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Changes to the Mental Health Services Act as a Result of Senate Bill 585 Senate Bill Number 585 was enacted by the Legislature and signed by the Governor. It makes changes to the Mental Health Services Act (MHSA) and AB 1421 (Assisted Outpatient Treatment). It goes into effect January 1, 2014. It will allow counties to use mental health realignment funds and MHSA funds to pay for services provided under AB 1421. The law amends AB 1421 by adding the following language to Welfare and Institutions Code section 5349 authorizing the use of realignment and MHSA funds for AB 1421 services: To the extent otherwise permitted under state and federal law, counties that elect to implement this article may pay for the provision of services under Sections 5347 and 5348 using funds distributed to the counties from the Mental Health Subaccount, the Mental Health Equity Subaccount, and the Vehicle License Collection Account of the Local Revenue Fund, funds from the Mental Health Account and the Behavioral Health Subaccount within the Support Services Account of the Local Revenue Fund 2011, funds from the Mental Health Services Fund when included in county plans pursuant to Section 5847, and any other funds from which the Controller makes distributions to the counties for those purposes. The law also amends the Adult and Older Adult Mental Health System of Care Act by adding an exception to 5801(b)(5) of the Welfare and Institutions Code to allow the use of System of Care Act funds (including MHSA funds) for AB 1421 services: November 22, 2013 Page 1 of 4

The client should be fully informed and volunteer for all treatment provided, unless danger to self or others or grave disability requires temporary involuntary treatment, or the client is under a court order for assisted outpatient treatment pursuant to Section 5346 and, prior to the filing of the petition for assisted outpatient treatment pursuant to Section 5346, the client has been offered an opportunity to participate in a treatment plan on a voluntary basis and has failed to engage in that treatment. The law also amends section 5812.5(f) of the Welfare and Institutions Code to provide that MHSA funds can be used for AB 1421 services only if the use is authorized in the county’s MHSA three-year program and expenditure plan: When included in county plans pursuant to Section 5847, funds may be used for the provision of mental health services under Sections 5347 and 5348 in counties that elect to participate in the Assisted Outpatient Treatment Demonstration Project Act of 2002 (Article 9 (commencing with Section 5345) of Chapter 2 of Part 1) Finally, the law amends Welfare and Institutions Code section 5349 to provide that the board of supervisors of a county can authorize implementation of AB 1421 through the county budget process or by resolution: This article shall be operative in those counties in which the county board of supervisors, by resolution or through the county budget process, authorizes its application and makes a finding that no voluntary mental health program serving adults, and no children’s mental health program, may be reduced as a result of the implementation of this article. There are some important things to note about the new legislation: The new law does not provide new money for AB 1421 programs The new law does not contain any funding for AB 1421 programs. There is no new money for AB 1421 services. What the law does is eliminate the

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prior law’s prohibition on the use of System of Care Act and MHSA funds for AB 1421 services. AB 1421 continues to require a finding by the board of supervisors that no voluntary mental health program serving adults and no children’s mental health program will be reduced. AB 1421 continues to require that AB 1421 programs be funded out of money taken from existing involuntary mental health programs for adults or be funded out of new money. Because there is no new state money for AB 1421 implementation, any new money would have to come out of the county general fund, or a funding source other than dedicated mental health funds. Any money taken out of existing mental health programs would have to be taken out of existing involuntary programs for adults. This would include money for involuntary hospitalization under the Lanterman Petris Short Act or money for forensic state hospital beds, for example. MHSA funds can only be used to pay for AB 1421 services if the county has authorized this use in the county’s MHSA three-year program and expenditure plan Before MHSA funds can be used to pay for AB 1421 services, the county must first amend the county’s MHSA three-year program and expenditure plan to authorize this use. In order to do this, the county must go through the regular process for adopting or changing the plan. MHSA funds can only be used to pay for the provision of services themselves under AB 1421 but not administrative or court costs Welfare and Institutions Code section 5349 provides that counties “may pay for the provision of services under Sections 5347 and 5348 using funds distributed to the counties … from the Mental Health Services Fund….” [emphasis added]. Under this section, MHSA funds may only be used to pay for AB 1421 services. AB 1421 administrative costs and court costs must be funded from sources other than MHSA funds or other voluntary or children’s mental health funds.

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The full range of services required under AB 1421 must be offered on a voluntary basis before the services can be required under a court order The new law restates the current AB 1421 requirement that whatever services the court seeks to impose on an involuntary basis have previously been offered on a voluntary basis and further that the services have been offered as part of a treatment plan. (Welf. & Inst. Code § 5801(b)(5).) Under AB 1421, any petition for involuntary treatment, including any petition followed by a voluntary settlement agreement, must allege the following: The person has been offered an opportunity to participate in a treatment plan by the director of the local mental health department, or his or her designee, provided the treatment plan includes all of the services described in Section 5348, and the person continues to fail to engage in treatment. Welf. & Inst. Code § 5346(a)(5). Counties that do not offer the array of services described in Section 5348 on a voluntary basis cannot implement AB 1421. The new law is a departure from mental health recovery model principles Under the recovery model the client should be fully informed and volunteer for all treatment provided, unless danger to self or others or grave disability requires temporary involuntary treatment. The new law represents a departure from the recovery model by creating an exception to voluntary services. (Welf. & Inst. Code § 5801(b)(5).) As a matter of good policy, counties should use caution before departing from recovery model principles. Recovery model principles are used to build trust with clients so that clients are encouraged to volunteer for services. Ultimately, mental health systems will not be effective unless there is trust.

November 22, 2013 Page 4 of 4

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