California 2019 2019-2020 Regular Session

California Assembly Bill AB2958 Introduced / Bill

Filed 02/21/2020

                    CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 2958Introduced by Assembly Member MaienscheinFebruary 21, 2020 An act to amend Section 5892 of, and to add Section 5845.6 to, the Welfare and Institutions Code, relating to mental health. LEGISLATIVE COUNSEL'S DIGESTAB 2958, as introduced, Maienschein. Mental Health Services Act: Behavioral Health and Justice Center of Excellence.Existing law sets forth various procedures relating to medical treatment of inmates in county jails, including, among other things, involuntary commitment and treatment of a person who is a danger to oneself or others and voluntary application for inpatient or outpatient mental health services.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, a continuously appropriated fund, to fund various county mental health programs. The MHSA authorizes up to 5% of the fund to be used for administrative implementation by the State Department of Health Care Services and the Mental Health Services Oversight and Accountability Commission, which the MHSA creates, among other entities, and subjects funds used for this purpose to appropriation in the annual Budget Act. The MHSA provides that it may be amended by the Legislature by a 2/3 vote of each house so long as the amendment is consistent with and furthers the intent of the act, and authorizes the Legislature to amend the act to clarify procedures and terms of the act by majority vote.This bill would require, on or before January 1, 2023, the State Department of Health Care Services, in consultation with the Council on Criminal Justice and Behavioral Health and the Mental Health Services Oversight and Accountability Commission, and in partnership with the University of California, to establish and maintain the Behavioral Health and Justice Center of Excellence to provide counties and local agencies with centralized access to data, training, resources, and services to aid in the facilitation and coordination of efforts to serve individuals with mental illness who are involved in the criminal justice system. The bill would require the department to partner with the University of California to have multiple branch locations at the various University of California campuses across the state, and to be staffed with trained multidisciplinary teams, as specified. The bill would require those centers of excellence to be funded with state administrative funds provided under the act. By authorizing a new use of MHSA moneys, this bill would amend the MHSA. This bill would declare that this amendment is consistent with and furthers the purposes of the act.Digest Key Vote: 2/3  Appropriation: NO  Fiscal Committee: YES  Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Individuals with mental illness are incarcerated longer and have higher crime recidivism rates than those individuals without mental illness. Jails were not designed to treat individuals suffering from mental illness. Around one in four individuals in California jails have an identified mental illness. When these individuals do not receive proper rehabilitation services, they have challenges integrating into communities and often recidivate back into the criminal justice system, which results in a loss in human potential, and may cost taxpayers over one hundred fifty dollars per inmate daily in some California counties.(b) There is an urgent need to use evidence-based and culturally relevant correctional practices and psychiatric services to prevent incarceration and recidivism.(c) Information- and data-sharing often becomes a barrier to effective collaboration between community providers and criminal justice professionals.(d) Collaboration between community providers and criminal justice professionals is essential for ensuring continuity of care and care coordination during transitions to and from incarceration, and in sustaining treatment that would support justice-involved individuals both in the correctional setting and within the community.(e) By working with partners from the criminal justice system and social services agencies, the community behavioral health system can develop the capacity to serve those most in need, as well as collaborate with local partners to prevent mental health challenges, which may result in harmful individual and societal costs.SEC. 2. Section 5845.6 is added to the Welfare and Institutions Code, to read:5845.6. (a) On or before January 1, 2023, the State Department of Health Care Services, in consultation with the Council on Criminal Justice and Behavioral Health and the Mental Health Services Oversight and Accountability Commission, and in partnership with the University of California, shall establish and maintain the Behavioral Health and Justice Center of Excellence to provide counties and local agencies with centralized access to data, training, resources, and services to aid in the facilitation and coordination of efforts to serve individuals with mental illness who are involved in the criminal justice system to assist with diversion and reduce recidivism rates.(b) The department shall partner with the University of California to have multiple branch locations at the various University of California campuses across the state, and shall be staffed with trained multidisciplinary teams who shall coordinate all of the following:(1) A forum for county behavioral health departments, law enforcement agencies, community-based organizations, and other stakeholders to coordinate services and use data to fill gaps in mental health services program delivery to provide culturally competent services.(2) Assisting counties in analyzing existing datasets, and synthesizing data surrounding length of jail stays, rates of connection to treatment, and recidivism rates to allow for increasingly effective practices.(3) A forum for California counties to share best practices, working models, and effective innovative programs with other agencies and communities.(4) Education and training for mental health professionals in treating individuals with mental illness who are involved in the criminal justice system, and investment in curriculum for a new workforce, as well as training for the existing workforce, on core competencies to provide effective integrated correctional and behavioral health services to better promote recovery and recidivism in custody and community settings.(5) Resources and tools to assist local alliances of county behavioral health departments, local law enforcement agencies, community-based organizations, and other stakeholders to aid in the actual implementation of innovative collaborative program models.(6) Assisting counties in fulfilling statewide goals in preventing and reducing the number of individuals with mental illness from entering the criminal justice system.(c) The center shall be funded with state administrative funds pursuant to subdivision (d) of Section 5892.SEC. 3. Section 5892 of the Welfare and Institutions Code is amended to read:5892. (a) In order to promote efficient implementation of this act, the county shall use funds distributed from the Mental Health Services Fund as follows:(1) In the 200506, 200607, and 200708 fiscal years, 10 percent shall be placed in a trust fund to be expended for education and training programs pursuant to Part 3.1 (commencing with Section 5820).(2) In the 200506, 200607, and 200708 fiscal years, 10 percent for capital facilities and technological needs shall be distributed to counties in accordance with a formula developed in consultation with the County Behavioral Health Directors Association of California to implement plans developed pursuant to Section 5847.(3) Twenty percent of funds distributed to the counties pursuant to subdivision (c) of Section 5891 shall be used for prevention and early intervention programs in accordance with Part 3.6 (commencing with Section 5840).(4) The expenditure for prevention and early intervention may be increased in any county in which the department determines that the increase will decrease the need and cost for additional services to persons with severe mental illness in that county by an amount at least commensurate with the proposed increase.(5) The balance of funds shall be distributed to county mental health programs for services to persons with severe mental illnesses pursuant to Part 4 (commencing with Section 5850) for the childrens system of care and Part 3 (commencing with Section 5800) for the adult and older adult system of care. These services may include housing assistance, as defined in Section 5892.5, to the target population specified in Section 5600.3.(6) Five percent of the total funding for each county mental health program for Part 3 (commencing with Section 5800), Part 3.6 (commencing with Section 5840), and Part 4 (commencing with Section 5850), shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.(b) (1) In any fiscal year after the 200708 fiscal year, programs for services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) may include funds for technological needs and capital facilities, human resource needs, and a prudent reserve to ensure services do not have to be significantly reduced in years in which revenues are below the average of previous years. The total allocation for purposes authorized by this subdivision shall not exceed 20 percent of the average amount of funds allocated to that county for the previous five fiscal years pursuant to this section.(2) A county shall calculate an amount it establishes as the prudent reserve for its Local Mental Health Services Fund, not to exceed 33 percent of the average community services and support revenue received for the fund in the preceding five years. The county shall reassess the maximum amount of this reserve every five years and certify the reassessment as part of the three-year program and expenditure plan required pursuant to Section 5847.(c) The allocations pursuant to subdivisions (a) and (b) shall include funding for annual planning costs pursuant to Section 5848. The total of these costs shall not exceed 5 percent of the total of annual revenues received for the fund. The planning costs shall include funds for county mental health programs to pay for the costs of consumers, family members, and other stakeholders to participate in the planning process and for the planning and implementation required for private provider contracts to be significantly expanded to provide additional services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850).(d) Prior to making the allocations pursuant to subdivisions (a), (b), and (c), funds shall be reserved for the costs for the State Department of Health Care Services, the California Behavioral Health Planning Council, the Office of Statewide Health Planning and Development, the Mental Health Services Oversight and Accountability Commission, the State Department of Public Health, and any other state agency to implement all duties pursuant to the programs set forth in this section. section and Section 5845.6. These costs shall not exceed 5 percent of the total of annual revenues received for the fund. The administrative costs shall include funds to assist consumers and family members to ensure the appropriate state and county agencies give full consideration to concerns about quality, structure of service delivery, or access to services. The amounts allocated for administration shall include amounts sufficient to ensure adequate research and evaluation regarding the effectiveness of services being provided and achievement of the outcome measures set forth in Part 3 (commencing with Section 5800), Part 3.6 (commencing with Section 5840), and Part 4 (commencing with Section 5850). The amount of funds available for the purposes of this subdivision in any fiscal year is subject to appropriation in the annual Budget Act.(e) In the 200405 fiscal year, funds shall be allocated as follows:(1) Forty-five percent for education and training pursuant to Part 3.1 (commencing with Section 5820).(2) Forty-five percent for capital facilities and technology needs in the manner specified by paragraph (2) of subdivision (a).(3) Five percent for local planning in the manner specified in subdivision (c).(4) Five percent for state implementation in the manner specified in subdivision (d).(f) Each county shall place all funds received from the State Mental Health Services Fund in a local Mental Health Services Fund. The Local Mental Health Services Fund balance shall be invested consistent with other county funds and the interest earned on the investments shall be transferred into the fund. The earnings on investment of these funds shall be available for distribution from the fund in future fiscal years.(g) All expenditures for county mental health programs shall be consistent with a currently approved plan or update pursuant to Section 5847.(h) (1) Other than funds placed in a reserve in accordance with an approved plan, any funds allocated to a county that have not been spent for their authorized purpose within three years, and the interest accruing on those funds, shall revert to the state to be deposited into the Reversion Account, hereby established in the fund, and available for other counties in future years, provided, however, that funds, including interest accrued on those funds, for capital facilities, technological needs, or education and training may be retained for up to 10 years before reverting to the Reversion Account.(2) (A) If a county receives approval from the Mental Health Services Oversight and Accountability Commission of a plan for innovative programs, pursuant to subdivision (e) of Section 5830, the countys funds identified in that plan for innovative programs shall not revert to the state pursuant to paragraph (1) so long as they are encumbered under the terms of the approved project plan, including any subsequent amendments approved by the commission, or until three years after the date of approval, whichever is later.(B) Subparagraph (A) applies to all plans for innovative programs that have received commission approval and are in the process at the time of enactment of the act that added this subparagraph, and to all plans that receive commission approval thereafter.(3) Notwithstanding paragraph (1), any funds allocated to a county with a population of less than 200,000 that have not been spent for their authorized purpose within five years shall revert to the state as described in paragraph (1).(4) (A) Notwithstanding paragraphs (1) and (2), if a county with a population of less than 200,000 receives approval from the Mental Health Services Oversight and Accountability Commission of a plan for innovative programs, pursuant to subdivision (e) of Section 5830, the countys funds identified in that plan for innovative programs shall not revert to the state pursuant to paragraph (1) so long as they are encumbered under the terms of the approved project plan, including any subsequent amendments approved by the commission, or until five years after the date of approval, whichever is later.(B) Subparagraph (A) applies to all plans for innovative programs that have received commission approval and are in the process at the time of enactment of the act that added this subparagraph, and to all plans that receive commission approval thereafter.(i) If there are revenues available in the fund after the Mental Health Services Oversight and Accountability Commission has determined there are prudent reserves and no unmet needs for any of the programs funded pursuant to this section, including all purposes of the Prevention and Early Intervention Program, the commission shall develop a plan for expenditures of these revenues to further the purposes of this act and the Legislature may appropriate these funds for any purpose consistent with the commissions adopted plan that furthers the purposes of this act.SEC. 4. The Legislature finds and declares that this act is consistent with and furthers the intent of the Mental Health Services Act within the meaning of Section 18 of the Mental Health Services Act.

