California Senate Bill SB1136 Introduced / Bill

 BILL NUMBER: SB 1136INTRODUCED BILL TEXT INTRODUCED BY Senator Steinberg FEBRUARY 21, 2012 An act to amend Sections 21, 4030, 4031, 4032, 4033, 4040, 4050, 4051, 4052, 4060, 4061, 4090, 4091, 4094, 5370.2, 5510, 5513, 5514, 5530, 5585.22, 5601, 5602, 5604, 5610, 5652.7, 5653, 5653.1, 5654, 5655, 5664, 5664.5, 5692, 5701, 5701.1, 5707, 5715, 5717, 5751, 5751.1, 5751.2, 5770, 5770.5, 5771, 5771.3, 5772, 5815, 5840, 5845, 5851.5, 5852.5, 5854, 5855, 5855.5, 5868, 5869, 5878, 5878.3, 5880, 5890, 11325.7, 11462.01, and 18986.40 of, and to add Section 4024.7 to, the Welfare and Institutions Code, relating to health. LEGISLATIVE COUNSEL'S DIGEST SB 1136, as introduced, Steinberg. Health: mental health: health equity. Under existing law, the State Department of Mental Health is authorized and required to perform various functions relating to the care and treatment of persons with mental disorders. Existing law, the Mental Health Services Act, an initiative measure enacted by the voters as Proposition 63 at the November 2, 2004, statewide general election, establishes the Mental Health Services Fund to fund various county mental health programs. The act provides that it may be amended by the Legislature by a 2/3 vote of each house as long as the amendment is consistent with and furthers the intent of the act, and that the Legislature may also clarify procedures and terms of the act by majority vote. This bill would transfer various functions of the State Department of Mental Health to the State Department of Health Care Services. This bill would make various technical and conforming changes to reflect the transfer of state mental health responsibilities. This bill would authorize the Governor or the Director of Health Care Services to appoint, subject to confirmation by the Senate, a Deputy Director of Mental Health and Substance Use Disorder Services of the State Department of Health Care Services. This bill also would state the intent of the Legislature to create an Office of Health Equity to comprehensively address issues of health disparity, promote healthy communities, and improve individual health outcomes. Existing law requires the State Department of Mental Health to adopt as part of its overall mission the development of community-based, comprehensive, interagency systems of care that target seriously emotionally and behaviorally disturbed children, as specified. This bill would instead authorize, rather than require, these provisions to be implemented. This bill would declare that it clarifies procedures and terms of the Mental Health Services Act. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. It is the intent of the Legislature to enact legislation to realign state administration of community-based mental health services. By enacting this legislation, it is the intent of the Legislature to do all of the following: (a) Improve access to culturally appropriate community-based mental health services, including a focus on client recovery, social rehabilitation services, and peer support. (b) Offer fuller integration of health, mental health, and behavioral health services to individuals in need of these critical services. (c) Offer constructive opportunities for a more inclusive and comprehensive delivery system for individuals needing access to the full continuum of prevention and treatment services. (d) Establish a qualitative process of seeking meaningful stakeholder participation in policy development and policy decisionmaking. (e) Increase accountability and program effectiveness for publicly funded mental health systems and the health care purchasing functions of state government. (f) Effectively integrate the financing of services, including the receipt of federal funds, to more effectively provide services. (g) Provide focused, high-level leadership for mental health and behavioral health services within the state administrative structure. (h) Eliminate administrative redundancies and inefficiencies across programs. SEC. 2. It is the intent of the Legislature to enact legislation to create an Office of Health Equity to comprehensively address issues of health disparity, promote healthy communities, and improve individual health outcomes. By enacting this legislation, it is the intent of the Legislature to do all of the following: (a) Provide consultation to increase public awareness of health disparities, both in terms of public health, mental health, substance use disorders, and the health care purchasing functions of state government. (b) Identify and recommend policies and actions to improve social and environmental conditions. (c) Implement policies and programs that result in a sustainable improvement in the health and mental health status of underserved and disparate communities by working with local communities, local agencies, policymakers, insurers, health care providers, mental health providers, state departments, and others. (d) Provide technical assistance to state departments, boards, and agencies on incorporating a health equity framework into health-related planning processes, programs, and policy efforts. (e) Conduct research, data collection, and analysis to identify health disparities and develop policy priorities and efforts to improve health equity. SEC. 3. Section 21 of the Welfare and Institutions Code is amended to read: 21. (a) Whenever any reference is made in any provision of this code to the "State Department of Benefit Payments" or the "Department of Benefit Payments" with respect to aid, it means the State Department of Social Services. Whenever any reference is made to the "State Department of Benefit Payments" or "Department of Benefit Payments" with respect to mental disorders, it means the State Department of Mental  Health  Care Services  . Whenever reference is made to the "State Department of Benefit Payments" or "Department of Benefit Payments" with respect to developmental disabilities, it means the State Department of Developmental Services. (b) Whenever any reference is made in any provision of this code to the "State Department of Health" or the "Department of Health" with respect to health services, medical assistance, or benefits, it means  the State Department of Health Services   either the State Department of Health Care Services or the State Department of Public Health, as applicable  . Whenever any reference is made to the "State Department of Health" or the "Department of Health" with respect to mental disorders, it means the State Department of Mental  Health  Care Services  . Whenever any reference is made to the "State Department of Health" or "Department of Health" in respect to developmental disabilities, it means the State Department of Developmental Services. (c) Whenever any reference is made in any provision of this code to the "Director of Benefit Payments" with respect to aid, it means the Director of Social Services. Whenever any reference is made to the "Director of Benefit Payments" with respect to mental disorders, it means the Director of  Mental  Health  Care Services  . Whenever any reference is made to the "Director of Benefit Payments" with respect to developmental disabilities, it means the Director of Developmental Services. (d) Whenever any reference is made in any provision of this code to the "State Director of Health" or "Director of Health" with respect to health services, medical assistance, or benefits, it means the  State Director of Health Services   Director of Health Care Services or the State Public Health Officer, as applicable  . Whenever any reference is made to the "State Director of Health" or "Director of Health" with respect to mental disorders, it means Director of  Mental  Health  Care Services  . Whenever any reference is made to the "State Director of Health" or "Director of Health" with reference to developmental disabilities, it means the Director of Developmental Services. SEC. 4. Section 4024.7 is added to the Welfare and Institutions Code, to read: 4024.7. The Governor or the Director of Health Care Services may appoint, subject to confirmation by the Senate, a Deputy Director of Mental Health and Substance Use Disorder Services of the Department of Health Care Services. The salary for the deputy director shall be fixed in accordance with law. SEC. 5. Section 4030 of the Welfare and Institutions Code is amended to read: 4030. The Director of  Mental  Health  Care Services  shall organize appropriate staff of the department to ensure implementation of the planning, research, evaluation, technical assistance, and quality assurance responsibilities set forth in this chapter. SEC. 6. Section 4031 of the Welfare and Institutions Code is amended to read: 4031. The State Department of  Mental  Health  Care Services  shall, to the extent resources are available, do all of the following: (a) Conduct, sponsor, coordinate, and disseminate results of research and evaluation directed to the public policy issues entailed in the selection of resource utilization and service delivery in the state. (b) Make available technical assistance to local mental health programs incorporating the results of research, evaluation, and quality assurance to local mental health programs. (c) Implement a system of required performance reporting by local mental health programs. (d) Perform any other activities useful to improving and maintaining the quality of  state mental hospital and  community mental health programs. SEC. 7. Section 4032 of the Welfare and Institutions Code is amended to read: 4032. The  department   State Department of Health Care Services  shall, when appropriate, give and receive grants and contracts for research, evaluation, and quality assurance efforts. SEC. 8. Section 4033 of the Welfare and Institutions Code is amended to read: 4033. (a) The State Department of  Mental  Health  Care Services  shall, to the extent resources are available, comply with  Substance Abuse and Mental Health Services Administration  federal planning requirements. The department shall update and issue a state plan, which may also be any federally required state service plan, so that citizens may be informed regarding the implementation of, and long-range goals for, programs to serve mentally ill persons in the state. The department shall gather information from counties necessary to comply with this section. (b) (1) If the State Department of  Mental  Health  Care Services  makes a decision not to comply with any  Substance Abuse and Mental Health Services Administration  federal planning requirement to which this section applies, the State Department of  Mental  Health  Care Services  shall submit the decision, for consultation, to the California  Conference of Local  Mental Health Directors  Association  , the California Council on Mental Health, and affected mental health entities. (2) The State Department of  Mental  Health  Care Services  shall not implement any decision not to comply with  the Substance Abuse and Mental Health Services Administration  federal planning requirements sooner than 30 days after notification of that decision, in writing, by the Department of Finance, to the chairperson of the committee in each house of the Legislature which considers appropriations, and the Chairperson of the Joint Legislative Budget Committee. SEC. 9. Section 4040 of the Welfare and Institutions Code is amended to read: 4040. The State Department of  Mental  Health  Care Services  may conduct, or contract for, research or evaluation studies  which   that  have application to  mental health  policy and management issues. In selecting areas for study  ,  the department shall be guided by the information needs of state and local policymakers and managers, and suggestions from the  Mental Health Services Oversight and Accountability Commission established in Section 5845 and the  California  Conference of Local  Mental Health Directors  Association  . SEC. 10. Section 4050 of the Welfare and Institutions Code is amended to read: 4050. The State Department of  Mental  Health  Care Services  shall provide, to the extent resources are available, technical assistance, through its own staff, or by contract, to county mental health programs and other local mental health agencies in the areas of program operations, research, evaluation, demonstration, or quality assurance projects.  The State Department of Health Care Services shall actively seek foundation support and federal grant opportunities for these purposes, and may utilize other federal financial participation when allowed by   federal law.  