about quality, structure of service delivery, or access to services. The amounts allocated for administration shall include amounts sufficient to ensure adequate research and evaluation regarding the effectiveness of services being provided and achievement of the outcome measures set forth in Part 3 (commencing with Section 5800), Part 3.6 (commencing with Section 5840), and Part 4 (commencing with Section 5850). The amount of funds available for the purposes of this subdivision in any fiscal year is subject to appropriation in the annual Budget Act.
(e)In the 200405 fiscal year, funds shall be allocated as follows:
(1)Forty-five percent for education and training pursuant to Part 3.1 (commencing with Section 5820).
(2)Forty-five percent for capital facilities and technology needs in the manner specified by paragraph (2) of subdivision (a).
(3)Five percent for local planning in the manner specified in subdivision (c).
(4)Five percent for state implementation in the manner specified in subdivision (d).
(f)Each county shall place all funds received from the State Mental Health Services Fund in a local Mental Health Services Fund. The Local Mental Health Services Fund balance shall be invested consistent with other county funds and the interest earned on the investments shall be transferred into the fund. The earnings on investment of these funds shall be available for distribution from the fund in future fiscal years.
(g)All expenditures for county mental health programs shall be consistent with a currently approved plan or update pursuant to Section 5847.
(h)(1)Other than funds placed in a reserve in accordance with an approved plan, any funds allocated to a county that have not been spent for their authorized purpose within three years, and the interest accruing on those funds, shall revert to the state to be deposited into the Reversion Account, hereby established in the fund, and available for other counties in future years, provided, however, that funds, including interest accrued on those funds, for capital facilities, technological needs, or education and training may be retained for up to 10 years before reverting to the Reversion Account.
(2)If a county receives approval from the Mental Health Services Oversight and Accountability Commission of a plan for innovative programs, pursuant to subdivision (e) of Section 5830, the 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 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.
SEC. 2.Section 5892.1 of the Welfare and Institutions Code is amended to read:5892.1.(a)All unspent funds subject to reversion pursuant to subdivision (h) of Section 5892 as of July 1, 2017, are deemed to have been reverted to the fund and reallocated to the county of origin for the purposes for which they were originally allocated.
(b)(1)The department shall, on or before July 1, 2018, in consultation with counties and other stakeholders, prepare a report to the Legislature identifying the amounts that were subject to reversion prior to July 1, 2017, including to which purposes the unspent funds were allocated pursuant to Section 5892.
(2)Prior to the preparation of the report referenced in paragraph (1), the department shall provide to counties the amounts it has determined are subject to reversion, and provide a process for counties to appeal this determination.
(c)(1)By July 1, 2018, each county with unspent funds subject to reversion that are deemed reverted and reallocated pursuant to subdivision (a) shall prepare a plan to expend these funds on or before July 1, 2020. The plan shall be submitted to the commission for review.
(2)A county with unspent funds that are deemed reverted and reallocated pursuant to subdivision (a) that has not prepared and submitted a plan to the commission pursuant to paragraph (1) as of January 1, 2019, shall remit the unspent funds to the state pursuant to paragraph (1) of subdivision (h) of Section 5892 no later than July 1, 2019.
(d)Funds included in the plan required pursuant to subdivision (c) that are not spent as of July 1, 2020, shall revert to the state pursuant to paragraph (1) of subdivision (h) of Section 5892.
(e)(1)The requirement for submitting a report imposed under subdivision (b) is inoperative on July 1, 2022, pursuant to Section 10231.5 of the Government Code.
(2)A report to be submitted pursuant to subdivision (b) shall be submitted in compliance with Section 9795 of the Government Code.
(f)Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the department, without taking any further regulatory action, may implement, interpret, or make specific this section, Section 5899.1, and subdivision (h) of Section 5892, by means of all-county letters or other similar instructions, until applicable regulations are adopted in accordance with Section 5898, or until July 1, 2019, whichever occurs first. The all-county letters or other similar instructions shall be issued only after the department provides the opportunity for public participation and comments.
SEC. 3.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)In order to promote efficient implementation of this act, the county shall use funds distributed from the Mental Health Services Fund as follows:
(1)In the 200506, 200607, and 200708 fiscal years, 10 percent shall be placed in a trust fund to be expended for education and training programs pursuant to Part 3.1 (commencing with Section 5820).
(2)In the 200506, 200607, and 200708 fiscal years, 10 percent for capital facilities and technological needs shall be distributed to counties in accordance with a formula developed in consultation with the County Behavioral Health Directors Association of California to implement plans developed pursuant to Section 5847.
(3)Twenty percent of funds distributed to the counties pursuant to subdivision (c) of Section 5891 shall be used for prevention and early intervention programs in accordance with Part 3.6 (commencing with Section 5840).
(4)The expenditure for prevention and early intervention may be increased in any county in which the department determines that the increase will decrease the need and cost for additional services to persons with severe mental illness in that county by an amount at least commensurate with the proposed increase.
(5)The balance of funds shall be distributed to county mental health programs for services to persons with severe mental illnesses pursuant to Part 4 (commencing with Section 5850) for the 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), shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.
(b)(1)In any fiscal year after the 200708 fiscal year, programs for services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) may include funds for technological needs and capital facilities, human resource needs, and a prudent reserve to ensure services do not have to be significantly reduced in years in which revenues are below the average of previous years. The total allocation for purposes authorized by this subdivision shall not exceed 20 percent of the average amount of funds allocated to that county for the previous five fiscal years pursuant to this section.
(2)A county shall calculate an amount it establishes as the prudent reserve for its Local Mental Health Services Fund, not to exceed 33 percent of the average community services and support revenue received for the fund in the preceding five years. The county shall reassess the maximum amount of this reserve every five years and certify the reassessment as part of the three-year program and expenditure plan required pursuant to Section 5847.
(c)The allocations pursuant to subdivisions (a) and (b) shall include funding for annual planning costs pursuant to Section 5848. The total of these costs shall not exceed 5 percent of the total of annual revenues received for the fund. The planning costs shall include funds for county mental health programs to pay for the costs of consumers, family members, and other stakeholders to participate in the planning process and for the planning and implementation required for private provider contracts to be significantly expanded to provide additional services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850).
(d)Prior to making the allocations pursuant to subdivisions (a), (b), and (c), funds shall be reserved for the costs for the State Department of Health Care Services, the California Behavioral Health Planning Council, the Office of Statewide Health Planning and Development, the Mental Health Services Oversight and Accountability Commission, the State Department of Public Health, and any other state agency to implement all duties pursuant to the programs set forth in this section. These costs shall not exceed 5 percent of the total of annual revenues received for the fund. The administrative costs shall include funds to assist consumers and family members to ensure the appropriate state and county agencies give full consideration to concerns about quality, structure of service delivery, or access to services. The amounts allocated for administration shall include amounts sufficient to ensure adequate research and evaluation regarding the effectiveness of services being provided and achievement of the outcome measures set forth in Part 3 (commencing with Section 5800), Part 3.6 (commencing with Section 5840), and Part 4 (commencing with Section 5850). The amount of funds available for the purposes of this subdivision in any fiscal year is subject to appropriation in the annual Budget Act.
(e)In the 200405 fiscal year, funds shall be allocated as follows:
(1)Forty-five percent for education and training pursuant to Part 3.1 (commencing with Section 5820).
(2)Forty-five percent for capital facilities and technology needs in the manner specified by paragraph (2) of subdivision (a).
(3)Five percent for local planning in the manner specified in subdivision (c).
(4)Five percent for state implementation in the manner specified in subdivision (d).
(f)Each county shall place all funds received from the State Mental Health Services Fund in a local Mental Health Services Fund. The Local Mental Health Services Fund balance shall be invested consistent with other county funds and the interest earned on the investments shall be transferred into the fund. The earnings on investment of these funds shall be available for distribution from the fund in future fiscal years.
(g)All expenditures for county mental health programs shall be consistent with a currently approved plan or update pursuant to Section 5847.
(h)(1)Other than funds placed in a reserve in accordance with an approved plan, any funds allocated to a county that have not been spent for their authorized purpose within three years, and the interest accruing on those funds, shall revert to the state to be deposited into the Reversion Account, hereby established in the fund, and available for other counties in future years, provided, however, that funds, including interest accrued on those funds, for capital facilities, technological needs, or education and training may be retained for up to 10 years before reverting to the Reversion Account.
(2)If a county receives approval from the Mental Health Services Oversight and Accountability Commission of a plan for innovative programs, pursuant to subdivision (e) of Section 5830, the 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 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.
SEC. 2.Section 5892.1 of the Welfare and Institutions Code is amended to read:5892.1.(a)All unspent funds subject to reversion pursuant to subdivision (h) of Section 5892 as of July 1, 2017, are deemed to have been reverted to the fund and reallocated to the county of origin for the purposes for which they were originally allocated.
(b)(1)The department shall, on or before July 1, 2018, in consultation with counties and other stakeholders, prepare a report to the Legislature identifying the amounts that were subject to reversion prior to July 1, 2017, including to which purposes the unspent funds were allocated pursuant to Section 5892.
(2)Prior to the preparation of the report referenced in paragraph (1), the department shall provide to counties the amounts it has determined are subject to reversion, and provide a process for counties to appeal this determination.
(c)(1)By July 1, 2018, each county with unspent funds subject to reversion that are deemed reverted and reallocated pursuant to subdivision (a) shall prepare a plan to expend these funds on or before July 1, 2020. The plan shall be submitted to the commission for review.
(2)A county with unspent funds that are deemed reverted and reallocated pursuant to subdivision (a) that has not prepared and submitted a plan to the commission pursuant to paragraph (1) as of January 1, 2019, shall remit the unspent funds to the state pursuant to paragraph (1) of subdivision (h) of Section 5892 no later than July 1, 2019.
(d)Funds included in the plan required pursuant to subdivision (c) that are not spent as of July 1, 2020, shall revert to the state pursuant to paragraph (1) of subdivision (h) of Section 5892.
(e)(1)The requirement for submitting a report imposed under subdivision (b) is inoperative on July 1, 2022, pursuant to Section 10231.5 of the Government Code.
(2)A report to be submitted pursuant to subdivision (b) shall be submitted in compliance with Section 9795 of the Government Code.
(f)Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the department, without taking any further regulatory action, may implement, interpret, or make specific this section, Section 5899.1, and subdivision (h) of Section 5892, by means of all-county letters or other similar instructions, until applicable regulations are adopted in accordance with Section 5898, or until July 1, 2019, whichever occurs first. The all-county letters or other similar instructions shall be issued only after the department provides the opportunity for public participation and comments.
SEC. 3.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)In order to promote efficient implementation of this act, the county shall use funds distributed from the Mental Health Services Fund as follows:
(1)In the 200506, 200607, and 200708 fiscal years, 10 percent shall be placed in a trust fund to be expended for education and training programs pursuant to Part 3.1 (commencing with Section 5820).
(2)In the 200506, 200607, and 200708 fiscal years, 10 percent for capital facilities and technological needs shall be distributed to counties in accordance with a formula developed in consultation with the County Behavioral Health Directors Association of California to implement plans developed pursuant to Section 5847.
(3)Twenty percent of funds distributed to the counties pursuant to subdivision (c) of Section 5891 shall be used for prevention and early intervention programs in accordance with Part 3.6 (commencing with Section 5840).
(4)The expenditure for prevention and early intervention may be increased in any county in which the department determines that the increase will decrease the need and cost for additional services to persons with severe mental illness in that county by an amount at least commensurate with the proposed increase.
(5)The balance of funds shall be distributed to county mental health programs for services to persons with severe mental illnesses pursuant to Part 4 (commencing with Section 5850) for the 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), shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.
(b)(1)In any fiscal year after the 200708 fiscal year, programs for services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) may include funds for technological needs and capital facilities, human resource needs, and a prudent reserve to ensure services do not have to be significantly reduced in years in which revenues are below the average of previous years. The total allocation for purposes authorized by this subdivision shall not exceed 20 percent of the average amount of funds allocated to that county for the previous five fiscal years pursuant to this section.
(2)A county shall calculate an amount to establish it establishes as the prudent reserve for its Local Mental Health Services Fund, not to exceed the greatest reduction in revenue received for the fund in the last 10 years. 33 percent of the average community services and support revenue received for the fund in the preceding five years. The county shall reassess the maximum amount of this reserve every five years. years and certify the reassessment as part of the three-year program and expenditure plan required pursuant to Section 5847.
(c)The allocations pursuant to subdivisions (a) and (b) shall include funding for annual planning costs pursuant to Section 5848. The total of these costs shall not exceed 5 percent of the total of annual revenues received for the fund. The planning costs shall include funds for county mental health programs to pay for the costs of consumers, family members, and other stakeholders to participate in the planning process and for the planning and implementation required for private provider contracts to be significantly expanded to provide additional services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850).
(d)Prior to making the allocations pursuant to subdivisions (a), (b), and (c), funds shall be reserved for the costs for the State Department of Health Care Services, the California Behavioral Health Planning Council, the Office of Statewide Health Planning and Development, the Mental Health Services Oversight and Accountability Commission, the State Department of Public Health, and any other state agency to implement all duties pursuant to the programs set forth in this section. These costs shall not exceed 5 percent of the total of annual revenues received for the fund. The administrative costs shall include funds to assist consumers and family members to ensure the appropriate state and county agencies give full consideration to concerns about quality, structure of service delivery, or access to services. The amounts allocated for administration shall include amounts sufficient to ensure adequate research and evaluation regarding the effectiveness of services being provided and achievement of the outcome measures set forth in Part 3 (commencing with Section 5800), Part 3.6 (commencing with Section 5840), and Part 4 (commencing with Section 5850). The amount of funds available for the purposes of this subdivision in any fiscal year is subject to appropriation in the annual Budget Act.
(e)In the 200405 fiscal year, funds shall be allocated as follows:
(1)Forty-five percent for education and training pursuant to Part 3.1 (commencing with Section 5820).
(2)Forty-five percent for capital facilities and technology needs in the manner specified by paragraph (2) of subdivision (a).
(3)Five percent for local planning in the manner specified in subdivision (c).
(4)Five percent for state implementation in the manner specified in subdivision (d).
(f)Each county shall place all funds received from the State Mental Health Services Fund in a local Mental Health Services Fund. The Local Mental Health Services Fund balance shall be invested consistent with other county funds and the interest earned on the investments shall be transferred into the fund. The earnings on investment of these funds shall be available for distribution from the fund in future fiscal years.
(g)All expenditures for county mental health programs shall be consistent with a currently approved plan or update pursuant to Section 5847.
(h)(1)Other than funds placed in a reserve in accordance with an approved plan, any funds allocated to a county that have not been spent for their authorized purpose within three years, and the interest accruing on those funds, shall revert to the state to be deposited into the Reversion Account, hereby established in the fund, and available for other counties in future years, provided, however, that funds funds, including interest accrued on those funds, for capital facilities, technological needs, or education and training may be retained for up to 10 years before reverting to the Reversion Account.