 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 2958Introduced by Assembly Member MaienscheinFebruary 21, 2020 An act to amend Section 5892 of, and to add Section 5845.6 to, the Welfare and Institutions Code, relating to mental health. LEGISLATIVE COUNSEL'S DIGESTAB 2958, as introduced, Maienschein. Mental Health Services Act: Behavioral Health and Justice Center of Excellence.Existing law sets forth various procedures relating to medical treatment of inmates in county jails, including, among other things, involuntary commitment and treatment of a person who is a danger to oneself or others and voluntary application for inpatient or outpatient mental health services.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, a continuously appropriated fund, to fund various county mental health programs. The MHSA authorizes up to 5% of the fund to be used for administrative implementation by the State Department of Health Care Services and the Mental Health Services Oversight and Accountability Commission, which the MHSA creates, among other entities, and subjects funds used for this purpose to appropriation in the annual Budget Act. The MHSA provides that it may be amended by the Legislature by a 2/3 vote of each house so long as the amendment is consistent with and furthers the intent of the act, and authorizes the Legislature to amend the act to clarify procedures and terms of the act by majority vote.This bill would require, on or before January 1, 2023, the State Department of Health Care Services, in consultation with the Council on Criminal Justice and Behavioral Health and the Mental Health Services Oversight and Accountability Commission, and in partnership with the University of California, to establish and maintain the Behavioral Health and Justice Center of Excellence to provide counties and local agencies with centralized access to data, training, resources, and services to aid in the facilitation and coordination of efforts to serve individuals with mental illness who are involved in the criminal justice system. The bill would require the department to partner with the University of California to have multiple branch locations at the various University of California campuses across the state, and to be staffed with trained multidisciplinary teams, as specified. The bill would require those centers of excellence to be funded with state administrative funds provided under the act. By authorizing a new use of MHSA moneys, this bill would amend the MHSA. This bill would declare that this amendment is consistent with and furthers the purposes of the act.Digest Key Vote: 2/3  Appropriation: NO  Fiscal Committee: YES  Local Program: NO 





 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION

 Assembly Bill 

No. 2958

Introduced by Assembly Member MaienscheinFebruary 21, 2020

Introduced by Assembly Member Maienschein
February 21, 2020

 An act to amend Section 5892 of, and to add Section 5845.6 to, the Welfare and Institutions Code, relating to mental health. 

LEGISLATIVE COUNSEL'S DIGEST

## LEGISLATIVE COUNSEL'S DIGEST

AB 2958, as introduced, Maienschein. Mental Health Services Act: Behavioral Health and Justice Center of Excellence.

Existing law sets forth various procedures relating to medical treatment of inmates in county jails, including, among other things, involuntary commitment and treatment of a person who is a danger to oneself or others and voluntary application for inpatient or outpatient mental health services.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, a continuously appropriated fund, to fund various county mental health programs. The MHSA authorizes up to 5% of the fund to be used for administrative implementation by the State Department of Health Care Services and the Mental Health Services Oversight and Accountability Commission, which the MHSA creates, among other entities, and subjects funds used for this purpose to appropriation in the annual Budget Act. The MHSA provides that it may be amended by the Legislature by a 2/3 vote of each house so long as the amendment is consistent with and furthers the intent of the act, and authorizes the Legislature to amend the act to clarify procedures and terms of the act by majority vote.This bill would require, on or before January 1, 2023, the State Department of Health Care Services, in consultation with the Council on Criminal Justice and Behavioral Health and the Mental Health Services Oversight and Accountability Commission, and in partnership with the University of California, to establish and maintain the Behavioral Health and Justice Center of Excellence to provide counties and local agencies with centralized access to data, training, resources, and services to aid in the facilitation and coordination of efforts to serve individuals with mental illness who are involved in the criminal justice system. The bill would require the department to partner with the University of California to have multiple branch locations at the various University of California campuses across the state, and to be staffed with trained multidisciplinary teams, as specified. The bill would require those centers of excellence to be funded with state administrative funds provided under the act. By authorizing a new use of MHSA moneys, this bill would amend the MHSA. This bill would declare that this amendment is consistent with and furthers the purposes of the act.

Existing law sets forth various procedures relating to medical treatment of inmates in county jails, including, among other things, involuntary commitment and treatment of a person who is a danger to oneself or others and voluntary application for inpatient or outpatient mental health services.

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, a continuously appropriated fund, to fund various county mental health programs. The MHSA authorizes up to 5% of the fund to be used for administrative implementation by the State Department of Health Care Services and the Mental Health Services Oversight and Accountability Commission, which the MHSA creates, among other entities, and subjects funds used for this purpose to appropriation in the annual Budget Act. The MHSA provides that it may be amended by the Legislature by a 2/3 vote of each house so long as the amendment is consistent with and furthers the intent of the act, and authorizes the Legislature to amend the act to clarify procedures and terms of the act by majority vote.

This bill would require, on or before January 1, 2023, the State Department of Health Care Services, in consultation with the Council on Criminal Justice and Behavioral Health and the Mental Health Services Oversight and Accountability Commission, and in partnership with the University of California, to establish and maintain the Behavioral Health and Justice Center of Excellence to provide counties and local agencies with centralized access to data, training, resources, and services to aid in the facilitation and coordination of efforts to serve individuals with mental illness who are involved in the criminal justice system. The bill would require the department to partner with the University of California to have multiple branch locations at the various University of California campuses across the state, and to be staffed with trained multidisciplinary teams, as specified. The bill would require those centers of excellence to be funded with state administrative funds provided under the act. By authorizing a new use of MHSA moneys, this bill would amend the MHSA. This bill would declare that this amendment is consistent with and furthers the purposes of the act.