SEC. 11. Section 4051 of the Welfare and Institutions Code is amended to read: 4051. The State Department of  Mental  Health  Care Services  shall, to the extent resources are available, provide program development guidelines, evaluation models, and operational assistance on all aspects of services to mentally ill persons of all ages. These services include, but are not limited to, the following: (a) Self-help programs. (b) Housing development. (c) Disaster preparation. (d) Vocational services. (e) Regional programs. (f) Multiple diagnosis programs. SEC. 12. Section 4052 of the Welfare and Institutions Code is amended to read: 4052. The State Department of  Mental  Health  Care Services  shall, to the extent resources are available, provide training in performance standards, model programs, cultural competency, and program development. SEC. 13. Section 4060 of the Welfare and Institutions Code is amended to read: 4060. The  department   State Department of Health Care Services  shall, in order to implement Section 4050, utilize a joint state-county decisionmaking process that shall include local mental health directors and representatives of local mental health boards. The purpose of this collaboration shall be to promote effective and efficient quality mental health services to the residents of the state under the realigned mental health system. SEC. 14. Section 4061 of the Welfare and Institutions Code is amended to read: 4061. (a) The  department   State Department of Health Care Services  shall utilize a joint state-county decisionmaking process to determine the appropriate use of state and local training, technical assistance, and regulatory resources to meet the mission and goals of the state's mental health system. The department shall use the decisionmaking collaborative process required by this section in all of the following areas: (1) Providing technical assistance to the State Department of  Mental  Health  Care Services  and local mental health departments through direction of existing state and local mental health staff and other resources. (2) Analyzing mental health programs, policies, and procedures. (3) Providing forums on specific topics as they relate to the following: (A) Identifying current level of services. (B) Evaluating existing needs and gaps in current services. (C) Developing strategies for achieving statewide goals and objectives in the provision of services for the specific area. (D) Developing plans to accomplish the identified goals and objectives. (4) Providing forums on policy development and direction with respect to mental health program operations and clinical issues. (5) Identifying and funding a statewide training and technical assistance entity jointly governed by local mental health directors and mental health constituency representation, which can do all of the following: (A) Coordinate state and local resources to support training and technical assistance to promote quality mental health programs. (B) Coordinate training and technical assistance to ensure efficient and effective program development. (C) Provide essential training and technical assistance, as determined by the state-county decisionmaking process. (b) Local mental health board members shall be included in discussions pursuant to Section 4060 when the following areas are discussed: (1) Training and education program recommendations. (2) Establishment of statewide forums for all organizations and individuals involved in mental health matters to meet and discuss program and policy issues. (3) Distribution of information between the state, local programs, local mental health boards, and other organizations as appropriate. (c) The State Department of  Mental  Health  Care   Services  and local mental health departments may provide staff or other resources, including travel reimbursement, for consultant and advisory services; for the training of personnel, board members, or consumers and families in state and local programs and in educational institutions and field training centers approved by the department; and for the establishment and maintenance of field training centers. SEC. 15. Section 4090 of the Welfare and Institutions Code is amended to read: 4090. (a) The State Department of  Mental  Health  Care Services  shall establish, by regulation, standards for the programs listed in Chapter 2.5 (commencing with Section 5670) of Part 2 of Division 5. These standards shall also be applied by the department to any facility licensed as a social rehabilitation facility pursuant to paragraph (7) of subdivision (a) of Section 1502 of the Health and Safety Code. (b) In establishing the standards required by this section, the department shall not establish standards  which   that  in themselves impose any new or increased costs on the programs or facilities affected by the standards. SEC. 16. Section 4091 of the Welfare and Institutions Code is amended to read: 4091. Nothing in Section 4090 limits the authority of the State Department of  Mental  Health  Care Services  to delegate the evaluation and enforcement of the program standards to a county mental health program when a licensed social rehabilitation facility has a contractual relationship with a county mental health program and the county has requested the delegation. SEC. 17. Section 4094 of the Welfare and Institutions Code is amended to read: 4094. (a) The State Department of Mental Health shall establish, by regulations adopted at the earliest possible date, but no later than December 31, 1994, program standards for any facility licensed as a community treatment facility. This section shall apply only to community treatment facilities described in this subdivision.  (b) Commencing July 1, 2012, the State Department of Health Care Services may adopt or amend regulations pertaining to the program standards for any facility licensed as a community treatment facility.   (b)   (c)  A certification of compliance issued by the State Department of  Mental  Health  Care Services  shall be a condition of licensure for the community treatment facility by the State Department of Social Services. The department may, upon the request of a county, delegate the certification and supervision of a community treatment facility to the county department of mental health.  (c)   (d)  The State Department of  Mental  Health  Care Services  shall adopt regulations to include, but not be limited to, the following: (1) Procedures by which the Director of  Mental  Health  Care Servi   ces  shall certify that a facility requesting licensure as a community treatment facility pursuant to Chapter 3 (commencing with Section 1500) of Division 2 of the Health and Safety Code is in compliance with program standards established pursuant to this section. (2) Procedures by which the Director of  Mental  Health  Care Services  shall deny a certification to a facility or decertify a facility that is licensed as a community treatment facility pursuant to Chapter 3 (commencing with Section 1500) of Division 2 of the Health and Safety Code, but no longer complying with program standards established pursuant to this section, in accordance with Chapter 5 (commencing with Section 11500) of Part 1 of Division 3 of Title 2 of the Government Code. (3) Provisions for site visits by the State Department of  Mental  Health  Care Services  for the purpose of reviewing a facility's compliance with program standards established pursuant to this section. (4) Provisions for the community care licensing staff of the State Department of Social Services to report to the State Department of  Mental  Health  Care Services  when there is reasonable cause to believe that a community treatment facility is not in compliance with program standards established pursuant to this section. (5) Provisions for the State Department of  Mental  Health  Care Services  to provide consultation and documentation to the State Department of Social Services in any administrative proceeding regarding denial, suspension, or revocation of a community treatment facility license.  (d)   (e)  The standards adopted by regulations pursuant to  subdivision   subdivisions  (a)  and (b)  shall include, but not be limited to, standards for treatment, staffing, and for the use of psychotropic medication, discipline, and restraints in the facilities. The standards shall also meet the requirements of Section 4094.5.  (e)   (f)  (1) Until January 1, 2013, all of the following are applicable: (A) A community treatment facility shall not be required by the State Department of  Mental  Health  Care Services  to have 24-hour onsite licensed nursing staff, but shall retain at least one full-time, or full-time-equivalent, registered nurse onsite if both of the following are applicable: (i) The facility does not use mechanical restraint. (ii) The facility only admits children who have been assessed, at the point of admission, by a licensed primary care provider and a licensed psychiatrist, who have concluded, with respect to each child, that the child does not require medical services that require 24-hour nursing coverage. For purposes of this section, a "primary care provider" includes a person defined in Section 14254, or a nurse practitioner who has the responsibility for providing initial and primary care to patients, for maintaining the continuity of care, and for initiating referral for specialist care. (B) Other medical or nursing staff shall be available on call to provide appropriate services, when necessary, within one hour. (C) All direct care staff shall be trained in first aid and cardiopulmonary resuscitation, and in emergency intervention techniques and methods approved by the Community Care Licensing Division of the State Department of Social Services. (2) The State Department of Mental Health may adopt emergency regulations as necessary to implement this subdivision. The adoption of these regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, and general welfare. The regulations shall be exempt from review by the Office of Administrative Law and shall become effective immediately upon filing with the Secretary of State. The regulations shall not remain in effect more than 180 days unless the adopting agency complies with all the provisions of Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, as required by subdivision (e) of Section 11346.1 of the Government Code.  (f)   (g)  During the initial public comment period for the adoption of the regulations required by this section, the community care facility licensing regulations proposed by the State Department of Social Services and the program standards proposed by the State Department of Mental Health shall be presented simultaneously.  (g)   (h)  A minor shall be admitted to a community treatment facility only if the requirements of Section 4094.5 and either of the following conditions are met: (1) The minor is within the jurisdiction of the juvenile court, and has made voluntary application for mental health services pursuant to Section 6552. (2) Informed consent is given by a parent, guardian, conservator, or other person having custody of the minor.  (h)   (i)  Any minor admitted to a community treatment facility shall have the same due process rights afforded to a minor who may be admitted to a state hospital, pursuant to the holding in In re Roger S. (1977) 19 Cal.3d 921. Minors who are wards or dependents of the court and to whom this subdivision applies shall be afforded due process in accordance with Section 6552 and related case law, including In re Michael E. (1975) 15 Cal.3d 183. Regulations adopted pursuant to  Section 4094   this section  shall specify the procedures for ensuring these rights, including provisions for notification of rights and the time and place of hearings.  (i)   (j)  Notwithstanding Section 13340 of the Government Code, the sum of forty-five thousand dollars ($45,000) is hereby appropriated annually from the General Fund to the State Department of Mental Health for one personnel year to carry out the provisions of this section. SEC. 18. Section 5370.2 of the Welfare and Institutions Code is amended to read: 5370.2. (a)  Beginning January 1, 1996, the   The  State Department of  Mental Health   State Hospitals and the State Department of Health Care Services  shall  have a single comprehensive  contract with a single nonprofit agency that meets the criteria specified in subdivision (b) of Section 5510 to conduct the following activities: (1) Provide patients' rights advocacy services for, and conduct investigations of alleged or suspected abuse and neglect of, including deaths of, persons with mental disabilities residing in state hospitals. (2) Investigate and take action as appropriate and necessary to resolve complaints from or concerning recipients of mental health services residing in licensed health or community care facilities regarding abuse, and unreasonable denial, or punitive withholding of rights guaranteed under this division that cannot be resolved by county patients' rights advocates. (3) Provide consultation, technical assistance, and support to county patients' rights advocates in accordance with their duties under Section 5520. (4) Conduct program review of patients' rights programs. (b) The services shall be provided in coordination with the appropriate mental health patients' rights advocates. (c) (1) The contractor shall develop a plan to provide patients' rights advocacy services for, and conduct investigations of alleged or suspected abuse and neglect of, including the deaths of, persons with mental disabilities residing in state hospitals. (2) The contractor shall develop the plan in consultation with the statewide organization of mental health patients' rights advocates, the statewide organization of mental health clients, and the statewide organization of family members of persons with mental disabilities, and the statewide organization of county mental health directors. (3) In order to ensure that persons with mental disabilities have access to high quality advocacy services, the contractor shall establish a grievance procedure and shall advise persons receiving services under the contract of the availability of other advocacy services, including services provided by the protection and advocacy agency specified in Section 4901 and the county patients' rights advocates specified in Section 5520. (d) Nothing contained in this section shall be construed to restrict or limit the authority of the department to conduct the reviews and investigations it deems necessary for personnel, criminal, and litigation purposes. (e) The State Department of  Mental Health   State Hospitals and the State Department of   Health Care Services  shall  have a single comprehe   nsive  contract on a multiyear basis for a contract term of up to five years. SEC. 19. Section 5510 of the Welfare and Institutions Code is amended to read: 5510. (a) The Legislature finds and declares as follows: (1) The State of California accepts its responsibility to ensure and uphold the right of persons with mental disabilities and an obligation, to be executed by the State Department of Mental  Health  Care Services and the State Department of State Hospitals  , to ensure that mental health laws, regulations and policies on the rights of recipients of mental health services are observed and protected in state hospitals and in licensed health and community care facilities. (2) Persons with mental disabilities are vulnerable to abuse, neglect, and unreasonable and unlawful deprivations of their rights. (3) Patients' rights advocacy and investigative services concerning patient abuse and neglect  currently   formerly  provided by the State Department of Mental Health, including the department's Office of Human Rights and investigator, and state hospital patients' rights advocates and state hospital investigators may have  had  conflicts of interest or the appearance of a conflict of interest. (4) The services provided to patients and their families is of such a special and unique nature that they must be contracted out pursuant to paragraph (3) of subdivision (b) of Section 19130 of the Government Code. (b) Therefore, to avoid the potential for a conflict of interest or the appearance of a conflict of interest, it is the intent of the Legislature that the patients' rights advocacy and investigative services described in this article be provided by a single contractor specified in Section 5370.2 that meets both of the following criteria: (1) The contractor can demonstrate the capability to provide statewide advocacy services for persons with mental disabilities. (2) The contractor has no direct or indirect responsibility for providing services to persons with mental disabilities, except advocacy services. (c) For the purposes of this article, the Legislature further finds and declares, because of a potential conflict of interest or the appearance of a conflict of interest, that the goals and purposes of the state patients' rights advocacy and investigative services cannot be accomplished through the utilization of persons selected pursuant to the regular state civil service system. Accordingly, the contracts into which the  department enters   departments enter  pursuant to this section are permitted and authorized by paragraphs (3) and (5) of subdivision (b) of Section 19130 of the Government Code. The State Department of  Mental  Health  Care Services and the State Department of State Hospitals  shall  have a single comprehensive  contract with a single nonprofit entity to provide for the protection and advocacy services to persons with mental disabilities. The entity shall be responsible for ensuring that mental health laws, regulations, and policies on the rights of recipients of mental health services are observed in state hospitals and in licensed health and community care facilities. (d) The findings and declarations of potential conflict of interest provided in this section shall not apply to advocacy services provided under Article 3 (commencing with Section 5520). SEC. 20. Section 5513 of the Welfare and Institutions Code is amended to read: 5513. The Patients' Rights Office shall serve as a liaison between county patients' rights advocates and the State Department of  Mental  Health  Care Services  . SEC. 21. Section 5514 of the Welfare and Institutions Code is amended to read: 5514. There shall be a five-person Patients' Rights Subcommittee of the California Council on Mental Health. This subcommittee, supplemented by two ad hoc members appointed by the chairperson of the subcommittee, shall advise the Director of  Mental  Health  Care Services and the Director of State Hospitals  regarding department policies and practices that affect patients' rights. The subcommittee shall also review the advocacy and patients' rights components of each county  Short-Doyle  plan and advise the Director of  Mental  Health  Care Services and the Director of State Hospitals  concerning the adequacy of each plan in protecting patients' rights. The ad hoc members of the subcommittee shall be persons with substantial experience in establishing and providing independent advocacy services to recipients of mental health services. SEC. 22. Section 5530 of the Welfare and Institutions Code is amended to read: 5530. (a) County patients' rights advocates shall have access to all clients and other recipients of mental health services in any mental health facility, program, or service at all times as are necessary to investigate or resolve specific complaints and in accord with subdivision (b) of Section 5523. County patients' rights advocates shall have access to mental health facilities, programs, and services, and recipients of services therein during normal working hours and visiting hours for other advocacy purposes. Advocates may appeal any denial of access directly to the head of any facility, the director of a county mental health program or the State Department of  Mental  Health  Care Services  or may seek appropriate relief in the courts. If a petition to a court sets forth prima facie evidence for relief, a hearing on the merits of the petition shall be held within two judicial days of the filing of the petition. The superior court for the county in which the facility is located shall have jurisdiction to review petitions filed pursuant to this chapter. (b) County patients' rights advocates shall have the right to interview all persons providing the client with diagnostic or treatment services. (c) Upon request, all mental health facilities shall, when available, provide reasonable space for county patients' rights advocates to interview clients in privacy and shall make appropriate staff persons available for interview with the advocates in connection with pending matters. (d) Individual patients shall have a right to privacy which shall include the right to terminate any visit by persons who have access pursuant to this chapter and the right to refuse to see any patient advocate. (e) Notice of the availability of advocacy services and information about patients' rights may be provided by county patients' rights advocates by means of distribution of educational materials and discussions in groups and with individual patients. SEC. 23. Section 5585.22 of the Welfare and Institutions Code is amended to read: 5585.22. The Director of  Mental  Health  Care Services  , in consultation with the California  Conference of Local  Mental Health Directors  Association  , may develop the appropriate educational materials and a training curriculum, and may provide training as necessary to assure those persons providing services pursuant to this part fully understand its purpose. SEC. 24. Section 5601 of the Welfare and Institutions Code is amended to read: 5601. As used in this part: (a) "Governing body" means the county board of supervisors or boards of supervisors in the case of counties acting jointly; and in the case of a city, the city council or city councils acting jointly. (b) "Conference" means the California  Conference of Local  Mental Health Directors  as established under Section 5757   Association  . (c) Unless the context requires otherwise, "to the extent resources are available" means to the extent that funds deposited in the mental health account of the local health and welfare fund are available to an entity qualified to use those funds. (d) "Part 1" refers to the Lanterman-Petris-Short Act (Part 1 (commencing with Section 5000)). (e) "Director of  Mental  Health  Care Services  " or "director" means the Director of  the State Department of Mental  Health  Care Services  . (f) "Institution" includes a general acute care hospital, a state hospital, a psychiatric hospital, a psychiatric health facility, a skilled nursing facility, including an institution for mental disease as described in Chapter 1 (commencing with Section 5900) of Part 5, an intermediate care facility, a community care facility or other residential treatment facility, or a juvenile or criminal justice institution. (g) "Mental health service" means any service directed toward early intervention in, or alleviation or prevention of, mental disorder, including, but not limited to, diagnosis, evaluation, treatment, personal care, day care, respite care, special living arrangements, community skill training, sheltered employment, socialization, case management, transportation, information, referral, consultation, and community services. SEC. 25. Section 5602 of the Welfare and Institutions Code is amended to read: 5602. The board of supervisors of every county, or the boards of supervisors of counties acting under the joint powers provisions of Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code shall establish a community mental health service to cover the entire area of the county or counties. Services of the State Department of  Mental  Health  Care Services shall be provided to the county, or counties acting jointly, or, if both parties agree, the state facilities may, in whole or in part, be leased, rented or sold to the county or counties for county operation, subject to terms and conditions approved by the Director of General Services. SEC. 26. Section 5604 of the Welfare and Institutions Code is amended to read: 5604. (a) (1) Each community mental health service shall have a mental health board consisting of 10 to 15 members, depending on the preference of the county, appointed by the governing body, except that boards in counties with a population of less than 80,000 may have a minimum of five members. One member of the board shall be a member of the local governing body. Any county with more than five supervisors shall have at least the same number of members as the size of its board of supervisors. Nothing in this section shall be construed to limit the ability of the governing body to increase the number of members above 15. Local mental health boards may recommend appointees to the county supervisors. Counties are encouraged to appoint individuals who have experience and knowledge of the mental health system. The board membership should reflect the ethnic diversity of the client population in the county. (2) Fifty percent of the board membership shall be consumers or the parents, spouses, siblings, or adult children of consumers, who are receiving or have received mental health services. At least 20 percent of the total membership shall be consumers, and at least 20 percent shall be families of consumers. (3) (A) In counties under 80,000 population, at least one member shall be a consumer, and at least one member shall be a parent, spouse, sibling, or adult child of a consumer, who is receiving, or has received, mental health services. (B) Notwithstanding subparagraph (A), a board in a county with a population under 80,000 that elects to have the board exceed the five-member minimum permitted under paragraph (1) shall be required to comply with paragraph (2). (b) The term of each member of the board shall be for three years. The governing body shall equitably stagger the appointments so that approximately one-third of the appointments expire in each year. (c) If two or more local agencies jointly establish a community mental health service under Article 1 (commencing with Section 6500) of Chapter 5 of Division 7 of Title 1 of the Government Code, the mental health board for the community mental health service shall consist of an additional two members for each additional agency, one of whom shall be a consumer or a parent, spouse, sibling, or adult child of a consumer who has received mental health services. (d) No member of the board or his or her spouse shall be a full-time or part-time county employee of a county mental health service, an employee of the State Department of  Mental  Health  Care Services  , or an employee of, or a paid member of the governing body of, a mental health contract agency. (e) Members of the board shall abstain from voting on any issue in which the member has a financial interest as  defined   specified  in Section 87103 of the Government Code. (f) If it is not possible to secure membership as specified from among persons who reside in the county, the governing body may substitute representatives of the public interest in mental health who are not full-time or part-time employees of the county mental health service, the State Department of  Mental  Health  Care Services  , or on the staff of, or a paid member of the governing body of, a mental health contract agency. (g) The mental health board may be established as an advisory board or a commission, depending on the preference of the county. SEC. 27. Section 5610 of the Welfare and Institutions Code is amended to read: 5610. (a) Each county mental health system shall comply with reporting requirements developed by the State Department of  Mental  Health  which   Care Services that  shall be uniform and simplified. The department shall review existing data requirements to eliminate unnecessary requirements and consolidate requirements which are necessary. These requirements shall provide comparability between counties in reports. (b) The department shall develop, in consultation with the Performance Outcome Committee pursuant to Section 5611, and with the  California  Health and  Welfare   Human Services  Agency, uniform definitions and formats for a statewide, nonduplicative client-based information system that includes all information necessary to meet federal mental health grant requirements and state and federal medicaid reporting requirements, as well as any other state requirements established by law. The data system, including performance outcome measures reported pursuant to Section 5613, shall be developed by July 1, 1992. (c) Unless determined necessary by the department to comply with federal law and regulations, the data system developed pursuant to subdivision (b) shall not be more costly than that in place during the 1990-91 fiscal year. (d) (1) The department shall develop unique client identifiers that permit development of client-specific cost and outcome measures and related research and