2005 California Welfare and Institutions Code Sections 5890-5898 PART 4.5. MENTAL HEALTH SERVICES FUND

5890.  (a) The Mental Health Services Fund is hereby created in the
State Treasury.  The fund shall be administered by the State
Department of Mental Health.  Notwithstanding Section 13340 of the
Government Code, all moneys in the fund are continuously appropriated
to the department, without regard to fiscal years, for the purpose
of funding the following programs and other related activities as
designated by other provisions of this division:
   (1) Part 3 (commencing with Section 5800), the Adult and Older
Adult System of Care Act.
   (2) Part 3.6 (commencing with Section 5840), Prevention and Early
Intervention Programs.
   (3) Part 4 (commencing with Section 5850), the Children's Mental
Health Services Act.
   (b) Nothing in the establishment of this fund, nor any other
provisions of the act establishing it or the programs funded shall be
construed to modify the obligation of health care service plans and
disability insurance policies to provide coverage for mental health
services, including those services required under Section 1374.72 of
the Health and Safety Code and Section 10144.5 of the Insurance Code,
related to mental health parity.  Nothing in this act shall be
construed to modify the oversight duties of the Department of Managed
Health Care or the duties of the Department of Insurance with
respect to enforcing such obligations of plans and insurance
policies.
   (c) Nothing in this act shall be construed to modify or reduce the
existing authority or responsibility of the State Department of
Mental Health.
   (d) The State Department of Health Services, in consultation with
the State Department of Mental Health, shall seek approval of all
applicable federal Medicaid approvals to maximize the availability of
federal funds and eligibility of participating children, adults and
seniors for medically necessary care.
   (e) Share of costs for services pursuant to Part 3 (commencing
with Section 5800), and Part 4 (commencing with Section 5850) of this
division, shall be determined in accordance with the Uniform Method
for Determining Ability to Pay applicable to other publicly funded
mental health services, unless such Uniform Method is replaced by
another method of determining co-payments, in which case the new
method applicable to other mental health services shall be applicable
to services pursuant to Part 3 (commencing with Section 5800), and
Part 4 (commencing with Section 5850) of this division.
5891.  The funding established pursuant to this act shall be
utilized to expand mental health services.  These funds shall not be
used to supplant existing state or county funds utilized to provide
mental health services.  The state shall continue to provide
financial support for mental health programs with not less than the
same entitlements, amounts of allocations from the General Fund and
formula distributions of dedicated funds as provided in the last
fiscal year which ended prior to the effective date of this act.  The
state shall not make any change to the structure of financing mental
health services, which increases a county's share of costs or
financial risk for mental health services unless the state includes
adequate funding to fully compensate for such increased costs or
financial risk.  These funds shall only be used to pay for the
programs authorized in Section 5892.  These funds may not be used to
pay for any other program.  These funds may not be loaned to the
state General Fund or any other fund of the state, or a county
general fund or any other county fund for any purpose other than
those authorized by Section 5892.
5892.  (a) In order to promote efficient implementation of this act
allocate the following portions of funds available in the Mental
Health Services Fund in 2005-06 and each year thereafter:
   (1) In 2005-06, 2006-07, and in 2007-08 10 percent shall be placed
in a trust fund to be expended for education and training programs
pursuant to Part 3.1.
   (2) In 2005-06, 2006-07 and in 2007-08 10 percent for capital
facilities and technological needs distributed to counties in
accordance with a formula developed in consultation with the
California Mental Health Directors Association to implement plans
developed pursuant to Section 5847.
   (3) Twenty percent for prevention and early intervention programs
distributed to counties in accordance with a formula developed in
consultation with the California Mental Health Directors Association
pursuant to Part 3.6 (commencing with Section 5840) of this division.
  Each county's allocation of funds shall be distributed only after
its annual program for expenditure of such funds has been approved by
the Mental Health Services Oversight and Accountability Commission
established pursuant to Section 5845.