## Digest Key

## Bill Text

The people of the State of California do enact as follows:SECTION 1. The Legislature finds and declares all of the following:(a) Individuals with mental illness are incarcerated longer and have higher crime recidivism rates than those individuals without mental illness. Jails were not designed to treat individuals suffering from mental illness. Around one in four individuals in California jails have an identified mental illness. When these individuals do not receive proper rehabilitation services, they have challenges integrating into communities and often recidivate back into the criminal justice system, which results in a loss in human potential, and may cost taxpayers over one hundred fifty dollars per inmate daily in some California counties.(b) There is an urgent need to use evidence-based and culturally relevant correctional practices and psychiatric services to prevent incarceration and recidivism.(c) Information- and data-sharing often becomes a barrier to effective collaboration between community providers and criminal justice professionals.(d) Collaboration between community providers and criminal justice professionals is essential for ensuring continuity of care and care coordination during transitions to and from incarceration, and in sustaining treatment that would support justice-involved individuals both in the correctional setting and within the community.(e) By working with partners from the criminal justice system and social services agencies, the community behavioral health system can develop the capacity to serve those most in need, as well as collaborate with local partners to prevent mental health challenges, which may result in harmful individual and societal costs.SEC. 2. Section 5845.6 is added to the Welfare and Institutions Code, to read:5845.6. (a) On or before January 1, 2023, the State Department of Health Care Services, in consultation with the Council on Criminal Justice and Behavioral Health and the Mental Health Services Oversight and Accountability Commission, and in partnership with the University of California, shall establish and maintain the Behavioral Health and Justice Center of Excellence to provide counties and local agencies with centralized access to data, training, resources, and services to aid in the facilitation and coordination of efforts to serve individuals with mental illness who are involved in the criminal justice system to assist with diversion and reduce recidivism rates.(b) The department shall partner with the University of California to have multiple branch locations at the various University of California campuses across the state, and shall be staffed with trained multidisciplinary teams who shall coordinate all of the following:(1) A forum for county behavioral health departments, law enforcement agencies, community-based organizations, and other stakeholders to coordinate services and use data to fill gaps in mental health services program delivery to provide culturally competent services.(2) Assisting counties in analyzing existing datasets, and synthesizing data surrounding length of jail stays, rates of connection to treatment, and recidivism rates to allow for increasingly effective practices.(3) A forum for California counties to share best practices, working models, and effective innovative programs with other agencies and communities.(4) Education and training for mental health professionals in treating individuals with mental illness who are involved in the criminal justice system, and investment in curriculum for a new workforce, as well as training for the existing workforce, on core competencies to provide effective integrated correctional and behavioral health services to better promote recovery and recidivism in custody and community settings.(5) Resources and tools to assist local alliances of county behavioral health departments, local law enforcement agencies, community-based organizations, and other stakeholders to aid in the actual implementation of innovative collaborative program models.(6) Assisting counties in fulfilling statewide goals in preventing and reducing the number of individuals with mental illness from entering the criminal justice system.(c) The center shall be funded with state administrative funds pursuant to subdivision (d) of Section 5892.SEC. 3. Section 5892 of the Welfare and Institutions Code is amended to read:5892. (a) In order to promote efficient implementation of this act, the county shall use funds distributed from the Mental Health Services Fund as follows:(1) In the 200506, 200607, and 200708 fiscal years, 10 percent shall be placed in a trust fund to be expended for education and training programs pursuant to Part 3.1 (commencing with Section 5820).(2) In the 200506, 200607, and 200708 fiscal years, 10 percent for capital facilities and technological needs shall be distributed to counties in accordance with a formula developed in consultation with the County Behavioral Health Directors Association of California to implement plans developed pursuant to Section 5847.(3) Twenty percent of funds distributed to the counties pursuant to subdivision (c) of Section 5891 shall be used for prevention and early intervention programs in accordance with Part 3.6 (commencing with Section 5840).(4) The expenditure for prevention and early intervention may be increased in any county in which the department determines that the increase will decrease the need and cost for additional services to persons with severe mental illness in that county by an amount at least commensurate with the proposed increase.(5) The balance of funds shall be distributed to county mental health programs for services to persons with severe mental illnesses pursuant to Part 4 (commencing with Section 5850) for the childrens system of care and Part 3 (commencing with Section 5800) for the adult and older adult system of care. These services may include housing assistance, as defined in Section 5892.5, to the target population specified in Section 5600.3.(6) Five percent of the total funding for each county mental health program for Part 3 (commencing with Section 5800), Part 3.6 (commencing with Section 5840), and Part 4 (commencing with Section 5850), shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.(b) (1) In any fiscal year after the 200708 fiscal year, programs for services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) may include funds for technological needs and capital facilities, human resource needs, and a prudent reserve to ensure services do not have to be significantly reduced in years in which revenues are below the average of previous years. The total allocation for purposes authorized by this subdivision shall not exceed 20 percent of the average amount of funds allocated to that county for the previous five fiscal years pursuant to this section.(2) A county shall calculate an amount it establishes as the prudent reserve for its Local Mental Health Services Fund, not to exceed 33 percent of the average community services and support revenue received for the fund in the preceding five years. The county shall reassess the maximum amount of this reserve every five years and certify the reassessment as part of the three-year program and expenditure plan required pursuant to Section 5847.(c) The allocations pursuant to subdivisions (a) and (b) shall include funding for annual planning costs pursuant to Section 5848. The total of these costs shall not exceed 5 percent of the total of annual revenues received for the fund. The planning costs shall include funds for county mental health programs to pay for the costs of consumers, family members, and other stakeholders to participate in the planning process and for the planning and implementation required for private provider contracts to be significantly expanded to provide additional services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850).(d) Prior to making the allocations pursuant to subdivisions (a), (b), and (c), funds shall be reserved for the costs for the State Department of Health Care Services, the California Behavioral Health Planning Council, the Office of Statewide Health Planning and Development, the Mental Health Services Oversight and Accountability Commission, the State Department of Public Health, and any other state agency to implement all duties pursuant to the programs set forth in this section. section and Section 5845.6. These costs shall not exceed 5 percent of the total of annual revenues received for the fund. The administrative costs shall include funds to assist consumers and family members to ensure the appropriate state and county agencies give full consideration to concerns about quality, structure of service delivery, or access to services. The amounts allocated for administration shall include amounts sufficient to ensure adequate research and evaluation regarding the effectiveness of services being provided and achievement of the outcome measures set forth in Part 3 (commencing with Section 5800), Part 3.6 (commencing with Section 5840), and Part 4 (commencing with Section 5850). The amount of funds available for the purposes of this subdivision in any fiscal year is subject to appropriation in the annual Budget Act.(e) In the 200405 fiscal year, funds shall be allocated as follows:(1) Forty-five percent for education and training pursuant to Part 3.1 (commencing with Section 5820).(2) Forty-five percent for capital facilities and technology needs in the manner specified by paragraph (2) of subdivision (a).(3) Five percent for local planning in the manner specified in subdivision (c).(4) Five percent for state implementation in the manner specified in subdivision (d).(f) Each county shall place all funds received from the State Mental Health Services Fund in a local Mental Health Services Fund. The Local Mental Health Services Fund balance shall be invested consistent with other county funds and the interest earned on the investments shall be transferred into the fund. The earnings on investment of these funds shall be available for distribution from the fund in future fiscal years.(g) All expenditures for county mental health programs shall be consistent with a currently approved plan or update pursuant to Section 5847.(h) (1) Other than funds placed in a reserve in accordance with an approved plan, any funds allocated to a county that have not been spent for their authorized purpose within three years, and the interest accruing on those funds, shall revert to the state to be deposited into the Reversion Account, hereby established in the fund, and available for other counties in future years, provided, however, that funds, including interest accrued on those funds, for capital facilities, technological needs, or education and training may be retained for up to 10 years before reverting to the Reversion Account.(2) (A) If a county receives approval from the Mental Health Services Oversight and Accountability Commission of a plan for innovative programs, pursuant to subdivision (e) of Section 5830, the countys funds identified in that plan for innovative programs shall not revert to the state pursuant to paragraph (1) so long as they are encumbered under the terms of the approved project plan, including any subsequent amendments approved by the commission, or until three years after the date of approval, whichever is later.(B) Subparagraph (A) applies to all plans for innovative programs that have received commission approval and are in the process at the time of enactment of the act that added this subparagraph, and to all plans that receive commission approval thereafter.(3) Notwithstanding paragraph (1), any funds allocated to a county with a population of less than 200,000 that have not been spent for their authorized purpose within five years shall revert to the state as described in paragraph (1).(4) (A) Notwithstanding paragraphs (1) and (2), if a county with a population of less than 200,000 receives approval from the Mental Health Services Oversight and Accountability Commission of a plan for innovative programs, pursuant to subdivision (e) of Section 5830, the countys funds identified in that plan for innovative programs shall not revert to the state pursuant to paragraph (1) so long as they are encumbered under the terms of the approved project plan, including any subsequent amendments approved by the commission, or until five years after the date of approval, whichever is later.(B) Subparagraph (A) applies to all plans for innovative programs that have received commission approval and are in the process at the time of enactment of the act that added this subparagraph, and to all plans that receive commission approval thereafter.(i) If there are revenues available in the fund after the Mental Health Services Oversight and Accountability Commission has determined there are prudent reserves and no unmet needs for any of the programs funded pursuant to this section, including all purposes of the Prevention and Early Intervention Program, the commission shall develop a plan for expenditures of these revenues to further the purposes of this act and the Legislature may appropriate these funds for any purpose consistent with the commissions adopted plan that furthers the purposes of this act.SEC. 4. The Legislature finds and declares that this act is consistent with and furthers the intent of the Mental Health Services Act within the meaning of Section 18 of the Mental Health Services Act.