analysis. (2) The department's collection and use of client information, and the development and use of client identifiers, shall be consistent with clients' constitutional and statutory rights to privacy and confidentiality. (3) Data reported to the department may include name and other personal identifiers. That information is confidential and subject to Section 5328 and any other state and federal laws regarding confidential client information. (4) Personal client identifiers reported to the department shall be protected to ensure confidentiality during transmission and storage through encryption and other appropriate means. (5) Information reported to the department may be shared with local public mental health agencies submitting records for the same person and that information is subject to Section 5328. (e) All client information reported to the department pursuant to Chapter 2 (commencing with Section 4030) of Part 1 of Division 4 and Sections 5328 to 5780, inclusive, and any other state and federal laws regarding reporting requirements, consistent with Section 5328, shall not be used for purposes other than those purposes expressly stated in the reporting requirements referred to in this subdivision. (f) The department may adopt emergency regulations to implement this section in accordance with the Administrative Procedure Act, Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. The adoption of emergency regulations to implement this section that are filed with the Office of Administrative Law within one year of the date on which the act that added this subdivision took effect shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare and shall remain in effect for no more than 180 days. SEC. 28. Section 5652.7 of the Welfare and Institutions Code is amended to read: 5652.7. A county shall have only 60 days from the date of submission of an application to review and certify or deny an application to establish a new mental health care provider. If an application requires review by the State Department of Health  Care  Services, the department shall also have only 60 days from the date of submission of the application to review and certify or deny an application to establish a new mental health care provider. SEC. 29. Section 5653 of the Welfare and Institutions Code is amended to read: 5653.  In developing the county Short-Doyle plan, optimum   Optimum  use shall be made of appropriate local public and private organizations, community professional personnel, and state agencies. Optimum use shall also be made of federal, state, county, and private funds which may be available for mental health planning. In order that maximum utilization be made of federal and other funds made available to the Department of Rehabilitation, the Department of Rehabilitation may serve as a contractual provider under the provisions of a county  Short-Doyle  plan of vocational rehabilitation services for the mentally disordered. SEC. 30. Section 5653.1 of the Welfare and Institutions Code is amended to read: 5653.1.  In conducting evaluation, planning, and research activities to develop and implement the county Short-Doyle plan, counties   Counties  may contract with public or private agencies. SEC. 31. Section 5654 of the Welfare and Institutions Code is amended to read: 5654. In order to serve the increasing needs of children and adolescents with mental and emotional problems, county mental health programs may use funds  allocated under the Short-Doyle Act  for the purposes of consultation and training. SEC. 32. Section 5655 of the Welfare and Institutions Code is amended to read: 5655. All departments of state government and all local public agencies shall cooperate with county officials to assist them in mental health planning. The State Department of  Mental  Health  Care Services  shall, upon request and with available staff, provide consultation services to the local mental health directors, local governing bodies, and local mental health advisory boards. If the Director of  Mental  Health  Care   Services  considers any county to be failing, in a substantial manner, to comply with any provision of this code or any regulation,  or with the approved county Short-Doyle plan,  the director shall order the county to appear at a hearing, before the director or the director's designee, to show cause why the department should not take action as set forth in this section. The county shall be given at least 20 days' notice of such hearing. The director shall consider the case on the record established at the hearing and make final findings and decision. If the director determines that there is or has been a failure, in a substantial manner, on the part of the county to comply with any provision of this code or any regulations  or the approved county Short-Doyle plan  , and that administrative sanctions are necessary, the department may invoke any, or any combination of, the following sanctions: (a) Withhold part or all of state mental health funds from such county. (b) Require the county to enter into negotiations for the purpose of  assuring   ensuring  county  Short-Doyle plan  compliance with  such   these  laws and regulations. (c) Bring an action in mandamus or  such  other action in court as may be appropriate to compel compliance. Any such action shall be entitled to a preference in setting a date for a hearing. SEC. 33. Section 5664 of the Welfare and Institutions Code is amended to read: 5664. (a) County mental health systems shall provide reports and data to meet the information needs of the state. (b) The  department   State Department of Health Care Services  shall not implement this section in a manner requiring a higher level of service for state reporting needs than that which it was authorized to require prior to July 1, 1991. SEC. 34. Section 5664.5 of the Welfare and Institutions Code is amended to read: 5664.5. (a) County mental health systems shall continue to provide data required by the State Department of  Mental  Health  Care Services  to establish uniform definitions and time increments for reporting type and cost of services received by local mental health program clients. (b) This section shall remain in effect only until January 1, 1994, and as of that date is repealed, unless a later enacted statute, which becomes effective on or before January 1, 1994, deletes or extends the dates on which it is repealed; or until the date upon which the director informs the Legislature that the new data system is established pursuant to Section 5610, whichever is later, unless the provisions of the section are required by the federal government  as a condition of funding for the Short-Doyle Medi-Cal program  . SEC. 35. Section 5692 of the Welfare and Institutions Code is amended to read: 5692. The State Department of  Mental  Health  Care Services  shall, to the extent resources are available, have responsibility for the provision of technical assistance, maximizing federal revenue, and ensuring coordination with other state agencies including implementing and coordinating interagency agreements between the Department of Rehabilitation and the State Department of  Mental  Health  Care Services  . SEC. 36. Section 5701 of the Welfare and Institutions Code is amended to read: 5701. (a) To achieve equity of funding, available funding for local mental health programs beyond the funding provided pursuant to Section 17601 shall be distributed to cities, counties, and cities and counties pursuant to the procedures described in subdivision (c) of Section 17606.05. (b) Funding provided pursuant to Section 6 of Article XIII B of the California Constitution, funding provided pursuant to subdivision (c), and funding provided for future pilot projects shall be exempt from the requirements of subdivision (a). (c) Effective in the 1994-95 fiscal year and each year thereafter: (1) The State Department of  Mental  Health  Care Services  shall annually identify from mental health block grant funds provided by the federal government, the maximum amount that federal law and regulation permit to be allocated to counties and cities and counties pursuant to this subdivision. This section shall apply to any federal mental health block grant funds in excess of the following: (A) The amount allocated to counties and cities and counties from the alcohol, drug abuse, and mental health block grant in the 1991-92 fiscal year. (B) Funds for departmental support. (C) Amounts awarded to counties and cities and counties for children's systems of care programs pursuant to Part 4 (commencing with Section 5850). (D) Amounts allocated to small counties for the development of alternatives to state hospitalization in the 1993-94 fiscal year. (E) Amounts appropriated by the Legislature for the purposes of this part. (2) Notwithstanding subdivision (a), annually the State Department of  Mental  Health  Care Services  shall allocate to counties and cities and counties the funds identified in paragraph (1), not to exceed forty million dollars ($40,000,000) in any year. The allocations shall be proportional to each county's and each city and county's percentage of the forty million dollars ($40,000,000) in Cigarette and Tobacco Products Surtax funds that were allocated to local mental health programs in the 1991-92 fiscal year. (3) Monthly, the Controller shall allocate funds from the Vehicle License Collection Account of the Local Revenue Fund to counties and cities and counties for mental health services. Allocations shall be made to each county or city and county in the same percentages as described in paragraph (2), until the total of the funds allocated to all counties in each year pursuant to paragraph (2) and this paragraph reaches forty million dollars ($40,000,000). (4) Funds allocated to counties and cities and counties pursuant to paragraphs (2) and (3) shall not be subject to Section 17606.05. (5) Funds that are available for allocation in any year in excess of the forty million dollar ($40,000,000) limits described in paragraph (2) or (3) shall be deposited into the Mental Health Subaccount of the Local Revenue Fund. (6) Nothing in this section is intended to, nor shall it, change the base allocation of any city, county, or city and county as provided in Section 17601. SEC. 37. Section 5701.1 of the Welfare and Institutions Code is amended to read: 5701.1. Notwithstanding Section 5701, the State Department of  Mental  Health  Care Services  , in consultation with the California Mental Health Directors Association, may utilize funding from the Substance Abuse and Mental Health Services Administration Block Grant, awarded to the State Department of  Mental  Health Care Services  , above the funding level provided in federal fiscal year 1998, for the development of innovative programs for identified target populations, upon appropriation by the Legislature. SEC. 38. Section 5707 of the Welfare and Institutions Code is amended to read: 5707. Funds appropriated to the  department which   State Department of Health Care Services that  are designated for local mental health services and funds  which   that  the  department   State Depart   ment of Health Care Services  is responsible for allocating or administering, including, but not limited to, federal block grants funds, shall be expended in accordance with this section and Sections 5708 to 5717, inclusive, except when there are conflicting federal requirements, in which case the federal requirements shall be controlling. SEC. 39. Section 5715 of the Welfare and Institutions Code is amended to read: 5715. Subject to the approval of the  department   State Department of Health Care Services , at the end of the fiscal year, a county may retain unexpended funds allocated to it by the department from funds appropriated to the department, with the exception of block grant funds, exclusive of the amount required to pay for the care of patients in state hospitals, for 12 months for expenditure for mental health services in accordance with this part. SEC. 40. Section 5717 of the Welfare and Institutions Code is amended to read: 5717. (a) Expenditures that may be funded from amounts allocated to the county by the  department   State Department of Health Care Services  from funds appropriated to the department shall include  negotiated rates and net amounts;  salaries of personnel; approved facilities and services provided through contract; operation, maintenance and service costs including insurance costs or departmental charges for participation in a county self-insurance program if the charges are not in excess of comparable available commercial insurance premiums and on the condition that any surplus reserves be used to reduce future year contributions; depreciation of county facilities as established in the state's uniform accounting manual, disregarding depreciation on the facility to the extent it was financed by state funds under this part; lease of facilities where there is no intention to, nor option to, purchase; expenses incurred under this act by members of the California  Conference of Local  Mental Health Directors  Association  for attendance at regular meetings of these conferences; expenses incurred by either the chairperson or elected representative of the local mental health advisory boards for attendance at regular meetings of the Organization of Mental Health Advisory Boards; expenditures included in approved countywide cost allocation plans submitted in accordance with the Controller's guidelines, including, but not limited to, adjustments of prior year estimated general county overhead to actual costs, but excluding allowable costs otherwise compensated by state funding; net costs of conservatorship investigation, approved by the Director of  Mental  Health  Care Services  . Except for expenditures made pursuant to Article 6 (commencing with Section 129225) of Chapter 1 of Part 6 of