(2)If a county receives approval from the Mental Health Services Oversight and Accountability Commission of a plan for innovative programs, pursuant to subdivision (e) of Section 5830, the 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 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.
SEC. 2.Section 5892.1 of the Welfare and Institutions Code is amended to read:5892.1.(a)All unspent funds subject to reversion pursuant to subdivision (h) of Section 5892 as of July 1, 2017, are deemed to have been reverted to the fund and reallocated to the county of origin for the purposes for which they were originally allocated.
(b)(1)The department shall, on or before July 1, 2018, in consultation with counties and other stakeholders, prepare a report to the Legislature identifying the amounts that were subject to reversion prior to July 1, 2017, including to which purposes the unspent funds were allocated pursuant to Section 5892.
(2)Prior to the preparation of the report referenced in paragraph (1), the department shall provide to counties the amounts it has determined are subject to reversion, and provide a process for counties to appeal this determination.
(c)(1)By July 1, 2018, each county with unspent funds subject to reversion that are deemed reverted and reallocated pursuant to subdivision (a) shall prepare a plan to expend these funds on or before July 1, 2020. The plan shall be submitted to the commission for review.
(2)A county with unspent funds that are deemed reverted and reallocated pursuant to subdivision (a) that has not prepared and submitted a plan to the commission pursuant to paragraph (1) as of January 1, 2019, shall remit the unspent funds to the state pursuant to paragraph (1) of subdivision (h) of Section 5892 no later than July 1, 2019.
(d)Funds included in the plan required pursuant to subdivision (c) that are not spent as of July 1, 2020, shall revert to the state pursuant to paragraph (1) of subdivision (h) of Section 5892.
(e)(1)The requirement for submitting a report imposed under subdivision (b) is inoperative on July 1, 2022, pursuant to Section 10231.5 of the Government Code.
(2)A report to be submitted pursuant to subdivision (b) shall be submitted in compliance with Section 9795 of the Government Code.
(f)Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the department, without taking any further regulatory action, may implement, interpret, or make specific this section, Section 5899.1, and subdivision (h) of Section 5892, by means of all-county letters or other similar instructions, until applicable regulations are adopted in accordance with Section 5898, or until July 1, 2019, whichever occurs first. The all-county letters or other similar instructions shall be issued only after the department provides the opportunity for public participation and comments.
SEC. 3.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
(a)In order to promote efficient implementation of this act, the county shall use funds distributed from the Mental Health Services Fund as follows:
(1)In the 200506, 200607, and in 200708, 200708 fiscal years, 10 percent shall be placed in a trust fund to be expended for education and training programs pursuant to Part 3.1. 3.1 (commencing with Section 5820).
(2)In the 200506, 200607, and in 200708, 200708 fiscal years, 10 percent for capital facilities and technological needs shall be distributed to counties in accordance with a formula developed in consultation with the County Behavioral Health Directors Association of California to implement plans developed pursuant to Section 5847.
(3)Twenty percent of funds distributed to the counties pursuant to subdivision (c) of Section 5891 shall be used for prevention and early intervention programs in accordance with Part 3.6 (commencing with Section 5840) of this division. 5840).
(4)The expenditure for prevention and early intervention may be increased in any county in which the department determines that the increase will decrease the need and cost for additional services to severely mentally ill persons with severe mental illness in that county by an amount at least commensurate with the proposed increase.
(5)The balance of funds shall be distributed to county mental health programs for services to persons with severe mental illnesses pursuant to Part 4 (commencing with Section 5850) for the 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, 5850), shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.
(b)(1)In any fiscal year after 200708, the 200708 fiscal year, programs for services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) of this division may include funds for technological needs and capital facilities, human resource needs, and a prudent reserve to ensure services do not have to be significantly reduced in years in which revenues are below the average of previous years. The total allocation for purposes authorized by this subdivision shall not exceed 20 percent of the average amount of funds allocated to that county for the previous five fiscal years pursuant to this section.
(2)A county shall calculate an amount to establish the prudent reserve not to exceed the greatest reduction in revenue received for the fund in the last 10 years. The county shall reassess the maximum amount of this reserve every five years.
(c)The allocations pursuant to subdivisions (a) and (b) shall include funding for annual planning costs pursuant to Section 5848. The total of these costs shall not exceed 5 percent of the total of annual revenues received for the fund. The planning costs shall include funds for county mental health programs to pay for the costs of consumers, family members, and other stakeholders to participate in the planning process and for the planning and implementation required for private provider contracts to be significantly expanded to provide additional services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) of this division. 5850).
(d)Prior to making the allocations pursuant to subdivisions (a), (b), and (c), funds shall be reserved for the costs for the State Department of Health Care Services, the California 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. 5850). The amount of funds available for the purposes of this subdivision in any fiscal year shall be is subject to appropriation in the annual Budget Act.
(e)In 200405, the 200405 fiscal year, funds shall be allocated as follows:
(1)Forty-five percent for education and training pursuant to Part 3.1 (commencing with Section 5820) of this division. 5820).
(2)Forty-five percent for capital facilities and technology needs in the manner specified by paragraph (2) of subdivision (a).
(3)Five percent for local planning in the manner specified in subdivision (c).
(4)Five percent for state implementation in the manner specified in subdivision (d).
(f)Each county shall place all funds received from the State Mental Health Services Fund in a local Mental Health Services Fund. The Local Mental Health Services Fund balance shall be invested consistent with other county funds and the interest earned on the investments shall be transferred into the fund. The earnings on investment of these funds shall be available for distribution from the fund in future fiscal years.
(g)All expenditures for county mental health programs shall be consistent with a currently approved plan or update pursuant to Section 5847.
(h)(1)Other than funds placed in a reserve in accordance with an approved plan, any funds allocated to a county that have not been spent for their authorized purpose within three years years, and the interest accruing on those funds, shall revert to the state to be deposited into the fund Reversion Account, hereby established in the fund, and available for other counties in future years, provided 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. Reversion Account.
(2)If a county receives approval from the Mental Health Services Oversight and Accountability Commission of a plan for innovative programs, pursuant to subdivision (e) of Section 5830, the 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 5892.1 of the Welfare and Institutions Code is amended to read:5892.1.(a)All unspent funds subject to reversion pursuant to subdivision (h) of Section 5892 as of July 1, 2017, are deemed to have been reverted to the fund and reallocated to the county of origin for the purposes for which they were originally allocated.
(b)(1)The department shall, on or before July 1, 2018, in consultation with counties and other stakeholders, prepare a report to the Legislature identifying the amounts that were subject to reversion prior to July 1, 2017, including to which purposes the unspent funds were allocated pursuant to Section 5892.
(2)Prior to the preparation of the report referenced in paragraph (1), the department shall provide to counties the amounts it has determined are subject to reversion, and provide a process for counties to appeal this determination.
(c)(1)By July 1, 2018, each county with unspent funds subject to reversion that are deemed reverted and reallocated pursuant to subdivision (a) shall prepare a plan to expend these funds on or before July 1, 2020. The plan shall be submitted to the commission for review.
(2)A county with unspent funds that are deemed reverted and reallocated pursuant to subdivision (a) that has not prepared and submitted a plan to the commission pursuant to paragraph (1) as of January 1, 2019, shall remit the unspent funds to the state pursuant to paragraph (1) of subdivision (h) of Section 5892 no later than July 1, 2019.
(d)Funds included in the plan required pursuant to subdivision (c) that are not spent as of July 1, 2020, shall revert to the state pursuant to paragraph (1) of subdivision (h) of Section 5892.
(d)(e)(1)The requirement for submitting a report imposed under subdivision (b) is inoperative on July 1, 2022, pursuant to Section 10231.5 of the Government Code.
(2)A report to be submitted pursuant to subdivision (b) shall be submitted in compliance with Section 9795 of the Government Code.
(e)(f)Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the department, without taking any further regulatory action, may implement, interpret, or make specific this section, Section 5899.1, and subdivision (h) of Section 5892, by means of all-county letters or other similar instructions, until applicable regulations are adopted in accordance with Section 5898, or until July 1, 2019, whichever occurs first. The all-county letters or other similar instructions shall be issued only after the department provides the opportunity for public participation and comments.
SEC. 3.If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.
SECTION 1.Section 5891 of the Welfare and Institutions Code is amended to read:5891.(a)The funding established pursuant to this act shall be utilized to expand mental health services. Except as provided in subdivision (i) of Section 5892 due to the states fiscal crisis, these funds shall not be used to supplant existing state or county funds utilized to provide mental health services. The state shall continue to provide financial support for mental health programs with not less than the same entitlements, amounts of allocations from the General Fund or from the Local Revenue Fund 2011 in the State Treasury, and formula distributions of dedicated funds as provided in the last fiscal year which ended prior to the effective date of this act. The state shall not make any change to the structure of financing mental health services, which increases a countys share of costs or financial risk for mental health services unless the state includes adequate funding to fully compensate for such increased costs or financial risk. These funds shall only be used to pay for the programs authorized in Sections 5890 and 5892. These funds may not be used to pay for any other program. These funds may not be loaned to the General Fund or any other fund of the state, or a county general fund or any other county fund for any purpose other than those authorized by Sections 5890 and 5892.(b)(1)Notwithstanding subdivision (a), and except as provided in paragraph (2), the Controller may use the funds created pursuant to this part for loans to the General Fund as provided in Sections 16310 and 16381 of the Government Code. Any such loan shall be repaid from the General Fund with interest computed at 110 percent of the Pooled Money Investment Account rate, with interest commencing to accrue on the date the loan is made from the fund. This subdivision does not authorize any transfer that would interfere with the carrying out of the object for which these funds were created.(2)This subdivision does not apply to the Supportive Housing Program Subaccount created by subdivision (f) of Section 5890 or any moneys paid by the California Health Facilities Financing Authority to the Department of Housing and Community Development as a service fee pursuant to a service contract authorized by Section 5849.35.(c)Commencing July 1, 2012, on or before the 15th day of each month, pursuant to a methodology provided by the State Department of Health Care Services, the Controller shall distribute to each Local Mental Health Service Fund established by counties pursuant to subdivision (f) of Section 5892, all unexpended and unreserved funds on deposit as of the last day of the prior month in the Mental Health Services Fund, established pursuant to Section 5890, for the provision of programs and other related activities set forth in Part 3 (commencing with Section 5800), Part 3.2 (commencing with Section 5830), Part 3.6 (commencing with Section 5840), Part 3.9 (commencing with Section 5849.1), and Part 4 (commencing with Section 5850).(d)Counties shall base their expenditures on the county mental health programs three-year program and expenditure plan or annual update, as required by Section 5847. Nothing in this subdivision shall affect subdivision (a) or (b).SEC. 2.Section 5892 of the Welfare and Institutions Code is amended to read:5892.(a)In order to promote efficient implementation of this act, the county shall use funds distributed from the Mental Health Services Fund as follows:(1)In 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).(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.(6)Five percent of the total funding for each county mental health program for Part 3 (commencing with Section 5800), Part 3.6 (commencing with Section 5840), and Part 4 (commencing with Section 5850), shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.(b)In any fiscal year after the 200708 fiscal year, programs for services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) may include funds for technological needs and capital facilities, human resource needs, and a prudent reserve to ensure services do not have to be significantly reduced in years in which revenues are below the average of previous years. The total allocation for purposes authorized by this subdivision shall not exceed 20 percent of the average amount of funds allocated to that county for the previous five fiscal years pursuant to this section.(c)The allocations pursuant to subdivisions (a) and (b) shall include funding for annual planning costs pursuant to Section 5848. The total of these costs shall not exceed 5 percent of the total of annual revenues received for the fund. The planning costs shall include funds for county mental health programs to pay for the costs of consumers, family members, and other stakeholders to participate in the planning process and for the planning and implementation required for private provider contracts to be significantly expanded to provide additional services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850).(d)Prior to making the allocations pursuant to subdivisions (a), (b), and (c), funds shall be reserved for the costs for the State Department of Health Care Services, the California 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). The amount of funds available for the purposes of this subdivision in any fiscal year is subject to appropriation in the annual Budget Act.(e)In the 200405 fiscal year, funds shall be allocated as follows:(1)Forty-five percent for education and training pursuant to Part 3.1 (commencing with Section 5820).(2)Forty-five percent for capital facilities and technology needs in the manner specified by paragraph (2) of subdivision (a).(3)Five percent for local planning in the manner specified in subdivision (c).(4)Five percent for state implementation in the manner specified in subdivision (d).(f)Each county shall place all funds received from the State Mental Health Services Fund in a local Mental Health Services Fund. The Local Mental Health Services Fund balance shall be invested consistent with other county funds and the interest earned on the investments shall be transferred into the fund. The earnings on investment of these funds shall be available for distribution from the fund in future fiscal years.(g)All expenditures for county mental health programs shall be consistent with a currently approved plan or update pursuant to Section 5847.(h)If there are revenues available in the fund after the Mental Health Services Oversight and Accountability Commission has determined there are prudent reserves and no unmet needs for any of the programs funded pursuant to this section, including all purposes of the Prevention and Early Intervention Program, the commission shall develop a plan for expenditures of these revenues to further the purposes of this act and the Legislature may appropriate these funds for any purpose consistent with the commissions adopted plan that furthers the purposes of this act.(i)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.(j)Subdivision (i) shall not be subject to repayment.(k)Subdivision (i) shall become inoperative on July 1, 2012.SEC. 3.Section 5892.3 is added to the Welfare and Institutions Code, to read:5892.3.(a)There is hereby established in the State Treasury the Mental Health Services Act Reversion Fund.(b)(1)Other than funds placed in a reserve in accordance with an approved plan, any funds allocated since the 200809 fiscal year to a large, medium, small, or very small county that have not been spent for their authorized purpose within three years of being allocated, and any interest earned on unspent funds, shall revert to the state to be deposited into the Mental Health Services Act Reversion Fund. However, funds for capital facilities, technological needs, or education and training may be retained for up to 10 years before reverting to the Mental Health Services Act Reversion Fund.(2)(A)For purposes of this subdivision, the following definitions apply:(i)Large county is a county with a population greater than 750,000.(ii)Medium county is a county with a population between 200,000 and 750,000, inclusive.(iii)Small county is a county with a population of 100,000 or greater and less than 200,000.(iv)Very small county is a county with a population less than 100,000. (B)The populations provided in subparagraph (A) shall be based on annual demographic information released annually by the Department of Finance.(3)Notwithstanding paragraph (1), a very small county may apply for a waiver, subject to approval by the Mental Health Oversight and Accountability Commission, requesting a delay of the reversion of funds beyond three fiscal years from the time of allocation of funds, but not for more than five fiscal years from the time of allocation of funds.(c)(1)The state shall distribute funds reverted to the Mental Health Services Act Reversion Fund to counties, or counties acting jointly, to fund prevention and early intervention or innovation programs that are consistent with mental health funding priorities established by the Legislature and the Mental Health Services Act, including, but not limited to, all of the following:(A)Providing evidence-based prevention and early intervention services to children under five years of age.(B)Providing evidence-based intervention services and supports for prevention, early detection, and treatment of psychosis, mood disorders, or other mental health issues in educational settings, up to and including higher education.