BILL NUMBER: SB 68	CHAPTERED
	BILL TEXT

	CHAPTER  78
	FILED WITH SECRETARY OF STATE  JULY 19, 2005
	APPROVED BY GOVERNOR  JULY 19, 2005
	PASSED THE SENATE  JULY 7, 2005
	PASSED THE ASSEMBLY  JULY 7, 2005
	AMENDED IN ASSEMBLY  JULY 7, 2005
	AMENDED IN ASSEMBLY  JUNE 14, 2005

INTRODUCED BY   Committee on Budget and Fiscal Review

                        JANUARY 14, 2005

   An act to amend Section 8263.4 of, and to add Section 8227 to the
Education Code, to amend Section 17311 of the Family Code, to add
Sections 11798 and 12803.3 to the Government Code, to amend Sections
1522, 1596.871, 11970.4, 128200, 128205, 128210, 128215, 128224,
128225, 128230, and 128235 of, and to add Sections 11970.2 and
128240.1 to, the Health and Safety Code, to amend Section 1611.5 of
the Unemployment Insurance Code, to amend Sections 9102, 9654, 9660,
9661, 9662, 9757.5, 10075.6, 10823, 11322.8, 11453, 11462, 12201,
12201.03, 12201.05, 12305.1, and 15204.2 of, to amend the heading of
Article 2 (commencing with Section 9660) of Chapter 10.5 of Division
8.5 of, to add Sections 10609.8, 11522, 15204.6, 16500.9, 16501.7,
18355.5, and 18926 to, to repeal Section 10823.1 of, and to repeal
and amend Section 15200 of, the Welfare and Institutions Code, and to
amend Section 64 of Chapter 229 of the Statutes of 2004, relating to
human services, making an appropriation therefor, and declaring the
urgency thereof, to take effect immediately.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 68, Committee on Budget and Fiscal Review  Human services.
   The Child Care and Developmental Services Act, administered by the
State Department of Education, provides that children up to 13 years
of age are eligible, with certain requirements, for child care and
development services.
   Existing law provides for child care alternative payment programs,
the purpose of which is to provide for parental choice in child
care.
   This bill would impose new requirements on the State Department of
Education, on the alternative payment program, and on child care
providers under alternative payment programs relating to the
establishment of waiting lists.
   Under existing law, the preferred placement for children who are
11 and 12 years of age and who are otherwise eligible for subsidized
child care services is in an after school program.
   This bill would instead provide that the preferred placement for
these children is in a before or after school program.
   The bill would make other revisions to the act pertaining to
requiring contractors to provide an option of combining care provided
in a before or after school setting program with subsidized child
care in another setting, requiring the department to develop a form
on which a parent may certify that a before or after school program
is not available, requiring savings generated by the implementation
of the bill to remain with each alternative payment program, child
development center, or other contractor, with certain exceptions, and
requiring each contractor to annually report these savings to the
department and the department to annually report these savings to the
Legislature.
   This bill would require, to the extent that funding is available
for this purpose through the annual Budget Act, the alternative
payment agency in each county to design, maintain, and administer a
system to consolidate local child care waiting lists to establish a
countywide centralized eligibility list and would establish a
procedure for assigning this responsibility to a lead agency in those
counties with more than one alternative payment agency. The bill
would provide that to be eligible to enter into an agreement with the
department to provide subsidized child care, a provider shall
participate and use the centralized eligibility list.
   Existing law establishes the Child Support Payment Trust Fund in
the State Treasury for the deposit of certain child support payments,
for the purpose of processing and providing child support payments.
That fund is continuously appropriated for the purpose of
distributing child support payments.
   This bill would provide that an ongoing loan shall be made
available from the General Fund, from funds not otherwise
appropriated, to the Child Support Payment Trust Fund, not to exceed
$150,000,000, to ensure the timely disbursement of child support
payments when funds have not been recorded to the Child Support
Payment Fund or due to other fund liabilities, thereby making an
appropriation.
   Existing law establishes within the California Health and Human
Services Agency the California Health and Human Services Agency Data
Center.
   This bill would transfer to the California Health and Human
Services Agency the Systems Integration Division of the California
Health and Human Services Agency Data Center, also known as Systems
Management Services, which would be known as the Office of Systems
Integration.
   Existing law requires that data center, among other things, to
implement a statewide automated welfare system for 6 public
assistance programs and annually report on the system to the
appropriate committees of the Legislature.
   This bill would transfer to the Office of Systems Integration
requirements for this statewide automated system, but would eliminate
this reporting requirement.
   Existing law establishes in the State Treasury, the California
Health and Human Services Agency Data Center Revolving Fund, which is
continuously appropriated and consists of, among other moneys,
moneys received for electronic data-processing services and other
services rendered by the data center.
   This bill would establish the Office of Systems Integration Fund,
which would consist of the balance of all moneys available for
expenditure by Systems Integration Division and all moneys
appropriated to the fund. The fund would, subject to appropriation by
the Legislature, be available for expenditure by the office for the
office's support. The bill would authorize transfers to the fund from
the Health and Human Services Agency Data Center Revolving Fund and
the Department of Technology Services Revolving Fund, as determined
by the Department of Finance.
   The California Community Care Facilities Act provides for the
licensure and regulation of community care facilities by the State
Department of Social Services. The department also licenses and
regulates child day care centers.
   Existing law prohibits the Department of Justice and the State
Department of Social Services from charging a fee for the
fingerprinting of an applicant for a license or special permit to
operate or manage a community care facility or child day care
facility, or for obtaining a criminal record of these applicants,
except during the 2004-05 fiscal year.
   This bill would authorize these departments to also charge these
fees during the 2005-06 fiscal year.
   The Comprehensive Drug Court Implementation Act of 1999 provides
grants to counties under which the county alcohol and drug program
administrator and the presiding judge in the county develop and
submit a plan for local drug court systems. Existing law repeals the
act as of January 1, 2006.
   This bill would extend the repeal date of the act to January 1,
2007.
   This bill would require the State Department of Social Services,
in collaboration with the State Department of Alcohol and Drug
Programs and the Judicial Council, to conduct an evaluation of cost
avoidance with respect to child welfare services and foster care and
provide a report to the Legislature, during the budget hearings for
the 2006-07 budget, on the outcomes of dependency drug court programs
and the amount of savings realized in foster care out-of-home
placement and child welfare services.
   Existing law, the Song-Brown Family Physician Training Act,
declares the intent of the Legislature to increase the number of
students and residents receiving quality education and training in
the specialty of family practice and as primary care physician's
assistants and primary care nurse practitioners. Existing law
establishes, for this purpose, a state medical contract program with
accredited medical schools, programs that train primary care
physician's assistants, programs that train primary care nurse
practitioners, hospitals, and other health care delivery systems.
   This bill would expand this program to include increasing the
number of students and residents receiving quality education and
training as registered nurses and would include within the state
medical contract program, contracts with "programs that train
registered nurses," as defined for purposes of the act.
   Existing law establishes the California Healthcare Workforce
Policy Commission, which is composed of 10 members.
   This bill would increase the membership of the commission from 10
to 15 members, to include 3 representatives of practicing registered
nurses and 2 representatives of students in a registered nurse
training program.
   Existing law requires the commission to identify specific areas of
the state where unmet priority needs for primary care family
physicians exist, establish standards for family practice training
programs, family practice residency programs, primary care physician
assistants programs, and programs that train primary care nurse
practitioners, and review and make recommendations to the Director of
the Office of Statewide Health Planning and Development concerning
the funding of those programs that are submitted to the Health
Professions Development Program for participation in the contract
program established under these provisions.
