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AB-2704 • 2026

Statewide Fee Schedule Pilot Program.

Statewide Fee Schedule Pilot Program.

Budget Children Education Privacy
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Addis
Last action
2026-04-23
Official status
From committee: Amend, and do pass as amended and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 9. Noes 0.) (April 22).
Effective date
Not listed

Plain English Breakdown

The official source does not specify if students receiving services will be directly impacted beyond benefiting from improved service delivery.

Statewide Fee Schedule Pilot Program

This law establishes a pilot program in California that aims to improve behavioral health services for children and youth up to the age of 25 by providing training, support, and funding to selected entities.

What This Bill Does

  • Establishes the Statewide Fee Schedule Pilot Program to enhance behavioral health services for children and youth aged 25 or younger.
  • Requires the Monterey County Office of Education to select 25 participating entities by April 1, 2027.
  • Provides training and support to participating entities on documentation of mental health services, proper coding procedures, obtaining consents, privacy laws, and referral protocols.
  • Allocates funds from the State Department of Education for the pilot program if money is available.
  • Requires progress reports by January 1, 2028, and a final report by January 1, 2031.

Who It Names or Affects

  • Schools and organizations providing mental health services to students aged 25 or younger.
  • The Monterey County Office of Education as the lead for this pilot program.

Terms To Know

Behavioral Health
Services that help people with mental, emotional, or substance use issues.
Transition-Age Youth
Young adults who are transitioning from childhood to adulthood and need support for their behavioral health needs.

Limits and Unknowns

  • The program will only run until July 1, 2030.
  • It is not clear how much funding the State Department of Education will provide for this pilot program.

Bill History

  1. 2026-04-23 California Legislative Information

    From committee: Amend, and do pass as amended and re-refer to Com. on APPR. with recommendation: To Consent Calendar. (Ayes 9. Noes 0.) (April 22).

  2. 2026-04-15 California Legislative Information

    From committee: Do pass and re-refer to Com. on ED. with recommendation: To Consent Calendar. (Ayes 16. Noes 0.) (April 14). Re-referred to Com. on ED.

  3. 2026-03-23 California Legislative Information

    Re-referred to Com. on HEALTH.

  4. 2026-03-19 California Legislative Information

    From committee chair, with author's amendments: Amend, and re-refer to Com. on HEALTH. Read second time and amended.

  5. 2026-03-19 California Legislative Information

    Referred to Coms. on HEALTH and ED.

  6. 2026-02-21 California Legislative Information

    From printer. May be heard in committee March 23.

  7. 2026-02-20 California Legislative Information

    Read first time. To print.

Official Summary Text

AB 2704, as amended, Addis.
Children and youth behavioral health: services.
Statewide Fee Schedule Pilot Program.
Existing law establishes the Children and Youth Behavioral Health Initiative, administered by the California Health and Human Services Agency and its departments, as applicable. Under existing law, the purpose of the initiative is to transform the state’s behavioral health system into an innovative ecosystem in which all children and youth 25 years of age and younger, regardless of payer, are screened, supported, and served for emerging and existing behavioral health needs.
Existing law requires, as a part of the initiative, the State Department of Health Care Services to develop and maintain a school-linked statewide fee schedule for outpatient mental health or substance use disorder treatment provided to a student who is 25 years of age or younger at a
schoolsite. Existing law requires providers of medically necessary schoolsite services to be reimbursed by health care service plans, insurers, and Medi-Cal managed care plans, at a minimum, at the fee schedule rate or rates, regardless of network provider status.
This bill would establish the Statewide Fee Schedule Pilot Program. The bill would require the pilot lead, the Monterey County Office of Education, in coordination with the State Department of Health Care Services, to, no later than April 1, 2027, select 25 entities to participate in the pilot program and prioritize certain applicants, including, among others, applicants who will increase the number of transition-age youth receiving behavioral health services. The bill would require the pilot lead, starting no later than April 1, 2027, and ending no earlier than July 1, 2030, to provide intensive
technical assistance and support to the participating entities in participating in the school-linked statewide fee schedule, including technical assistance and support with specified activities, including, among others, providing training and coaching for behavioral health service providers related to documentation of services, proper coding and noting procedures, obtaining required consents, applicable privacy laws and disclosure requirements, and referral protocols. The bill would require the pilot lead to submit a progress report by January 1, 2028, and submit a summative report by January 1, 2031, regarding the pilot program to the appropriate policy and fiscal committees of the Legislature. The bill would require the State Department of Education, upon appropriation and subject to the terms of the appropriation, allocate funds the pilot lead to administer the pilot program. By requiring the Monterey County Office of Education to serve as the pilot lead, this bill would impose a state-mandated local
program.
The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.
This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.
Existing law establishes the California Health and Human Services Agency, under the direction of the Secretary of California Health and Human Services, which includes, among other departments, the State Department of Public Health and the State Department of Health Care Services. Existing law establishes the Children and Youth Behavioral Health Initiative, which is administered by the agency and its departments and declares the purpose of the initiative to be to transform the state’s behavioral health system into an innovative ecosystem in which all children and youth 25 years of age and younger, regardless of payer, are screened, supported, and served for emerging and existing behavioral health needs.
This bill would state the intent of the Legislature to enact future legislation that would increase access to behavioral health services for
children and youth 25 years of age and younger.

Current Bill Text

Read the full stored bill text
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