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County health agency previews Behavioral Health Services Act changes, reports $24M award for new Placerville facility
Summary
Health and Human Services Agency reviewed required changes under state behavioral health law changes, outlined an MHSA-to‑BHSA transition, and said the county received $24 million under AB 531 for a new integrated care facility in Placerville.
El Dorado County Health and Human Services Agency staff on May 20 presented proposed changes to the county’s Mental Health Services Act (MHSA) annual update and outlined the transition to the state’s Behavioral Health Services Act (BHSA). Supervisors received the presentation and voted 5‑0 to accept the update and continue development of the BHSA‑era integrated plan.
Merit Zennardi, the county’s mental health services coordinator, told the board that Proposition 1 (voters, March 5, 2024) and implementing state measures — cited in the presentation as Assembly Bill 531 and Senate Bill 326 (BHSA) — restructure how counties must use funds, require allocation for housing interventions and call for more integrated substance use disorder services.
Zennardi said the county has applied for AB 531 project‑ready funding for permanent supportive housing and behavioral‑health residential treatment. Just last week, she said, the county was awarded $24,000,000 under a project titled SOAR (Support, Outreach, Accessibility and Resilience) to develop a new integrated care facility in Placerville. The county plans to use up to $1,000,000 in MHSA capital facilities and technology funds as matching dollars for the project; staff said any unspent MHSA funds will roll into BHSA components as permitted by law.
Staff also summarized SB 326’s requirement that 30% of county BHSA allocations be used for housing interventions for residents with behavioral‑health challenges who are homeless or at risk of chronic homelessness. The change requires counties to shift funding and to pursue medical‑insurance reimbursement and evidence‑based practices more aggressively. The agency described the upcoming community program planning process and stakeholder outreach planned for summer 2025 to shape discretionary spending under BHSA.
On the subject of contractor oversight, a supervisor asked how the county monitors subcontractors that deliver behavioral‑health services. County staff said contract monitoring includes site visits, grievance management and fiscal monitoring; staff acknowledged that contract terminations have occurred when performance standards were not met.
The board approved receiving the presentation and directed staff to prepare a final version of the annual update for the June 17 board meeting and to continue preparing the BHSA integrated plan for the July 1, 2026 transition date.
The award and the shift from MHSA to BHSA will affect program design, housing policy, and grant and insurance strategies as the county restructures behavioral‑health spending to meet state requirements.