   This bill would require the commission similarly to identify
specific areas of the state where unmet priority needs for registered
nurses exist, establish standards for registered nurse training
programs, and review and make recommendations to the director
concerning funding of registered nurse training programs submitted to
the Health Professions Development Program.
   Existing law requires the Director of the Office of Statewide
Health Planning and Development to make determinations as to whether
program proposals submitted for participation in the state medical
contract program meet the standards established by the commission and
to select and contract with entities on behalf of the state for the
purpose of training undergraduate medical students and residents in
the specialty of family practice.
   This bill would also require the director to make these
determinations with respect to registered nurse training program
proposals, and select and contract on behalf of the state with
programs that train registered nurses.
   The bill would require the State Department of Health Services to
adopt emergency regulations, as necessary to implement the bill's
changes to the Song-Brown Family Physician Training Act, no later
than September 30, 2005. The bill would require the department to
notify the Chair of the Joint Legislative Budget Committee of a delay
prior to this deadline.
   Existing federal law provides for allocation of federal funds
through the federal Temporary Assistance for Needy Families (TANF)
block grant program to eligible states. Existing law provides for the
California Work Opportunity and Responsibility to Kids (CalWORKs)
program for the allocation of federal funds received through the TANF
program, under which each county provides cash assistance and other
benefits to qualified low-income families.
   Existing law authorizes the Legislature to appropriate $56,432,000
in the Budget Act of 2004 from the Employment Training Fund to fund
the local assistance portion of welfare-to-work activities under the
CalWORKs program.
   This bill would authorize the Legislature to appropriate
$37,930,000 in the Budget Act of 2005 from the Employment Training
Fund to fund the local assistance portion of welfare-to-work
activities under the CalWORKs program.
   The Mello-Granlund Older Californians Act establishes the
Community-Based Services Network, administered by the California
Department of Aging, which among other things, requires the
department to enter into contracts with local area agencies on aging
to carry out the requirements of various community-based services
programs. The act requires the department to maintain a management
information and reporting system.
   This bill would require the department to annually submit, in
conjunction with the management information and reporting system,
beginning in the 2006 calendar year, to the budget, fiscal, and
appropriate policy committees of the Legislature and the Legislative
Analyst, information regarding state and federally funded programs
and services administered by the department.
   Existing law establishes within the California Department of Aging
a senior wellness program called the StayWell Program, which is
required to carry out various functions primarily related to
promoting a healthy lifestyle and wellness among, and a greater
appreciation of, California's seniors.
   This bill would delete the name "Stay Well Program" and refer
instead to the senior wellness program.
   Existing law requires the California Department of Aging to assess
annually a fee of not less than $0.70, but not more than $1.20, on a
health care service plan for each person enrolled in a health care
service plan as of December 31 of the previous year under a prepaid
Medicare Program that serves Medicare eligible beneficiaries within
the state, and on a health care service plan for each enrollee under
a Medicare supplement contract, including a Medicare Select contract,
as of December 31 of the previous year, to offset the cost of
counseling Medicare eligible beneficiaries on health maintenance
organizations instead of the traditional Medicare provider system.
Existing law requires all fees collected to be deposited into the
State HICAP Fund for the implementation of the Health Insurance
Counseling and Advocacy Program (HICAP). Existing law declares the
Legislature's intent in funding HICAP to maintain a ratio of $2
collected from the Insurance Fund to every $1 collected pursuant to
the above annual fee.
   This bill would change the fees that department is required to
assess annually to not less than $1.40, but not more than $1.65. The
bill would declare the Legislature's intent that, starting in the
2005-06 fiscal year, $2,000,000 of additional funding shall be made
available to local HICAP programs, to be derived from an increase in
the HICAP fee and the corresponding Insurance Fund match. The bill
would require the additional funding to be used only for local HICAP
funding and would prohibit the use of that funding for department or
local area agencies on aging administration. The bill would require
the department to issue a supplemental billing during the 2005-06
fiscal year to generate additional revenue as authorized under these
provisions.
   Existing law requires the State Department of Social Services to
contract with an appropriate and qualified entity to conduct an
evaluation of the adequacy of the child welfare services budgeting
methodology and make recommendations for revising the budgeting
methodology.
   This bill would require the department, on an annual basis, at the
time of budget hearings, to provide information to the budget
committees of the Legislature comparing the Governor's proposed
statewide budget for the child welfare services program to the
caseload standards recommended by the evaluation required under these
provisions.
   Existing law provides for the CalWORKs program, under which each
county provides cash assistance and other benefits to qualified
low-income families and individuals. Existing law continuously
appropriates moneys from the General Fund to defray a portion of
county costs under the CalWORKs program.
   Existing law, with certain exemptions, requires a prescribed
sequence of employment-related activities by participants in the
CalWORKs program, including job search, assessment, work, and
community services activities.  Existing law establishes requirements
for participation in core welfare-to-work activities.
   This bill would revise the standards applicable to activities that
count toward satisfying core activity requirements, thereby imposing
a state-mandated local program.
   By enabling certain individuals to remain eligible to receive
benefits under the CalWORKs program under additional circumstances,
this bill would result in an appropriation.
   Under existing law, cash assistance under the CalWORKs program is
provided by each county through a combination of county, state, and
federal funds. State funds are continuously appropriated to pay for a
share of CalWORKs program aid grant costs.
   Under existing law, with specified exceptions, an annual
cost-of-living adjustment is required to be provided in maximum aid
payment amounts prescribed under the CalWORKs program.
   This bill would provide that no adjustment to the maximum aid
payment shall be made under this provision for the purpose of
increasing benefits under CalWORKs for the 2005-06 and 2006-07 fiscal
years.
   Existing law, pursuant to the Aid to Families with Dependent
Children-Foster Care (AFDC-FC) program, requires that foster care
providers licensed as group homes have rates established by
classifying each group home program and applying the standardized
schedule of rates. Existing law establishes a standardized schedule
of rates for the 2002-03, 2003-04, and 2004-05 fiscal years.
   This bill would extend the standardized schedule of rates to the
2005-06 fiscal year.
   Existing law requires the State Department of Social Services to
ensure that a comprehensive, independent statewide evaluation of the
CalWORKs program is undertaken and that accurate evaluative
information is made available to the Legislature in a timely fashion.

   This bill would require the department, in conjunction with
representatives of counties and the Legislature, to develop
approaches to improving data collection and management information
reporting in the CalWORKs program.
   Existing law provides for the State Supplementary Program for the
Aged, Blind and Disabled (SSP), which requires the State Department
of Social Services to contract with the United States Secretary of
Health and Human Services to make payments to SSP recipients to
supplement supplemental security income (SSI) payments made available
pursuant to the federal Social Security Act.
   Under existing law, benefit payments under the SSP program are
calculated by establishing the maximum level of nonexempt income and
federal (SSI) and state (SSP) benefits for each category of eligible
recipient. The state SSP payment is the amount, when added to the
nonexempt income and SSI benefits available to the recipient, that
would be required to provide the maximum benefit payment.
   Existing state law provides, except in certain calendar years, for
the annual adjustment of the total level of combined state and
federal benefits as established by statutory schedule to reflect
changes in the cost of living, as defined.
   Existing law provides that, for the 2004 calendar year, no
cost-of-living adjustment shall be made to the state portion of
SSI/SSP benefits.
   This bill would provide that, for the 2006 and 2007 calendar
years, no cost-of-living adjustment shall be made to the state
portion of SSI/SSP benefits.