Division 107 of the Health and Safety Code, it shall not include expenditures for initial capital improvements; the purchaser or construction of buildings except for equipment items and remodeling expense as may be provided for in regulations of the State Department of  Mental  Health  Care Services  ; compensation to members of a local mental health advisory board, except actual and necessary expenses incurred in the performance of official duties that may include travel, lodging, and meals while on official business; or expenditures for a purpose for which state reimbursement is claimed under any other provision of law. (b) The  director   Director of Health Care Services  may make investigations and audits of expenditures the director may deem necessary. (c) With respect to funds allocated to a county by the  department   State Department of Health Care Services  from funds appropriated to the department, the county shall repay to the state amounts found not to have been expended in accordance with the requirements set forth in this part. Repayment shall be within 30 days after it is determined that an expenditure has been made that is not in accordance with the requirements. In the event that repayment is not made in a timely manner, the department shall offset any amount improperly expended against the amount of any current or future advance payment or cost report settlement from the state for mental health services. Repayment provisions shall not apply to Short-Doyle funds allocated by the department for fiscal years up to and including the 1990-91 fiscal year. SEC. 41. Section 5751 of the Welfare and Institutions Code is amended to read: 5751. (a) Regulations pertaining to the qualifications of directors of local mental health services shall be administered in accordance with Section 5607. These standards may include the maintenance of records of service which shall be reported to the State Department of  Mental  Health  Care Services  in a manner and at times as it may specify. (b) Regulations pertaining to the position of director of local mental health services, where the local director is other than the local health officer or medical administrator of the county hospitals, shall require that the director be a psychiatrist, psychologist, clinical social worker, marriage and family therapist, professional clinical counselor, registered nurse, or hospital administrator, who meets standards of education and experience established by the Director of  Mental  Health Care Services  . Where the director is not a psychiatrist, the program shall have a psychiatrist licensed to practice medicine in this state and who shall provide to patients medical care and services as authorized by Section 2051 of the Business and Professions Code. (c) The regulations shall be adopted in accordance with the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code). SEC. 42. Section 5751.1 of the Welfare and Institutions Code is amended to read: 5751.1. Regulations pertaining to the position of director of local mental health services, where the local director is other than the local health officer or medical administrator of the county hospitals, shall require that the director meet the standards of education and experience established by the Director of  Mental  Health  Care Services  and that the appointment be open on the basis of competence to all eligible disciplines pursuant to Section 5751. Regulations pertaining to the qualifications of directors of local mental health services shall be administered in accordance with Section 5607. Where the director of local mental health services is not a psychiatrist, the program shall have a psychiatrist licensed to practice medicine in this state and who shall provide to patients medical care and services as authorized by Section  2137   2051  of the Business and Professions Code. SEC. 43. Section 5751.2 of the Welfare and Institutions Code is amended to read: 5751.2. (a) Except as provided in this section, persons employed or under contract to provide mental health services pursuant to this part shall be subject to all applicable requirements of law regarding professional licensure, and no person shall be employed in local mental health programs pursuant to this part to provide services for which a license is required, unless the person possesses a valid license. (b) Persons employed as psychologists and clinical social workers, while continuing in their employment in the same class as of January 1, 1979, in the same program or facility, including those persons on authorized leave, but not including intermittent personnel, shall be exempt from the requirements of subdivision (a). (c) While registered with the licensing board of jurisdiction for the purpose of acquiring the experience required for licensure, persons employed or under contract to provide mental health services pursuant to this part as clinical social workers, marriage and family therapists, or professional clinical counselors shall be exempt from subdivision (a). Registration shall be subject to regulations adopted by the appropriate licensing board. (d) The requirements of subdivision (a) shall be waived by the  department   State Department of Health Care Services  for persons employed or under contract to provide mental health services pursuant to this part as psychologists who are gaining the experience required for licensure. A waiver granted under this subdivision may not exceed five years from the date of employment by, or contract with, a local mental health program for persons in the profession of psychology. (e) The requirements of subdivision (a) shall be waived by the  department   State Department of Health Care Services  for persons who have been recruited for employment from outside this state as psychologists, clinical social workers, marriage and family therapists, or professional clinical counselors and whose experience is sufficient to gain admission to a licensing examination. A waiver granted under this subdivision may not exceed three years from the date of employment by, or contract with, a local mental health program for persons in these four professions who are recruited from outside this state. SEC. 44. Section 5770 of the Welfare and Institutions Code is amended to read: 5770. Notwithstanding any other provision of law, the department   State Department of Health Care Services  may directly, or by contract  ,  with any public or private agency, provide any of the services under this division when the  director   state  determines that the services are necessary to protect the public health, safety, or welfare. SEC. 45. Section 5770.5 of the Welfare and Institutions Code is amended to read: 5770.5. The  department   State Department of Health Care Services  shall encourage county mental health programs to develop and support local programs designed to provide technical assistance to self-help groups for the purposes of maintaining existing groups, as well as to stimulate development of new self-help groups from locally defined needs. SEC. 46. Section 5771 of the Welfare and Institutions Code is amended to read: 5771. (a) Pursuant to Public Law 102-321, there is the California Mental Health Planning Council. The purpose of the planning council shall be to fulfill those mental health planning requirements mandated by federal law. (b) (1) The planning council shall have 40 members, to be comprised of members appointed from both the local and state levels in order to ensure a balance of state and local concerns relative to planning. (2) As required by federal law, eight members of the planning council shall represent various state departments. (3) Members of the planning council shall be appointed in a manner that will ensure that at least one-half are persons with mental disabilities, family members of persons with mental disabilities, and representatives of organizations advocating on behalf of persons with mental disabilities. Persons with mental disabilities and family members shall be represented in equal numbers. (4) The Director of  Mental  Health  Care Services  shall make appointments from among nominees from various mental health constituency organizations, which shall include representatives of consumer-related advocacy organizations, representatives of mental health professional and provider organizations, and representatives who are direct service providers from both the public and private sectors. The director shall also appoint one representative of the California Coalition on Mental Health. (c) Members should be balanced according to demography, geography, gender, and ethnicity. Members should include representatives with interest in all target populations, including, but not limited to, children and youth, adults, and older adults. (d) The planning council shall annually elect a chairperson and a chair-elect. (e) The term of each member shall be three years, to be staggered so that approximately one-third of the appointments expire in each year. (f) In the event of changes in the federal requirements regarding the structure and function of the planning council, or the discontinuation of federal funding, the State Department of  Mental  Health  Care Services  shall propose to the Legislature modifications in the structure of the planning council that the department deems appropriate. SEC. 47. Section 5771.3 of the Welfare and Institutions Code is amended to read: 5771.3. The California Mental Health Planning Council may utilize staff of the State Department of  Mental  Health  Care Services  , to the extent they are available, and the staff of any other public or private agencies that have an interest in the mental health of the public and that are able and willing to provide those services. SEC. 48. Section 5772 of the Welfare and Institutions Code is amended to read: 5772. The California Mental Health Planning Council shall have the powers and authority necessary to carry out the duties imposed upon it by this chapter, including, but not limited to, the following: (a) To advocate for effective, quality mental health programs. (b) To review, assess, and make recommendations regarding all components of California's mental health system, and to report as necessary to the Legislature, the State Department of  Mental  Health  Care Services  , local boards, and local programs. (c) To review program performance in delivering mental health services by annually reviewing performance outcome data as follows: (1) To review and approve the performance outcome measures. (2) To review the performance of mental health programs based on performance outcome data and other reports from the State Department of  Mental  Health  Care Services  and other sources. (3) To report findings and recommendations on programs' performance annually to the Legislature, the State Department of  Mental  Health  Care Services  , and the local boards. (4) To identify successful programs for recommendation and for consideration of replication in other areas. As data and technology are available, identify programs experiencing difficulties. (d) When appropriate, make a finding pursuant to Section 5655 that a county's performance is failing in a substantive manner. The State Department of  Mental  Health  Care Services  shall investigate and review the finding, and report the action taken to the Legislature. (e) To advise the Legislature, the State Department of  Mental  Health  Care Services  , and county boards on mental health issues and the policies and priorities that this state should be pursuing in developing its mental health system. (f) To periodically review the state's data systems and paperwork requirements to ensure that they are reasonable and in compliance with state and federal law. (g) To make recommendations to the State Department of  Mental  Health  Care Services  on the award of grants to county programs to reward and stimulate innovation in providing mental health services. (h) To conduct public hearings on the state mental health plan, the Substance Abuse and Mental Health Services Administration block grant, and other topics, as needed. (i) To participate in the recruitment of candidates for the position of Director of  Mental Health  Care Services  and provide advice on the final selection. (j) In conjunction with other statewide and local mental health organizations, assist in the coordination of training and information to local mental health boards as needed to ensure that they can effectively carry out their duties. (k) To advise the Director of  Mental  Health  Care Services  on the development of the state mental health plan and the system of priorities contained in that plan. (  l  ) To assess periodically the effect of realignment of mental health services and any other important changes in the state's mental health system, and to report its findings to the Legislature, the State Department of  Mental  Health  Care Services  , local programs, and local boards, as appropriate. (m) To suggest rules, regulations, and standards for the administration of this division. (n) When requested, to mediate disputes between counties and the state arising under this part. (o) To employ administrative, technical, and other personnel necessary for the performance of its powers and duties, subject to the approval of the Department of Finance. (p) To accept any federal fund granted, by act of Congress or by executive order, for purposes within the purview of the California Mental Health Planning Council, subject to the approval of the Department of Finance. (q) To accept any gift, donation, bequest, or grants of funds from private and public agencies for all or any of the purposes within the purview of the California Mental Health Planning Council, subject to the approval of the Department of Finance. SEC. 49. Section 5815 of the Welfare and Institutions Code is amended to read: 5815. The State