Section 3420.55 - Reversion for Counties with a Population of Less than 200,000: Css Account, Pei Account, and Inn Account(a) This section applies to a County with a population of less than 200,000 as determined by the Department. The Department shall provide counties with population data by July 1 each year. A County's population for a fiscal year shall be based on the Department of Finance county population estimates data as of January 1 of the previous fiscal year, as reported in State of California, Department of Finance, E-1, Population Estimates for, Cities, Counties, and the State Population Estimates with Annual Percent Change.(b) Unless transferred into the Prudent Reserve, the CFTN Account, or the WET Account pursuant to section 3420.10, a County shall spend CSS Account monies within five (5) fiscal years of receiving those funds from the State Controller, or within five (5) fiscal years of transferring funds from the Prudent Reserve to its CSS Account pursuant to sections 3420.30(g) or 3420.35. In determining the five (5) fiscal year period, the fiscal year in which the State Controller distributes CSS funds to the County, or the fiscal year in which the County transfers funds from the Prudent Reserve to its CSS Account pursuant to sections 3420.30(g) or 3420.35, shall be the first fiscal year. If a County fails to spend such funds within five (5) fiscal years, the funds shall revert to the Mental Health Services Fund for deposit into the Reversion Account.(c) A County shall spend funds received from the CalHFA within five (5) fiscal years of receiving the money. In determining the five (5) fiscal year period, the fiscal year in which CalHFA returns the money to the County shall be the first fiscal year. If a County fails to spend such funds within five (5) fiscal years, the funds shall revert to the Mental Health Services Fund for deposit into the Reversion Account.(d) A County shall spend PEI Account monies, including funds a County transferred from its CSS Account to its PEI Account pursuant to Section 3420.15, within five (5) fiscal years of receiving those funds from the State Controller, or within five (5) fiscal years of transferring funds from the Prudent Reserve to its PEI Account pursuant to sections 3420.30(h) or 3420.35(a)(1). In determining the five (5) fiscal year period, the fiscal year in which the State Controller distributes PEI funds to the County, or the fiscal year in which the County transfers funds from the Prudent Reserve to its PEI Account pursuant to section 3420.30(h) or 3420.35(a)(1), shall be the first fiscal year. If a County fails to spend such funds within five (5) fiscal years, the funds shall revert to the Mental Health Services Fund for deposit into the Reversion Account.(e) Within five (5) fiscal years of receiving INN Account monies from the State Controller, a County shall identify the INN Account monies in the budget of an Innovative Project Plan as specified in Section 3930(d) and obtain approval from the Mental Health Services Oversight and Accountability Commission for the Innovative Project Plan. In determining the five (5) fiscal year period, the fiscal year in which the State Controller distributes the funds to the County shall be the first fiscal year. If a County fails to identify INN Account monies in the budget of an Innovative Project Plan and obtain approval of that Plan from the Mental Health Services Oversight and Accountability Commission within five (5) fiscal years those funds shall revert to the Mental Health Services Fund for deposit into the Reversion Account.(f)(1) A County shall spend INN Account monies during the period the monies are encumbered under the terms of an Innovative Project Plan or within five (5) fiscal years of receiving approval for the Innovative Project Plan, whichever is later. In determining the five (5) fiscal year period, the fiscal year in which the Mental Health Services Oversight and Accountability Commission initially approved the Innovative Project Plan shall be the first fiscal year. If a County fails to spend such funds by the later of these two periods, the funds shall revert to the Mental Health Services Fund for deposit into the Reversion Account.(2) INN Account monies identified in the budget of an Innovative Project Plan shall be considered encumbered. INN Account monies shall remain encumbered for the fiscal years and in the amounts identified in the budget of the Innovative Project Plan. Any amendment to an Innovative Project Plan that extends the time period of the Innovative Project, or changes the amount of funds in the budget of the Innovative Project, which is approved by the Mental Health Services Oversight Accountability Commission, shall extend the period or change the amount of funds encumbered under the Innovative Project Plan. INN Account monies shall no longer be encumbered under an Innovative Project Plan effective the date a County terminates the Innovative Project pursuant to Section 3910.020.(3) If the period of time INN Account monies are encumbered, under the terms of an Innovative Project Plan, concludes before the end of the five (5) fiscal year period, or the County terminates an Innovative Project pursuant to section 3910.020 before the end of the five (5) fiscal year period, a County may reassign any unspent funds to another Innovative Project pursuant to Article 9. The County shall spend reassigned funds within five (5) fiscal years. In determining the five (5) fiscal year period, the fiscal year in which the Mental Health Services Oversight and Accountability Commission approved the initial Innovative Project Plan shall be the first fiscal year. If a County fails to spend reassigned funds within these five (5) fiscal years, the funds shall revert to the Mental Health Services Fund for deposit into the Reversion Account.(g) A County shall spend Investment Gain within five (5) years of depositing the Investment Gain into its Local Mental Health Services Fund pursuant to Section 3420.40. In determining the five (5) fiscal year period, the fiscal year in which the County deposits the Investment Gain into its Local Mental Health Services Fund shall be the first fiscal year. If a County fails to spend such funds within five (5) fiscal years, the funds shall revert to the Mental Health Services Fund for deposit into the Reversion Account.(h) A County shall spend CSS Account, PEI Account, and INN Account monies for authorized purposes, as specified in Section 3420. Any CSS Account, PEI Account, and INN Account monies spent for unauthorized purposes shall be subject to reversion.(i) Funds the Department withholds from the County pursuant to section 3510.005 shall be considered revenue at the time the funds would have been distributed to the County had they not been withheld. A withhold shall not extend the length of time that a County has to spend Local Mental Health Services Fund monies before the funds are subject to reversion.(j) This section shall apply to Mental Health Services Fund monies the State Controller distributed to a County, including Redistributed Funds, monies CalHFA returned to a County and Investment Gain, during fiscal year 2015-2016 and in subsequent fiscal years.Cal. Code Regs. Tit. 9, § 3420.55
1. New section filed 5-6-2020; operative 7-1-2020 (Register 2020, No. 19). Note: Authority cited: Section 5898, Welfare and Institutions Code. Reference: Sections 5892(a)(3)-(6), 5892(b), 5892(f), 5892(g), 5892(h)(1), 5892(h)(3), 5892(h)(4), 5892.5(b) and 5899.1(a), Welfare and Institutions Code.
1. New section filed 5-6-2020; operative 7/1/2020 (Register 2020, No. 19).