   Existing law has provided that, with respect to certain calendar
years, there shall be no cost-of-living adjustment to the payment
schedules, but that with respect to those calendar years, there shall
be a pass along of the increase in federal SSI benefits. Existing
law provides that, commencing with the 2004 calendar year and
thereafter, in any calendar year in which no cost-of-living
adjustment is made to the payment schedules, there shall be a pass
along of any cost-of-living increases in federal SSI benefits.
   This bill would provide, with certain exceptions, that for the
2006 calendar year, the federal pass along shall not become effective
until April 1, 2006, and for the 2007 calendar year, the federal
pass along shall not become effective until April 1, 2007.
   Existing law provides for the county-administered In-Home
Supportive Services (IHSS) program, under which qualified aged,
blind, and disabled persons are provided with services in order to
permit them to remain in their own homes and avoid
institutionalization.
   Existing law establishes the federal Medicaid Program, which is
administered by each state. California's version of this program is
the Medi-Cal program, which is administered by the State Department
of Health Services and under which qualified low-income persons
receive health care benefits.
   Existing law provides for the payment of a supplementary benefit
under the IHSS program to any eligible aged, blind, or disabled
person who is receiving Medi-Cal personal care services and who would
otherwise be deemed a categorically needy recipient under the IHSS
program.
   This bill would extend application of this provision to any aged,
blind, or disabled person who is receiving Medi-Cal benefits and
eligible for services under a federal waiver program known as the
IHSS Plus waiver, and who would otherwise be deemed a categorically
needy recipient under the IHSS program.
   Existing law declares the intent of the Legislature to appropriate
funds in a single allocation to counties for the support of county
administration activities to provide benefit payments under the
CalWORKs program. Existing law requires the State Department of
Social Services to estimate the amount of unspent funds appropriated
in the 2003-04 fiscal year in the CalWORKs single allocation and
provides for the reappropriation of the unspent amount, not to exceed
$40,000,000 to be provided to the counties in a planning allocation.
Existing law requires the department, in consultation with the
County Welfare Directors Association, to develop an allocation
methodology for purposes of these provisions.
   This bill would require the State Department of Social Services,
no later than 30 days after the enactment of the Budget Act of 2005,
to estimate the amount of unspent funds in the CalWORKs single
allocation. The bill would require the unspent amount, not to exceed
$50,000,000, to be reappropriated to, and in augmentation of, a
specified item in the annual Budget Act, and provided to the counties
in a planning allocation no later than 30 days after the enactment
of the Budget Act of 2004. The bill would require the department, in
consultation with the County Welfare Directors Association, to
develop an allocation methodology for purposes of these provisions.
The bill would require the department to work with the County Welfare
Directors Association to develop an estimate for the cost of
eligibility activities and the impact of quarterly
reporting/prospective budgeting on county workload.
   This bill would establish a Pay for Performance Program to provide
additional funding for counties that meet specified standards in
implementing welfare-to-work programs under the CalWORKs program that
would apply to the 2006-07, 2007-08, and 2008-09 fiscal years and
would be contingent upon a Budget Act appropriation.
   Existing law requires the state, through the State Department of
Social Services and county welfare departments, to establish and
support a public system of statewide child welfare services.
   Existing federal law, the Indian Child Welfare Act, governs the
proceedings for determining the placement of an Indian child when
that child is removed from the custody of his or her parent or
guardian.
   This bill would require the department to establish one full-time
position, within the office of the director, to assist counties in
complying with the provisions of the Indian Child Welfare Act and
related state laws, regulations, and rules of court.
   Existing law requires the department to implement a single
statewide Child Welfare Services Case Management System in order to
protect children and effectively administer and evaluate California's
Child Welfare Services and foster care programs.
   This bill would require the department, on or before December 1,
2005, to develop, and provide to the Chairperson of the Joint
Legislative Budget Committee, a Child Welfare Services/Case
Management System system performance commitments plan. The bill would
require the department to develop the plan in conjunction with the
Office of System Integration, Department of Technology Services, and
County Welfare Directors Association.
   Existing law provides for payment for out-of-home care for
seriously emotionally disturbed children who have been placed in
out-of-home care as part of the child's individualized education
plan. Existing law also provides for the reimbursement of local
agencies for state-mandated local programs.
   This bill would preclude a county from claiming reimbursement
under the state-mandated local program provisions for costs paid for
under the 24-hour out-of-home care reimbursement provisions.
   Existing law provides for the federal Food Stamp Program, under
which each county distributes food stamps provided by the federal
government to eligible households. Existing federal regulations limit
participation in the Food Stamp Program for certain participants to
3 months during any 3-year period, unless a designated exemption,
waiver, or other exception applies.
   This bill would require the State Department of Social Services to
seek a waiver from this limitation on participation in the Food
Stamp Program. The bill would authorize any county to decline to
participate in this waiver upon submitting documentation from its
board of supervisors to that effect.
   Because counties administer the Food Stamp Program, this bill
would increase county duties by potentially extending the period of
eligibility for certain recipients, and would thereby impose a
state-mandated local program.
   Existing law, the Substance Abuse and Crime Prevention Act of 2000
(Proposition 36), an initiative measure approved by the electorate,
November 7, 2000, requires parolees and persons convicted of
nonviolent drug possession offenses to participate in and complete an
appropriate drug treatment program as a condition of receiving
probation, under certain circumstances.
   The bill would require the State Department of Alcohol and Drug
Programs to conduct and submit to the Legislature a study of the
effectiveness of the act, including a benefit-cost analysis, by April
1, 2006, and would require the Employment Development Department to
provide to the State Department of Alcohol and Drug Programs, by
January 1, 2006, any information requested by the State Department of
Alcohol and Drug Programs necessary for the completion of the
benefit-cost analysis.
   This bill would require the State Department of Social Services to
provide, by September 30, 2005, information to the chairpersons of
designated legislative committees on the distribution and
programmatic impact of the unallocated reduction included in the
Budget Act of 2005.
   The bill would require the California Health and Human Services
Agency to periodically brief stakeholders in the 2005 and 2006
calendar years to review options to streamline and standardize
criminal background check requirements and processing.
   The bill would require the State Department of Health Services to
periodically brief stakeholders in the 2005 and 2006 calendar years
to discuss the community care licensing visit process and consider
implementation of the substitute child care employee registry
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 these
statutory provisions.
  This bill would declare that it is to take effect immediately as an
urgency statute.
   Appropriation: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 8227 is added to the Education Code, to read:
   8227.  (a) To the extent that funding is made available for this
purpose through the annual Budget Act, the alternative payment agency
in each county shall design, maintain, and administer a system to
consolidate local child care waiting lists so as to establish a
countywide centralized eligibility list. In those counties with more
than one alternative payment agency, the agency that also administers
the resource and referral program shall have the responsibility of
developing, maintaining, and administering the countywide centralized
eligibility list. In those counties with more than one alternative
payment agency and more than one resource and referral program, the
State Department of Education shall establish a process to select the
agency to develop, maintain, and administer the countywide
centralized eligibility list.
   (b) Notwithstanding subdivision (a), in those counties in which a
countywide centralized eligibility list exists, as of the date that
the act adding this section is enacted, the entity administering that
list may receive funding, instead of the entity specified under
subdivision (a).
   (c) Each centralized eligibility list shall include all of the
following:
   (1) Family characteristics, including ZIP Code of residence, ZIP
Code of employment, monthly income, and size.
   (2) Child characteristics, including birth date and whether the
child has special needs.
   (3) Service characteristics, including reason for need, whether
full-time or part-time service is requested, and whether after hours
or weekend care is requested.
   (d) Information collected for the centralized eligibility list
shall be reported to the Superintendent of Public Instruction on an
annual basis on the date and in the manner determined by the State
Department of Education.
