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Health and Human Services Agency recommending the Board adopt and authorize the Chair to sign Resolution 017-2026, which exempts Board Procurement Policy C-17 competitive bidding requirements for specified Behavioral Health Services Act (BHSA) services during Fiscal Years 2026-2029.
FUNDING: Combination of Federal Medi-Cal, State BHSA, 1991 Mental Health Realignment, 2011 Behavioral Health Realignment, Federal Drug Medi-Cal Organized Delivery System, various grant funding, and other non-general fund sources.
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DISCUSSION / BACKGROUND:
In March 2024, California voters passed Senate Bill (SB) 326, the BHSA, through Proposition 1, also known as?the Behavioral Health Transformation (BHT), which is replacing the Mental Health Services Act (MHSA) of 2004 and will take effect on July 1, 2026. The BHSA provides the opportunity for the State of California (State) to transform the mental health and Substance Use Disorder (SUD) system of care to support individuals with the most significant needs, including those that are seriously ill and unhoused. The BHSA requires counties to submit Integrated Plans (IP) to California Department of Health Care Services (DHCS) that outline how it will utilize all available behavioral health funding sources, including BHSA funds, to meet local needs and reduce disparities in behavioral health services. The BHSA IP will also facilitate local and statewide data collection by providing baseline data on services and planned expenditures and supporting analysis of county goals and outcomes.
HHSA’s first three-year BHSA IP, covering Fiscal Years 2026-2029, is due to DHCS by June 30, 2026, with the submission process requiring transparency and community engagement. Following the passage of SB 326, HHSA Behavioral Health Division staff began engaging in BHT listening sessions and reviewing the statutory changes. HHSA is required to submit a BHSA IP that consolidates all behavioral health funding sources and programs, replacing the Co...
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