(C)Providing evidence-based early intervention services and supports for prevention, early detection, and treatment of psychosis, mood disorders, or other mental health issues for youth and transition-age youth involved in the juvenile justice system.(2)The amount of funds available to counties, or counties acting jointly, for the purposes of this subdivision in any fiscal year is subject to an annual appropriation by the Legislature in the annual Budget Act.(3)Counties, or counties acting jointly, seeking funding from the Mental Health Services Act Reversion Fund shall demonstrate to the Mental Health Services Oversight and Accountability Commission that funding will be used to create, or expand existing capacity for, services and supports that address unmet community needs. The commission shall submit to the Legislature an annual report of its recommendations for recipients of funding and the amount of funding for each recipient in a manner that ensures that allocation of funds results in cost-effective and evidence-based services and supports that comprehensively address identified needs in counties and regions selected for funding. The commission shall also take into account at least the following criteria when recommending recipients of funding and the amount of funding for each recipient:(A)A description of need, including community need, the target population to be served, linkage with other public systems of health and mental health care, linkage with community social services, and related assistance as applicable, and a description of the request for funding.(B)A description of all programmatic components, including outreach and clinical aspects, of local services and supports.(C)A description of any contractual relationships with contracting providers, as applicable, including a memorandum of understanding among any project partners.(D)A description of local funds, including amounts, to contribute toward the services and supports, as required by the commission, implementing guidelines, and regulations.(E)A project timeline.(F)The ability of the county, or counties acting jointly, to effectively and efficiently implement or expand services and supports.(G)A description of core data collection and a framework for evaluating outcomes, including improved access to services and supports and the cost benefit of the project.(H)A description of the sustainability of program services and supports in future years.(4)The commission shall determine any minimum or maximum funding recommended to the Legislature for appropriation, shall take into consideration the level of need, the population to be served, and related criteria as described in paragraph (3) and in any guidance or regulations, and shall reflect reasonable costs.(5)Funds appropriated by the Legislature for purposes of this section may be used to supplement, but shall not supplant, existing financial and resource commitments of the county or counties acting jointly.(6)The Legislature, when making an appropriation from the Mental Health Services Act Reversion Fund, may give specific consideration to very small counties and small counties, as defined in subdivision (b).(7)Counties that previously have been allocated funds under this subdivision shall be eligible for subsequent funding only if the county or counties acting jointly demonstrate improved outcomes or increased levels of service with the use of the previously allocated funds.(8)In order to evaluate the success of the use of these funds, the Mental Health Services Oversight and Accountability Commission shall require participating counties to submit outcome data within one year of receiving funding, and the commission shall aggregate and report to the Legislature the outcome data for each participating county or counties acting jointly.(9)The State Department of Health Care Services shall annually report to the Legislature and the commission the amount of funds that are subject to reversion and the interest earned by counties.(10)The department shall update necessary regulations, processes, and guidance to allow counties, as appropriate, to revise or correct their annual revenue and expenditure reports. The department shall report any revisions to a countys annual revenue and expenditure report within the annual report described in paragraph (9).(11)A report submitted by the commission or the department pursuant to paragraph (3), (4), (8), (9), or (10) shall be in compliance with Section 9795 of the Government Code.SEC. 4.Section 5892.5 of the Welfare and Institutions Code is amended to read:5892.5.(a)(1)The California Housing Finance Agency, with the concurrence of the State Department of Health Care Services, shall release unencumbered Mental Health Services Fund moneys dedicated to the Mental Health Services Act housing program upon the written request of the respective county. The county shall use these Mental Health Services Fund moneys released by the agency to provide housing assistance to the target populations who are identified in Section 5600.3.(2)For purposes of this section, housing assistance means each of the following:(A)Rental assistance or capitalized operating subsidies.(B)Security deposits, utility deposits, or other move-in cost assistance.(C)Utility payments.(D)Moving cost assistance.(E)Capital funding to build or rehabilitate housing for homeless, mentally ill persons or mentally ill persons who are at risk of being homeless.(b)For purposes of administering those funds released to a respective county pursuant to subdivision (a), the county shall comply with all of the requirements described in the Mental Health Services Act, including, but not limited to, Sections 5664, 5847, and 5899, and subdivision (b) of Section 5892.3.(a)The funding established pursuant to this act shall be utilized to expand mental health services. Except as provided in subdivision (i) of Section 5892 due to the states fiscal crisis, these funds shall not be used to supplant existing state or county funds utilized to provide mental health services. The state shall continue to provide financial support for mental health programs with not less than the same entitlements, amounts of allocations from the General Fund or from the Local Revenue Fund 2011 in the State Treasury, and formula distributions of dedicated funds as provided in the last fiscal year which ended prior to the effective date of this act. The state shall not make any change to the structure of financing mental health services, which increases a countys share of costs or financial risk for mental health services unless the state includes adequate funding to fully compensate for such increased costs or financial risk. These funds shall only be used to pay for the programs authorized in Sections 5890 and 5892. These funds may not be used to pay for any other program. These funds may not be loaned to the General Fund or any other fund of the state, or a county general fund or any other county fund for any purpose other than those authorized by Sections 5890 and 5892.
(b)(1)Notwithstanding subdivision (a), and except as provided in paragraph (2), the Controller may use the funds created pursuant to this part for loans to the General Fund as provided in Sections 16310 and 16381 of the Government Code. Any such loan shall be repaid from the General Fund with interest computed at 110 percent of the Pooled Money Investment Account rate, with interest commencing to accrue on the date the loan is made from the fund. This subdivision does not authorize any transfer that would interfere with the carrying out of the object for which these funds were created.
(2)This subdivision does not apply to the Supportive Housing Program Subaccount created by subdivision (f) of Section 5890 or any moneys paid by the California Health Facilities Financing Authority to the Department of Housing and Community Development as a service fee pursuant to a service contract authorized by Section 5849.35.
(c)Commencing July 1, 2012, on or before the 15th day of each month, pursuant to a methodology provided by the State Department of Health Care Services, the Controller shall distribute to each Local Mental Health Service Fund established by counties pursuant to subdivision (f) of Section 5892, all unexpended and unreserved funds on deposit as of the last day of the prior month in the Mental Health Services Fund, established pursuant to Section 5890, for the provision of programs and other related activities set forth in Part 3 (commencing with Section 5800), Part 3.2 (commencing with Section 5830), Part 3.6 (commencing with Section 5840), Part 3.9 (commencing with Section 5849.1), and Part 4 (commencing with Section 5850).
(d)Counties shall base their expenditures on the county mental health programs three-year program and expenditure plan or annual update, as required by Section 5847. Nothing in this subdivision shall affect subdivision (a) or (b).
SEC. 2.Section 5892 of the Welfare and Institutions Code is amended to read:5892.(a)In order to promote efficient implementation of this act, the county shall use funds distributed from the Mental Health Services Fund as follows:
(1)In 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).
(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.
(6)Five percent of the total funding for each county mental health program for Part 3 (commencing with Section 5800), Part 3.6 (commencing with Section 5840), and Part 4 (commencing with Section 5850), shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.
(b)In any fiscal year after the 200708 fiscal year, programs for services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) may include funds for technological needs and capital facilities, human resource needs, and a prudent reserve to ensure services do not have to be significantly reduced in years in which revenues are below the average of previous years. The total allocation for purposes authorized by this subdivision shall not exceed 20 percent of the average amount of funds allocated to that county for the previous five fiscal years pursuant to this section.
(c)The allocations pursuant to subdivisions (a) and (b) shall include funding for annual planning costs pursuant to Section 5848. The total of these costs shall not exceed 5 percent of the total of annual revenues received for the fund. The planning costs shall include funds for county mental health programs to pay for the costs of consumers, family members, and other stakeholders to participate in the planning process and for the planning and implementation required for private provider contracts to be significantly expanded to provide additional services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850).
(d)Prior to making the allocations pursuant to subdivisions (a), (b), and (c), funds shall be reserved for the costs for the State Department of Health Care Services, the California 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). The amount of funds available for the purposes of this subdivision in any fiscal year is subject to appropriation in the annual Budget Act.
(e)In the 200405 fiscal year, funds shall be allocated as follows:
(1)Forty-five percent for education and training pursuant to Part 3.1 (commencing with Section 5820).
(2)Forty-five percent for capital facilities and technology needs in the manner specified by paragraph (2) of subdivision (a).
(3)Five percent for local planning in the manner specified in subdivision (c).
(4)Five percent for state implementation in the manner specified in subdivision (d).
(f)Each county shall place all funds received from the State Mental Health Services Fund in a local Mental Health Services Fund. The Local Mental Health Services Fund balance shall be invested consistent with other county funds and the interest earned on the investments shall be transferred into the fund. The earnings on investment of these funds shall be available for distribution from the fund in future fiscal years.
(g)All expenditures for county mental health programs shall be consistent with a currently approved plan or update pursuant to Section 5847.
(h)If there are revenues available in the fund after the Mental Health Services Oversight and Accountability Commission has determined there are prudent reserves and no unmet needs for any of the programs funded pursuant to this section, including all purposes of the Prevention and Early Intervention Program, the commission shall develop a plan for expenditures of these revenues to further the purposes of this act and the Legislature may appropriate these funds for any purpose consistent with the commissions adopted plan that furthers the purposes of this act.
(i)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.
(j)Subdivision (i) shall not be subject to repayment.
(k)Subdivision (i) shall become inoperative on July 1, 2012.
SEC. 3.Section 5892.3 is added to the Welfare and Institutions Code, to read:5892.3.(a)There is hereby established in the State Treasury, Treasury the Mental Health Services Act Reversion Fund.
(b)(1)Other than funds placed in a reserve in accordance with an approved plan, any funds allocated since the 200809 fiscal year to a large, medium, small, or very small county that have not been spent for their authorized purpose within three years of being allocated, and any interest earned on unspent funds, shall revert to the state to be deposited into the Mental Health Services Act Reversion Fund. However, funds for capital facilities, technological needs, or education and training may be retained for up to 10 years before reverting to the Mental Health Services Act Reversion Fund.
(2)(A)For purposes of this subdivision, the following definitions apply:
(i)Large county is a county with a population greater than 750,000.
(ii)Medium county is a county with a population between 200,000 and 750,000, inclusive.
(iii)Small county is a county with a population of 100,000 or greater and less than 200,000.
(iv)Very small county is a county with a population less than 100,000.
(B)The populations provided in subparagraph (A) shall be based on annual demographic information released annually by the Department of Finance.
(3)Notwithstanding paragraph (1), a very small county may apply for a waiver, subject to approval by the Mental Health Oversight and Accountability Commission, requesting a delay of the reversion of funds beyond three fiscal years from the time of allocation of funds, but not for more than five fiscal years from the time of allocation of funds.
(c)(1)The state shall distribute funds reverted to the Mental Health Services Act Reversion Fund to counties, or counties acting jointly, to fund prevention and early intervention or innovative programs for youth innovation programs that are consistent with mental health funding priorities for youth established by the Legislature and the Mental Health Services Act, including, but not limited to, all of the following:
(A)Providing evidence-based prevention and early intervention services, as described in paragraph (3), services to children under five years of age.
(B)Providing evidence-based intervention services and supports for prevention, early detection, and treatment of psychosis, mood disorders, or other mental health issues, as described in paragraph (3), issues in educational settings, up to and including higher education.
(C)Providing evidence-based early intervention services and supports for prevention, early detection, and treatment of psychosis, mood disorders, or other mental health issues, as described in paragraph (3), issues for youth and transition-age youth involved in the juvenile justice system.
(2)The amount of funds available to counties, or counties acting jointly, for the purposes of this subdivision in any fiscal year is subject to an annual appropriation by the Legislature in the annual Budget Act.
(3)Funding shall be directed only to counties, or counties acting jointly, that provide evidence-based intervention services and supports for prevention, early detection, and treatment of psychosis, mood disorders, or other mental health issues for youth, which utilize evidence-based approaches and services to identify and support clinical and functional recovery of young individuals by reducing the severity of first or early episode psychotic symptoms, keeping youth in school, and putting them on a path to better health and wellness. These services and supports may include, but are not limited to, all of the following:(A)Focused outreach to at-risk and in-need populations, as applicable.(B)Focused programs that build social, emotional, cognitive, or substance refusal skills.(C)Recovery-oriented psychotherapy.(D)Family psychoeducation and support.(E)Supported education and employment.(F)Pharmacotherapy and primary care coordination.(G)Use of innovative technology for mental health information feedback access that can provide a valued and unique opportunity to assist individuals with mental health needs and to optimize care.(H)Case management.(4)(3)Counties, or counties acting jointly, seeking funding from the Mental Health Services Act Reversion Fund for services and supports described in paragraph (3) shall demonstrate to the Mental Health Services Oversight and Accountability Commission that funding will be used to create, or expand existing capacity for, those services and supports. services and supports that address unmet community needs. The commission shall submit to the Legislature an annual report of its recommendations for recipients of funding and the amount of funding for each recipient in a manner that ensures that allocation of funds results in cost-effective and evidence-based services and supports that comprehensively address identified needs of the target population in counties and regions selected for funding. The commission shall also take into account at least the following criteria when recommending recipients of funding and the amount of funding for each recipient:
(A)A description of need, including, at a minimum, a comprehensive description of the services and supports described in paragraph (3) to be established or expanded, including community need, the target population to be served, linkage with other public systems of health and mental health care, linkage with schools and community social services, and related assistance as applicable, and a description of the request for funding.
(B)A description of all programmatic components, including outreach and clinical aspects, of local services and supports described in paragraph (3). supports.
(C)A description of any contractual relationships with contracting providers, as applicable, including a memorandum of understanding among any project partners.
(D)A description of local funds, including amounts, to contribute toward the services and supports, as required by the commission, implementing guidelines, and regulations.
(E)A project timeline.
(F)The ability of the county, or counties acting jointly, to effectively and efficiently implement or expand services and supports described in paragraph (3). supports.
(G)A description of core data collection and a framework for evaluating outcomes, including improved access to services and supports and the cost benefit of the project.
(H)A description of the sustainability of program services and supports in future years.
(5)(4)The commission shall determine any minimum or maximum funding recommended to the Legislature for appropriation, shall take into consideration the level of need, the population to be served, and related criteria as described in paragraph (4) (3) and in any guidance or regulations, and shall reflect reasonable costs.
(6)(5)Funds appropriated by the Legislature for purposes of this section may be used to supplement, but shall not supplant, existing financial and resource commitments of the county or counties acting jointly.
(7)(6)The Legislature, when making an appropriation from the Mental Health Services Act Reversion Fund, may give specific consideration to very small counties and small counties, as defined in subdivision (b).
(8)(7)Counties that previously have been allocated funds under this subdivision shall be eligible for subsequent funding only if the county or counties acting jointly demonstrate improved outcomes or increased levels of service to the youth populations described in this section with the use of the previously allocated funds.