   (e) (1) To be eligible to enter into an agreement with the
department to provide subsidized child care, a contractor shall
participate in and use the centralized eligibility list.
   (2) A contractor with a campus child care and development program
operating pursuant to Section 66060, migrant child care and
development program operating on a seasonal basis pursuant to Section
8230, or program serving severely handicapped children pursuant to
subdivision (d) of Section 8250 and who has a local site waiting list
shall submit eligibility list information to the centralized
eligibility list administrator for any parent seeking subsidized
child care for whom these programs are not able to provide child care
and development services. A child care and development contractor or
program described in this paragraph may utilize any waiting lists
developed at its local site to fill vacancies for its specific
population. Families enrolled from a local site waiting list shall be
enrolled pursuant to Section 8263.
  SEC. 2.  Section 8263.4 of the Education Code is amended to read:
   8263.4.  (a) The preferred placement for children who are 11 or 12
years of age and who are otherwise eligible for subsidized child
care services shall be in a before or after school program.
   (b) Children who are 11 or 12 years of age shall be eligible for
subsidized child care services only for the portion of care needed
that is not available in a before or after school program provided
pursuant to Article 22.5 (commencing with Section 8482) of Chapter 2
or Article 22.6 (commencing with Section 8484.7) of Chapter 2.
Contractors shall provide each family of an eligible 11 or 12 year
old with the option of combining care provided in a before or after
school program with subsidized child care in another setting, for
those hours within a day when the before or after school program does
not operate, in order to meet the child care needs of the family.
   (c) Children who are 11 or 12 years of age, who are eligible for
and who are receiving subsidized child care services, and for whom a
before or after school program is not available, shall continue to
receive subsidized child care services.
   (d) A before or after school program shall be considered not
available when a parent certifies in writing, on a form provided by
the State Department of Education that is translated into the parent'
s primary language pursuant to Sections 7295.4 and 7296.2 of the
Government Code, the reason or reasons why the program would not meet
the child care needs of the family. The reasons why a before or
after school program shall be considered not available shall include,
but not be limited to, any of the following:
   (1) The program does not provide services when needed during the
year, such as during the summer, school breaks, or intersession.
   (2) The program does not provide services when needed during the
day, such as in the early morning, evening, or weekend hours.
   (3) The program is too geographically distant from the child's
school of attendance.
   (4) The program is too geographically distant from the parent's
residence.
   (5) Use of the program would create substantial transportation
obstacles for the family.
   (6) Any other reason that makes the use of before or after school
care inappropriate for the child or burdensome on the family.
   (e) If an 11 or 12 year old child who is enrolled in a subsidized
child development program becomes ineligible for subsidized child
care under subdivision (b) and is disenrolled from the before or
after school program, or if the before or after school program no
longer meets the child care needs of the family, the child shall be
given priority to return to the subsidized child care services upon
the parent's notification of the contractor of the need for child
care.
   (f) This section does not apply to an 11 or 12 year old child with
a disability, including a child with exceptional needs who has an
individual education plan as required by the Individuals with
Disabilities Education Act (20 U.S.C. Sec. 1400), Section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. Sec. 794), or Part 30
(commencing with Section 56000) of this code.
   (g) The savings generated each contract year by the implementation
of the changes made to this section by the act amending this section
during the 2005 portion of the 2005-06 Regular Session shall remain
with each alternative payment program, child development center, or
other contractor for the provision of child care services, except for
care provided by programs pursuant to Article 15.5 (commencing with
Section 8350). Each contractor shall report annually to the
department the amount of savings resulting from this implementation,
and the department shall report annually to the Legislature the
amount of savings statewide resulting from that implementation.
  SEC. 3.  Section 64 of Chapter 229 of the Statutes of 2004 is
amended to read:
  Sec. 64.  It is the intent of the Legislature to address the issue
of child care in and out of market rate differentiation in the
statutory process. Therefore, Sections 18074.3 and 18074.4 of Title 5
of the California Code of Regulations, as filed with the Office of
Administrative Law by the State Department of Education, and any
contractual or regulatory provisions related to those two sections,
shall not become effective until July 1, 2006.
  SEC. 6.  Section 17311 of the Family Code is amended to read:
   17311.  (a) The Child Support Payment Trust Fund is hereby created
in the State Treasury. The department shall administer the fund.
   (b) (1) The state may deposit child support payments received by
the State Disbursement Unit, including those amounts that result in
overpayment of child support, into the Child Support Payment Trust
Fund, for the purpose of processing and providing child support
payments. Notwithstanding Section 13340 of the Government Code, the
fund is continuously appropriated for the purposes of disbursing
child support payments from the State Disbursement Unit.
   (2) The state share of the interest and other earnings that accrue
on the fund shall be available to the department and used to offset
the following General Fund costs in this order:
   (A) Any transfers made to the Child Support Payment Trust Fund
from the General Fund.
   (B) The cost of administering the State Disbursement Unit, subject
to appropriation by the Legislature.
   (C) Other child support program activities, subject to
appropriation by the Legislature.
   (c) The department may establish and administer a revolving
account in the Child Support Payment Trust Fund in an amount not to
exceed six hundred million dollars ($600,000,000) to ensure the
timely disbursement of child support.  This amount may be adjusted by
the Director of Finance upon notification of the Legislature as
required, to meet payment timeframes required under federal law.
   (d) It is the intent of the Legislature to provide transfers from
the General Fund to provide startup funds for the Child Support
Payment Trust Fund so that, together with the balances transferred
pursuant to Section 17311.7, the Child Support Payment Trust Fund
will have sufficient cash on hand to make all child support payments
within the required timeframes.
   (e) Notwithstanding any other provision of law, an ongoing loan
shall be made available from the General Fund, from funds not
otherwise appropriated, to the Child Support Payment Trust Fund, not
to exceed one hundred fifty million dollars ($150,000,000) to ensure
the timely disbursement of child support payments when funds have not
been recorded to the Child Support Payment Trust Fund or due to
other fund liabilities, including, but not limited to, Internal
Revenue Service negative adjustments to tax intercept payments.
Whenever an adjustment of this amount is required to meet payment
timeframes under federal law, the amount shall be adjusted after
approval of the Director of Finance. In conjunction with the
Department of Finance and the Controller's office, the department
shall establish repayment procedures to ensure the outstanding loan
balance does not exceed the average daily cash needs. The ongoing
evaluation of the fund as detailed in these procedures shall occur no
less frequently than monthly.
  SEC. 7.  Section 11798 is added to the Government Code, to read:
   11798.  (a) There is hereby established in the State Treasury, the
Office of Systems Integration Fund. The moneys in the fund shall be
available upon appropriation by the Legislature for expenditure by
the Office of Systems Integration, established pursuant to Section
12803.3, for support of that office.
   (b) The fund shall consist of all of the following:
   (1) All moneys appropriated to the fund in accordance with law.
   (2) The balance of all moneys available for expenditure by the
Systems Integration Division of the California Health and Human
Services Agency Data Center.
   (3) The amount of funding transferred from the California Health
and Human Services Agency Data Center Revolving Fund and the
Department of Technology Services Revolving Fund to this fund shall
be determined by the Department of Finance.
   (4) Funds appropriated to the State Department of Social Services
in the annual Budget Act for the management, including as needed,
procurement, design, development, testing, implementation, oversight,
and maintenance, of the following projects shall be transferred to
this fund upon order of the Department of Finance:
   (A) Statewide Automated Welfare System (SAWS).
   (B) Child Welfare Services/Case Management System (CWS/CMS).
   (C) Electronic Benefit Transfer (EBT).
   (D) Statewide Fingerprinting Imaging System (SFIS).
