California 2025-2026 Regular Session

California Assembly Bill AB2704

Introduced
2/20/26  
Refer
3/19/26  
Report Pass
3/19/26  
Refer
3/23/26  
Report Pass
4/15/26  
Refer
4/15/26  
Report Pass
4/23/26  
Refer
4/28/26  
Refer
5/13/26  
Report Pass
5/14/26  
Engrossed
5/26/26  
Refer
5/27/26  

Caption

An act to add Section 49421.3 to the Education Code, relating to behavioral health.

Summary

AB 2704 establishes the Statewide Fee Schedule Pilot Intensive Technical Support for Onboarding Program to help selected local educational agencies and related entities participate in California’s school-linked statewide fee schedule for behavioral health services. The pilot is designed to address barriers that smaller, rural, and otherwise under-resourced providers face in billing for outpatient mental health and substance use disorder services, especially for children ages 0 to 5, students in small or rural schools, and transition-age youth ages 16 to 25. The bill authorizes selection of up to 25 participating entities for a three-year pilot and requires the lead entity to provide intensive onboarding support. The support services required by the bill are broad and operational in nature. They include help obtaining National Provider Identifiers, completing credentialing, setting up or accessing electronic health records systems, training staff on documentation and coding, obtaining consents, navigating FERPA and HIPAA privacy requirements, verifying health plan information, reviewing claims before submission, and even assisting with claim submission and denial resolution. The bill also requires the lead entity to report to the Legislature on implementation progress and outcomes, including participation, onboarding milestones, claims submitted, and payment rates. In state law, the bill adds Section 49421.3 to the Education Code and references the existing school-linked statewide fee schedule established under the Welfare and Institutions Code. It does not change the underlying reimbursement rules directly, but it creates a new pilot structure intended to increase use of those existing reimbursement mechanisms. The State Department of Education would allocate funds, if appropriated, to a competitively selected local educational agency to administer the program, and the bill specifies that this creates a state-mandated local program subject to reimbursement rules if mandated costs are found. The overall sentiment reflected in the bill’s history is strongly positive and noncontroversial. The measure passed committee with unanimous or near-unanimous support and was recommended for the consent calendar, suggesting broad agreement that improving access to behavioral health billing support is desirable. The bill’s focus on children, rural communities, and transition-age youth appears to have been well received, and there is no recorded opposition in the provided materials. The main points of potential contention are practical rather than ideological. The bill depends on an appropriation, requires a competitive selection process for the lead entity, and imposes significant administrative and technical assistance duties, including privacy compliance and claims support. Those features could raise questions about cost, implementation capacity, and whether the pilot’s requirements are too detailed or burdensome for participating agencies, but no specific objections are reflected in the available vote record or transcripts.

Impact

AB 2704 would add a new Education Code section creating a pilot program to expand access to the school-linked statewide fee schedule for behavioral health services. It would affect local educational agencies, early learning and care providers, higher education entities, and behavioral health providers that serve children and youth by giving selected participants intensive technical assistance to enroll, credential, document, bill, and submit claims under the existing fee schedule. The bill also creates reporting obligations for the pilot lead and makes the program contingent on legislative appropriation, while preserving existing reimbursement law under the Welfare and Institutions Code.

Sentiment

The bill appears to have enjoyed broad bipartisan or unanimous support in committee, with votes reported at 16-0 and 9-0 and a recommendation to place it on the consent calendar. That pattern suggests the measure was viewed as a practical, targeted effort to improve behavioral health service access and reimbursement capacity rather than a controversial policy change. The absence of recorded opposition or substantive committee debate in the provided materials indicates generally favorable sentiment.

Contention

No major policy opposition is reflected in the provided record. The most notable issues are implementation-related: the bill requires state funding, a competitive selection process, extensive technical assistance, privacy-law compliance support, and ongoing reporting. Potential concerns could include cost, administrative complexity, and whether the pilot’s detailed onboarding and claims-support functions are feasible for the selected lead entity and participating agencies. However, the available votes and status suggest these concerns did not generate visible controversy in committee.

Companion Bills

No companion bills found.

Previously Filed As

CA SB90

AN ACT relating to behavioral health.

CA AB1851

Pupil health: social-emotional, behavioral, and mental health supports.

CA AB308

An act to add Chapter 10 (commencing with Section 8300) to Division 8 of Section 4755 to the Welfare and Institutions Code, relating to behavioral health. developmental services.

CA SB161

An Act To Amend Titles 16 And 29 Of The Delaware Code Relating To Behavioral Health.

CA HB2202

Relating to behavioral health.

CA SB3722

DHS-BEHAVIORAL HEALTH

CA HB2481

Relating to behavioral health.

CA HB5027

DHS-BEHAVIORAL HEALTH

CA SB835

An act to amend Sections 44671 and 49600 of, and to add Chapter 8 (commencing with Section 52210) to Part 28 of Division 4 of Title 2 of, the Education Code, relating to pupil instruction.

CA SB812

An act to amend Section 1374.

Similar Bills

No similar bills found.