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

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

SECTION 1. The Legislature finds and declares all of the following:(a) Individuals with mental illness are incarcerated longer and have higher crime recidivism rates than those individuals without mental illness. Jails were not designed to treat individuals suffering from mental illness. Around one in four individuals in California jails have an identified mental illness. When these individuals do not receive proper rehabilitation services, they have challenges integrating into communities and often recidivate back into the criminal justice system, which results in a loss in human potential, and may cost taxpayers over one hundred fifty dollars per inmate daily in some California counties.(b) There is an urgent need to use evidence-based and culturally relevant correctional practices and psychiatric services to prevent incarceration and recidivism.(c) Information- and data-sharing often becomes a barrier to effective collaboration between community providers and criminal justice professionals.(d) Collaboration between community providers and criminal justice professionals is essential for ensuring continuity of care and care coordination during transitions to and from incarceration, and in sustaining treatment that would support justice-involved individuals both in the correctional setting and within the community.(e) By working with partners from the criminal justice system and social services agencies, the community behavioral health system can develop the capacity to serve those most in need, as well as collaborate with local partners to prevent mental health challenges, which may result in harmful individual and societal costs.

SECTION 1. The Legislature finds and declares all of the following:(a) Individuals with mental illness are incarcerated longer and have higher crime recidivism rates than those individuals without mental illness. Jails were not designed to treat individuals suffering from mental illness. Around one in four individuals in California jails have an identified mental illness. When these individuals do not receive proper rehabilitation services, they have challenges integrating into communities and often recidivate back into the criminal justice system, which results in a loss in human potential, and may cost taxpayers over one hundred fifty dollars per inmate daily in some California counties.(b) There is an urgent need to use evidence-based and culturally relevant correctional practices and psychiatric services to prevent incarceration and recidivism.(c) Information- and data-sharing often becomes a barrier to effective collaboration between community providers and criminal justice professionals.(d) Collaboration between community providers and criminal justice professionals is essential for ensuring continuity of care and care coordination during transitions to and from incarceration, and in sustaining treatment that would support justice-involved individuals both in the correctional setting and within the community.(e) By working with partners from the criminal justice system and social services agencies, the community behavioral health system can develop the capacity to serve those most in need, as well as collaborate with local partners to prevent mental health challenges, which may result in harmful individual and societal costs.

SECTION 1. The Legislature finds and declares all of the following:

### SECTION 1.

(a) Individuals with mental illness are incarcerated longer and have higher crime recidivism rates than those individuals without mental illness. Jails were not designed to treat individuals suffering from mental illness. Around one in four individuals in California jails have an identified mental illness. When these individuals do not receive proper rehabilitation services, they have challenges integrating into communities and often recidivate back into the criminal justice system, which results in a loss in human potential, and may cost taxpayers over one hundred fifty dollars per inmate daily in some California counties.

(b) There is an urgent need to use evidence-based and culturally relevant correctional practices and psychiatric services to prevent incarceration and recidivism.

(c) Information- and data-sharing often becomes a barrier to effective collaboration between community providers and criminal justice professionals.

(d) Collaboration between community providers and criminal justice professionals is essential for ensuring continuity of care and care coordination during transitions to and from incarceration, and in sustaining treatment that would support justice-involved individuals both in the correctional setting and within the community.

(e) By working with partners from the criminal justice system and social services agencies, the community behavioral health system can develop the capacity to serve those most in need, as well as collaborate with local partners to prevent mental health challenges, which may result in harmful individual and societal costs.

SEC. 2. Section 5845.6 is added to the Welfare and Institutions Code, to read:5845.6. (a) On or before January 1, 2023, the State Department of Health Care Services, in consultation with the Council on Criminal Justice and Behavioral Health and the Mental Health Services Oversight and Accountability Commission, and in partnership with the University of California, shall establish and maintain the Behavioral Health and Justice Center of Excellence to provide counties and local agencies with centralized access to data, training, resources, and services to aid in the facilitation and coordination of efforts to serve individuals with mental illness who are involved in the criminal justice system to assist with diversion and reduce recidivism rates.(b) The department shall partner with the University of California to have multiple branch locations at the various University of California campuses across the state, and shall be staffed with trained multidisciplinary teams who shall coordinate all of the following:(1) A forum for county behavioral health departments, law enforcement agencies, community-based organizations, and other stakeholders to coordinate services and use data to fill gaps in mental health services program delivery to provide culturally competent services.(2) Assisting counties in analyzing existing datasets, and synthesizing data surrounding length of jail stays, rates of connection to treatment, and recidivism rates to allow for increasingly effective practices.(3) A forum for California counties to share best practices, working models, and effective innovative programs with other agencies and communities.(4) Education and training for mental health professionals in treating individuals with mental illness who are involved in the criminal justice system, and investment in curriculum for a new workforce, as well as training for the existing workforce, on core competencies to provide effective integrated correctional and behavioral health services to better promote recovery and recidivism in custody and community settings.(5) Resources and tools to assist local alliances of county behavioral health departments, local law enforcement agencies, community-based organizations, and other stakeholders to aid in the actual implementation of innovative collaborative program models.(6) Assisting counties in fulfilling statewide goals in preventing and reducing the number of individuals with mental illness from entering the criminal justice system.(c) The center shall be funded with state administrative funds pursuant to subdivision (d) of Section 5892.

SEC. 2. Section 5845.6 is added to the Welfare and Institutions Code, to read:

### SEC. 2.

5845.6. (a) On or before January 1, 2023, the State Department of Health Care Services, in consultation with the Council on Criminal Justice and Behavioral Health and the Mental Health Services Oversight and Accountability Commission, and in partnership with the University of California, shall establish and maintain the Behavioral Health and Justice Center of Excellence to provide counties and local agencies with centralized access to data, training, resources, and services to aid in the facilitation and coordination of efforts to serve individuals with mental illness who are involved in the criminal justice system to assist with diversion and reduce recidivism rates.(b) The department shall partner with the University of California to have multiple branch locations at the various University of California campuses across the state, and shall be staffed with trained multidisciplinary teams who shall coordinate all of the following:(1) A forum for county behavioral health departments, law enforcement agencies, community-based organizations, and other stakeholders to coordinate services and use data to fill gaps in mental health services program delivery to provide culturally competent services.(2) Assisting counties in analyzing existing datasets, and synthesizing data surrounding length of jail stays, rates of connection to treatment, and recidivism rates to allow for increasingly effective practices.(3) A forum for California counties to share best practices, working models, and effective innovative programs with other agencies and communities.(4) Education and training for mental health professionals in treating individuals with mental illness who are involved in the criminal justice system, and investment in curriculum for a new workforce, as well as training for the existing workforce, on core competencies to provide effective integrated correctional and behavioral health services to better promote recovery and recidivism in custody and community settings.(5) Resources and tools to assist local alliances of county behavioral health departments, local law enforcement agencies, community-based organizations, and other stakeholders to aid in the actual implementation of innovative collaborative program models.(6) Assisting counties in fulfilling statewide goals in preventing and reducing the number of individuals with mental illness from entering the criminal justice system.(c) The center shall be funded with state administrative funds pursuant to subdivision (d) of Section 5892.

5845.6. (a) On or before January 1, 2023, the State Department of Health Care Services, in consultation with the Council on Criminal Justice and Behavioral Health and the Mental Health Services Oversight and Accountability Commission, and in partnership with the University of California, shall establish and maintain the Behavioral Health and Justice Center of Excellence to provide counties and local agencies with centralized access to data, training, resources, and services to aid in the facilitation and coordination of efforts to serve individuals with mental illness who are involved in the criminal justice system to assist with diversion and reduce recidivism rates.(b) The department shall partner with the University of California to have multiple branch locations at the various University of California campuses across the state, and shall be staffed with trained multidisciplinary teams who shall coordinate all of the following:(1) A forum for county behavioral health departments, law enforcement agencies, community-based organizations, and other stakeholders to coordinate services and use data to fill gaps in mental health services program delivery to provide culturally competent services.(2) Assisting counties in analyzing existing datasets, and synthesizing data surrounding length of jail stays, rates of connection to treatment, and recidivism rates to allow for increasingly effective practices.(3) A forum for California counties to share best practices, working models, and effective innovative programs with other agencies and communities.(4) Education and training for mental health professionals in treating individuals with mental illness who are involved in the criminal justice system, and investment in curriculum for a new workforce, as well as training for the existing workforce, on core competencies to provide effective integrated correctional and behavioral health services to better promote recovery and recidivism in custody and community settings.(5) Resources and tools to assist local alliances of county behavioral health departments, local law enforcement agencies, community-based organizations, and other stakeholders to aid in the actual implementation of innovative collaborative program models.(6) Assisting counties in fulfilling statewide goals in preventing and reducing the number of individuals with mental illness from entering the criminal justice system.(c) The center shall be funded with state administrative funds pursuant to subdivision (d) of Section 5892.