   (E) Case Management Information Payrolling System (CMIPS)
Reprocurement.
   (c) (1) Funds appropriated to the Employment Development
Department in the annual Budget Act for the management, including
procurement, design, development, testing, implementation, oversight,
and maintenance, of the Unemployment Insurance Modernization project
shall be transferred to the fund upon order of the Department of
Finance.
   (2) On or before full expenditure of federal Reed Act funds, the
Department of Finance and the Employment Development Department shall
determine the appropriate timeframe to transfer the project
management and the associated resources for the Unemployment
Insurance Modernization Project to the Employment Development
Department.
  SEC. 8.  Section 12803.3 is added to the Government Code, to read:

   12803.3.  (a) For purposes of this section, the following
definitions shall apply:
   (1) "Director" means the Director of the Office of Systems
Integration.
   (2) "Office" means the Office of Systems Integration.
   (3) "Services" means all functions, responsibilities, and services
deemed to be functions, responsibilities, and services of the
Systems Integration Division, also known as Systems Management
Services, of the California Health and Human Services Agency Data
Center, as determined by the Secretary of California Health and Human
Services.
   (b) (1) The Systems Integration Division of the California Health
and Human Services Agency Data Center is hereby transferred to the
California Health and Human Services Agency and shall be known as the
Office of Systems Integration. The Office of Systems Integration
shall be the successor to, and is vested with, all of the duties,
powers, purposes, responsibilities, and jurisdiction of the Systems
Integration Division of the California Health and Human Services
Agency Data Center.
   (2) Notwithstanding any other law, all services of the Systems
Integration Division of the California Health and Human Services
Agency Data Center shall become the services of the Office of Systems
Integration.
   (c) The office shall be under the supervision of a director, known
as the Director of the Office of Systems Integration, who shall be
appointed by, and serve at the pleasure of, the Secretary of
California Health and Human Services.
   (d) No contract, lease, license, or any other agreement to which
the California Health and Human Services Data Center is a party on
the date of the transfer as described in paragraph (1) of subdivision
(b) shall be void or voidable by reason of this section, but shall
continue in full force and effect. The office shall assume from the
California Health and Human Services Data Center all of the rights,
obligations, and duties of the Systems Integration Division. This
assumption of rights, obligations, and duties shall not affect the
rights of the parties to the contract, lease, license, or agreement.

   (e) All books, documents, records, and property of the Systems
Integration Division shall be in the possession and under the control
of the office.
   (f) All officers and employees of the Systems Integration Division
shall be designated as officers and employees of the agency. The
status, position, and rights of any officer or employee shall not be
affected by this designation and all officers and employees shall be
retained by the agency pursuant to the applicable provisions of the
State Civil Service Act (Part 2 (commencing with Section 18500) of
Division 5), except as to any position that is exempt from civil
service.
   (g) (1) All contracts, leases, licenses, or any other agreements
to which the California Health and Human Services Data Center is a
party regarding any of the following are hereby assigned from the
California Health and Human Services Data Center to the office:
   (A) Statewide Automated Welfare System (SAWS).
   (B) Child Welfare Services/Case Management System (CWS/CMS).
   (C) Electronic Benefit Transfer (EBT).
   (D) Statewide Fingerprinting Imaging System (SFIS).
   (E) Case Management Information Payrolling System (CMIPS).
   (F) Employment Development Department Unemployment Insurance
Modernization (UIMOD) Project.
   (2) All other contracts, leases, or agreements necessary or
related to the operation of the Systems Integration Division of the
California Health and Human Services Data Center are hereby assigned
from the California Health and Human Services Data Center to the
office.
   (h) It is the intent of the Legislature that the transfer of the
Systems Integration Division of the California Health and Human
Services Agency Data Center pursuant to this section shall be
retroactive to the passage and enactment of the Budget Act of 2005
and that existing employees of the Systems Integration Division of
the California Health and Human Services Agency Data Center and the
newly established Office of Systems Integration shall not be
negatively impacted by the reorganization and transfer conducted
pursuant to this section.
   (i) It is the intent of the Legislature to review fully
implemented information technology projects managed by the office to
assess the viability of placing the management responsibility for
those projects in the respective program department.
   (j) On or before April 1, 2006, the Department of Finance shall
report to the Chairperson of the Joint Legislative Budget Committee
the date that the administration shall conduct an assessment for each
of the projects managed by the office. The California Health and
Human Services Agency, the California Health and Human Services
Agency Data Center, or its successor, the State Department of Social
Services, and the office shall provide to the Department of Finance
all information and analysis the Department of Finance deems
necessary to conduct the assessment required by this section. Each
assessment shall consider the costs, benefits, and any associated
risks of maintaining the project management responsibility in the
office and of moving the project management responsibility to its
respective program department.
   (k) The California Health and Human Services Agency shall not
place or transfer information technology projects in the office,
without further legislation authorizing these activities.
  SEC. 9.  Section 1522 of the Health and Safety Code is amended to
read:
   1522.  The Legislature recognizes the need to generate timely and
accurate positive fingerprint identification of applicants as a
condition of issuing licenses, permits, or certificates of approval
for persons to operate or provide direct care services in a community
care facility, foster family home, or a certified family home of a
licensed foster family agency. Therefore, the Legislature supports
the use of the fingerprint live-scan technology, as identified in the
long-range plan of the Department of Justice for fully automating
the processing of fingerprints and other data by the year 1999,
otherwise known as the California Crime Information Intelligence
System (CAL-CII), to be used for applicant fingerprints. It is the
intent of the Legislature in enacting this section to require the
fingerprints of those individuals whose contact with community care
clients may pose a risk to the clients' health and safety.
   (a) (1) Before issuing a license or special permit to any person
or persons to operate or manage a community care facility, the State
Department of Social Services shall secure from an appropriate law
enforcement agency a criminal record to determine whether the
applicant or any other person specified in subdivision (b) has ever
been convicted of a crime other than a minor traffic violation or
arrested for any crime specified in Section 290 of the Penal Code,
for violating Section 245 or 273.5, of the Penal Code, subdivision
(b) of Section 273a of the Penal Code, or, prior to January 1, 1994,
paragraph (2) of Section 273a of the Penal Code, or for any crime for
which the department cannot grant an exemption if the person was
convicted and the person has not been exonerated.
   (2) The criminal history information shall include the full
criminal record, if any, of those persons, and subsequent arrest
information pursuant to Section 11105.2 of the Penal Code.
   (3) Except during the 2003-04, 2004-05, and 2005-06 fiscal years,
neither the Department of Justice nor the State Department of Social
Services may charge a fee for the fingerprinting of an applicant for
a license or special permit to operate a facility providing
nonmedical board, room, and care for six or less children or for
obtaining a criminal record of the applicant pursuant to this
section.
   (4) The following shall apply to the criminal record information:

   (A) If the State Department of Social Services finds that the
applicant, or any other person specified in subdivision (b), has been
convicted of a crime other than a minor traffic violation, the
application shall be denied, unless the director grants an exemption
pursuant to subdivision (g).
   (B) If the State Department of Social Services finds that the
applicant, or any other person specified in subdivision (b) is
awaiting trial for a crime other than a minor traffic violation, the
State Department of Social Services may cease processing the
application until the conclusion of the trial.
   (C) If no criminal record information has been recorded, the
Department of Justice shall provide the applicant and the State
Department of Social Services with a statement of that fact.
   (D) If the State Department of Social Services finds after
licensure that the licensee, or any other person specified in
paragraph (2) of subdivision (b), has been convicted of a crime other
than a minor traffic violation, the license may be revoked, unless
the director grants an exemption pursuant to subdivision (g).