(9)(8)In order to evaluate the success of the use of these funds, the Mental Health Services Oversight and Accountability Commission shall require participating counties to submit outcome data within one year of receiving funding, and the commission shall aggregate and report to the Legislature the outcome data for each participating county or counties acting jointly.
(10)(9)The State Department of Health Care Services shall annually report to the Legislature and the commission the amount of funds that are subject to reversion and the interest earned by counties.
(11)(10)The department shall update necessary regulations, processes, and guidance to allow counties, as appropriate, to revise or correct their annual revenue and expenditure reports. The department shall report any revisions to a countys annual revenue and expenditure report within the annual report described in paragraph (10). (9).
(12)(11)A report submitted by the commission or the department pursuant to paragraph (4), (5), (9), (10), or (11) (3), (4), (8), (9), or (10) shall be in compliance with Section 9795 of the Government Code.
SEC. 4.Section 5892.5 of the Welfare and Institutions Code is amended to read:5892.5.(a)(1)The California Housing Finance Agency, with the concurrence of the State Department of Health Care Services, shall release unencumbered Mental Health Services Fund moneys dedicated to the Mental Health Services Act housing program upon the written request of the respective county. The county shall use these Mental Health Services Fund moneys released by the agency to provide housing assistance to the target populations who are identified in Section 5600.3.
(2)For purposes of this section, housing assistance means each of the following:
(A)Rental assistance or capitalized operating subsidies.
(B)Security deposits, utility deposits, or other move-in cost assistance.
(C)Utility payments.
(D)Moving cost assistance.
(E)Capital funding to build or rehabilitate housing for homeless, mentally ill persons or mentally ill persons who are at risk of being homeless.
(b)For purposes of administering those funds released to a respective county pursuant to subdivision (a), the county shall comply with all of the requirements described in the Mental Health Services Act, including, but not limited to, Sections 5664, 5847, and 5899, and subdivision (b) of Section 5892.3, and 5899. 5892.3.
(a)The funding established pursuant to this act shall be utilized to expand mental health services. Except as provided in subdivision (j) (i) of Section 5892 due to the states fiscal crisis, these funds shall not be used to supplant existing state or county funds utilized to provide mental health services. The state shall continue to provide financial support for mental health programs with not less than the same entitlements, amounts of allocations from the General Fund or from the Local Revenue Fund 2011 in the State Treasury, and formula distributions of dedicated funds as provided in the last fiscal year which ended prior to the effective date of this act. The state shall not make any change to the structure of financing mental health services, which increases a countys share of costs or financial risk for mental health services unless the state includes adequate funding to fully compensate for such increased costs or financial risk. These funds shall only be used to pay for the programs authorized in Sections 5890 and 5892. These funds may not be used to pay for any other program. These funds may not be loaned to the General Fund or any other fund of the state, or a county general fund or any other county fund for any purpose other than those authorized by Sections 5890 and 5892.
(b)(1)Notwithstanding subdivision (a), and except as provided in paragraph (2), the Controller may use the funds created pursuant to this part for loans to the General Fund as provided in Sections 16310 and 16381 of the Government Code. Any such loan shall be repaid from the General Fund with interest computed at 110 percent of the Pooled Money Investment Account rate, with interest commencing to accrue on the date the loan is made from the fund. This subdivision does not authorize any transfer that would interfere with the carrying out of the object for which these funds were created.
(2)This subdivision does not apply to the Supportive Housing Program Subaccount created by subdivision (f) of Section 5890 or any moneys paid by the California Health Facilities Financing Authority to the Department of Housing and Community Development as a service fee pursuant to a service contract authorized by Section 5849.35.
(c)Commencing July 1, 2012, on or before the 15th day of each month, pursuant to a methodology provided by the State Department of Health Care Services, the Controller shall distribute to each Local Mental Health Service Fund established by counties pursuant to subdivision (f) of Section 5892, all unexpended and unreserved funds on deposit as of the last day of the prior month in the Mental Health Services Fund, established pursuant to Section 5890, for the provision of programs and other related activities set forth in Part 3 (commencing with Section 5800), Part 3.2 (commencing with Section 5830), Part 3.6 (commencing with Section 5840), Part 3.9 (commencing with Section 5849.1), and Part 4 (commencing with Section 5850).
(d)Counties shall base their expenditures on the county mental health programs three-year program and expenditure plan or annual update, as required by Section 5847. Nothing in this subdivision shall affect subdivision (a) or (b).
SECTION 1.SEC. 2.Section 5892 of the Welfare and Institutions Code is amended to read:5892.(a)In order to promote efficient implementation of this act, the county shall use funds distributed from the Mental Health Services Fund as follows:
(1)In 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).
(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.
(6)Five percent of the total funding for each county mental health program for Part 3 (commencing with Section 5800), Part 3.6 (commencing with Section 5840), and Part 4 (commencing with Section 5850), shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.
(b)In any fiscal year after the 200708 fiscal year, programs for services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) may include funds for technological needs and capital facilities, human resource needs, and a prudent reserve to ensure services do not have to be significantly reduced in years in which revenues are below the average of previous years. The total allocation for purposes authorized by this subdivision shall not exceed 20 percent of the average amount of funds allocated to that county for the previous five fiscal years pursuant to this section.
(c)The allocations pursuant to subdivisions (a) and (b) shall include funding for annual planning costs pursuant to Section 5848. The total of these costs shall not exceed 5 percent of the total of annual revenues received for the fund. The planning costs shall include funds for county mental health programs to pay for the costs of consumers, family members, and other stakeholders to participate in the planning process and for the planning and implementation required for private provider contracts to be significantly expanded to provide additional services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850).
(d)Prior to making the allocations pursuant to subdivisions (a), (b), and (c), funds shall be reserved for the costs for the State Department of Health Care Services, the California 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). The amount of funds available for the purposes of this subdivision in any fiscal year is subject to appropriation in the annual Budget Act.
(e)In the 200405 fiscal year, funds shall be allocated as follows:
(1)Forty-five percent for education and training pursuant to Part 3.1 (commencing with Section 5820).
(2)Forty-five percent for capital facilities and technology needs in the manner specified by paragraph (2) of subdivision (a).
(3)Five percent for local planning in the manner specified in subdivision (c).
(4)Five percent for state implementation in the manner specified in subdivision (d).
(f)Each county shall place all funds received from the State Mental Health Services Fund in a local Mental Health Services Fund. The Local Mental Health Services Fund balance shall be invested consistent with other county funds and the interest earned on the investments shall be transferred into the fund. The earnings on investment of these funds shall be available for distribution from the fund in future fiscal years.
(g)All expenditures for county mental health programs shall be consistent with a currently approved plan or update pursuant to Section 5847.
(h)(1)Other than funds placed in a reserve in accordance with an approved plan, any funds allocated to a large or medium county that have not been spent for their authorized purpose within three years of being allocated, and any funds allocated to a small county that have not been spent for their authorized purpose within five years of being allocated, shall revert to the state to be deposited into the Mental Health Services Reversion Fund established pursuant to Section 5892.3, provided however, that funds for capital facilities, technological needs, or education and training may be retained for up to 10 years before reverting to the Mental Health Services Reversion Fund established pursuant to Section 5892.3.(2)For purposes of this subdivision, large county, medium county, and small county have the same meaning as in Section 5849.6.(i)(h)If there are revenues available in the fund after the Mental Health Services Oversight and Accountability Commission has determined there are prudent reserves and no unmet needs for any of the programs funded pursuant to this section, including all purposes of the Prevention and Early Intervention Program, the commission shall develop a plan for expenditures of these revenues to further the purposes of this act and the Legislature may appropriate these funds for any purpose consistent with the commissions adopted plan that furthers the purposes of this act.
(i)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.
(j)Subdivision (i) shall not be subject to repayment.
(k)Subdivision (i) shall become inoperative on July 1, 2012.
SEC. 2.SEC. 3.Section 5892.3 is added to the Welfare and Institutions Code, to read:5892.3.(a)There is hereby established in the State Treasury, the Mental Health Services Act Reversion Fund.
(b)Notwithstanding Section 13340 of the Government Code, the Mental Health Services Reversion Fund is hereby continuously appropriated, without regard to fiscal years, to the Mental Health Services Oversight and Accountability Commission, to fund the grant program established pursuant to subdivision (c).(b)(1)Other than funds placed in a reserve in accordance with an approved plan, any funds allocated since the 200809 fiscal year to a large, medium, small, or very small county that have not been spent for their authorized purpose within three years of being allocated, and any interest earned on unspent funds, shall revert to the state to be deposited into the Mental Health Services Act Reversion Fund. However, funds for capital facilities, technological needs, or education and training may be retained for up to 10 years before reverting to the Mental Health Services Act Reversion Fund.
(2)(A)For purposes of this subdivision, the following definitions apply:
(i)Large county is a county with a population greater than 750,000.
(ii)Medium county is a county with a population between 200,000 and 750,000, inclusive.
(iii)Small county is a county with a population of 100,000 or greater and less than 200,000.
(iv)Very small county is a county with a population less than 100,000.
(B)The populations provided in subparagraph (A) shall be based on annual demographic information released annually by the Department of Finance.
(3)Notwithstanding paragraph (1), a very small county may apply for a waiver, subject to approval by the Mental Health Oversight and Accountability Commission, requesting a delay of the reversion of funds beyond three fiscal years from the time of allocation of funds, but not for more than five fiscal years from the time of allocation of funds.
(c)(1)The commission shall establish and administer a grant program consistent with this subdivision for the purpose of distributing state shall distribute funds reverted to the Mental Health Services Act Reversion Fund to counties counties, or counties acting jointly, to fund prevention and early intervention or innovative programs for youth that are consistent with mental health funding priorities for youth established by the Legislature and the Mental Health Services Act, including, but not limited to, all of the following:
(A)Providing evidence-based prevention and early intervention and prevention services services, as described in paragraph (3), to children under five years of age.
(B)Providing mental health services in schools. evidence-based intervention services and supports for prevention, early detection, and treatment of psychosis, mood disorders, or other mental health issues, as described in paragraph (3), in educational settings, up to and including higher education.
(C)Providing mental health services evidence-based early intervention services and supports for prevention, early detection, and treatment of psychosis, mood disorders, or other mental health issues, as described in paragraph (3), for youth and transition-age youth involved in the juvenile justice system.
(2)(A)The commission shall establish maximum grant amounts for small, medium, and large counties.(B)For purposes of this paragraph, large county, medium county, and small county have the same meaning as in Section 5849.6.(3)Counties shall be required to submit an application for a grant to the commission.(2)The amount of funds available to counties, or counties acting jointly, for the purposes of this subdivision in any fiscal year is subject to an annual appropriation by the Legislature in the annual Budget Act.
(3)Funding shall be directed only to counties, or counties acting jointly, that provide evidence-based intervention services and supports for prevention, early detection, and treatment of psychosis, mood disorders, or other mental health issues for youth, which utilize evidence-based approaches and services to identify and support clinical and functional recovery of young individuals by reducing the severity of first or early episode psychotic symptoms, keeping youth in school, and putting them on a path to better health and wellness. These services and supports may include, but are not limited to, all of the following:
(A)Focused outreach to at-risk and in-need populations, as applicable.
(B)Focused programs that build social, emotional, cognitive, or substance refusal skills.
(C)Recovery-oriented psychotherapy.
(D)Family psychoeducation and support.
(E)Supported education and employment.
(F)Pharmacotherapy and primary care coordination.
(G)Use of innovative technology for mental health information feedback access that can provide a valued and unique opportunity to assist individuals with mental health needs and to optimize care.
(H)Case management.
(4)Counties, or counties acting jointly, seeking funding from the Mental Health Services Act Reversion Fund for services and supports described in paragraph (3) shall demonstrate to the Mental Health Services Oversight and Accountability Commission that funding will be used to create, or expand existing capacity for, those services and supports. The commission shall submit to the Legislature an annual report of its recommendations for recipients of funding and the amount of funding for each recipient in a manner that ensures that allocation of funds results in cost-effective and evidence-based services and supports that comprehensively address identified needs of the target population in counties and regions selected for funding. The commission shall also take into account at least the following criteria when recommending recipients of funding and the amount of funding for each recipient:
(A)A description of need, including, at a minimum, a comprehensive description of the services and supports described in paragraph (3) to be established or expanded, community need, the target population to be served, linkage with other public systems of health and mental health care, linkage with schools and community social services, and related assistance as applicable, and a description of the request for funding.
(B)A description of all programmatic components, including outreach and clinical aspects, of local services and supports described in paragraph (3).
(C)A description of any contractual relationships with contracting providers, as applicable, including a memorandum of understanding among any project partners.
(D)A description of local funds, including amounts, to contribute toward the services and supports, as required by the commission, implementing guidelines, and regulations.
(E)A project timeline.
(F)The ability of the county, or counties acting jointly, to effectively and efficiently implement or expand services and supports described in paragraph (3).
(G)A description of core data collection and a framework for evaluating outcomes, including improved access to services and supports and the cost benefit of the project.
(H)A description of the sustainability of program services and supports in future years.
(5)The commission shall determine any minimum or maximum funding recommended to the Legislature for appropriation, shall take into consideration the level of need, the population to be served, and related criteria as described in paragraph (4) and in any guidance or regulations, and shall reflect reasonable costs.
(6)Funds appropriated by the Legislature for purposes of this section may be used to supplement, but shall not supplant, existing financial and resource commitments of the county or counties acting jointly.
(7)The Legislature, when making an appropriation from the Mental Health Services Act Reversion Fund, may give specific consideration to very small counties and small counties, as defined in subdivision (b).
(4)(8)Counties that have previously been awarded a grant previously have been allocated funds under this subdivision shall only be eligible for a subsequent grant if the county be eligible for subsequent funding only if the county or counties acting jointly demonstrate improved outcomes or increased levels of service to the youth populations described in this section with the use of the previously awarded grant. allocated funds.
(5)(9)In order to evaluate the success of the grant program, the commission use of these funds, the Mental Health Services Oversight and Accountability Commission shall require participating counties to submit outcome data from the use of the grant within one year of receiving funding. funding, and the commission shall aggregate and report to the Legislature the outcome data for each participating county or counties acting jointly.
(10)The State Department of Health Care Services shall annually report to the Legislature and the commission the amount of funds that are subject to reversion and the interest earned by counties.
(11)The department shall update necessary regulations, processes, and guidance to allow counties, as appropriate, to revise or correct their annual revenue and expenditure reports. The department shall report any revisions to a countys annual revenue and expenditure report within the annual report described in paragraph (10).
(12)A report submitted by the commission or the department pursuant to paragraph (4), (5), (9), (10), or (11) shall be in compliance with Section 9795 of the Government Code.