Department of Health Care Services  , in conjunction with the State Department of Mental Health,  shall seek all available federal funding for mental health services for veterans. SEC. 50. Section 5840 of the Welfare and Institutions Code is amended to read: 5840. (a) The State Department of  Mental  Health  Care Services  shall establish a program designed to prevent mental illnesses from becoming severe and disabling. The program shall emphasize improving timely access to services for underserved populations. (b) The program shall include the following components: (1) Outreach to families, employers, primary care health care providers, and others to recognize the early signs of potentially severe and disabling mental illnesses. (2) Access and linkage to medically necessary care provided by county mental health programs for children with severe mental illness, as defined in Section 5600.3, and for adults and seniors with severe mental illness, as defined in Section 5600.3, as early in the onset of these conditions as practicable. (3) Reduction in stigma associated with either being diagnosed with a mental illness or seeking mental health services. (4) Reduction in discrimination against people with mental illness. (c) The program shall include mental health services similar to those provided under other programs effective in preventing mental illnesses from becoming severe, and shall also include components similar to programs that have been successful in reducing the duration of untreated severe mental illnesses and assisting people in quickly regaining productive lives. (d) The program shall emphasize strategies to reduce the following negative outcomes that may result from untreated mental illness: (1) Suicide. (2) Incarcerations. (3) School failure or dropout. (4) Unemployment. (5) Prolonged suffering. (6) Homelessness. (7) Removal of children from their homes. (e) In consultation with  the Mental Health Services Oversight and Accountability Commission and  mental health stakeholders,  and consistent with evaluation data,  the department shall revise the program elements in Section 5840 applicable to all county mental health programs in future years to reflect what is learned about the most effective prevention and intervention programs for children, adults, and seniors. SEC. 51. Section 5845 of the Welfare and Institutions Code is amended to read: 5845. (a) The Mental Health Services Oversight and Accountability Commission is hereby established to oversee Part 3 (commencing with Section 5800), the Adult and Older Adult Mental Health System of Care Act; Part 3.1 (commencing with Section 5820), Human Resources, Education, and Training Programs; Part 3.2 (commencing with Section 5830), Innovative Programs; Part 3.6 (commencing with Section 5840), Prevention and Early Intervention Programs; and Part 4 (commencing with Section 5850), the Children's Mental Health Services Act. The commission shall replace the advisory committee established pursuant to Section 5814. The commission shall consist of 16 voting members as follows: (1) The Attorney General or his or her designee. (2) The Superintendent of Public Instruction or his or her designee. (3) The Chairperson of the Senate Health and Human Services Committee or another member of the Senate selected by the President pro Tempore of the Senate. (4) The Chairperson of the Assembly Health Committee or another member of the Assembly selected by the Speaker of the Assembly. (5) Two persons with a severe mental illness, a family member of an adult or senior with a severe mental illness, a family member of a child who has or has had a severe mental illness, a physician specializing in alcohol and drug treatment, a mental health professional, a county sheriff, a superintendent of a school district, a representative of a labor organization, a representative of an employer with less than 500 employees and a representative of an employer with more than 500 employees, and a representative of a health care services plan or insurer, all appointed by the Governor. In making appointments, the Governor shall seek individuals who have had personal or family experience with mental illness. (b) Members shall serve without compensation, but shall be reimbursed for all actual and necessary expenses incurred in the performance of their duties. (c) The term of each member shall be three years, to be staggered so that approximately one-third of the appointments expire in each year. (d) In carrying out its duties and responsibilities, the commission may do all of the following: (1) Meet at least once each quarter at any time and location convenient to the public as it may deem appropriate. All meetings of the commission shall be open to the public. (2) Within the limit of funds allocated for these purposes, pursuant to the laws and regulations governing state civil service, employ staff, including any clerical, legal, and technical assistance as may appear necessary. The commission shall administer its operations separate and apart from the State Department of  Mental  Health  Care Services  . (3) Establish technical advisory committees such as a committee of consumers and family members. (4) Employ all other appropriate strategies necessary or convenient to enable it to fully and adequately perform its duties and exercise the powers expressly granted, notwithstanding any authority expressly granted to any officer or employee of state government. (5) Enter into contracts. (6) Obtain data and information from the State Department of  Mental  Health  Care Services, the Office of Statewide Health Planning and Development  , or other state or local entities that receive Mental Health Services Act funds, for the commission to utilize in its oversight, review, and evaluation capacity regarding projects and programs supported with Mental Health Services Act funds. (7) Participate in the joint state-county decisionmaking process, as contained in Section 4061, for training, technical assistance, and regulatory resources to meet the mission and goals of the state's mental health system. (8) Develop strategies to overcome stigma and accomplish all other objectives of Part 3.2 (commencing with Section 5830), 3.6 (commencing with Section 5840), and the other provisions of the act establishing this commission. (9) At any time, advise the Governor or the Legislature regarding actions the state may take to improve care and services for people with mental illness. (10) If the commission identifies a critical issue related to the performance of a county mental health program, it may refer the issue to the State Department of  Mental  Health  Care Services  pursuant to Section 5655. SEC. 52. Section 5851.5 of the Welfare and Institutions Code is amended to read: 5851.5. For the purposes of this part, a "system of care county" means a county  which   that  has been approved by the State Department of  Mental  Health  Care Services  as having the capability to provide child- and family-centered services in a collaborative manner, resulting in quantitative outcome measures. SEC. 53. Section 5852.5 of the Welfare and Institutions Code is amended to read: 5852.5. The  department   State Department of Health Care Services  shall review those counties that have been awarded funds to implement a comprehensive system for the delivery of mental health services to children with serious emotional disturbance and to their families or foster families to determine compliance with either of the following: (a) The total estimated cost avoidance in all of the following categories shall equal or exceed the applications for funding award moneys: (1) Group home costs paid by Aid to Families with Dependent Children-Foster Care (AFDC-FC) program. (2) Children and adolescent state hospital and acute inpatient programs. (3) Nonpublic school residential placement costs. (4) Juvenile justice reincarcerations. (5) Other short- and long-term savings in public funds resulting from the applications for funding award moneys. (b) If the department determines that the total cost avoidance listed in subdivision (a) does not equal or exceed applications for funding award amounts, the department shall determine that the county that has been awarded funding shall achieve substantial compliance with all of the following goals: (1) Total cost avoidance in the categories listed in subdivision (a) to exceed 50 percent of the applications for funding award moneys. (2) A 20-percent reduction in out-of-county ordered placements of juvenile justice wards and social service dependents. (3) A statistically significant reduction in the rate of recidivism by juvenile offenders. (4) A 25-percent reduction in the rate of state hospitalization of minors from placements of special education pupils. (5) A 10-percent reduction in out-of-county nonpublic school residential placements of special education pupils. (6) Allow at least 50 percent of children at risk of imminent placement served by the intensive in-home crisis treatment programs, which are wholly or partially funded by applications for funding award moneys, to remain at home at least six months. (7) Statistically significant improvement in school attendance and academic performance of seriously emotionally disturbed special education pupils treated in day treatment programs which are wholly or partially funded by applications for funding award moneys. (8) Statistically significant increases in services provided in nonclinic settings among agencies. (9) Increase in ethnic minority and gender access to services proportionate to the percentage of these groups in the county's school-age population. SEC. 54. Section 5854 of the Welfare and Institutions Code is amended to read: 5854. The State Department of  Mental  Health  Care Services  may contract with counties whose programs have been approved by the department and selected pursuant to Article 4 (commencing with Section 5857). A county may request to participate under this part each year according to the terms set forth in Section 5705 for the purpose of establishing a three-year program proposal for developing and implementing a children's comprehensive mental health services system. The contract shall be negotiated on a yearly basis, based on the scope of work plan for each implementation phase. SEC. 55. Section 5855 of the Welfare and Institutions Code is amended to read: 5855. The  department shall   State Department of Health Care Services may  adopt as part of its overall mission the development of community-based, comprehensive, interagency systems of care that target seriously emotionally and behaviorally disturbed children separated from their families or at risk of separation from their families, as  defined   specified  in Section 5856. These comprehensive, interagency systems of care shall seek to provide the highest benefit to children, their families, and the community at the lowest cost to the public sector. Essential values shall be as follows: (a) Family preservation. Children shall be maintained in their homes with their families whenever possible. (b) Least restrictive setting. Children shall be placed in the least restrictive and least costly setting appropriate to their needs when out-of-home placement is necessary. (c) Natural setting. Children benefit most from mental health services in their natural environments, where they live and learn, such as home, school, foster home, or a juvenile detention center. (d) Interagency collaboration and a coordinated service delivery system. The primary child-serving agencies, such as social services, probation, education, health, and mental health agencies, shall collaborate at the policy, management, and service levels to provide a coordinated, goal-directed system of care for seriously emotionally disturbed children and their families. (e) Family involvement. Family participation is an integral part of assessment, intervention, and evaluation. (f) Cultural competence. Service effectiveness is dependent upon both culturally relevant and competent service delivery. SEC. 56. Section 5855.5 of the Welfare and Institutions Code is amended to read: 5855.5. (a) Projects funded pursuant to Part 4 (commencing with Section 5850) of Division 5, as added by Chapter 89 of the Statutes of 1991, shall continue under the terms of this part. (b) The  department   State Department of Health Care Services  shall negotiate with each participating county to establish appropriate evaluation measures for the county's children's system of care program after the initial three-year implementation funding period as established in Section 5854. The department shall, on an annual basis, negotiate a performance contract with each county electing to continue its children's system of care program. The annual performance contract shall be consistent county to county, and shall include, but not be limited to, a scope of work plan consistent with the provisions of this part and shall contain a budget that has sufficient detail to meet the requirements of the department. SEC. 57. Section 5868 of the Welfare and Institutions Code is amended to read: 5868. (a) The  department   State Department of Health Care Services  shall establish service standards that ensure that children in the target population are identified and receive needed and appropriate services from qualified staff in the least restrictive environment. (b) The standards shall include, but not be limited to: (1) Providing a comprehensive assessment and treatment plan for each target population client to be served, and developing programs and services that will meet their needs and facilitate client outcome goals. (2) Providing for full participation of the family in all aspects of assessment, case planning, and treatment. (3) Providing methods of assessment and services to meet the cultural, linguistic, and special needs of minorities in the target population. (4) Providing