5845.6. (a) On or before January 1, 2023, the State Department of Health Care Services, in consultation with the Council on Criminal Justice and Behavioral Health and the Mental Health Services Oversight and Accountability Commission, and in partnership with the University of California, shall establish and maintain the Behavioral Health and Justice Center of Excellence to provide counties and local agencies with centralized access to data, training, resources, and services to aid in the facilitation and coordination of efforts to serve individuals with mental illness who are involved in the criminal justice system to assist with diversion and reduce recidivism rates.(b) The department shall partner with the University of California to have multiple branch locations at the various University of California campuses across the state, and shall be staffed with trained multidisciplinary teams who shall coordinate all of the following:(1) A forum for county behavioral health departments, law enforcement agencies, community-based organizations, and other stakeholders to coordinate services and use data to fill gaps in mental health services program delivery to provide culturally competent services.(2) Assisting counties in analyzing existing datasets, and synthesizing data surrounding length of jail stays, rates of connection to treatment, and recidivism rates to allow for increasingly effective practices.(3) A forum for California counties to share best practices, working models, and effective innovative programs with other agencies and communities.(4) Education and training for mental health professionals in treating individuals with mental illness who are involved in the criminal justice system, and investment in curriculum for a new workforce, as well as training for the existing workforce, on core competencies to provide effective integrated correctional and behavioral health services to better promote recovery and recidivism in custody and community settings.(5) Resources and tools to assist local alliances of county behavioral health departments, local law enforcement agencies, community-based organizations, and other stakeholders to aid in the actual implementation of innovative collaborative program models.(6) Assisting counties in fulfilling statewide goals in preventing and reducing the number of individuals with mental illness from entering the criminal justice system.(c) The center shall be funded with state administrative funds pursuant to subdivision (d) of Section 5892.



5845.6. (a) On or before January 1, 2023, the State Department of Health Care Services, in consultation with the Council on Criminal Justice and Behavioral Health and the Mental Health Services Oversight and Accountability Commission, and in partnership with the University of California, shall establish and maintain the Behavioral Health and Justice Center of Excellence to provide counties and local agencies with centralized access to data, training, resources, and services to aid in the facilitation and coordination of efforts to serve individuals with mental illness who are involved in the criminal justice system to assist with diversion and reduce recidivism rates.

(b) The department shall partner with the University of California to have multiple branch locations at the various University of California campuses across the state, and shall be staffed with trained multidisciplinary teams who shall coordinate all of the following:

(1) A forum for county behavioral health departments, law enforcement agencies, community-based organizations, and other stakeholders to coordinate services and use data to fill gaps in mental health services program delivery to provide culturally competent services.

(2) Assisting counties in analyzing existing datasets, and synthesizing data surrounding length of jail stays, rates of connection to treatment, and recidivism rates to allow for increasingly effective practices.

(3) A forum for California counties to share best practices, working models, and effective innovative programs with other agencies and communities.

(4) Education and training for mental health professionals in treating individuals with mental illness who are involved in the criminal justice system, and investment in curriculum for a new workforce, as well as training for the existing workforce, on core competencies to provide effective integrated correctional and behavioral health services to better promote recovery and recidivism in custody and community settings.

(5) Resources and tools to assist local alliances of county behavioral health departments, local law enforcement agencies, community-based organizations, and other stakeholders to aid in the actual implementation of innovative collaborative program models.

(6) Assisting counties in fulfilling statewide goals in preventing and reducing the number of individuals with mental illness from entering the criminal justice system.

(c) The center shall be funded with state administrative funds pursuant to subdivision (d) of Section 5892.

SEC. 3. Section 5892 of the Welfare and Institutions Code is amended to read:5892. (a) In order to promote efficient implementation of this act, the county shall use funds distributed from the Mental Health Services Fund as follows:(1) In the 200506, 200607, and 200708 fiscal years, 10 percent shall be placed in a trust fund to be expended for education and training programs pursuant to Part 3.1 (commencing with Section 5820).(2) In the 200506, 200607, and 200708 fiscal years, 10 percent for capital facilities and technological needs shall be distributed to counties in accordance with a formula developed in consultation with the County Behavioral Health Directors Association of California to implement plans developed pursuant to Section 5847.(3) Twenty percent of funds distributed to the counties pursuant to subdivision (c) of Section 5891 shall be used for prevention and early intervention programs in accordance with Part 3.6 (commencing with Section 5840).(4) The expenditure for prevention and early intervention may be increased in any county in which the department determines that the increase will decrease the need and cost for additional services to persons with severe mental illness in that county by an amount at least commensurate with the proposed increase.(5) The balance of funds shall be distributed to county mental health programs for services to persons with severe mental illnesses pursuant to Part 4 (commencing with Section 5850) for the childrens system of care and Part 3 (commencing with Section 5800) for the adult and older adult system of care. These services may include housing assistance, as defined in Section 5892.5, to the target population specified in Section 5600.3.(6) Five percent of the total funding for each county mental health program for Part 3 (commencing with Section 5800), Part 3.6 (commencing with Section 5840), and Part 4 (commencing with Section 5850), shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.(b) (1) In any fiscal year after the 200708 fiscal year, programs for services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) may include funds for technological needs and capital facilities, human resource needs, and a prudent reserve to ensure services do not have to be significantly reduced in years in which revenues are below the average of previous years. The total allocation for purposes authorized by this subdivision shall not exceed 20 percent of the average amount of funds allocated to that county for the previous five fiscal years pursuant to this section.(2) A county shall calculate an amount it establishes as the prudent reserve for its Local Mental Health Services Fund, not to exceed 33 percent of the average community services and support revenue received for the fund in the preceding five years. The county shall reassess the maximum amount of this reserve every five years and certify the reassessment as part of the three-year program and expenditure plan required pursuant to Section 5847.(c) The allocations pursuant to subdivisions (a) and (b) shall include funding for annual planning costs pursuant to Section 5848. The total of these costs shall not exceed 5 percent of the total of annual revenues received for the fund. The planning costs shall include funds for county mental health programs to pay for the costs of consumers, family members, and other stakeholders to participate in the planning process and for the planning and implementation required for private provider contracts to be significantly expanded to provide additional services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850).(d) Prior to making the allocations pursuant to subdivisions (a), (b), and (c), funds shall be reserved for the costs for the State Department of Health Care Services, the California Behavioral Health Planning Council, the Office of Statewide Health Planning and Development, the Mental Health Services Oversight and Accountability Commission, the State Department of Public Health, and any other state agency to implement all duties pursuant to the programs set forth in this section. section and Section 5845.6. These costs shall not exceed 5 percent of the total of annual revenues received for the fund. The administrative costs shall include funds to assist consumers and family members to ensure the appropriate state and county agencies give full consideration to concerns about quality, structure of service delivery, or access to services. The amounts allocated for administration shall include amounts sufficient to ensure adequate research and evaluation regarding the effectiveness of services being provided and achievement of the outcome measures set forth in Part 3 (commencing with Section 5800), Part 3.6 (commencing with Section 5840), and Part 4 (commencing with Section 5850). The amount of funds available for the purposes of this subdivision in any fiscal year is subject to appropriation in the annual Budget Act.(e) In the 200405 fiscal year, funds shall be allocated as follows:(1) Forty-five percent for education and training pursuant to Part 3.1 (commencing with Section 5820).(2) Forty-five percent for capital facilities and technology needs in the manner specified by paragraph (2) of subdivision (a).(3) Five percent for local planning in the manner specified in subdivision (c).(4) Five percent for state implementation in the manner specified in subdivision (d).(f) Each county shall place all funds received from the State Mental Health Services Fund in a local Mental Health Services Fund. The Local Mental Health Services Fund balance shall be invested consistent with other county funds and the interest earned on the investments shall be transferred into the fund. The earnings on investment of these funds shall be available for distribution from the fund in future fiscal years.(g) All expenditures for county mental health programs shall be consistent with a currently approved plan or update pursuant to Section 5847.(h) (1) Other than funds placed in a reserve in accordance with an approved plan, any funds allocated to a county that have not been spent for their authorized purpose within three years, and the interest accruing on those funds, shall revert to the state to be deposited into the Reversion Account, hereby established in the fund, and available for other counties in future years, provided, however, that funds, including interest accrued on those funds, for capital facilities, technological needs, or education and training may be retained for up to 10 years before reverting to the Reversion Account.(2) (A) If a county receives approval from the Mental Health Services Oversight and Accountability Commission of a plan for innovative programs, pursuant to subdivision (e) of Section 5830, the countys funds identified in that plan for innovative programs shall not revert to the state pursuant to paragraph (1) so long as they are encumbered under the terms of the approved project plan, including any subsequent amendments approved by the commission, or until three years after the date of approval, whichever is later.(B) Subparagraph (A) applies to all plans for innovative programs that have received commission approval and are in the process at the time of enactment of the act that added this subparagraph, and to all plans that receive commission approval thereafter.(3) Notwithstanding paragraph (1), any funds allocated to a county with a population of less than 200,000 that have not been spent for their authorized purpose within five years shall revert to the state as described in paragraph (1).(4) (A) Notwithstanding paragraphs (1) and (2), if a county with a population of less than 200,000 receives approval from the Mental Health Services Oversight and Accountability Commission of a plan for innovative programs, pursuant to subdivision (e) of Section 5830, the countys funds identified in that plan for innovative programs shall not revert to the state pursuant to paragraph (1) so long as they are encumbered under the terms of the approved project plan, including any subsequent amendments approved by the commission, or until five years after the date of approval, whichever is later.(B) Subparagraph (A) applies to all plans for innovative programs that have received commission approval and are in the process at the time of enactment of the act that added this subparagraph, and to all plans that receive commission approval thereafter.(i) If there are revenues available in the fund after the Mental Health Services Oversight and Accountability Commission has determined there are prudent reserves and no unmet needs for any of the programs funded pursuant to this section, including all purposes of the Prevention and Early Intervention Program, the commission shall develop a plan for expenditures of these revenues to further the purposes of this act and the Legislature may appropriate these funds for any purpose consistent with the commissions adopted plan that furthers the purposes of this act.