   (E) An applicant and any other person specified in subdivision (b)
shall submit a second set of fingerprints to the Department of
Justice for the purpose of searching the criminal records of the
Federal Bureau of Investigation, in addition to the criminal records
search required by this subdivision. If an applicant and all other
persons described in subdivision (b) meet all of the conditions for
licensure, except receipt of the Federal Bureau of Investigation's
criminal history information for the applicant or any of the persons
described in subdivision (b), the department may issue a license if
the applicant and each person described in subdivision (b) has signed
and submitted a statement that he or she has never been convicted of
a crime in the United States, other than a traffic infraction, as
defined in paragraph (1) of subdivision (a) of Section 42001 of the
Vehicle Code. If, after licensure, the department determines that the
licensee or any other person specified in subdivision (b) has a
criminal record, the license may be revoked pursuant to Section 1550.
The department may also suspend the license pending an
administrative hearing pursuant to Section 1550.5.
   (b) (1) In addition to the applicant, this section shall be
applicable to criminal convictions of the following persons:
   (A) Adults responsible for administration or direct supervision of
staff.
   (B) Any person, other than a client, residing in the facility.
   (C) Any person who provides client assistance in dressing,
grooming, bathing, or personal hygiene. Any nurse assistant or home
health aide meeting the requirements of Section 1338.5 or 1736.6,
respectively, who is not employed, retained, or contracted by the
licensee, and who has been certified or recertified on or after July
1, 1998, shall be deemed to meet the criminal record clearance
requirements of this section. A certified nurse assistant and
certified home health aide who will be providing client assistance
and who falls under this exemption shall provide one copy of his or
her current certification, prior to providing care, to the community
care facility. The facility shall maintain the copy of the
certification on file as long as care is being provided by the
certified nurse assistant or certified home health aide at the
facility. Nothing in this paragraph restricts the right of the
department to exclude a certified nurse assistant or certified home
health aide from a licensed community care facility pursuant to
Section 1558.
   (D) Any staff person, volunteer, or employee who has contact with
the clients.
   (E) If the applicant is a firm, partnership, association, or
corporation, the chief executive officer or other person serving in
like capacity.
   (F) Additional officers of the governing body of the applicant, or
other persons with a financial interest in the applicant, as
determined necessary by the department by regulation. The criteria
used in the development of these regulations shall be based on the
person's capability to exercise substantial influence over the
operation of the facility.
   (2) The following persons are exempt from the requirements
applicable under paragraph (1):
   (A) A medical professional as defined in department regulations
who holds a valid license or certification from the person's
governing California medical care regulatory entity and who is not
employed, retained, or contracted by the licensee if all of the
following apply:
   (i) The criminal record of the person has been cleared as a
condition of licensure or certification by the person's governing
California medical care regulatory entity.
   (ii) The person is providing time-limited specialized clinical
care or services.
   (iii) The person is providing care or services within the person's
scope of practice.
   (iv) The person is not a community care facility licensee or an
employee of the facility.
   (B) A third-party repair person or similar retained contractor if
all of the following apply:
   (i) The person is hired for a defined, time-limited job.
   (ii) The person is not left alone with clients.
   (iii) When clients are present in the room in which the
repairperson or contractor is working, a staff person who has a
criminal record clearance or exemption is also present.
   (C) Employees of a licensed home health agency and other members
of licensed hospice interdisciplinary teams who have a contract with
a client or resident of the facility and are in the facility at the
request of that client or resident's legal decisionmaker. The
exemption does not apply to a person who is a community care facility
licensee or an employee of the facility.
   (D) Clergy and other spiritual caregivers who are performing
services in common areas of the community care facility or who are
advising an individual client at the request of, or with the
permission of, the client or legal decisionmaker, are exempt from
fingerprint and criminal background check requirements imposed by
community care licensing. This exemption does not apply to a person
who is a community care licensee or employee of the facility.
   (E) Members of fraternal, service, or similar organizations who
conduct group activities for clients if all of the following apply:

  (i) Members are not left alone with clients.
   (ii) Members do not transport clients off the facility premises.
   (iii) The same organization does not conduct group activities for
clients more often than defined by the department's regulations.
   (3) In addition to the exemptions in paragraph (2), the following
persons in foster family homes, certified family homes, and small
family homes are exempt from the requirements applicable under
paragraph (1):
   (A) Adult friends and family of the licensee who come into the
home to visit for a length of time no longer than defined by the
department in regulations, provided that the adult friends and family
of the licensee are not left alone with the foster children.
   (B) Parents of a foster child's friends when the foster child is
visiting the friend's home and the friend, foster parent, or both are
also present.
   (4) In addition to the exemptions specified in paragraph (2), the
following persons in adult day care and adult day support centers are
exempt from the requirements applicable under paragraph (1):
   (A) Unless contraindicated by the client's individualized program
plan (IPP) or needs and service plan, a spouse, significant other,
relative, or close friend of a client, or an attendant or a
facilitator for a client with a developmental disability if the
attendant or facilitator is not employed, retained, or contracted by
the licensee. This exemption applies only if the person is visiting
the client or providing direct care and supervision to the client.
   (B) A volunteer if all of the following applies:
   (i) The volunteer is supervised by the licensee or a facility
employee with a criminal record clearance or exemption.
   (ii) The volunteer is never left alone with clients.
   (iii) The volunteer does not provide any client assistance with
dressing, grooming, bathing, or personal hygiene other than washing
of hands.
   (5) (A) In addition to the exemptions specified in paragraph (2),
the following persons in adult residential and social rehabilitation
facilities, unless contraindicated by the client's individualized
program plan (IPP) or needs and services plan, are exempt from the
requirements applicable under paragraph (1): a spouse, significant
other, relative, or close friend of a client, or an attendant or a
facilitator for a client with a developmental disability if the
attendant or facilitator is not employed, retained, or contracted by
the licensee. This exemption applies only if the person is visiting
the client or providing direct care and supervision to that client.
   (B) Nothing in this subdivision shall prevent a licensee from
requiring a criminal record clearance of any individual exempt from
the requirements of this section, provided that the individual has
client contact.
   (6) Any person similar to those described in this subdivision, as
defined by the department in regulations.
   (c) (1) Subsequent to initial licensure, any person specified in
subdivision (b) and not exempted from fingerprinting shall, as a
condition to employment, residence, or presence in a community care
facility, be fingerprinted and sign a declaration under penalty of
perjury regarding any prior criminal convictions. The licensee shall
submit these fingerprints to the Department of Justice, along with a
second set of fingerprints for the purpose of searching the records
of the Federal Bureau of Investigation, or to comply with paragraph
(1) of subdivision (h), prior to the person's employment, residence,
or initial presence in the community care facility. These
fingerprints shall be on a card provided by the State Department of
Social Services or sent by electronic transmission in a manner
approved by the State Department of Social Services and the
Department of Justice for the purpose of obtaining a permanent set of
fingerprints, and shall be submitted to the Department of Justice by
the licensee. A licensee's failure to submit fingerprints to the
Department of Justice or to comply with paragraph (1) of subdivision
(h), as required in this section, shall result in the citation of a
deficiency and the immediate assessment of civil penalties in the
amount of one hundred dollars ($100) per violation, per day for a
maximum of five days, unless the violation is a second or subsequent
violation within a 12-month period in which case the civil penalties
shall be in the amount of one hundred dollars ($100) per violation
for a maximum of 30 days, and shall be grounds for disciplining the
licensee pursuant to Section 1550. The department may assess civil
penalties for continued violations as permitted by Section 1548. The
fingerprints shall then be submitted to the State Department of
Social Services for processing. Upon request of the licensee, who
shall enclose a self-addressed stamped postcard for this purpose, the
Department of Justice shall verify receipt of the fingerprints.