for staff with the cultural background and linguistic skills necessary to remove barriers to mental health services resulting from a limited ability to speak English or from cultural differences. (5) Providing mental health case management for all target population clients in, or being considered for, out-of-home placement. (6) Providing mental health services in the natural environment of the child to the extent feasible and appropriate. (c) The responsibility of the case managers shall be to ensure that each child receives the following services: (1) A comprehensive mental health assessment. (2) Case planning with all appropriate interagency participation. (3) Linkage with all appropriate mental health services. (4) Service plan monitoring. (5) Client advocacy to ensure the provision of needed services. SEC. 58. Section 5869 of the Welfare and Institutions Code is amended to read: 5869. The  department   State Department of Health Care Services  shall provide participating counties with all of the following: (a) Applications for funding guidelines and format, and coordination and oversight of the selection process as described in Article 4 (commencing with Section 5857). (b) Contracts with each state funded county specifying the approved budget, performance outcomes, and a scope of work plan for each year of participation in the children's system of care program. (c) Technical assistance related to system evaluation. SEC. 59. Section 5878 of the Welfare and Institutions Code is amended to read: 5878. (a) (1) The Secretary of  the   California  Health and  Welfare Agency   Human Services  , the Superintendent of Public Instruction, or the Secretary of the  Youth and Corrections Agency   Department of Corrections and Rehabilitation  may waive any state regulatory obstacles to the integration of public responsibilities and resources required for counties which have been approved as system of care counties. (2) The waiver shall remain in effect as long as the local program continues to meet standards as specified in the scope of work plan approved by the State Department of  Mental  Health  Care Services  . (b) The Secretary of  California Health and  Welfare   Human Services  , the Superintendent of Public Instruction, and the Secretary of the  Youth and Corrections Agency   Department of Corrections and Rehabilitation  , and those departments designated as single state agencies administering federal programs, shall make every effort to secure federal waivers and any other changes in federal policy or law necessary to support interagency collaboration and coordination in a system of care service delivery system. SEC. 60. Section 5878.3 of the Welfare and Institutions Code is amended to read: 5878.3. (a) Subject to the availability of funds as determined pursuant to Part 4.5 (commencing with Section 5890) of this division, county mental health programs shall offer services to severely mentally ill children for whom services under any other public or private insurance or other mental health or entitlement program is inadequate or unavailable. Other entitlement programs include but are not limited to mental health services available pursuant to Medi-Cal, child welfare, and special education programs. The funding shall cover only those portions of care that cannot be paid for with public or private insurance, other mental health funds or other entitlement programs. (b) Funding shall be at sufficient levels to ensure that counties can provide each child served all of the necessary services set forth in the applicable treatment plan developed in accordance with this part, including services where appropriate and necessary to prevent an out of home placement, such as services pursuant to Chapter 4 (commencing with Section 18250) of Part 6 of Division 9. (c) The State Department of  Mental  Health  Care Services  shall contract with county mental health programs for the provision of services under this article in the manner set forth in Section 5897. SEC. 61. Section 5880 of the Welfare and Institutions Code is amended to read: 5880. For each selected county  ,  the  department   State Department of Health Care Services  shall define and establish client and cost outcome and other system performance goals, and negotiate the expected levels of attainment for each year of participation. Expected levels of attainment shall include a breakdown by ethnic origin and shall be identified by a county in its proposal. These goals shall include, but not be limited to, both of the following: (a) Client improvement and cost avoidance outcome measures, as follows: (1) To reduce the number of child months in group homes, residential placements pursuant to Chapter 26.5 (commencing with Section 7570) of Division 7 of Title 1 of the Government Code, and state hospital placements. (2) To reduce the cost of AFDC-FC group home care, residential placements as described in paragraph (1), and state hospital utilization, by an amount which equals at least 50 percent of the third year project cost. Cost avoidance shall be based on data comparisons of statewide average expenditure and population. (3) To increase school attendance for pupils in targeted programs. (4) To increase the grade level equivalent of pupils in targeted programs from admission to discharge. (5) To reduce the rate of recidivism incurred for wards in targeted juvenile justice programs. (6) To show measurable improvement in individual and family functional status for a representative sample of children enrolled in the system of care. (7) To achieve statistically significant increases in services provided in nonclinic settings among agencies. (8) To increase ethnic minority and gender access to services proportionate to the percentage of these groups in the county's school-age population. (b) System development and operation measures, as follows: (1) To provide an integrated system of care that includes multiagency programs and joint case planning, to children who are seriously emotionally and behaviorally disturbed as  defined   specified  in Section 5856. (2) To identify and assess children who comprise the target population in the county evidenced by a roster which contains all children receiving mental health case management and treatment services. This roster shall include necessary standardized and uniform identifying information and demographics about the children served. (3) To develop and maintain individualized service plans that will facilitate interagency service delivery in the least restrictive environment. (4) To develop or provide access to a range of intensive services that will meet individualized service plan needs. These services shall include, but not be limited to, case management, expanded treatment services at schoolsites, local juvenile corrections facilities, and local foster homes, and flexible services. (5) To ensure the development and operation of the interagency policy council and the interagency case management council. (6) To provide culturally competent programs that recognize and address the unique needs of ethnic populations in relation to equal access, program design and operation, and program evaluation. (7) To develop parent education and support groups, and linkages with parents to ensure their involvement in the planning process and the delivery of services. (8) To provide a system of evaluation that develops outcome criteria and  which   that  will measure performance, including client outcome and cost avoidance. (9) To gather, manage, and report data in accordance with the requirements of the state funded outcome evaluation. SEC. 62. Section 5890 of the Welfare and Institutions Code is amended to read: 5890. (a) The Mental Health Services Fund is hereby created in the State Treasury. The fund shall be administered by the state. Notwithstanding Section 13340 of the Government Code, all moneys in the fund are, except as provided in subdivision (d) of Section 5892, continuously appropriated, without regard to fiscal years, for the purpose of funding the following programs and other related activities as designated by other provisions of this division: (1) Part 3 (commencing with Section 5800), the Adult and Older Adult System of Care Act. (2) Part 3.6 (commencing with Section 5840), Prevention and Early Intervention Programs. (3) Part 4 (commencing with Section 5850), the Children's Mental Health Services Act. (b) Nothing in the establishment of this fund, nor any other provisions of the act establishing it or the programs funded shall be construed to modify the obligation of health care service plans and disability insurance policies to provide coverage for mental health services, including those services required under Section 1374.72 of the Health and Safety Code and Section 10144.5 of the Insurance Code, related to mental health parity. Nothing in this act shall be construed to modify the oversight duties of the Department of Managed Health Care or the duties of the Department of Insurance with respect to enforcing these obligations of plans and insurance policies. (c) Nothing in this act shall be construed to modify or reduce the existing authority or responsibility of the State Department of  Mental  Health  Care Services  .  (d)    The State Department of Health Care Services  , in consultation with the State Department of Mental Health,  shall seek approval of all applicable federal Medicaid approvals to maximize the availability of federal funds and eligibility of participating children, adults, and seniors for medically necessary care.  (e)   (d)  Share of costs for services pursuant to Part 3 (commencing with Section 5800), and Part 4 (commencing with Section 5850) of this division, shall be determined in accordance with the Uniform Method for Determining Ability to Pay applicable to other publicly funded mental health services, unless this Uniform Method is replaced by another method of determining co-payments, in which case the new method applicable to other mental health services shall be applicable to services pursuant to Part 3 (commencing with Section 5800), and Part 4 (commencing with Section 5850) of this division. SEC. 63. Section 11325.7 of the Welfare and Institutions Code is amended to read: 11325.7. (a) It is the intent of the Legislature in enacting this section to create a funding stream and program that assists certain recipients of aid under this chapter to receive necessary mental health services, including case management and treatment, thereby enabling them to make the transition from welfare to work. This funding stream shall be used specifically to serve recipients in need of mental health services, and shall be accounted for and expended by each county in a manner that ensures that recipients in need of mental health services are receiving appropriate services. (b) The county plan required by Section 10531 shall include a plan for the development of mental health employment assistance services, developed jointly by the county welfare department and the county department of mental health. The plan shall have as its goal the treatment of mental or emotional disabilities that may limit or impair the ability of a recipient to make the transition from welfare-to-work, or that may limit or impair the ability to retain employment over a long-term period. The plan shall be developed in a manner consistent with both the county's welfare-to-work program and the county's consolidated mental health Medi-Cal services plan. The county may use community based providers, as necessary, that have experience in addressing the needs of the CalWORKs population. The county, whenever possible, shall ensure that the services provided qualify for federal reimbursement of the nonstate share of Medi-Cal costs. (c) Subject to specific expenditure authority, mental health services available under this section shall include all of the following elements: (1) Assessment for the purpose of identifying the level of the participant's mental health needs and the appropriate level of treatment and rehabilitation for the participant. (2) Case management, as appropriate, as determined by the county. (3) Treatment and rehabilitation services, that shall include counseling, as necessary to overcome mental health barriers to employment and mental health barriers to retaining employment, in coordination with an individual's welfare-to-work plan. (4) In cases where a secondary diagnosis of substance abuse is made in a person referred for mental or emotional disorders, the welfare-to-work plan shall also address the substance abuse treatment needs of the participant. (5) A process by which the county can identify those with severe mental disabilities that may qualify them for aid under Chapter 3 (commencing with Section 12000). (d) Any funds appropriated by the Legislature to cover the nonfederal costs of the mental health employment assistance services required by this section shall be allocated consistent with the formula used to distribute each county's CalWORKs program allocation. Each county shall report annually to the state the number of CalWORKs program recipients who received mental health services and the extent to which the allocation is sufficient to meet the need for these services as determined by the county. The State Department of  Mental  Health  Care Services  shall develop a uniform methodology for ensuring that this allocation supplements and does not supplant current expenditure levels for mental health services for this population. SEC. 64. Section 11462.01 of the Welfare and Institutions Code is amended to read: 11462.01. (a) Commencing July 1, 1994, a group home program shall be classified at RCL 13 or RCL 14 if the program meets all of the following requirements: (1) The group home program is providing, or has proposed to provide, the level of care and services necessary to generate sufficient points in the ratesetting