SEC. 3. Section 5892 of the Welfare and Institutions Code is amended to read:

### SEC. 3.

5892. (a) In order to promote efficient implementation of this act, the county shall use funds distributed from the Mental Health Services Fund as follows:(1) In the 200506, 200607, and 200708 fiscal years, 10 percent shall be placed in a trust fund to be expended for education and training programs pursuant to Part 3.1 (commencing with Section 5820).(2) In the 200506, 200607, and 200708 fiscal years, 10 percent for capital facilities and technological needs shall be distributed to counties in accordance with a formula developed in consultation with the County Behavioral Health Directors Association of California to implement plans developed pursuant to Section 5847.(3) Twenty percent of funds distributed to the counties pursuant to subdivision (c) of Section 5891 shall be used for prevention and early intervention programs in accordance with Part 3.6 (commencing with Section 5840).(4) The expenditure for prevention and early intervention may be increased in any county in which the department determines that the increase will decrease the need and cost for additional services to persons with severe mental illness in that county by an amount at least commensurate with the proposed increase.(5) The balance of funds shall be distributed to county mental health programs for services to persons with severe mental illnesses pursuant to Part 4 (commencing with Section 5850) for the childrens system of care and Part 3 (commencing with Section 5800) for the adult and older adult system of care. These services may include housing assistance, as defined in Section 5892.5, to the target population specified in Section 5600.3.(6) Five percent of the total funding for each county mental health program for Part 3 (commencing with Section 5800), Part 3.6 (commencing with Section 5840), and Part 4 (commencing with Section 5850), shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.(b) (1) In any fiscal year after the 200708 fiscal year, programs for services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) may include funds for technological needs and capital facilities, human resource needs, and a prudent reserve to ensure services do not have to be significantly reduced in years in which revenues are below the average of previous years. The total allocation for purposes authorized by this subdivision shall not exceed 20 percent of the average amount of funds allocated to that county for the previous five fiscal years pursuant to this section.(2) A county shall calculate an amount it establishes as the prudent reserve for its Local Mental Health Services Fund, not to exceed 33 percent of the average community services and support revenue received for the fund in the preceding five years. The county shall reassess the maximum amount of this reserve every five years and certify the reassessment as part of the three-year program and expenditure plan required pursuant to Section 5847.(c) The allocations pursuant to subdivisions (a) and (b) shall include funding for annual planning costs pursuant to Section 5848. The total of these costs shall not exceed 5 percent of the total of annual revenues received for the fund. The planning costs shall include funds for county mental health programs to pay for the costs of consumers, family members, and other stakeholders to participate in the planning process and for the planning and implementation required for private provider contracts to be significantly expanded to provide additional services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850).(d) Prior to making the allocations pursuant to subdivisions (a), (b), and (c), funds shall be reserved for the costs for the State Department of Health Care Services, the California Behavioral Health Planning Council, the Office of Statewide Health Planning and Development, the Mental Health Services Oversight and Accountability Commission, the State Department of Public Health, and any other state agency to implement all duties pursuant to the programs set forth in this section. section and Section 5845.6. These costs shall not exceed 5 percent of the total of annual revenues received for the fund. The administrative costs shall include funds to assist consumers and family members to ensure the appropriate state and county agencies give full consideration to concerns about quality, structure of service delivery, or access to services. The amounts allocated for administration shall include amounts sufficient to ensure adequate research and evaluation regarding the effectiveness of services being provided and achievement of the outcome measures set forth in Part 3 (commencing with Section 5800), Part 3.6 (commencing with Section 5840), and Part 4 (commencing with Section 5850). The amount of funds available for the purposes of this subdivision in any fiscal year is subject to appropriation in the annual Budget Act.(e) In the 200405 fiscal year, funds shall be allocated as follows:(1) Forty-five percent for education and training pursuant to Part 3.1 (commencing with Section 5820).(2) Forty-five percent for capital facilities and technology needs in the manner specified by paragraph (2) of subdivision (a).(3) Five percent for local planning in the manner specified in subdivision (c).(4) Five percent for state implementation in the manner specified in subdivision (d).(f) Each county shall place all funds received from the State Mental Health Services Fund in a local Mental Health Services Fund. The Local Mental Health Services Fund balance shall be invested consistent with other county funds and the interest earned on the investments shall be transferred into the fund. The earnings on investment of these funds shall be available for distribution from the fund in future fiscal years.(g) All expenditures for county mental health programs shall be consistent with a currently approved plan or update pursuant to Section 5847.(h) (1) Other than funds placed in a reserve in accordance with an approved plan, any funds allocated to a county that have not been spent for their authorized purpose within three years, and the interest accruing on those funds, shall revert to the state to be deposited into the Reversion Account, hereby established in the fund, and available for other counties in future years, provided, however, that funds, including interest accrued on those funds, for capital facilities, technological needs, or education and training may be retained for up to 10 years before reverting to the Reversion Account.(2) (A) If a county receives approval from the Mental Health Services Oversight and Accountability Commission of a plan for innovative programs, pursuant to subdivision (e) of Section 5830, the countys funds identified in that plan for innovative programs shall not revert to the state pursuant to paragraph (1) so long as they are encumbered under the terms of the approved project plan, including any subsequent amendments approved by the commission, or until three years after the date of approval, whichever is later.(B) Subparagraph (A) applies to all plans for innovative programs that have received commission approval and are in the process at the time of enactment of the act that added this subparagraph, and to all plans that receive commission approval thereafter.(3) Notwithstanding paragraph (1), any funds allocated to a county with a population of less than 200,000 that have not been spent for their authorized purpose within five years shall revert to the state as described in paragraph (1).(4) (A) Notwithstanding paragraphs (1) and (2), if a county with a population of less than 200,000 receives approval from the Mental Health Services Oversight and Accountability Commission of a plan for innovative programs, pursuant to subdivision (e) of Section 5830, the countys funds identified in that plan for innovative programs shall not revert to the state pursuant to paragraph (1) so long as they are encumbered under the terms of the approved project plan, including any subsequent amendments approved by the commission, or until five years after the date of approval, whichever is later.(B) Subparagraph (A) applies to all plans for innovative programs that have received commission approval and are in the process at the time of enactment of the act that added this subparagraph, and to all plans that receive commission approval thereafter.(i) If there are revenues available in the fund after the Mental Health Services Oversight and Accountability Commission has determined there are prudent reserves and no unmet needs for any of the programs funded pursuant to this section, including all purposes of the Prevention and Early Intervention Program, the commission shall develop a plan for expenditures of these revenues to further the purposes of this act and the Legislature may appropriate these funds for any purpose consistent with the commissions adopted plan that furthers the purposes of this act.