   (2) Within 14 calendar days of the receipt of the fingerprints,
the Department of Justice shall notify the State Department of Social
Services of the criminal record information, as provided for in
subdivision (a). If no criminal record information has been recorded,
the Department of Justice shall provide the licensee and the State
Department of Social Services with a statement of that fact within 14
calendar days of receipt of the fingerprints. Documentation of the
individual's clearance or exemption shall be maintained by the
licensee and be available for inspection. If new fingerprints are
required for processing, the Department of Justice shall, within 14
calendar days from the date of receipt of the fingerprints, notify
the licensee that the fingerprints were illegible. When live-scan
technology is operational, as defined in Section 1522.04, the
Department of Justice shall notify the State Department of Social
Services, as required by that section, and shall also notify the
licensee by mail, within 14 days of electronic transmission of the
fingerprints to the Department of Justice, if the person has no
criminal history recorded. A violation of the regulations adopted
pursuant to Section 1522.04 shall result in the citation of a
deficiency and an immediate assessment of civil penalties in the
amount of one hundred dollars ($100) per violation, per day for a
maximum of five days, unless the violation is a second or subsequent
violation within a 12-month period in which case the civil penalties
shall be in the amount of one hundred dollars ($100) per violation
for a maximum of 30 days, and shall be grounds for disciplining the
licensee pursuant to Section 1550. The department may assess civil
penalties for continued violations as permitted by Section 1548.
   (3) Except for persons specified in paragraph (2) of subdivision
(b), the licensee shall endeavor to ascertain the previous employment
history of persons required to be fingerprinted under this
subdivision. If it is determined by the State Department of Social
Services, on the basis of the fingerprints submitted to the
Department of Justice, that the person has been convicted of, or is
awaiting trial for, a sex offense against a minor, or has been
convicted for an offense specified in Section 243.4, 273a, 273d,
273g, or 368 of the Penal Code, or a felony, the State Department of
Social Services shall notify the licensee to act immediately to
terminate the person's employment, remove the person from the
community care facility, or bar the person from entering the
community care facility. The State Department of Social Services may
subsequently grant an exemption pursuant to subdivision (g). If the
conviction or arrest was for another crime, except a minor traffic
violation, the licensee shall, upon notification by the State
Department of Social Services, act immediately to either (1)
terminate the person's employment, remove the person from the
community care facility, or bar the person from entering the
community care facility; or (2) seek an exemption pursuant to
subdivision (g). The State Department of Social Services shall
determine if the person shall be allowed to remain in the facility
until a decision on the exemption is rendered. A licensee's failure
to comply with the department's prohibition of employment, contact
with clients, or presence in the facility as required by this
paragraph shall be grounds for disciplining the licensee pursuant to
Section 1550.
   (4) The department may issue an exemption on its own motion
pursuant to subdivision (g) if the person's criminal history
indicates that the person is of good character based on the age,
seriousness, and frequency of the conviction or convictions. The
department, in consultation with interested parties, shall develop
regulations to establish the criteria to grant an exemption pursuant
to this paragraph.
   (5) Concurrently with notifying the licensee pursuant to paragraph
(3), the department shall notify the affected individual of his or
her right to seek an exemption pursuant to subdivision (g). The
individual may seek an exemption only if the licensee terminates the
person's employment or removes the person from the facility after
receiving notice from the department pursuant to paragraph (3).
   (d) (1) Before issuing a license, special permit, or certificate
of approval to any person or persons to operate or manage a foster
family home or certified family home as described in Section 1506,
the State Department of Social Services or other approving authority
shall secure from an appropriate law enforcement agency a criminal
record to determine whether the applicant or any person specified in
subdivision (b) has ever been convicted of a crime other than a minor
traffic violation or arrested for any crime specified in Section 290
of the Penal Code, for violating Section 245 or 273.5, subdivision
(b) of Section 273a or, prior to January 1, 1994, paragraph (2) of
Section 273a of the Penal Code, or for any crime for which the
department cannot grant an exemption if the person was convicted and
the person has not been exonerated.
   (2) The criminal history information shall include the full
criminal record, if any, of those persons.
   (3) Neither the Department of Justice nor the State Department of
Social Services may charge a fee for the fingerprinting of an
applicant for a license, special permit, or certificate of approval
described in this subdivision.  The record, if any, shall be taken
into consideration when evaluating a prospective applicant.
   (4) The following shall apply to the criminal record information:

   (A) If the applicant or other persons specified in subdivision (b)
have convictions that would make the applicant's home unfit as a
foster family home or a certified family home, the license, special
permit, or certificate of approval shall be denied.
   (B) If the State Department of Social Services finds that the
applicant, or any person specified in subdivision (b) is awaiting
trial for a crime other than a minor traffic violation, the State
Department of Social Services or other approving authority may cease
processing the application until the conclusion of the trial.
   (C) For the purposes of this subdivision, a criminal record
clearance provided under Section 8712 of the Family Code may be used
by the department or other approving agency.
   (D) An applicant for a foster family home license or for
certification as a family home, and any other person specified in
subdivision (b), shall submit a set of fingerprints to the Department
of Justice for the purpose of searching the criminal records of the
Federal Bureau of Investigation, in addition to the criminal records
search required by subdivision (a). If an applicant meets all other
conditions for licensure, except receipt of the Federal Bureau of
Investigation's criminal history information for the applicant and
all persons described in subdivision (b), the department may issue a
license, or the foster family agency may issue a certificate of
approval, if the applicant, and each person described in subdivision
(b), has signed and submitted a statement that he or she has never
been convicted of a crime in the United States, other than a traffic
infraction, as defined in paragraph (1) of subdivision (a) of Section
42001 of the Vehicle Code. If, after licensure or certification, the
department determines that the licensee, certified foster parent, or
any person specified in subdivision (b) has a criminal record, the
license may be revoked pursuant to Section 1550 and the certificate
of approval revoked pursuant to subdivision (b) of Section 1534.  The
department may also suspend the license pending an administrative
hearing pursuant to Section 1550.5.
   (5) Any person specified in this subdivision shall, as a part of
the application, be fingerprinted and sign a declaration under
penalty of perjury regarding any prior criminal convictions or
arrests for any crime against a child, spousal or cohabitant abuse
or, any crime for which the department cannot grant an exemption if
the person was convicted and shall submit these fingerprints to the
licensing agency or other approving authority.
   (6) (A) The foster family agency shall obtain fingerprints from
certified home applicants and from persons specified in subdivision
(b) and shall submit them directly to the Department of Justice or
send them by electronic transmission in a manner approved by the
State Department of Social Services. A foster family home licensee or
foster family agency shall submit these fingerprints to the
Department of Justice, along with a second set of fingerprints for
the purpose of searching the records of the Federal Bureau of
Investigation or to comply with paragraph (1) of subdivision (b)
prior to the person's employment, residence, or initial presence. A
foster family agency's failure to submit fingerprints to the
Department of Justice, or comply with paragraph (1) of subdivision
(h), as required in this section, shall result in a citation of a
deficiency, and the immediate civil penalties of one hundred dollars
($100) per violation, per day for a maximum of five days, unless the
violation is a second or subsequent violation within a 12-month
period in which case the civil penalties shall be in the amount of
one hundred dollars ($100) per violation for a maximum of 30 days,
and shall be grounds for disciplining the licensee pursuant to
Section 1550. A violation of the regulation adopted pursuant to
Section 1522.04 shall result in the citation of a deficiency and an
immediate assessment of civil penalties in the amount of one hundred
dollars ($100) per violation, per day for a maximum of five days,
unless the violation is a second or subsequent violation within a
12-month period in which case the civil penalties shall be in the
amount of one hundred dollars ($100) per violation for a maximum of
30 days, and shall be grounds for disciplining the foster family
agency pursuant to Section 1550. A licensee's failure to submit
fingerprints to the Department of Justice, or comply with paragraph
(1) of subdivision (h), as required in this section, may result in
the citation of a deficiency and immediate civil penalties of one
hundred dollars ($100) per violation. A licensee's violation of
regulations adopted pursuant to Section 1522.04 may result in the
citation of a deficiency and an immediate assessment of civil
penalties in the amount of one hundred dollars ($100) per violation.