   (4) The allocation for prevention and early intervention may be
increased in any county which the department determines that such
increase will decrease the need and cost for additional services to
severely mentally ill persons in that county by an amount at least
commensurate with the proposed increase.  The statewide allocation
for prevention and early intervention may be increased whenever the
Mental Health Services Oversight and Accountability Commission
determines that all counties are receiving all necessary funds for
services to severely mentally ill persons and have established
prudent reserves and there are additional revenues available in the
fund.
   (5) The balance of funds shall be distributed to county mental
health programs for services to persons with severe mental illnesses
pursuant to Part 4 (commencing with Section 5850), for the children's
system of care and Part 3 (commencing with Section 5800), for the
adult and older adult system of care.
   (6) Five percent of the total funding for each county mental
health program for Part 3 (commencing with Section 5800), Part 3.6
(commencing with Section 5840), and Part 4 (commencing with Section
5850) of this division, shall be utilized for innovative programs
pursuant to an approved plan required by Section 5830 and such funds
may be distributed by the department only after such programs have
been approved by the Mental Health Services Oversight and
Accountability Commission established pursuant to Section 5845.
   (b) In any year after 2007-08, programs for services pursuant to
Part 3 (commencing with Section 5800), and Part 4 (commencing with
Section 5850) of this division may include funds for technological
needs and capital facilities, human resource needs, and a prudent
reserve to ensure services do not have to be significantly reduced in
years in which revenues are below the average of previous years.
The total allocation for purposes authorized by this subdivision
shall not exceed 20 percent of the average amount of funds allocated
to that county for the previous five years pursuant to this section.
   (c) The allocations pursuant to subdivisions (a) and (b) shall
include funding for annual planning costs pursuant to Section 5848.
The total of such costs shall not exceed 5 percent of the total of
annual revenues received for the fund.  The planning costs shall
include funds for county mental health programs to pay for the costs
of consumers, family members and other stakeholders to participate in
the planning process and for the planning and implementation
required for private provider contracts to be significantly expanded
to provide additional services pursuant to Part 3 (commencing with
Section 5800), and Part 4 (commencing with Section 5850) of this
division.
   (d) Prior to making the allocations pursuant to subdivisions (a),
(b) and (c), the department shall also provide funds for the costs
for itself, the California Mental Health Planning Council and the
Mental Health Services Oversight and Accountability Commission to
implement all duties pursuant to the programs set forth in this
section.  Such costs shall not exceed 5 percent of the total of
annual revenues received for the fund.  The administrative costs
shall include funds to assist consumers and family members to ensure
the appropriate state and county agencies give full consideration to
concerns about quality, structure of service delivery or access to
services.  The amounts allocated for administration shall include
amounts sufficient to ensure adequate research and evaluation
regarding the effectiveness of services being provided and
achievement of the outcome measures set forth in Part 3 (commencing
with Section 5800), Part 3.6 (commencing with Section 5840), and Part
4 (commencing with Section 5850) of this division.
   (e) In 2004-05 funds shall be allocated as follows:
   (1) 45 percent for education and training pursuant to Part 3.1
(commencing with Section 5820) of this division.
   (2) 45 percent for capital facilities and technology needs in the
manner specified by paragraph (2) of subdivision (a).
   (3) 5 percent for local planning in the manner specified in
subdivision (c) and
   (4) 5 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 such
investments shall be transferred into the fund.  The earnings on
investment of these funds shall be available for distribution from
the fund in future years.
   (g) All expenditures for county mental health programs shall be
consistent with a currently approved plan or update pursuant to
Section 5847.
   (h) Other than funds placed in a reserve in accordance with an
approved plan, any funds allocated to a county which have not been
spent for their authorized purpose within three years shall revert to
the state to be deposited into the fund and available for other
counties in future years, provided however, that funds for capital
facilities, technological needs or education and training may be
retained for up to 10 years before reverting to the fund.
   (i) If there are still additional revenues available in the fund
after the Mental Health Services Oversight and Accountability
Commission has determined there are prudent reserves and no unmet
needs for any of the programs funded pursuant to this section,
including all purposes of the Prevention and Early Intervention
Program, the commission shall develop a plan for expenditures of such
revenues to further the purposes of this act and the Legislature may
appropriate such funds for any purpose consistent with the
commission's adopted plan which furthers the purposes of this act.