SEC. 4.Section 5892.5 of the Welfare and Institutions Code is amended to read:5892.5.(a)(1)The California Housing Finance Agency, with the concurrence of the State Department of Health Care Services, shall release unencumbered Mental Health Services Fund moneys dedicated to the Mental Health Services Act housing program upon the written request of the respective county. The county shall use these Mental Health Services Fund moneys released by the agency to provide housing assistance to the target populations who are identified in Section 5600.3.
(2)For purposes of this section, housing assistance means each of the following:
(A)Rental assistance or capitalized operating subsidies.
(B)Security deposits, utility deposits, or other move-in cost assistance.
(C)Utility payments.
(D)Moving cost assistance.
(E)Capital funding to build or rehabilitate housing for homeless, mentally ill persons or mentally ill persons who are at risk of being homeless.
(b)For purposes of administering those funds released to a respective county pursuant to subdivision (a), the county shall comply with all of the requirements described in the Mental Health Services Act, including, but not limited to, Sections 5664, 5847, subdivision (h) (b) of Section 5892, 5892.3, and 5899.
(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. 5840).
(4)The expenditure for prevention and early intervention may be increased in any county in which the department determines that the increase will decrease the need and cost for additional services to severely mentally ill persons in that county by an amount at least commensurate with the proposed increase.
(5)The balance of funds shall be distributed to county mental health programs for services to persons with severe mental illnesses pursuant to Part 4 (commencing with Section 5850) for the childrens system of care and Part 3 (commencing with Section 5800) for the adult and older adult system of care.
(6)Five percent of the total funding for each county mental health program for Part 3 (commencing with Section 5800), Part 3.6 (commencing with Section 5840), and Part 4 (commencing with Section 5850) of this division, 5850), shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.
(b)In any fiscal year after 200708, the 200708 fiscal year, programs for services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) of this division may include funds for technological needs and capital facilities, human resource needs, and a prudent reserve to ensure services do not have to be significantly reduced in years in which revenues are below the average of previous years. The total allocation for purposes authorized by this subdivision shall not exceed 20 percent of the average amount of funds allocated to that county for the previous five fiscal years pursuant to this section.
(c)The allocations pursuant to subdivisions (a) and (b) shall include funding for annual planning costs pursuant to Section 5848. The total of these costs shall not exceed 5 percent of the total of annual revenues received for the fund. The planning costs shall include funds for county mental health programs to pay for the costs of consumers, family members, and other stakeholders to participate in the planning process and for the planning and implementation required for private provider contracts to be significantly expanded to provide additional services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) of this division. 5850).
(d)Prior to making the allocations pursuant to subdivisions (a), (b), and (c), funds shall be reserved for the costs for the State Department of Health Care Services, the California Mental Health Planning Council, the Office of Statewide Health Planning and Development, the Mental Health Services Oversight and Accountability Commission, the State Department of Public Health, and any other state agency to implement all duties pursuant to the programs set forth in this section. These costs shall not exceed 5 percent of the total of annual revenues received for the fund. The administrative costs shall include funds to assist consumers and family members to ensure the appropriate state and county agencies give full consideration to concerns about quality, structure of service delivery, or access to services. The amounts allocated for administration shall include amounts sufficient to ensure adequate research and evaluation regarding the effectiveness of services being provided and achievement of the outcome measures set forth in Part 3 (commencing with Section 5800), Part 3.6 (commencing with Section 5840), and Part 4 (commencing with Section 5850) of this division. 5850). The amount of funds available for the purposes of this subdivision in any fiscal year shall be is subject to appropriation in the annual Budget Act.
(e)In 200405, the 200405 fiscal year, funds shall be allocated as follows:
(1) Forty-five percent for education and training pursuant to Part 3.1 (commencing with Section 5820) of this division. 5820).
(2) Forty-five percent for capital facilities and technology needs in the manner specified by paragraph (2) of subdivision (a).
(3) Five percent for local planning in the manner specified in subdivision (c).
(4)Five percent for state implementation in the manner specified in subdivision (d).
(f)Each county shall place all funds received from the State Mental Health Services Fund in a local Mental Health Services Fund. The Local Mental Health Services Fund balance shall be invested consistent with other county funds and the interest earned on the investments shall be transferred into the fund. The earnings on investment of these funds shall be available for distribution from the fund in future fiscal years.
(g)All expenditures for county mental health programs shall be consistent with a currently approved plan or update pursuant to Section 5847.
(h)(1)Other than funds placed in a reserve in accordance with an approved plan, any funds allocated to a large or medium county that have not been spent for their authorized purpose within three years years of being allocated, and any funds allocated to a small county that have not been spent for their authorized purpose within five years of being allocated, shall revert to the state to be deposited into the fund and available for other counties in future years, Mental Health Services Reversion Fund established pursuant to Section 5892.3, provided however, that funds for capital facilities, technological needs, or education and training may be retained for up to 10 years before reverting to the fund. Mental Health Services Reversion Fund established pursuant to Section 5892.3.
(2)For purposes of this subdivision, large county, medium county, and small county have the same meaning as in Section 5849.6.
(i)If there are still additional revenues available in the fund after the Mental Health Services Oversight and Accountability Commission has determined there are prudent reserves and no unmet needs for any of the programs funded pursuant to this section, including all purposes of the Prevention and Early Intervention Program, the commission shall develop a plan for expenditures of these revenues to further the purposes of this act and the Legislature may appropriate these funds for any purpose consistent with the 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 5892.3 is added to the Welfare and Institutions Code, to read:5892.3.(a)There is hereby established in the State Treasury, the Mental Health Services Reversion Fund.
(b)Notwithstanding Section 13340 of the Government Code, the Mental Health Services Reversion Fund is hereby continuously appropriated, without regard to fiscal years, to the Mental Health Services Oversight and Accountability Commission, to fund the grant program established pursuant to subdivision (c).
(c)(1)The commission shall establish and administer a grant program consistent with this subdivision for the purpose of distributing funds reverted to the Mental Health Services Reversion Fund to counties to fund prevention and early intervention or innovative programs that are consistent with mental health funding priorities established by the Legislature and the Mental Health Services Act, including, but not limited to, all of the following:
(A)Providing early intervention and prevention services to children under five years of age.
(B)Providing mental health services in schools.
(C)Providing mental health services for youth involved in the juvenile justice system.
(2)(A)The commission shall establish maximum grant amounts for small, medium, and large counties.
(B)For purposes of this paragraph, large county, medium county, and small county have the same meaning as in Section 5849.6.
(3)Counties shall be required to submit an application for a grant to the commission.
(4)Counties that have previously been awarded a grant under this subdivision shall only be eligible for a subsequent grant if the county improved outcomes with the use of the previously awarded grant.
(5)In order to evaluate the success of the grant program, the commission shall require counties to submit outcome data from the use of the grant within one year of receiving funding.
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Date
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Status
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|---|---|
| Sep 10, 2018 | Chaptered by Secretary of State. Chapter 328, Statutes of 2018. |
| Sep 10, 2018 | Approved by the Governor. |
| Aug 24, 2018 | Enrolled and presented to the Governor at 4 p.m. |
| Aug 20, 2018 | Assembly amendments concurred in. (Ayes 34. Noes 0.) Ordered to engrossing and enrolling. |
| Aug 16, 2018 | In Senate. Concurrence in Assembly amendments pending. |
| Aug 16, 2018 | Read third time. Passed. Ordered to the Senate. |
| Aug 9, 2018 | Read second time. Ordered to consent calendar. |
| Aug 8, 2018 | From committee: Do pass. Ordered to consent calendar. (Ayes 17. Noes 0.) (August 8). |
| Aug 6, 2018 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on APPR. |
| Jun 20, 2018 | From committee: Do pass and re-refer to Com. on APPR. with recommendation: To consent calendar. (Ayes 15. Noes 0.) (June 19). Re-referred to Com. on APPR. |
| Jun 12, 2018 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on HEALTH. |
| Jul 11, 2017 | July 11 set for first hearing canceled at the request of author. |
| Jun 8, 2017 | Referred to Com. on HEALTH. |
| May 31, 2017 | In Assembly. Read first time. Held at Desk. |
| May 30, 2017 | Read third time. Passed. (Ayes 38. Noes 2. Page 1265.) Ordered to the Assembly. |
| May 26, 2017 | Read second time. Ordered to third reading. |
| May 25, 2017 | From committee: Do pass. (Ayes 7. Noes 0. Page 1179.) (May 25). |
| May 19, 2017 | Set for hearing May 25. |
| May 15, 2017 | May 15 hearing: Placed on APPR. suspense file. |
| May 4, 2017 | Set for hearing May 15. |
| May 3, 2017 | May 8 hearing postponed by committee. |
| May 1, 2017 | Set for hearing May 8. |
| Apr 18, 2017 | Read second time and amended. Re-referred to Com. on APPR. |
| Apr 17, 2017 | From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 8. Noes 0. Page 624.) (April 5). |
| Mar 28, 2017 | From committee with author's amendments. Read second time and amended. Re-referred to Com. on HEALTH. |
| Mar 28, 2017 | Set for hearing April 5. |
| Feb 9, 2017 | Referred to Com. on HEALTH. |
| Jan 31, 2017 | From printer. May be acted upon on or after March 2. |
| Jan 30, 2017 | Introduced. Read first time. To Com. on RLS. for assignment. To print. |
|
Date
|
Description
|
Location
|
Votes
|
|
|---|---|---|---|---|
| Aug 20, 2018 | Unfinished Business SB192 Beall Concurrence | Senate Floor |
Passed |
|
| Aug 16, 2018 | SB 192 Beall Consent Calendar Second Day Regular Session | Assembly Floor |
Passed |
|
| Aug 8, 2018 | Do pass. To Consent Calendar. | Assembly Standing Committee on Appropriations |
Passed |
|
| Jun 19, 2018 | Do pass and be re-referred to the Committee on [Appropriations] with recommendation: To Consent Calendar | Assembly Standing Committee on Health |
Passed |
|
| May 30, 2017 | Senate 3rd Reading SB192 Beall | Senate Floor |
Passed |
|
| May 25, 2017 | Do pass | Senate Standing Committee on Appropriations |
Passed |
|
| May 15, 2017 | Placed on suspense file | Senate Standing Committee on Appropriations |
Passed |
|
| Apr 5, 2017 | Do pass as amended, but first amend, and re-refer to the Committee on [Appropriations] | Senate 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
|
|---|---|---|
| County Behavioral Health Directors Association of California | ** Against | May 27, 2017 |
| Department of Health Care Services | ** Against | Aug 18, 2018 |
| Los Angeles County Board of Supervisors | ** Against | May 27, 2017 |
| Mental Health Services Oversight and Accountability Commission | ** Support | May 27, 2017 |
| Steinberg Institute | ** Support | May 27, 2017 |
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB |
UNFINISHED BUSINESS
Bill No: SB 192
:
SENATE HEALTH COMMITTEE: 8-0, 4/5/17
AYES: Hernandez, Atkins, Leyva, Mitchell, Monning, Newman, Nielsen, Roth
NO VOTE RECORDED: Nguyen
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/25/17
AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener
SENATE FLOOR: 38-2, 5/30/17
AYES: Allen, Anderson, Atkins, Bates, Beall, Berryhill, Bradford, Cannella, De León, Dodd, Gaines, Galgiani, Glazer, Hernandez, Hertzberg, Hill, Hueso, Jackson, Lara, Leyva, McGuire, Mendoza, Mitchell, Monning, Moorlach, Newman, Nguyen, Nielsen, Pan, Portantino, Roth, Skinner, Stern, Stone, Vidak, Wieckowski, Wiener, Wilk
NOES: Fuller, Morrell
ASSEMBLY FLOOR: 76-0, 8/16/18 (Consent) - See last page for vote
DIGEST:
This bill establishes a Mental Health Services Act (MHSA) Reversion Account for the purpose of depositing any MHSA funds allocated to a county that have not been spent for their authorized purpose, as specified. This bill establishes reporting and planning requirements for counties regarding unspent MHSA funds, as specified.
Assembly Amendments establish a Reversion Account within the Mental Health Services Fund, rather than a separate Reversion Fund, and establish a prudent reserve amount for counties to deposit into their Local Mental Health Services Fund. The amendments also require all MHSA funds subject to reversion, per existing law, to be deposited into the Reversion Account, as specified.
Existing law:
- Establishes the Mental Health Services Oversight and Accountability Commission (MHSOAC) to oversee the implementation of the MHSA, enacted by voters in 2004 as Proposition 63, to provide funds to counties to expand services, develop innovative programs, and integrate service plans for mentally ill children, adults, and seniors through a 1% income tax on personal income above $1 million. [WIC §5845]
- 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 Mental Health Services Fund and available for other counties in future years, as specified. [WIC §5892]
- Requires counties with unspent funds subject to reversion, that are deemed reverted and reallocated, to prepare a plan by July 1, 2018, to expend these funds on or before July 1, 2020. [WIC 5892.1]
- Requires the Department of Health Care Services (DHCS), in consultation with the MHSOAC and the California Behavioral Health Directors Association, to develop and administer instructions for the Annual MHSA Revenue and Expenditure Report to, among other things, identify unexpended funds and interest earned on MHSA funds, and determine reversion amounts, if applicable, from prior fiscal year distributions. [WIC §5899]
- Requires each county mental health program (counties) to prepare and submit a three-year program and expenditure plan, and annual updates, as specified, to the MHSOAC and DHCS within 30 days after adoption by the county board of supervisors, including the establishment and maintenance of a prudent reserve to ensure the county program will continue to be able to serve children, adults, and seniors that it is currently serving. [WIC §5847]
This bill:
- Establishes an MHSA Reversion Account and requires previously allocated MHSA funds that have not been spent for their authorized purpose within three years, and the interest accruing on those funds, to revert to the account, as specified.
- Requires a county to calculate an amount it establishes as the prudent reserve for its Local Mental Health Services Fund not to exceed 33% of the average community services and support revenue received for the fund in the preceding five years. Requires a county to reassess the maximum amount of this reserve every five years and to certify the reassessment as part of the three-year program and expenditure plan, as required in existing law.
- Requires a county with unspent funds that are deemed reverted and reallocated that has not prepared and submitted a plan to the MHSOAC as of January 1, 2019, to remit the unspent funds to the state as required in existing law, and into the Reversion Account established by this bill, no later than July 1, 2019.
- Requires the plan for the expenditure of unspent funds deemed reverted and reallocated to be submitted to the MHSOAC for review. Requires funds included in the plan that are not spent as of July 1, 2020, to revert to the state as required in existing law and into the Reversion Account established by this bill.
- Makes other clarifying, nonsubstantive changes.
Background
The 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 MHSOAC. DHCS is required to provide guidelines to counties related to each component of the MHSA, including, among other things, community services and support content to provide integrated mental health and other support services to those whose needs are not currently met through other funding sources; prevention and early intervention content to provide services to avert mental health crises; and innovation program content to improve access to mental health services. 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. Under current law, counties have three years to use MHSA funds allocated to them. After the three years, any unspent funds are required to be reverted back to the state for allocation to other counties in future years.
