Part 4.5 - MENTAL HEALTH SERVICES FUND
California Welfare and Institutions Code — §§ 5890-5899.1
Sections (14)
Added by Stats. 2023, Ch. 790, Sec. 98. (SB 326) Effective April 17, 2024. Approved in Proposition 1 at the March 5, 2024, election. Operative January 1, 2025, pursuant to Sec. 117 of Proposition 1.
(a)There is hereby created a Behavioral Health Services Act Revenue Stability Workgroup to assess year-over-year fluctuations in tax revenues generated by the Behavioral Health Services Act, in recognition of the need for a reliable strategy for short- and long-term fiscal stability, commencing no later than June 30, 2024.
(b)The workgroup shall develop and recommend solutions to reduce Behavioral Health Services Act revenue volatility and to propose appropriate prudent reserve levels to support the sustainability of county programs and services.
(c)(1) The California Health and
Human Services Agency and the State Department of Health Care Services shall jointly convene and lead the workgroup.
(2)Members of the workgroup shall serve without compensation. Members shall include representatives from the following entities:
(A)Behavioral Health Services Oversight and Accountability Commission.
(B)Legislative Analyst’s Office.
(C)County Behavioral Health Director’s Association of California.
(D)California State Association of Counties, including both urban and rural county representatives.
(3)The
California Department of Finance may consult with the workgroup, as needed, to provide technical assistance.
(d)The workgroup shall review and analyze current and historical revenues generated pursuant to the Mental Health Services Act and the Behavioral Health Services Act and current and historical prudent reserve levels to develop the recommendations specified in subdivision (b).
(e)On or before June 30, 2025, the California Health and Human Services Agency and the State Department of Health Care Services shall submit a report that includes its recommendations specified in subdivision (b) to the Legislature and the Governor’s Office.
(f)The workgroup may meet as often as necessary, as determined by the members of the workgroup, until the workgroup is disbanded upon submission of the report specified in subdivision (b).
(g)Prudent reserve requirements specified in this subdivision may be changed, and requirements to mitigate Behavioral Health Services Act revenue volatility and improve fiscal stability may be developed, based upon recommendations made by the Behavioral Health Services Act Revenue Stability Workgroup pursuant to Section 5892.3.
(h)The California Health and Human Services Agency and the State Department of Health Care Services may jointly reconvene the workgroup, if at any point the recommended revenue volatility strategy and prudent reserve requirements no longer adequately support the sustainability of county programs and services given the year-over-year fluctuations in tax revenues generated by the Behavioral Health Services Act.
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.
Amended (as amended by Stats. 2023, Ch. 790, Sec. 103) by Stats. 2024, Ch. 40, Sec. 51. (SB 159) Effective June 29, 2024. Operative January 1, 2025, pursuant to Sec. 85 of Stats. 2024, Ch. 40. Inoperative July 1, 2026, by its own provisions. Repealed as of January 1, 2027, by its own provisions.
(a)If any provisions of Part 3 (commencing with Section 5800) or Part 4 (commencing with Section 5850) are repealed or modified so the purposes of this act cannot be accomplished, the funds in the Behavioral Health Services Fund shall be administered in accordance with those sections as they read on January 1, 2004.
(b)If amendments to the Mental Health Services Act are approved by the voters at the March 5, 2024, statewide primary election, this section shall become inoperative on July 1, 2026, and as of January 1, 2027, is repealed.
Repealed (in Sec. 106) and added by Stats. 2023, Ch. 790, Sec. 107. (SB 326) Effective April 17, 2024. Approved in Proposition 1 at the March 5, 2024, election. Operative January 1, 2025, by its own provisions.
(a)(1) The State Department of Health Care Services shall develop regulations, as necessary, to implement this act.
(2)Regulations adopted pursuant to this section shall be developed with the maximum feasible opportunity for public participation and comments.
(b)This section shall become operative on January 1, 2025, if amendments to the Mental Health Services Act are approved by the voters at the March 5, 2024, statewide primary election.
Amended by Stats. 2025, Ch. 243, Sec. 21. (SB 862) Effective January 1, 2026. Inoperative July 1, 2026, by its own provisions. Repealed as of January 1, 2027, by its own provisions. Note: Amended in Prop. 1 at the March 5, 2024, election.
(a)(1) The State Department of Health Care Services, in consultation with the Behavioral Health Services Oversight and Accountability Commission and the County Behavioral Health Directors Association of California, shall develop and administer instructions for the Annual Mental Health Services Act Revenue and Expenditure Report.
(2)The instructions shall include a requirement that the county certify the accuracy of this report.
(3)With the exception of expenditures and receipts related to the capital facilities and technology needs component described in paragraph (6) of subdivision (d), each county shall adhere to uniform accounting standards and procedures that conform to the
Generally Accepted Accounting Principles prescribed by the Controller pursuant to Section 30200 of the Government Code when accounting for receipts and expenditures of Mental Health Services Act (MHSA) funds in preparing the report.
(4)Counties shall report receipts and expenditures related to capital facilities and technology needs using the cash basis of accounting, which recognizes expenditures at the time payment is made.
(5)Each county shall electronically submit the report to the department and to the Behavioral Health Services Oversight and Accountability Commission.
(6)The department and the commission shall annually post each county’s report in a text-searchable format on its internet website in a timely manner.
(b)The department, in
consultation with the commission and the County Behavioral Health Directors Association of California, shall revise the instructions described in subdivision (a) by July 1, 2017, and as needed thereafter, to improve the timely and accurate submission of county revenue and expenditure data.
(c)The purpose of the Annual Mental Health Services Act Revenue and Expenditure Report is as follows:
(1)Identify the expenditures of MHSA funds that were distributed to each county.
(2)Quantify the amount of additional funds generated for the mental health system as a result of the MHSA.
(3)Identify unexpended funds and interest earned on MHSA funds.
(4)Determine reversion amounts, if applicable,
from prior fiscal year distributions.
(d)This report is intended to provide information that allows for the evaluation of all of the following:
(1)Children’s systems of care.
(2)Prevention and early intervention strategies.
(3)Innovative projects.
(4)Workforce education and training.
(5)Adults and older adults systems of care.
(6)Capital facilities and technology needs.
(e)If a county does not submit the annual revenue and expenditure report described in subdivision (a) by the required
deadline, the department may withhold MHSA funds until the reports are submitted.
(f)A county shall also report the amount of MHSA funds that were spent on mental health services for veterans.
(g)By October 1, 2018, and by October 1 of each subsequent year, the department shall, in consultation with counties, publish on its internet website a report detailing funds subject to reversion by county and by originally allocated purpose. The report also shall include the date on which the funds will revert to the Behavioral Health Services Fund.
(h)If amendments to the Mental Health Services Act are approved by the voters at the March 5, 2024, statewide primary election, this section shall become inoperative on July 1, 2026, and as of January 1, 2027, is repealed.
Added by Stats. 2017, Ch. 38, Sec. 16. (AB 114) Effective July 10, 2017.
(a)On or after July 1, 2017, funds subject to reversion pursuant to subdivision (h) of Section 5892 shall be reallocated to other counties for the purposes for which the unspent funds were initially allocated to the original county.
(b)Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, the department, without taking any further regulatory action, may implement, interpret, or make specific this section, Section 5892.1, and subdivision (h) of Section 5892, by means of all-county letters or other similar instructions, until applicable regulations are adopted in accordance with Section 5898, or until July 1, 2019, whichever occurs first. The all-county letters or other similar
instructions shall be issued only after the department provides the opportunity for public participation and comments.