5893.  (a) In any year in which the funds available exceed the
amount allocated to counties, such funds shall be carried forward to
the next fiscal year to be available for distribution to counties in
accordance with Section 5892 in that fiscal year.
   (b) All funds deposited into the Mental Health Services Fund shall
be invested in the same manner in which other state funds are
invested.  The fund shall be increased by its share of the amount
earned on investments.
5894.  In the event that Part 3 (commencing with Section 5800) or
Part 4 (commencing with Section 5850) of this division, are
restructured by legislation signed into law before the adoption of
this measure, the funding provided by this measure shall be
distributed in accordance with such legislation; provided, however,
that nothing herein shall be construed to reduce the categories of
persons entitled to receive services.
5895.  In the event any provisions of Part 3 (commencing with
Section 5800), or Part 4 (commencing with Section 5850) of this
division, are repealed or modified so the purposes of this act cannot
be accomplished, the funds in the Mental Health Services Fund shall
be administered in accordance with those sections as they read on
January 1, 2004.
5897.  (a) Notwithstanding any other provision of state law, the
State Department of Mental Health shall implement the mental health
services provided by Part 3 (commencing with Section 5800), Part 3.6
(commencing with Section 5840), and Part 4 (commencing with Section
5850) of this division through contracts with county mental health
programs or counties acting jointly.  A contract may be exclusive and
may be awarded on a geographic basis.   As used herein a county
mental health program includes a city receiving funds pursuant to
Section 5701.5.
   (b) Two or more counties acting jointly may agree to deliver or
subcontract for the delivery of such mental health services.  The
agreement may encompass all or any part of the mental health services
provided pursuant to these parts.  Any agreement between counties
shall delineate each county's responsibilities and fiscal liability.
   (c) The department shall implement the provisions of Part 3
(commencing with Section 5800), Part 3.2 (commencing with Section
5830), Part 3.6 (commencing with Section 5840), and Part 4
(commencing with Section 5850) of this division through the annual
county mental health services performance contract, as specified in
Chapter 2 (commencing with Section 5650) of Part 2 of Division 5.
   (d) When a county mental health program is not in compliance with
its performance contract, the department may request a plan of
correction with a specific timeline to achieve improvements.
   (e) Contracts awarded by the State Department of Mental Health,
the California Mental Health Planning Council, and the Mental Health
Services Oversight and Accountability Commission pursuant to Part 3
(commencing with Section 5800), Part 3.1 (commencing with Section
5820), Part 3.2 (commencing with Section 5830), Part 3.6 (commencing
with Section 5840), Part 3.7 (commencing with Section 5845), Part 4
(commencing with Section 5850), and Part 4.5 (commencing with Section
5890) of this division, may be awarded in the same manner in which
contracts are awarded pursuant to Section 5814 and the provisions of
subdivisions (g) and (h) of Section 5814 shall apply to such
contracts.
   (f) For purposes of Section 5775, the allocation of funds pursuant
to Section 5892 which are used to provide services to Medi-Cal
beneficiaries shall be included in calculating anticipated county
matching funds and the transfer to the department of the anticipated
county matching funds needed for community mental health programs.
5898.  The department shall develop regulations, as necessary, for
the department or designated local agencies to implement this act.
In 2005, the director may adopt all regulations pursuant to this act
as emergency regulations in accordance with Chapter 3.5 (commencing
with Section 11340) of Part 1 of Division 3 of Title 2 of the
Government Code.  For the purpose of the Administrative Procedure
Act, the adoption of regulations, in 2005, shall be deemed an
emergency and necessary for the immediate preservation of the public
peace, health and safety, or general welfare.  These regulations
shall not be subject to the review and approval of the Office of
Administrative Law and shall not be subject to automatic repeal until
final regulations take effect. Emergency regulations adopted in
accordance with this provision shall not remain in effect for more
than a year.  The final regulations shall become effective upon
filing with the Secretary of State.  Regulations adopted pursuant to
this section shall be developed with the maximum feasible opportunity
for public participation and comments.