process to be classified at RCL 13 if the rate application is for RCL 13 or to be classified at RCL 14 if the rate application is for RCL 14. (2) (A) (i) The group home provider shall agree not to accept for placement into a group home program AFDC-FC funded children, including voluntary placements and seriously emotionally disturbed children placed out-of-home pursuant to an individualized education program developed under  former  Section 7572.5 of the Government Code, who have not been approved for placement by an interagency placement committee, as described by Section 4096. The approval shall be in writing and shall indicate that the interagency placement committee has determined the child is seriously emotionally disturbed, as  defined by  specified in  Section 5600.3 and subject to Section 1502.4 of the Health and Safety Code, and that the child needs the level of care provided by the group home. (ii) For purposes of clause (i), group home providers who accept seriously emotionally disturbed children who are assessed and placed out-of-home pursuant to an individualized education program developed under  former  Section 7572.5 of the Government Code shall be deemed to have met the interagency placement committee approval for placement requirements of clause (i) if the individualized education program assessment indicates that the child has been determined to be seriously emotionally disturbed, as  defined   specified  in Section 5600.3 and subject to Section 1502.4 of the Health and Safety Code, and needs the level of care described in clause (i). (B) (i) Nothing in this subdivision shall prevent the emergency placement of a child into a group home program prior to the determination by the interagency placement committee pursuant to subclause (i) of subparagraph (A) if a licensed mental health professional, as defined in the department's AFDC-FC ratesetting regulations, has evaluated, in writing, the child within 72 hours of placement, and determined the child to be seriously emotionally disturbed and in need of the care and services provided by the group home program. (ii) The interagency placement committee shall, within 30 days of placement pursuant to clause (i), make the determination required by clause (i) of subparagraph (A). (iii) If, pursuant to clause (ii), the placement is determined to be appropriate, the committee shall transmit the approval, in writing, to the county placing agency and the group home provider. (iv) If, pursuant to clause (ii) the placement is determined not to be appropriate, the child shall be removed from the group home and referred to a more appropriate placement, as specified in subdivision (f). (C) Commencing December 15, 1992, with respect to AFDC-FC funded children, only those children who are approved for placement by an interagency placement committee may be accepted by a group home under this subdivision. (3) The group home program is certified by the State Department of  Mental  Health  Care Services  pursuant to Section 4096.5. (b) The department shall not establish a rate for a group home requesting a program change to RCL 13 or RCL 14 unless the group home provider submits a recommendation from the host county or the primary placing county that the program is needed and that the provider is willing and capable of operating the program at the level sought. For purposes of this subdivision, "host county," "primary placing county," and "program change" mean the same as defined in the department's AFDC-FC ratesetting regulations. (c) The effective date of rates set at RCL 13 or RCL 14 shall be the date that all the requirements are met, but not prior to July 1 of that fiscal year. Nothing in this section shall affect RCL 13 or RCL 14 ratesetting determinations in prior years. (d) Any group home program that has been classified at RCL 13 or RCL 14 pursuant to the requirements of subdivision (a) shall be reclassified at the appropriate lower RCL with a commensurate reduction in rate if either of the following occurs: (1) The group home program fails to maintain the level of care and services necessary to generate the necessary number of points for RCL 13 or RCL 14, as required by paragraph (1) of subdivision (a). The determination of points shall be made consistent with the department's AFDC-FC ratesetting regulations for other rate classification levels. (2) The group home program fails to maintain a certified mental health treatment program as required by paragraph (3) of subdivision (a). (3) In the event of a determination under paragraph (1), the group home may appeal the finding or submit a corrective action plan. The appeal process specified in Section 11466.6 shall be available to RCL 13 and RCL 14 group home providers. During any appeal, the group home shall maintain the appropriate level of care. (e) The interagency placement committee shall periodically review, but no less often than that required by current law, the placement of the child. If the committee determines that the child no longer needs, or is not benefiting from, placement in a RCL 13 or RCL 14 group home, the committee shall require the removal of the child and a new disposition. (f) (1) (A) If, at any time subsequent to placement in an RCL 13 or RCL 14 group home program, the interagency placement committee determines either that the child is not seriously emotionally disturbed or is not in need of the care and services provided by the group home program, it shall notify, in writing, both the county placing agency and the group home provider within 10 days of the determination. (B) The county placing agency shall notify the group home provider, in writing, within five days from the date of the notice from the committee, of the county's plan for removal of the child. (C) The county placing agency shall remove the child from the group home program within 30 days from the date of the notice from the interagency placement committee. (2) (A) If a county placing agency does not remove a child within 30 days from the date of the notice from the interagency placement committee, the group home provider shall notify the interagency placement committee and the department, in writing, of the county's failure to remove the child from the group home program. (B) The group home provider shall make the notification required by subparagraph (A) within five days of the expiration of the 30-day removal period. If notification is made, a group home provider shall not be subject to an overpayment determination due to failure of the county placing agency to remove the child. (3) Any county placing agency that fails to remove a child from a group home program under this paragraph within 30 days from the date of the notice from the interagency placement committee shall be assessed a penalty in the amount of the state and federal financial participation in the AFDC-FC rate paid on behalf of the child commencing on the 31st day and continuing until the child is removed. (g) (1) If any RCL 13 or RCL 14 group home provider discovers that it does not have written approval for placement of any AFDC-FC funded child placed on or after December 15, 1992, from the interagency placement committee, it shall notify the county placing agency, in writing, and shall request the county to obtain approval from the interagency placement committee or remove the child from the group home program. A group home provider shall have 30 days from the child's first day of placement to discover the placement error and to notify the county placing agency. (2) Any county placing agency that receives notification pursuant to paragraph (2) of subdivision (f) shall obtain approval for placement from the interagency placement committee or remove the child from the group home program within 30 days from the date of the notice from the group home provider. The program shall not be reclassified to a lower RCL for a violation of the provisions referred to in this paragraph. (3) (A) If a county placing agency does not have the placement of a child approved by the interagency placement committee or removed from the group home within 30 days from the date of the notice from the group home provider, the group home provider shall notify the county placing agency and the department, in writing, of the county's failure to have the placement of the child approved or remove the child from the group home program. (B) The group home provider shall make the notification required by subparagraph (A) within five days after the expiration of the 30-day approval or removal period. If notification is made, a group home provider shall not be subject to an overpayment determination due to failure of the county placing agency to remove the child. (C) Any group home provider that fails to notify the county placing agency pursuant to subparagraph (A) shall be assessed a penalty in the amount of the AFDC-FC rate paid to the group home provider on behalf of the child commencing on the 31st day of placement and continuing until the county placing agency is notified. (4) Any county placing agency that fails to have the placement of a child approved or to have the child removed from the group home program within 30 days shall be assessed a penalty in the amount of the state and federal financial participation in the AFDC-FC rate paid on behalf of the child commencing on the 31st day of placement and continuing until the child is removed. (h) The department shall develop regulations to obtain payment of assessed penalties as provided in this section. For audit purposes and the application of penalties for RCL 13 and RCL 14 programs, the department shall apply statutory provisions that were in effect during the period for which the audit was conducted. (i) (1) Nothing in this subparagraph shall prohibit a group home classified at RCL 13 or RCL 14 for purposes of the AFDC-FC program, from accepting private placements of children. (2) In cases where a referral is not from a public agency and no public funding is involved, there shall be no requirement for public agency review or determination of need. (3) Children subject to paragraphs (1) and (2) shall have been assessed as seriously emotionally disturbed, as  defined   specified  in Section 5600.3 and subject to Section 1502.4 of the Health and Safety Code, by a licensed mental health professional, as  defined in Sections 629 to 633, inclusive,   specified in Article 8 (commencing with Section 620)  of Title 9 of the California Code of Regulations. (j) A child shall not be placed in a group home program classified at an RCL 13 or RCL 14 if the placement is paid for with county-only funds unless the child is assessed as seriously emotionally disturbed, as  defined   specified  in Section 5600.3, subject to Section 1502.4 of the Health and Safety Code, by a licensed mental health professional, as  defined in Sections 629 to 633, inclusive,   specified in Article 8 (commencing with Section 620)  of Title 9 of the California Code of Regulations. SEC. 65. Section 18986.40 of the Welfare and Institutions Code is amended to read: 18986.40. (a) For the purposes of this chapter, "program" or "integrated children's services programs" means a coordinated children's service system, operating as a program that is part of a department or State Department of  Mental  Health  Care Service   s  initiative, that offers a full range of integrated behavioral social, health, and mental health services, including applicable educational services, to seriously emotionally disturbed and special needs children, or programs established by county governments, local education agencies, or consortia of public and private agencies, to jointly provide two or more of the following services to children or their families, or both: (1) Educational services for children at risk of dropping out, or who need additional educational services to be successful academically. (2) Health care. (3) All mental health diagnostic and treatment services, including medication. (4) Substance abuse prevention and treatment. (5) Child abuse prevention, identification, and treatment. (6) Nutrition services. (7) Child care and development services. (8) Juvenile justice services. (9) Child welfare services. (10) Early intervention and prevention services. (11) Crisis intervention services, as defined in subdivision (c). (12) Any other service which will enhance the health, development, and well-being of children and their families. (b) For the purposes of this chapter, "children's multidisciplinary services team" means a team of two or more persons trained and qualified to provide one or more of the services listed in subdivision (a), who are responsible in the program for identifying the educational, health, or social service needs of a child and his or her family, and for developing a plan to address those needs. A family member, or the designee of a family member, shall be invited to participate in team meetings and decisions, unless the team determines that, in its professional judgment, this participation would present a reasonable risk of a significant adverse or detrimental effect on the minor's psychological or physical safety. Members of the team shall be trained in the confidentiality and information sharing provisions of this chapter. (c) "Crisis intervention services" means early support and psychological assistance, to be continued as necessary, to children who have been victims of, or whose lives have been affected by, a violent crime or a cataclysmic incident, such as a natural disaster, or who have been involved in school, neighborhood, or family based critical incidents likely to cause profound psychological effects if not addressed immediately and thoroughly. SEC. 66. The Legislature finds and declares that Sections 50 and 51 of this act clarify procedures and terms of the Mental Health Services Act within the meaning of Section 18 of the Mental Health Services Act.