5892. (a) In order to promote efficient implementation of this act, the county shall use funds distributed from the Mental Health Services Fund as follows:(1) In the 200506, 200607, and 200708 fiscal years, 10 percent shall be placed in a trust fund to be expended for education and training programs pursuant to Part 3.1 (commencing with Section 5820).(2) In the 200506, 200607, and 200708 fiscal years, 10 percent for capital facilities and technological needs shall be distributed to counties in accordance with a formula developed in consultation with the County Behavioral Health Directors Association of California to implement plans developed pursuant to Section 5847.(3) Twenty percent of funds distributed to the counties pursuant to subdivision (c) of Section 5891 shall be used for prevention and early intervention programs in accordance with Part 3.6 (commencing with Section 5840).(4) The expenditure for prevention and early intervention may be increased in any county in which the department determines that the increase will decrease the need and cost for additional services to persons with severe mental illness in that county by an amount at least commensurate with the proposed increase.(5) The balance of funds shall be distributed to county mental health programs for services to persons with severe mental illnesses pursuant to Part 4 (commencing with Section 5850) for the childrens system of care and Part 3 (commencing with Section 5800) for the adult and older adult system of care. These services may include housing assistance, as defined in Section 5892.5, to the target population specified in Section 5600.3.(6) Five percent of the total funding for each county mental health program for Part 3 (commencing with Section 5800), Part 3.6 (commencing with Section 5840), and Part 4 (commencing with Section 5850), shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.(b) (1) In any fiscal year after the 200708 fiscal year, programs for services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) may include funds for technological needs and capital facilities, human resource needs, and a prudent reserve to ensure services do not have to be significantly reduced in years in which revenues are below the average of previous years. The total allocation for purposes authorized by this subdivision shall not exceed 20 percent of the average amount of funds allocated to that county for the previous five fiscal years pursuant to this section.(2) A county shall calculate an amount it establishes as the prudent reserve for its Local Mental Health Services Fund, not to exceed 33 percent of the average community services and support revenue received for the fund in the preceding five years. The county shall reassess the maximum amount of this reserve every five years and certify the reassessment as part of the three-year program and expenditure plan required pursuant to Section 5847.(c) The allocations pursuant to subdivisions (a) and (b) shall include funding for annual planning costs pursuant to Section 5848. The total of these costs shall not exceed 5 percent of the total of annual revenues received for the fund. The planning costs shall include funds for county mental health programs to pay for the costs of consumers, family members, and other stakeholders to participate in the planning process and for the planning and implementation required for private provider contracts to be significantly expanded to provide additional services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850).(d) Prior to making the allocations pursuant to subdivisions (a), (b), and (c), funds shall be reserved for the costs for the State Department of Health Care Services, the California Behavioral Health Planning Council, the Office of Statewide Health Planning and Development, the Mental Health Services Oversight and Accountability Commission, the State Department of Public Health, and any other state agency to implement all duties pursuant to the programs set forth in this section. section and Section 5845.6. These costs shall not exceed 5 percent of the total of annual revenues received for the fund. The administrative costs shall include funds to assist consumers and family members to ensure the appropriate state and county agencies give full consideration to concerns about quality, structure of service delivery, or access to services. The amounts allocated for administration shall include amounts sufficient to ensure adequate research and evaluation regarding the effectiveness of services being provided and achievement of the outcome measures set forth in Part 3 (commencing with Section 5800), Part 3.6 (commencing with Section 5840), and Part 4 (commencing with Section 5850). The amount of funds available for the purposes of this subdivision in any fiscal year is subject to appropriation in the annual Budget Act.(e) In the 200405 fiscal year, funds shall be allocated as follows:(1) Forty-five percent for education and training pursuant to Part 3.1 (commencing with Section 5820).(2) Forty-five percent for capital facilities and technology needs in the manner specified by paragraph (2) of subdivision (a).(3) Five percent for local planning in the manner specified in subdivision (c).(4) Five percent for state implementation in the manner specified in subdivision (d).(f) Each county shall place all funds received from the State Mental Health Services Fund in a local Mental Health Services Fund. The Local Mental Health Services Fund balance shall be invested consistent with other county funds and the interest earned on the investments shall be transferred into the fund. The earnings on investment of these funds shall be available for distribution from the fund in future fiscal years.(g) All expenditures for county mental health programs shall be consistent with a currently approved plan or update pursuant to Section 5847.(h) (1) Other than funds placed in a reserve in accordance with an approved plan, any funds allocated to a county that have not been spent for their authorized purpose within three years, and the interest accruing on those funds, shall revert to the state to be deposited into the Reversion Account, hereby established in the fund, and available for other counties in future years, provided, however, that funds, including interest accrued on those funds, for capital facilities, technological needs, or education and training may be retained for up to 10 years before reverting to the Reversion Account.(2) (A) If a county receives approval from the Mental Health Services Oversight and Accountability Commission of a plan for innovative programs, pursuant to subdivision (e) of Section 5830, the countys funds identified in that plan for innovative programs shall not revert to the state pursuant to paragraph (1) so long as they are encumbered under the terms of the approved project plan, including any subsequent amendments approved by the commission, or until three years after the date of approval, whichever is later.(B) Subparagraph (A) applies to all plans for innovative programs that have received commission approval and are in the process at the time of enactment of the act that added this subparagraph, and to all plans that receive commission approval thereafter.(3) Notwithstanding paragraph (1), any funds allocated to a county with a population of less than 200,000 that have not been spent for their authorized purpose within five years shall revert to the state as described in paragraph (1).(4) (A) Notwithstanding paragraphs (1) and (2), if a county with a population of less than 200,000 receives approval from the Mental Health Services Oversight and Accountability Commission of a plan for innovative programs, pursuant to subdivision (e) of Section 5830, the countys funds identified in that plan for innovative programs shall not revert to the state pursuant to paragraph (1) so long as they are encumbered under the terms of the approved project plan, including any subsequent amendments approved by the commission, or until five years after the date of approval, whichever is later.(B) Subparagraph (A) applies to all plans for innovative programs that have received commission approval and are in the process at the time of enactment of the act that added this subparagraph, and to all plans that receive commission approval thereafter.(i) If there are revenues available in the fund after the Mental Health Services Oversight and Accountability Commission has determined there are prudent reserves and no unmet needs for any of the programs funded pursuant to this section, including all purposes of the Prevention and Early Intervention Program, the commission shall develop a plan for expenditures of these revenues to further the purposes of this act and the Legislature may appropriate these funds for any purpose consistent with the commissions adopted plan that furthers the purposes of this act.

5892. (a) In order to promote efficient implementation of this act, the county shall use funds distributed from the Mental Health Services Fund as follows:(1) In the 200506, 200607, and 200708 fiscal years, 10 percent shall be placed in a trust fund to be expended for education and training programs pursuant to Part 3.1 (commencing with Section 5820).(2) In the 200506, 200607, and 200708 fiscal years, 10 percent for capital facilities and technological needs shall be distributed to counties in accordance with a formula developed in consultation with the County Behavioral Health Directors Association of California to implement plans developed pursuant to Section 5847.(3) Twenty percent of funds distributed to the counties pursuant to subdivision (c) of Section 5891 shall be used for prevention and early intervention programs in accordance with Part 3.6 (commencing with Section 5840).(4) The expenditure for prevention and early intervention may be increased in any county in which the department determines that the increase will decrease the need and cost for additional services to persons with severe mental illness in that county by an amount at least commensurate with the proposed increase.(5) The balance of funds shall be distributed to county mental health programs for services to persons with severe mental illnesses pursuant to Part 4 (commencing with Section 5850) for the childrens system of care and Part 3 (commencing with Section 5800) for the adult and older adult system of care. These services may include housing assistance, as defined in Section 5892.5, to the target population specified in Section 5600.3.(6) Five percent of the total funding for each county mental health program for Part 3 (commencing with Section 5800), Part 3.6 (commencing with Section 5840), and Part 4 (commencing with Section 5850), shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.(b) (1) In any fiscal year after the 200708 fiscal year, programs for services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) may include funds for technological needs and capital facilities, human resource needs, and a prudent reserve to ensure services do not have to be significantly reduced in years in which revenues are below the average of previous years. The total allocation for purposes authorized by this subdivision shall not exceed 20 percent of the average amount of funds allocated to that county for the previous five fiscal years pursuant to this section.(2) A county shall calculate an amount it establishes as the prudent reserve for its Local Mental Health Services Fund, not to exceed 33 percent of the average community services and support revenue received for the fund in the preceding five years. The county shall reassess the maximum amount of this reserve every five years and certify the reassessment as part of the three-year program and expenditure plan required pursuant to Section 5847.(c) The allocations pursuant to subdivisions (a) and (b) shall include funding for annual planning costs pursuant to Section 5848. The total of these costs shall not exceed 5 percent of the total of annual revenues received for the fund. The planning costs shall include funds for county mental health programs to pay for the costs of consumers, family members, and other stakeholders to participate in the planning process and for the planning and implementation required for private provider contracts to be significantly expanded to provide additional services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850).(d) Prior to making the allocations pursuant to subdivisions (a), (b), and (c), funds shall be reserved for the costs for the State Department of Health Care Services, the California Behavioral Health Planning Council, the Office of Statewide Health Planning and Development, the Mental Health Services Oversight and Accountability Commission, the State Department of Public Health, and any other state agency to implement all duties pursuant to the programs set forth in this section. section and Section 5845.6. These costs shall not exceed 5 percent of the total of annual revenues received for the fund. The administrative costs shall include funds to assist consumers and family members to ensure the appropriate state and county agencies give full consideration to concerns about quality, structure of service delivery, or access to services. The amounts allocated for administration shall include amounts sufficient to ensure adequate research and evaluation regarding the effectiveness of services being provided and achievement of the outcome measures set forth in Part 3 (commencing with Section 5800), Part 3.6 (commencing with Section 5840), and Part 4 (commencing with Section 5850). The amount of funds available for the purposes of this subdivision in any fiscal year is subject to appropriation in the annual Budget Act.(e) In the 200405 fiscal year, funds shall be allocated as follows:(1) Forty-five percent for education and training pursuant to Part 3.1 (commencing with Section 5820).(2) Forty-five percent for capital facilities and technology needs in the manner specified by paragraph (2) of subdivision (a).(3) Five percent for local planning in the manner specified in subdivision (c).(4) Five percent for state implementation in the manner specified in subdivision (d).(f) Each county shall place all funds received from the State Mental Health Services Fund in a local Mental Health Services Fund. The Local Mental Health Services Fund balance shall be invested consistent with other county funds and the interest earned on the investments shall be transferred into the fund. The earnings on investment of these funds shall be available for distribution from the fund in future fiscal years.(g) All expenditures for county mental health programs shall be consistent with a currently approved plan or update pursuant to Section 5847.(h) (1) Other than funds placed in a reserve in accordance with an approved plan, any funds allocated to a county that have not been spent for their authorized purpose within three years, and the interest accruing on those funds, shall revert to the state to be deposited into the Reversion Account, hereby established in the fund, and available for other counties in future years, provided, however, that funds, including interest accrued on those funds, for capital facilities, technological needs, or education and training may be retained for up to 10 years before reverting to the Reversion Account.(2) (A) If a county receives approval from the Mental Health Services Oversight and Accountability Commission of a plan for innovative programs, pursuant to subdivision (e) of Section 5830, the countys funds identified in that plan for innovative programs shall not revert to the state pursuant to paragraph (1) so long as they are encumbered under the terms of the approved project plan, including any subsequent amendments approved by the commission, or until three years after the date of approval, whichever is later.(B) Subparagraph (A) applies to all plans for innovative programs that have received commission approval and are in the process at the time of enactment of the act that added this subparagraph, and to all plans that receive commission approval thereafter.(3) Notwithstanding paragraph (1), any funds allocated to a county with a population of less than 200,000 that have not been spent for their authorized purpose within five years shall revert to the state as described in paragraph (1).(4) (A) Notwithstanding paragraphs (1) and (2), if a county with a population of less than 200,000 receives approval from the Mental Health Services Oversight and Accountability Commission of a plan for innovative programs, pursuant to subdivision (e) of Section 5830, the countys funds identified in that plan for innovative programs shall not revert to the state pursuant to paragraph (1) so long as they are encumbered under the terms of the approved project plan, including any subsequent amendments approved by the commission, or until five years after the date of approval, whichever is later.(B) Subparagraph (A) applies to all plans for innovative programs that have received commission approval and are in the process at the time of enactment of the act that added this subparagraph, and to all plans that receive commission approval thereafter.(i) If there are revenues available in the fund after the Mental Health Services Oversight and Accountability Commission has determined there are prudent reserves and no unmet needs for any of the programs funded pursuant to this section, including all purposes of the Prevention and Early Intervention Program, the commission shall develop a plan for expenditures of these revenues to further the purposes of this act and the Legislature may appropriate these funds for any purpose consistent with the commissions adopted plan that furthers the purposes of this act.