Reversion of funds. According to information provided by the author, media and other reports over the years have indicated that some counties have not spent all of their MHSA funds within the required three-year timeframe, and not all of those funds have reverted as specified by current law. Further, when the funds do revert, they are redistributed to the counties through a formula that benefits the largest, most populous counties without a specified purpose for the use of the funds beyond the requirement that the funds be used for MHSA-eligible services and programs. According to a document titled “MHSA Funds Reverted” on DHCS’s Web site, the last time funds were reverted was in FY 2007-08. Another page on DHCS’s Web site, “Annual Revenue and Expenditure Reports by County,” shows that while expenditure reports are required to be submitted to DHCS not all counties have consistently reported, and no reports for FY 2014-15 have yet been made available on DHCS’s Web site. According to a document by the MHSOAC of statewide unspent funds gathered from available Annual MHSA Revenue and Expenditure Reports, for FY 2014-15, there is an estimated $32.1 million of unspent revenues from FY 2010-11 and prior fiscal years, and an available estimated $27.6 million of unspent interest earned on the unspent funds, which have not yet been reverted.
California State Auditor (CSA) report. In February 2018, the CSA issued Report 2017-117, “The State Could Better Ensure the Effective Use of Mental Health Services Act Funding,” and noted that a general lack of oversight from the state, particularly DHCS, resulted in counties amassing unspent MHSA funds. For FY 2015-16, counties had accumulated $2.5 billion in unspent funds of which $231 million should have been returned to the state to be redistributed among the counties. For the same fiscal year, counties cumulatively held reserves of $535 million in MHSA funds of which the CSA estimated between $157 million and $274 million were excessive and should have been returned to the state. The CSA attributed this to DHCS not having developed a process for recovering the unspent funds, known as reversion, or developed a prudent reserve formula. The CSA stated that a lack of enforcement from DHCS, such as withholding funds, does not incentivize counties to submit required annual revenue and expenditure reports, which would assist DHCS in tracking unspent funds. The CSA noted that in the same fiscal year, only one of the 59 county programs submitted the annual report by the regulatory deadline.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: Yes
According to the Assembly Appropriations Committee:
- Potential minor and absorbable costs to DHCS to incorporate statutory requirements into planned regulatory updates (Mental Health Services Fund).
- Minor costs to the MHSOAC to review plans (Mental Health Services Fund).
None received
OPPOSITION: (Verified 8/17/18)
Department of Health Care Services
ARGUMENTS IN SUPPORT: According to the author, under the MHSA, funds allocated to a county that have not been spent within three years of allocation revert to the state fund for reallocation in future years. The purpose of reversion is to incentivize counties to expend their allocations in a timely manner. In recent years, some counties have withheld spending MHSA dollars, in part to strengthen reserves in preparation for the next economic downturn. The total funds in county reserves vary significantly by county; to date, no standards have been established to prescribe prudent reserve totals. This bill addresses this and other issues by establishing standards for prudent reserves, establishing certain dates upon which funds will be reverted, and clarifying that interest earned on unspent MHSA funds is also subject to existing laws on reversion.
ARGUMENTS IN OPPOSITION: DHCS argues that this bill is inconsistent with the recommendations made by the CSA report and inconsistent with proposed regulations DHCS is currently developing to establish maximum prudent reserve levels, which are expected to be promulgated by July 1, 2019. DHCS states it will be releasing an information notice by September 2018 that establishes each county’s maximum prudent reserve level based on the recommendations of the CSA. DHCS further argues that establishing a Reversion Account within the Mental Health Services Fund is unnecessary, as it is also currently developing regulations and publishing an information notice that describes how DHCS will revert and allocate funds to other counties. DHCS states it also developed a process and mechanism whereby MHSA funds are reverted and reallocated to other counties using specified percentages determined by DHCS.
ASSEMBLY FLOOR: 76-0, 8/16/18
AYES: Acosta, Aguiar-Curry, Travis Allen, Arambula, Baker, Berman, Bigelow, Bonta, Brough, Burke, Caballero, Calderon, Carrillo, Cervantes, Chau, Chávez, Chen, Chiu, Choi, Chu, Cooley, Cooper, Cunningham, Dahle, Daly, Eggman, Flora, Fong, Frazier, Friedman, Gabriel, Gallagher, Eduardo Garcia, Gipson, Gloria, Gonzalez Fletcher, Gray, Grayson, Harper, Holden, Irwin, Jones-Sawyer, Kalra, Kamlager-Dove, Kiley, Lackey, Levine, Limón, Maienschein, Mathis, Mayes, Medina, Melendez, Mullin, Muratsuchi, Nazarian, Obernolte, O'Donnell, Patterson, Quirk, Quirk-Silva, Reyes, Rivas, Rodriguez, Rubio, Salas, Santiago, Steinorth, Mark Stone, Thurmond, Ting, Voepel, Waldron, Weber, Wood, Rendon
NO VOTE RECORDED: Bloom, Cristina Garcia, Low, McCarty
8/18/18 13:25:34
Date of Hearing: August 8, 2018
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Lorena Gonzalez Fletcher, Chair
SBPCA Bill Id:SB 192
Author:(Beall) – As Amended Ver:August 6, 2018
Policy Committee: | Health | Vote: | 15 - 0 |
Urgency: No State Mandated Local Program: Yes Reimbursable: No
SUMMARY:
This bill changes counties' management of funds distributed from the Mental Health Services Fund (revenues generated pursuant to Proposition 63, the Mental Health Services Act (MHSA) from a tax on incomes over $1 million and allocated to community mental health). Specifically, this bill:
- Establishes a maximum county prudent reserve level, not to exceed the greatest reduction in community services and supports revenue received for the fund in the preceding five years and subject to other limits and review, as specified.
- Establishes a Reversion Account within the Mental Health Services Fund, and specifies unspent funds subject to reversion under existing law will be deposited in that account.
- Requires a county with funds subject to reversion to submit a required expenditure plan to the Mental Health Services Oversight and Accountability Commission (commission) for review.
- Requires a county to remit to the state by July 1, 2019, any remaining unspent "reallocated" funds, if a county meets the following criteria:
- The county was reallocated funds that were subject to reversion prior to 2017.
- The county has not submitted a spending plan to the commission as of January 1, 2019.
- Requires a county to remit by July 1, 2020, and deposit in the Reversion Account, any funds subject to reversion and reallocated to the county that are not spent by that date.
FISCAL EFFECT:
- Potential minor and absorbable costs to Department of Health Care Services (DHCS) to incorporate statutory requirements into planned regulatory updates (Mental Health Services Fund).
- Minor costs to the commission to review plans (Mental Health Services Fund).
COMMENTS:
- Purpose. According to the author, under the MHSA, funds allocated to a county that have not been spent within three years of allocation revert to the state fund for reallocation in future years. The purpose of reversion is to incentivize counties to expend their allocations in a timely manner. In recent years, some counties have withheld spending MHSA dollars, in part to strengthen reserves in preparation for the next economic downturn. The total funds in county reserves vary significantly by county; to date, no standards have been established to prescribe prudent reserve totals. This bill addresses this and other issues by establishing standards for prudent reserves, establishing certain dates upon which funds will be reverted, and clarifying that interest earned on unspent MHSA funds is also subject to existing laws on reversion.
- Background. Proposition 63, the MHSA, was passed by voters in November 2004. The MHSA imposes a 1% income tax on personal income in excess of $1 million to fund a broad continuum of mental health prevention, early intervention, and other services. The majority of revenue is allocated to county behavioral health agencies. The MHSA also charges the commission with overseeing implementation and authorizes up to 5% of revenues for state administrative functions. Under direction from DHCS, counties are required to develop annual revenue and expenditure reports. Projected MHSA revenues are approximately $2 billion for fiscal year 2017-18.
- Recent Issues. The state auditor, county supervisors, and other stakeholders have raised concerns about local behavioral health agencies accumulating MHSA funds. DHCS estimated local agencies statewide had unspent funds of $231 million—not including reserves—as of the end of fiscal year 2015–16 that should have reverted to the state for reallocation. The auditor also noted local behavioral health agencies had amassed nearly $2 billion in unspent MHSA funds in excess of reserves as of this fiscal year.
To address these issues, AB 114 (Committee on Budget), Chapter 38, Statutes of 2017, enacted a number of changes intended to enhance fiscal oversight. AB 114 also deemed all unspent funds subject to reversion as of July 1, 2017, to have been reverted to the Mental Health Services Fund and reallocated to the county of origin for their original purposes. This bill clarifies some aspects of this reversion and imposes new oversight and spending requirements.
- Staff Comments. Provisions specifying the county prudent reserve level should be clarified such that the level is based on the reduction in revenue to the individual county, not to the fund overall.
Analysis Prepared by: Lisa Murawski / APPR. / (916) 319-2081
Date of Hearing: June 19, 2018
ASSEMBLY COMMITTEE ON HEALTH
Jim Wood, Chair
SBPCA Bill Id:SB 192
Author:(Beall) – As Amended Ver:June 12, 2018
SENATE VOTE: 38-2
SUBJECT: Mental Health Services Fund.
SUMMARY: Establishes a state Mental Health Services Act (MHSA) Reversion Account for the purpose of depositing any MHSA funds allocated to a county that have not been spent for their authorized purpose, as specified, and establishes reporting and planning requirements for counties regarding unspent MHSA funds, as specified. Specifically, this bill:
- Establishes a state MHSA Reversion Account for the purpose of depositing any MHSA funds allocated to a county that have not been spent for their authorized purpose within three years, including interest accruing on those funds.
- Requires counties to calculate an amount to establish the prudent reserve of MHSA funds not to exceed the greatest reduction in revenue received for the fund in the last 10 years and requires counties to reassess the maximum amount of this reserve every five years.
- Requires counties with unspent MHSA funds to submit the plan required by 8) below of existing law to the Mental Health Services Oversight and Accountability Commission (Commission).
- Requires a county with unspent funds that are deemed reverted and reallocated that has not prepared and submitted a plan to the Commission as of January 1, 2019, to remit the unspent funds no later than July 1, 2019.
- Requires MHSA funds included in the plan in 3) above that are not spent as of July 1, 2020, to be reverted to the state.
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.
- 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 a 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 California Department of Health Care Services (DHCS), the California Mental Health Planning Council, the Office of Statewide Health Planning and Development, the Commission, the California 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.
- Deems all unspent funds subject to reversion as of July 1, 2017, to have been reverted to the Fund and reallocated to the county of origin for the purposes for which they were originally allocated.
- Requires DHCS, on or before July 1, 2018, in consultation with counties and other stakeholders, to prepare and submit a report to the Legislature identifying the amounts that were subject to reversion prior to July 1, 2017, including to which purposes the unspent funds were allocated.
- Requires DHCS to provide to counties the amounts it has determined are subject to reversion, and provide a process for counties to appeal this determination.
- Requires counties with unspent funds subject to reversion, that are deemed reverted and reallocated, to prepare and submit a plan (by July 1, 2018) to expend these funds on or before July 1, 2020.
- Restarts the three-year clock on expenditure of Innovation funds when a county's Innovation Plan has received approval from the Commission.
- Authorizes small counties, with a population of less than 200,000, to expend MHSA funds for up to five years before unspent funds will be reverted to the state.
- Requires DHCS, in consultation with the Commission and the County Behavioral Health Directors Association of California (CBHDA), to develop and administer instructions for the Annual MHSA Revenue and Expenditure Report (Report). Requires that the instructions include a requirement that the county certify the accuracy of this report.
- Requires counties to submit the Report electronically to DHCS and to the Commission. Requires DHCS and the Commission to annually post each county’s Report on its Website in a timely manner. Requires DHCS, in consultation with the Commission and CBHDA, to revise these instructions by July 1, 2017, and as needed thereafter, to improve the timely and accurate submission of county revenue and expenditure data. Specifies the purpose of the Report.
- Requires DHCS, by October 1, 2018, and by October 1 of each subsequent year, in consultation with counties, to publish on its Internet Website a report detailing funds subject to reversion by a county and by originally allocated purpose.
- Requires that, on or after July 1, 2017, funds subject to reversion be reallocated to other counties for the purposes for which the unspent funds were initially allocated to the original county.
FISCAL EFFECT: This bill has been significantly amended and the amended version has not yet been analyzed by a fiscal committee.
COMMENTS:
- PURPOSE OF THIS BILL. According to the author, under the MHSA, funds allocated to a county that have not been spent within three years of allocation shall revert to the state Fund for reallocation to counties in future years. The purpose of reversion is to incentivize counties to expend their allocations in a timely manner. In recent years, some counties have withheld spending MHSA dollars, in part to strengthen reserves in preparation for the next economic downturn. The total funds in county reserves vary significantly by municipality, in part because no standards have been established to prescribe prudent reserve totals. With established prudent reserve caps, more dollars will be spent on urgently needed county mental health services and also ensures counties have adequate funds on hand to prepare for uncertain economic conditions.
As many MHSA dollars remain unspent, significant sums of interest continue to accumulate and existing law does not provide clarity on whether these funds are subject to reversion, or if these funds may be used for a different purpose. Local mental health agencies accumulated $81 million in unspent interest and set aside between $157 million and $274 million in excessive reserves that they could better use to provide additional mental health services. This bill addresses these issues by establishing standards for prudent reserves, enhances accountability by strengthening fiscal reporting requirements by counties, and clarifies that interest earned on unspent MHSA funds is also subject to existing laws on reversion.
- BACKGROUND.
- MHSA. 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 and to advise the Governor and the Legislature on mental health policy. The fiscal year (FY) 2017-18 Governor’s Budget projected that $2.2 billion in revenue would be deposited into the MHSA Fund in FY 2018-19. The MHSA addresses a broad continuum of prevention, early intervention, and service needs, as well as provides funding for infrastructure, technology, and training needs for the community mental health system. Unspent MHSA funds are required to be placed in a reserve in accordance with an approved plan, and funds allocated to a county that have not been spent for their authorized purpose within three years are required to revert those funds back to the state.
- 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 (PEI): 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.
- State Auditor Report and Recommendations. On February 27, 2018, the State Auditor released a report entitled "Mental Health Services Act: The State Could Better Ensure the Effective Use of Mental Health Services Act Funding" (Audit Report), at the request of the Joint Legislative Audit Committee. The Audit Report concluded that despite having significant responsibility for the MHSA program since 2012, DHCS has not developed a process to recover unspent MHSA funds from local mental health agencies after the statutory time frames for spending the funds have elapsed, known as reversion. As a result, the local mental health agencies have had less incentive to spend MHSA funds in a timely manner and had amassed unspent funds of $231 million as of the end of fiscal year 2015-16 that should have reverted to the State for reallocation to other local mental health agencies. This figure does not include funds held in reserves or interest earned on the unspent funds. However, the Audit Report noted that the Legislature enacted a one‑time change in state law in 2017 that allowed local mental health agencies to retain all funds that were subject to reversion as of July 1, 2017. The Audit Report concluded that nevertheless, this one‑time allowance did not resolve the larger issue that DHCS has been slow in implementing a process to revert unspent MHSA funds. The State Auditor recommended, in order to ensure that local mental health agencies spend MHSA funds in a timely manner, that DHCS implement a fiscal reversion process to reallocate to other local mental health agencies any MHSA funds that are unspent within the statutory reversion time frames. The State Auditor also recommended that DHCS clarify that the interest that local mental health agencies earn on unspent MHSA funds is also subject to reversion requirements and should establish an MHSA reserve level that is sufficient but not excessive.
