Two-part legislative proposal would make targeted improvements to the state’s behavioral health system

SB 326 (Eggman) and AB 531 (Irwin) would provide massive investments and make policy reforms to California's behavioral health system

The League of California Cities adopted a support position for Gov. Gavin Newsom’s plan to modernize the Mental Health Services Act (MHSA) and pass an accompanying bond measure for 10,000 new community behavioral health beds and housing.

Cal Cities is also urging the Governor and Legislature to increase the size of the bond to directly fund cities’ efforts to deploy new housing and services for people in need. The request is part of Cal Cities’ ongoing call for direct funding to help cities increase housing affordability and reduce homelessness.

The Governor referenced Cal Cities’ support — the support of several dozen mayors — in a recent press release.

Sen. Susan Eggman introduced part of the proposal through SB 326. The bill would update the MHSA to include treatment for people with substance use disorders. It would also prioritize investments in housing interventions for individuals experiencing homelessness or at risk of homelessness.

Asm. Jacqui Irwin’s AB 531 would authorize $4.68 billion in general obligation bonds to construct, acquire, and rehabilitate community-based residential care settings for people with behavioral health needs, including veterans who are homeless or at risk of homelessness. This investment is desperately needed: California has a shortage of at least 6,000 behavioral health beds.

Collectively, these changes would ensure that California can better meet the needs of individuals experiencing severe behavioral health conditions.

Since the proposals were introduced in June, the Legislature has been hard at work analyzing their impacts and hearing from stakeholders. This includes informational hearings in the Senate last week and the Assembly this week. These hearings featured presentations by the Newsom Administration, comments by the Legislative Analyst's Office, and broad panels of stakeholders.

After the hearings, SB 326 passed unanimously out of the Assembly Health Committee and will be heard next in the Assembly Housing and Community Development Committee on Monday. The Senate Appropriations Committee will hear AB 531 next Monday. A sample letter is available for cities interested in supporting these measures.

The Department of Health Care Services, along with the California Health and Human Services Agency (CalHHS), held a webinar last week on the proposal and provided a high-level summary of its provisions and impacts. That webinar recording, fact sheets, and resources are available on CalHHS's website.