5892. (a) In order to promote efficient implementation of this act, the county shall use funds distributed from the Mental Health Services Fund as follows:

(1) In the 200506, 200607, and 200708 fiscal years, 10 percent shall be placed in a trust fund to be expended for education and training programs pursuant to Part 3.1 (commencing with Section 5820).

(2) In the 200506, 200607, and 200708 fiscal years, 10 percent for capital facilities and technological needs shall be distributed to counties in accordance with a formula developed in consultation with the County Behavioral Health Directors Association of California to implement plans developed pursuant to Section 5847.

(3) Twenty percent of funds distributed to the counties pursuant to subdivision (c) of Section 5891 shall be used for prevention and early intervention programs in accordance with Part 3.6 (commencing with Section 5840).

(4) The expenditure for prevention and early intervention may be increased in any county in which the department determines that the increase will decrease the need and cost for additional services to persons with severe mental illness in that county by an amount at least commensurate with the proposed increase.

(5) The balance of funds shall be distributed to county mental health programs for services to persons with severe mental illnesses pursuant to Part 4 (commencing with Section 5850) for the childrens system of care and Part 3 (commencing with Section 5800) for the adult and older adult system of care. These services may include housing assistance, as defined in Section 5892.5, to the target population specified in Section 5600.3.

(6) Five percent of the total funding for each county mental health program for Part 3 (commencing with Section 5800), Part 3.6 (commencing with Section 5840), and Part 4 (commencing with Section 5850), shall be utilized for innovative programs in accordance with Sections 5830, 5847, and 5848.

(b) (1) In any fiscal year after the 200708 fiscal year, programs for services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850) may include funds for technological needs and capital facilities, human resource needs, and a prudent reserve to ensure services do not have to be significantly reduced in years in which revenues are below the average of previous years. The total allocation for purposes authorized by this subdivision shall not exceed 20 percent of the average amount of funds allocated to that county for the previous five fiscal years pursuant to this section.

(2) A county shall calculate an amount it establishes as the prudent reserve for its Local Mental Health Services Fund, not to exceed 33 percent of the average community services and support revenue received for the fund in the preceding five years. The county shall reassess the maximum amount of this reserve every five years and certify the reassessment as part of the three-year program and expenditure plan required pursuant to Section 5847.

(c) The allocations pursuant to subdivisions (a) and (b) shall include funding for annual planning costs pursuant to Section 5848. The total of these costs shall not exceed 5 percent of the total of annual revenues received for the fund. The planning costs shall include funds for county mental health programs to pay for the costs of consumers, family members, and other stakeholders to participate in the planning process and for the planning and implementation required for private provider contracts to be significantly expanded to provide additional services pursuant to Part 3 (commencing with Section 5800) and Part 4 (commencing with Section 5850).

(d) Prior to making the allocations pursuant to subdivisions (a), (b), and (c), funds shall be reserved for the costs for the State Department of Health Care Services, the California Behavioral Health Planning Council, the Office of Statewide Health Planning and Development, the Mental Health Services Oversight and Accountability Commission, the State Department of Public Health, and any other state agency to implement all duties pursuant to the programs set forth in this section. section and Section 5845.6. These costs shall not exceed 5 percent of the total of annual revenues received for the fund. The administrative costs shall include funds to assist consumers and family members to ensure the appropriate state and county agencies give full consideration to concerns about quality, structure of service delivery, or access to services. The amounts allocated for administration shall include amounts sufficient to ensure adequate research and evaluation regarding the effectiveness of services being provided and achievement of the outcome measures set forth in Part 3 (commencing with Section 5800), Part 3.6 (commencing with Section 5840), and Part 4 (commencing with Section 5850). The amount of funds available for the purposes of this subdivision in any fiscal year is subject to appropriation in the annual Budget Act.

(e) In the 200405 fiscal year, funds shall be allocated as follows:

(1) Forty-five percent for education and training pursuant to Part 3.1 (commencing with Section 5820).

(2) Forty-five percent for capital facilities and technology needs in the manner specified by paragraph (2) of subdivision (a).

(3) Five percent for local planning in the manner specified in subdivision (c).

(4) Five percent for state implementation in the manner specified in subdivision (d).

(f) Each county shall place all funds received from the State Mental Health Services Fund in a local Mental Health Services Fund. The Local Mental Health Services Fund balance shall be invested consistent with other county funds and the interest earned on the investments shall be transferred into the fund. The earnings on investment of these funds shall be available for distribution from the fund in future fiscal years.

(g) All expenditures for county mental health programs shall be consistent with a currently approved plan or update pursuant to Section 5847.

(h) (1) Other than funds placed in a reserve in accordance with an approved plan, any funds allocated to a county that have not been spent for their authorized purpose within three years, and the interest accruing on those funds, shall revert to the state to be deposited into the Reversion Account, hereby established in the fund, and available for other counties in future years, provided, however, that funds, including interest accrued on those funds, for capital facilities, technological needs, or education and training may be retained for up to 10 years before reverting to the Reversion Account.

(2) (A) If a county receives approval from the Mental Health Services Oversight and Accountability Commission of a plan for innovative programs, pursuant to subdivision (e) of Section 5830, the countys funds identified in that plan for innovative programs shall not revert to the state pursuant to paragraph (1) so long as they are encumbered under the terms of the approved project plan, including any subsequent amendments approved by the commission, or until three years after the date of approval, whichever is later.

(B) Subparagraph (A) applies to all plans for innovative programs that have received commission approval and are in the process at the time of enactment of the act that added this subparagraph, and to all plans that receive commission approval thereafter.

(3) Notwithstanding paragraph (1), any funds allocated to a county with a population of less than 200,000 that have not been spent for their authorized purpose within five years shall revert to the state as described in paragraph (1).

(4) (A) Notwithstanding paragraphs (1) and (2), if a county with a population of less than 200,000 receives approval from the Mental Health Services Oversight and Accountability Commission of a plan for innovative programs, pursuant to subdivision (e) of Section 5830, the countys funds identified in that plan for innovative programs shall not revert to the state pursuant to paragraph (1) so long as they are encumbered under the terms of the approved project plan, including any subsequent amendments approved by the commission, or until five years after the date of approval, whichever is later.

(B) Subparagraph (A) applies to all plans for innovative programs that have received commission approval and are in the process at the time of enactment of the act that added this subparagraph, and to all plans that receive commission approval thereafter.

(i) If there are revenues available in the fund after the Mental Health Services Oversight and Accountability Commission has determined there are prudent reserves and no unmet needs for any of the programs funded pursuant to this section, including all purposes of the Prevention and Early Intervention Program, the commission shall develop a plan for expenditures of these revenues to further the purposes of this act and the Legislature may appropriate these funds for any purpose consistent with the commissions adopted plan that furthers the purposes of this act.

SEC. 4. The Legislature finds and declares that this act is consistent with and furthers the intent of the Mental Health Services Act within the meaning of Section 18 of the Mental Health Services Act.

SEC. 4. The Legislature finds and declares that this act is consistent with and furthers the intent of the Mental Health Services Act within the meaning of Section 18 of the Mental Health Services Act.

SEC. 4. The Legislature finds and declares that this act is consistent with and furthers the intent of the Mental Health Services Act within the meaning of Section 18 of the Mental Health Services Act.

### SEC. 4.