- RELATED LEGISLATION.
- SB 98 (Committee on Budget and Fiscal Review), is a trailer bill and among other provisions, requires DHCS, on or before July 1, 2018, in consultation with counties and other stakeholders, to prepare and submit a report to the Legislature identifying the amounts that were subject to reversion prior to July 1, 2017.
- SB 1101 (Pan) would have required the Commission to establish statewide objectives and metrics, as specified, to bring focus on the state’s mental health system and to assist the public in understanding whether progress is being made toward meeting the goals of MHSA, as specified. SB 1101 was held on suspense in the Senate Appropriations Committee.
- SB 1004 (Weiner and Moorlach) would require the Commission to establish priorities for the use of MSHA PEI funds and to develop a statewide strategy for monitoring the implementation of PEI programs, as specified. SB 1004 is pending in the Assembly Health Committee.
- SB 1019 (Beall) would require the Commission in consultation with the California Department of Education and DHCS to develop guidelines for the use of funds from the Mental Health Services Fund by a county for innovative programs and PEI programs. SB 1019 is pending in the Assembly Health Committee.
- AB 2287 (Kiley) would have required the Commission to develop a transparency and accountability strategy that includes fiscal, program, and outcome components, as specified. AB 2287 was held on suspense file in the Assembly Appropriations Committee.
- AB 2843 (Gloria) would have added cities, special districts, or other public entities to the list of entities eligible to receive an excess of MHSA funds subject to reversion for the provision of mental health services consistent with the intent of MHSA. AB 2843 failed passage in the Assembly Floor.
- PREVIOUS LEGISLATION.
- AB 462 (Thurmond), Chapter 403, Statutes of 2017, 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 1134 (Gloria), Chapter 412, Statutes of 2017, 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 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:
“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
None on file.
Opposition
None on file.
Analysis Prepared by: Paula Villescaz / HEALTH / (916) 319-2097
Office of Senate Floor Analyses (916) 651-1520 Fax: (916) 327-4478 | SB 192 |
THIRD READING
Bill No: SB 192
Amended: 4/18/17
SENATE HEALTH COMMITTEE: 8-0, 4/5/17
AYES: Hernandez, Atkins, Leyva, Mitchell, Monning, Newman, Nielsen, Roth
NO VOTE RECORDED: Nguyen
SENATE APPROPRIATIONS COMMITTEE: 7-0, 5/25/17
AYES: Lara, Bates, Beall, Bradford, Hill, Nielsen, Wiener
SUBJECT: Mental Health Services Act Reversion Fund
DIGEST:
This bill 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, as specified. This bill 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.
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 or the Legislature on mental health policy.
- 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 Mental Health Services Fund and available for other counties in future years, as specified.
- Requires the Department of Health Care Services (DHCS), in consultation with the MHSOAC and the California Mental Health Directors Association, to develop and administer instructions for the Annual MHSA Revenue and Expenditure Report to, among other things, identify unexpended funds and interest earned on MHSA funds, and determine reversion amounts, if applicable, from prior fiscal year distributions.
- Requires the Department of Housing and Community Development, for the purposes of the No Place Like Home Program, which provides MHSA funding to counties to develop permanent supportive housing for a specified population, to organize counties into the following competitive groupings based on population:
- Los Angeles County;
- Large counties with a population of greater than 750,000;
- Medium counties with a population between 200,000 to 750,000; and
- Small counties with a population of less than 200,000.
- Permits the Legislature to amend the MHSA by a two-thirds vote of each house if the amendment is consistent with, and furthers the intent of, the MHSA.
This bill:
- Establishes, in the State Treasury, the MHSA Reversion Fund (Reversion Fund), and requires specified funds allocated since Fiscal Year (FY) 2008-09 to a “large,” “medium,” “small,” or “very small” county, as defined, that have not been spent for their authorized purpose within three years of being allocated, and any interest earned on unspent funds, to revert to the state to be deposited into the Reversion Fund, as specified.
- Defines “large” county as having a population greater than 750,000; “medium” county as having a population between 200,000 and 750,000; “small” county as having a population of 100,000 or greater and less than 200,000; and “very small” county as having a population of less than 100,000, and requires that the populations be based on demographic information released annually by the Department of Finance.
- Allows a very small county to apply for a waiver, subject to approval by the MHSOAC, requesting a delay of the reversion of funds beyond three fiscal years from the time of allocation of funds, but not more than five fiscal years from the time of allocation of funds.
- Requires distribution of funds reverted to the Reversion Fund to counties, or counties acting jointly, upon appropriation annually by the Legislature, to fund prevention and early intervention or innovation programs, including, but not limited to evidence-based prevention and early intervention services, as specified, and evidence-based intervention services and supports for prevention, early detection, and treatment of psychosis, mood disorders, or other mental health issues, as specified, in educational settings, up to and including higher education, as well as for youth and transition-age youth involved in the juvenile justice system.
- Requires counties, or counties acting jointly, that seek funding from the Reversion Fund to demonstrate to the MHSOAC that funding will be used to create, or expand existing capacity for, specified services and supports that address unmet community needs. Requires the MHSOAC to submit to the Legislature an annual report of its recommendations for recipients of funding and the amount of funding, as specified. Requires the MHSOAC to take into account specified criteria when recommending recipients, including, but not limited to, a description of need, a description of all programmatic components, a description of local funds to contribute toward services and supports, and a description of the sustainability of program services and supports in future years.
- Allows funds appropriated by the Legislature for specified purposes to be used to supplement, and prohibits the funds from supplanting, existing financial and resource commitments of a county or counties acting jointly. Allows the Legislature, when making an appropriation from the Reversion Fund, to give specific consideration to very small and small counties.
- Requires counties that had previously been allocated funds to be eligible for subsequent funding only if the county, or counties acting jointly, demonstrate improved outcomes or increased levels of service, as specified.
- Requires the MHSOAC to require participating counties to submit outcome data within one year of receiving funding, and to aggregate and report to the Legislature the outcome data, as specified.
- Requires DHCS to annually report to the Legislature and the MHSOAC the amount of funds that are subject to reversion and the interest earned by counties. Requires DHCS to update necessary regulations, processes, and guidance to allow counties to revise or correct their Annual MHSA Revenue and Expenditure Reports, as specified.
Background
The 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 MHSOAC. DHCS is required to provide guidelines to counties related to each component of the MHSA, including, among other things, community services and support content to provide integrated mental health and other support services to those whose needs are not currently met through other funding sources; prevention and early intervention content to provide services to avert mental health crises; and innovation program content to improve access to mental health services. 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. Under current law, counties have three years to use MHSA funds allocated to them. After the three years, any unspent funds are required to be reverted back to the state for allocation to other counties in future years.
Reversion of funds. According to information provided by the author, media and other reports over the years have indicated that some counties have not spent all of their MHSA funds within the required three-year timeframe, and not all of those funds have reverted as specified by current law. Further, when the funds do revert, they are redistributed to the counties through a formula that benefits the largest, most populous counties without a specified purpose for the use of the funds beyond the requirement that the funds be used for MHSA-eligible services and programs. According to a document titled “MHSA Funds Reverted” on DHCS’s Web site, the last time funds were reverted was in FY 2007-08. Another page on DHCS’s Web site, “Annual Revenue and Expenditure Reports by County,” shows that while expenditure reports are required to be submitted to DHCS not all counties have consistently reported, and no reports for FY 2014-15 have yet been made available on DHCS’s Web site. According to a document by the MHSOAC of statewide unspent funds gathered from available Annual MHSA Revenue and Expenditure Reports, for FY 2014-15, there is an estimated $32.1 million of unspent revenues from FY 2010-11 and prior fiscal years, and an available estimated $27.6 million of unspent interest earned on the unspent funds, which have not yet been reverted.
Little Hoover Commission report. In January 2015, the Little Hoover Commission (LHC) issued a report, “Promises Still to Keep: A Decade of the Mental Health Services Act,” that found that funding provided by the MHSA—approximately more than $1 billion annually and representing about 25% of California’s overall mental health spending—continues to evade effective evaluation due to antiquated state technology and overlapping and sometimes unaccountable bureaucracies. The LHC report states that the Legislature appropriately empowered the MHSOAC by making it independent of the state Department of Mental Health (which administered the MHSA before transfer to DHCS) but that it still lacks teeth and shares oversight responsibilities for the MHSA with DHCS. The LHC report recommends, among other things, that the Legislature expand MHSOAC’s authority, specifically that the MHSOAC be empowered to impose sanctions if counties misspend funds from the act or fail to timely file reports with the state.
Comments
Author’s statement. According to the author, the California Health Care Foundation states that nearly one in six California adults has a mental health need, and approximately one in 20 suffers from a serious mental illness that makes it difficult to carry out major life activities. Among California children, one in 13 suffers from a mental illness that limits participation in daily activities. To address this issue, in 2004, the voters passed 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. In recent years, media and other reports have indicated that some counties have not spent all of their funds within the three years allotted to them, but not all of those funds have reverted as specified by the MHSA. In addition, county implementation of the MHSA gives local control for the use of the funds, without regard to potential statewide needs or priorities. Legislation is needed to ensure the reversion funds are captured and allocated towards local mental health programs and services in alignment with the MHSA and priorities set by the Legislature.
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.
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 Assembly Appropriations Committee.
AB 727 (Nazarian, 2017) clarifies that counties may spend specified MHSA funds on housing assistance, as defined, for people in the target population. AB 727 is set for hearing in the Senate Health Committee on June 7, 2017.
AB 488 (Kiley, 2017) establishes the Mental Health Services Fund Transparency and Accountability Office within the California Health and Human Services Agency, as specified, and transfers various DHCS functions to the office. AB 488 is pending in the Assembly Health Committee.
AB 1628 (Committee on Budget, Chapter 322, Statutes of 2016), among other things, established and continuously appropriates the Supportive Housing Program Subaccount in the Mental Health Services Fund for counties to develop permanent supportive housing, as specified.
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, including the services contained in this bill.
SB 585 (Steinberg, Chapter 288, Statutes of 2013) allowed counties, when included in their plans, to use Mental Health Services Fund monies for Assisted Outpatient Treatment, known as “Laura’s Law,” if a county elects to participate in and implement Laura’s Law.
FISCAL EFFECT: Appropriation: No Fiscal Com.: Yes Local: No
According to the Senate Committee on Appropriations:
- One-time costs, likely in the low hundreds of thousands, for the MHSOAC to create program guidelines and allocate funding under the bill (MHSA Reversion Fund). Most of the cost of allocating funds and overseeing county spending is likely to happen in the first few years and then decline as is discussed below.
- Potential one-time costs in up to $150,000 for the DHCS to revise existing regulations and processes relating to reversions of MHSA funds (MHSA Reversion Fund).
- One-time spending of about $120 million in reverted funds for new prevention and early intervention programs by counties (MHSA Reversion Fund). Once the existing balances of funds subject to reversion are exhausted, it is not likely that there would be significant amounts of funding that would revert to the state.
Mental Health Services Oversight and Accountability Commission
Steinberg Institute
OPPOSITION: (Verified 5/23/17)
County Behavioral Health Directors Association of California
Los Angeles County Board of Supervisors
ARGUMENTS IN SUPPORT: The Steinberg Institute states that this bill provides the opportunity to expand evidence-based early psychosis and mood disorder detection and intervention services and supports to transition-aged youth and young adults. The Steinberg Institutes states that while data as to the amount of any unspent MHSA funding is inconsistent, it supports the targeted redistribution of any reverted funding toward early intervention and innovations programs, and that by focusing on prevention amount youth, this funding will increase outcome-based services and facilitate wellness.
ARGUMENTS IN OPPOSITION: The Los Angeles County Board of Supervisors states that their county Department of Mental Health reports that a reversion requirement should remain the same for all counties regardless of size, and that counties should not be restricted based on size to a maximum grant amount but rather all counties should have open access to reverted funds to the full extend funds are available. The County Behavioral Health Directors Association of California (CBHDAC) states that this bill’s proposal to disburse grants based on legislative priorities is not aligned with voters’ intent of the MHSA, as it requires local priorities articulated by consumers, families, service providers, and other stakeholders to guide the investments each local community makes with MHSA funds. CBHDAC further states that the currently required stakeholder driven community planning process means that MHSA programming is tailored to local needs, and that establishing a program based on legislative priorities moves decision making further away from those knowledgeable about local needs and service gaps.
Prepared by: Reyes Diaz / HEALTH /
5/27/17 17:52:23
**** END ****
SENATE COMMITTEE ON APPROPRIATIONS
Senator Ricardo Lara, Chair
2017 - 2018 Regular Session
SB 192 (Beall) - Mental Health Services Act Reversion Fund
Version: April 18, 2017 | Policy Vote: HEALTH 8 - 0 |
Urgency: No | Mandate: No |
Hearing Date: | Consultant: Brendan McCarthy |
This bill meets the criteria for referral to the Suspense File.
Bill Summary:
SB 192 would create a program for allocating Mental Health Services Act funding that has reverted from counties to the state.
Fiscal Impact:
- One-time costs, likely in the low hundreds of thousands, for the Mental Health Services Oversight and Accountability Commission to create program guidelines and allocate funding under the bill (Mental Health Services Act Reversion Fund). Most of the cost of allocating funds and overseeing county spending is likely to happen in the first few years and then decline as is discussed below.
- Potential one-time costs in up to $150,000 for the Department of Health Care Services to revise existing regulations and processes relating to reversions of Mental Health Services Act funds (Mental Health Services Act Reversion Fund).
- One-time spending of about $120 million in reverted funds for new prevention and early intervention programs by counties (Mental Health Services Act Reversion Fund). Once the existing balances of funds subject to reversion are exhausted, it is not likely that there would be significant amounts of funding that would revert to the state.
Background:
The Mental Health Services Act (Proposition 63 of 2004) imposes an additional 1% personal income tax on incomes over $1 million. Most of the funding from the Mental Health Services Act is transferred to counties to provide support for mental health services. The Mental Health Services Act limits state administrative spending to 5% of revenues. Counties are required to prepare three-year program and expenditure plans (with annual updates) and to submit those plans to the state. In addition, under direction from the Department of Health Care Services, counties are required to develop annual revenue and expenditure reports. In 2015-16, projected Mental Health Services Act revenues are $1.8 billion.
Under current law, counties have three years to expend Mental Health Services Act funds for their intended purpose (with longer expenditure periods allowed for certain uses, such as capital projects). If funds are unspent after three years, current law requires those funds to be reverted to the state. Funds that revert to the state are then available for allocation to other counties.
In practice, counties have not been reverting unspent funds to the state and the Department of Health Care Services has not enforced the current law requirement for counties to do so. Currently, there is about $120 million in unspent Mental Health Services Act funding that was allocated prior to 2012-13 which should have been reverted to the state, but which has not been reverted by the counties.
Proposed Law:
SB 192 would create a program for allocating Mental Health Services Act funding that has reverted from counties to the state.
Specific provisions of the bill would:
- Establish a new Mental Health Services Act Reversion Fund;
- Require Mental Health Services Act funds that have been allocated since 2008-09 that have not been spent for their intended purpose within three years (and any interest earned on unspent funds), to revert to the state and be deposited in the new fund;
- Provide that funds for capital facilities, technological needs, or education and training may be retained for up to 10 years;
- Authorize a very small county (as defined) to apply to the Mental Health Oversight and Accountability Commission for a waiver of a reversion (not to exceed five years from the initial allocation of funds);
- Require the state to distribute reverted funds in the new special fund to counties to fund prevention and early intervention or innovation programs, with specified requirements;
- Make the distribution of reverted funds subject to appropriation in the annual Budget Act;
- Require the Mental Health Services Oversight and Accountability Commission to submit to the Legislature an annual report of its recommendations for funding;
- Specify the criteria to be used by the Commission when recommending funding;
- Place specified restrictions on counties seeking subsequent rounds of reverted funds;
- Require the Department of Health Care Services to report annually on the amount of funds subject to reversion;
- Require the Department to update regulations, process, and annual reports as necessary.
Related Legislation:
- SB 688 (Moorlach) would require Mental Health Services Act administrative funding to provide for a contract with the University of California for research and evaluation. That bill is pending in the Senate Health Committee.
- SB 974 (Quirk-Silva) would require counties to report on spending on mental health services for veterans with Mental Health Services Act funds. That bill is pending in the Assembly Appropriations Committee.
- AB 727 (Nazarian) clarifies that counties may spend Mental Health Services Act funds on housing assistance. That bill is awaiting referral in the Senate Rules Committee.
- AB 488 (Kiley) would establish the Mental Health Services Fund Transparency and Accountability Office within the California Health and Human Services Agency and would transfer specified administrative duties to that office. That bill is pending in the Assembly Health Committee.
Staff Comments:
Under current law, almost all Mental Health Services Act funding is distributed directly to counties for expenditure on mental health programs. Although there is a level of oversight performed by the Mental Health Services Oversight and Accountability Commission and the Department of Health Care Services, primary responsibility for determining how Mental Health Services Act funds are spent is a county responsibility. Under current law, unspent Mental Health Services Act funds are supposed to revert to the state for reallocation to other counties.
It is not completely clear why the Department of Health Care Services has not required counties to revert unspent funds. There are indications from the counties that the Department’s guidance to them has not been inconsistent about whether certain types of funding are subject to reversion.
Under the bill, counties would be required to revert unspent funds to the state and those funds would be reallocated for new programs. If the bill is enacted and counties are compelled to revert unspent funds, it is anticipated that this will provide a strong disincentive for counties to accumulate balances of unspent funds in the future. It is likely that once the existing balance is reverted and reallocated to the counties, there would be a low level of future reversions.
One of the underlying premises of the Mental Health Services Act is that funding under the act should generally be allocated to the counties for expenditure, with limited role for the state in determining how counties should spend those funds. Under this bill, the state would take a more active role in allocating a portion of Mental Health Service Act funding, by actively allocating reverted funds to counties based on the statutory requirements in the bill and subject to the annual budget process.
-- END --
SENATE COMMITTEE ON HEALTH
Senator Ed Hernandez, O.D., Chair
BILL NO: SB 192
AUTHOR: | Beall | ||
VERSION: | March 28, 2017 | ||
HEARING DATE: | April 5, 2017 | ||
CONSULTANT: | Reyes Diaz | ||
SUBJECT: Mental Health Services Act Reversion Fund
SUMMARY:
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.
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 or the Legislature on mental health policy.
- 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 Mental Health Services Fund and available for other counties in future years, as specified.
- Requires the Department of Health Care Services (DHCS), in consultation with the MHSOAC and the California Mental Health Directors Association, to develop and administer instructions for the Annual Mental Health Services Act Revenue and Expenditure Report to, among other things, identify unexpended funds and interest earned on MHSA funds, and determine reversion amounts, if applicable, from prior fiscal year distributions.
- Requires the Department of Housing and Community Development, for the purposes of the No Place Like Home Program, which provides MHSA funding to counties to develop permanent supportive housing for a specified population, to organize counties into the following competitive groupings based on population:
- Los Angeles County;
- Large counties with a population of greater than 750,000;
- Medium counties with a population between 200,000 to 750,000; and,
- Small counties with a population of less than 200,000.
- Permits the Legislature to amend the MHSA by a two-thirds vote of each house if the amendment is consistent with, and furthers the intent of, the MHSA.
This bill:
- Establishes, in the State Treasury, the Mental Health Services Act Reversion Fund (Reversion Fund), and requires specified funds allocated since Fiscal Year (FY) 2008-09 to a “large,” “medium,” “small,” or “very small” county, as defined, that have not been spent for their authorized purpose within three years of being allocated, and any interest earned on unspent funds, to revert to the state to be deposited into the Reversion Fund, as specified.
- Defines “large” county as having a population greater than 750,000; “medium” county as having a population between 200,000 and 750,000; “small” county as having a population of 100,000 or greater and less than 200,000; and “very small” county as having a population of less than 100,000, and requires that the populations be based on demographic information released annually by the Department of Finance.
- Allows a very small county to apply for a waiver, subject to approval by the MHSOAC, requesting a delay of the reversion of funds beyond three fiscal years from the time of allocation of funds, but not more than five fiscal years from the time of allocation of funds.
- Requires distribution of funds reverted to the Reversion Fund to counties, or counties acting jointly, upon appropriation annually by the Legislature, to fund prevention and early intervention or innovative programs for youth that are consistent with mental health funding priorities for youth, as specified, including, but not limited to evidence-based prevention and early intervention services, as specified, and evidence-based intervention services and supports for prevention, early detection, and treatment of psychosis, mood disorders, or other mental health issues, as specified, in educational settings, up to and including higher education, as well as for youth and transition-age youth involved in the juvenile justice system.
- Requires funding to be directed only to counties, or counties acting jointly, that provide evidence-based intervention services and supports, as specified, for youth to identify and support their clinical and functional recovery. Specifies that services and supports include, but are not limited to, focused outreach to at-risk and in-need populations; focused programs that build social, emotional, cognitive, or substance refusal skills; family psychoeducation and support; and case management.
- Requires counties, or counties acting jointly, that seek funding from the Reversion Fund to demonstrate to the MHSOAC that funding will be used to create, or expand existing capacity for, specified services and supports. Requires the MHSOAC to submit to the Legislature an annual report of its recommendations for recipients of funding and the amount of funding, as specified. Requires the MHSOAC to take into account specified criteria when recommending recipients, including, but not limited to, a description of need, a description of all programmatic components, a description of local funds to contribute toward services and supports, and a description of the sustainability of program services and supports in future years.
- Allows funds appropriated by the Legislature for specified purposes to be used to supplement, and prohibits the funds from supplanting, existing financial and resource commitments of a county or counties acting jointly. Allows the Legislature, when making an appropriation from the Reversion Fund, to give specific consideration to very small and small counties.
- Requires counties that had previously been allocated funds to be eligible for subsequent funding only if the county, or counties acting jointly, demonstrate improved outcomes or increased levels of service, as specified.
- Requires the MHSOAC to require participating counties to submit outcome data within one year of receiving funding, and to aggregate and report to the Legislature the outcome data, as specified.
- Requires DHCS to annually report to the Legislature and the MHSOAC the amount of funds that are subject to reversion and the interest earned by counties. Requires DHCS to update necessary regulations, processes, and guidance to allow counties to revise or correct their Annual Revenue and Expenditure Reports, as specified.
FISCAL EFFECT:
This bill has not been analyzed by a fiscal committee.
COMMENTS:
- Author’s statement. According to the author, the California Health Care Foundation states that nearly one in six California adults has a mental health need, and approximately one in 20 suffers from a serious mental illness that makes it difficult to carry out major life activities. Among California children, one in 13 suffers from a mental illness that limits participation in daily activities. To address this issue, in 2004, the voters passed 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. In recent years, media and other reports have indicated that some counties have not spent all of their funds within the three years allotted to them, but not all of those funds have reverted as specified by the MHSA. In addition, county implementation of the MHSA gives local control for the use of the funds, without regard to potential statewide needs or priorities. Legislation is needed to ensure the reversion funds are captured and allocated towards local mental health programs and services in alignment with the MHSA and priorities set by the Legislature.
- Background. The 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 MHSOAC. DHCS is required to provide guidelines to counties related to each component of the MHSA, including, among other things, community services and support content to provide integrated mental health and other support services to those whose needs are not currently met through other funding sources; prevention and early intervention content to provide services to avert mental health crises; and innovative program content to improve access to mental health services.
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 certain categories of funding. Under current law, counties have three years to use MHSA funds allocated to them. After the three years, any unspent funds are required to be reverted back to the state for allocation to other counties in future years.
- Reversion of funds. According to information provided by the author, media and other reports over the years have indicated that some counties have not spent all of their MHSA funds within the required three-year timeframe, and not all of those funds have reverted as specified by current law. Further, when the funds do revert, they are redistributed to the counties through a formula that benefits the largest, most populous counties without a specified purpose for the use of the funds beyond the requirement that the funds be used for MHSA-eligible services and programs. According to a document titled “MHSA Funds Reverted” on DHCS’s Web site, the last time funds were reverted was in FY 2007-08. Another page on DHCS’s Web site, “Annual Revenue and Expenditure Reports by County,” shows that while expenditure reports are required to be submitted to DHCS not all counties have consistently reported, and no reports for FY 2014-15 have yet been made available on DHCS’s Web site. According to a document by the MHSOAC of statewide unspent funds gathered from available Annual Revenue and Expenditure Reports, for FY 2014-15, there is an estimated $32.1 million of unspent revenues from FY 2010-11 and prior fiscal years, and an available estimated $27.6 million of unspent interest earned on the unspent funds, which have not yet been reverted.
Committee staff also contacted DHCS in mid-March to ask about when they last reverted MHSA funds and whether or not DHCS has a new policy related to MHSA reversion. As of March 30, 2017, DHCS has not provided an official response to committee staff.
- Little Hoover Commission report. In January 2015, the Little Hoover Commission (LHC) issued a report, “Promises Still to Keep: A Decade of the Mental Health Services Act,” that found that funding provided by the MHSA—approximately more than $1 billion annually and representing about 25% of California’s overall mental health spending—continues to evade effective evaluation due to antiquated state technology and overlapping and sometimes unaccountable bureaucracies. The LHC report states that the Legislature appropriately empowered the MHSOAC by making it independent of the state Department of Mental Health (which administered the MHSA before transfer to DHCS) but that it still lacks teeth and shares oversight responsibilities for the MHSA with DHCS. The LHC report recommends, among other things, that the Legislature expand MHSOAC’s authority, specifically that the MHSOAC be empowered to impose sanctions if counties misspend funds from the act or fail to timely file reports with the state.
- 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 the Senate Health Committee.
AB 974 (Quirk-Silva) would require counties to report spending on mental health services for veterans from MHSA funds. AB 974 is pending in the Assembly Health Committee.
AB 727 (Nazarian) clarifies that counties may spend MHSA funds on housing assistance, as defined, for people in the target population. AB 727 is set for hearing in the Assembly Health Committee on April 4, 2017.
AB 488 (Kiley) establishes the Mental Health Services Fund Transparency and Accountability Office within the California Health and Human Services Agency, as specified, and transfers various DHCS functions to the office. AB 488 is pending in the Assembly Health Committee.
- Prior legislation. AB 1628 (Committee on Budget, Chapter 322, Statutes of 2016) among other things, establishes and continuously appropriates the Supportive Housing Program Subaccount in the Mental Health Services Fund for counties to develop permanent supportive housing, as specified.
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, including the services contained in this bill.
SB 585 (Steinberg, Chapter 288, Statutes of 2013) allows counties, when included in their plans, to use Mental Health Services Fund monies for Assisted Outpatient Treatment, known as “Laura’s Law,” if a county elects to participate in and implement Laura’s Law.
- Support. The Steinberg Institute states that this bill provides the opportunity to expand evidence-based early psychosis and mood disorder detection and intervention services and supports to transition-aged youth and young adults. The Steinberg Institutes states that while data as to the amount of any unspent MHSA funding is inconsistent, it supports the targeted redistribution of any reverted funding toward early intervention and innovations programs, and that by focusing on prevention amount youth, this funding will increase outcome-based services and facilitate wellness.
- Opposition. The Los Angeles County Board of Supervisors states that their county Department of Mental Health reports that a reversion requirement should remain the same for all counties regardless of size, and that counties should not be restricted based on size to a maximum grant amount but rather all counties should have open access to reverted funds to the full extend funds are available. The California Behavioral Health Directors Association of California (CBHDAC) states that this bill’s proposal to disburse grants based on legislative priorities is not aligned with voters’ intent of the MHSA, as it requires local priorities articulated by consumers, families, service providers, and other stakeholders to guide the investments each local community makes with MHSA funds. CBHDAC further states that the currently required stakeholder driven community planning process means that MHSA programming is tailored to local needs, and that establishing a program based on legislative priorities moves decision making further away from those knowledgeable about local needs and service gaps.
- Policy comments.
- DHCS’s role in reverting funds. Current law requires the reversion of unspent MHSA funds from counties every three years to be reallocated to other counties with unmet needs. However, these reversion requirements have not been enforced by DHCS since 2008. Committee staff has inquired in years past and most recently in March 2017 about DHCS reversion policy and why reversion of funds has not been enforced. While DHCS has stated at MHSOAC public meetings that it is working on an updated policy, no official statement from the department on this question has been provided.
- Reversion fund priorities. This bill narrows the scope of those served by the MHSA from the Reversion Fund by specifying that these funds be used for programs that prioritize youth mental health services, including in educational settings and transition-age youth involved in the juvenile justice system. Currently, a wide array of services and supports benefit from MHSA funds, and in theory reversion funds, including adults and seniors, housing, and workforce development. While the services targeted under this bill are consistent with the MHSA, the Committee may wish to consider if California should narrow the scope of people being served through these funds rather than supporting all services that are consistent with the MHSA.
SUPPORT AND OPPOSITION:
Support: Steinberg Institute
Oppose: Los Angeles County Board of Supervisors
County Behavioral Health Directors Association of California
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Discussed in Hearing
2MIN
Senate Floor
3MIN
Senate Floor
48MIN
Senate Standing Committee on Appropriations
40MIN
Senate Standing Committee on Health
Bill Author
Bill Co-Author(s):