The State Department of Social Services may assess penalties for
continued violations, as permitted by Section 1548. The fingerprints
shall then be submitted to the State Department of Social Services
for processing.
   (B) Upon request of the licensee, who shall enclose a
self-addressed envelope for this purpose, the Department of Justice
shall verify receipt of the fingerprints. Within five working days of
the receipt of the criminal record or information regarding criminal
convictions from the Department of Justice, the department shall
notify the applicant of any criminal arrests or convictions. If no
arrests or convictions are recorded, the Department of Justice shall
provide the foster family home licensee or the foster family agency
with a statement of that fact concurrent with providing the
information to the State Department of Social Services.
   (7) If the State Department of Social Services finds that the
applicant, or any other person specified in subdivision (b), has been
convicted of a crime other than a minor traffic violation, the
application shall be denied, unless the director grants an exemption
pursuant to subdivision (g).
   (8) If the State Department of Social Services finds after
licensure or the granting of the certificate of approval that the
licensee, certified foster parent, or any other person specified in
paragraph (2) of subdivision (b), has been convicted of a crime other
than a minor traffic violation, the license or certificate of
approval may be revoked by the department or the foster family
agency, whichever is applicable, unless the director grants an
exemption pursuant to subdivision (g). A licensee's failure to comply
with the department's prohibition of employment, contact with
clients, or presence in the facility as required by paragraph (3) of
subdivision (c) shall be grounds for disciplining the licensee
pursuant to Section 1550.
   (e) The State Department of Social Services may not use a record
of arrest to deny, revoke, or terminate any application, license,
employment, or residence unless the department investigates the
incident and secures evidence, whether or not related to the incident
of arrest, that is admissible in an administrative hearing to
establish conduct by the person that may pose a risk to the health
and safety of any person who is or may become a client. The State
Department of Social Services is authorized to obtain any arrest or
conviction records or reports from any law enforcement agency as
necessary to the performance of its duties to inspect, license, and
investigate community care facilities and individuals associated with
a community care facility.
   (f) (1) For purposes of this section or any other provision of
this chapter, a conviction means a plea or verdict of guilty or a
conviction following a plea of nolo contendere. Any action that the
State Department of Social Services is permitted to take following
the establishment of a conviction may be taken when the time for
appeal has elapsed, when the judgment of conviction has been affirmed
on appeal, or when an order granting probation is made suspending
the imposition of sentence, notwithstanding a subsequent order
pursuant to Sections 1203.4 and 1203.4a of the Penal Code permitting
the person to withdraw his or her plea of guilty and to enter a plea
of not guilty, or setting aside the verdict of guilty, or dismissing
the accusation, information, or indictment. For purposes of this
section or any other provision of this chapter, the record of a
conviction, or a copy thereof certified by the clerk of the court or
by a judge of the court in which the conviction occurred, shall be
conclusive evidence of the conviction.  For purposes of this section
or any other provision of this chapter, the arrest disposition report
certified by the Department of Justice, or documents admissible in a
criminal action pursuant to Section 969b of the Penal Code, shall be
prima facie evidence of the conviction, notwithstanding any other
provision of law prohibiting the admission of these documents in a
civil or administrative action.
   (2) For purposes of this section or any other provision of this
chapter, the department shall consider criminal convictions from
another state or federal court as if the criminal offense was
committed in this state.
   (g) (1) After review of the record, the director may grant an
exemption from disqualification for a license or special permit as
specified in paragraphs (1) and (4) of subdivision (a), or for a
license, special permit, or certificate of approval as specified in
paragraphs (4) and (5) of subdivision (d), or for employment,
residence, or presence in a community care facility as specified in
paragraphs (3), (4), and (5) of subdivision (c), if the director has
substantial and convincing evidence to support a reasonable belief
that the applicant and the person convicted of the crime, if other
than the applicant, are of such good character as to justify issuance
of the license or special permit or granting an exemption for
purposes of subdivision (c). Except as otherwise provided in this
subdivision, an exemption may not be granted pursuant to this
subdivision if the conviction was for any of the following offenses:

   (A) (i) An offense specified in Section 220, 243.4, or 264.1,
subdivision (a) of Section 273a or, prior to January 1, 1994,
paragraph (1) of Section 273a, Section 273d, 288, or 289, subdivision
(a) of Section 290, or Section 368 of the Penal Code, or was a
conviction of another crime against an individual specified in
subdivision (c) of Section 667.5 of the Penal Code.
   (ii) Notwithstanding clause (i), the director may grant an
exemption regarding the conviction for an offense described in
paragraph (1), (2), (7), or (8) of subdivision (c) of Section 667.5
of the Penal Code, if the employee or prospective employee has been
rehabilitated as provided in Section 4852.03 of the Penal Code, has
maintained the conduct required in Section 4852.05 of the Penal Code
for at least 10 years, and has the recommendation of the district
attorney representing the employee's county of residence, or if the
employee or prospective employee has received a certificate of
rehabilitation pursuant to Chapter 3.5 (commencing with Section
4852.01) of Title 6 of Part 3 of the Penal Code.
   (B) A felony offense specified in Section 729 of the Business and
Professions Code or Section 206 or 215, subdivision (a) of Section
347, subdivision (b) of Section 417, or subdivision (a) of Section
451 of the Penal Code.
   (2) The department may not prohibit a person from being employed
or having contact with clients in a facility on the basis of a denied
criminal record exemption request or arrest information unless the
department complies with the requirements of Section 1558.
   (h) (1) For purposes of compliance with this section, the
department may permit an individual to transfer a current criminal
record clearance, as defined in subdivision (a), from one facility to
another, as long as the criminal record clearance has been processed
through a state licensing district office, and is being transferred
to another facility licensed by a state licensing district office.
The request shall be in writing to the State Department of Social
Services, and shall include a copy of the person's driver's license
or valid identification card issued by the Department of Motor
Vehicles, or a valid photo identification issued by another state or
the United States government if the person is not a California
resident. Upon request of the licensee, who shall enclose a
self-addressed envelope for this purpose, the State Department of
Social Services shall verify whether the individual has a clearance
that can be transferred.
   (2) The State Department of Social Services shall hold criminal
record clearances in its active files for a minimum of two years
after an employee is no longer employed at a licensed facility in
order for the criminal record clearance to be transferred.
   (3) The following shall apply to a criminal record clearance or
exemption from the department or a county office with department
delegated licensing authority:
   (A) A county office with department delegated licensing authority
may accept a clearance or exemption from the department.
   (B) The department may accept a clearance or exemption from any
county office with department delegated licensing authority.
   (C) A county office with department delegated licensing authority
may accept a clearance or exemption from any other county office with
department delegated licensing authority.
   (4) With respect to notifications issued by the Department of
Justice pursuant to Section 11105.2 of the Penal Code concerning an
individual whose criminal record clearance was originally processed
by the department or a county office with department delegated
licensing authority, all of the following shall apply:
   (A) The Department of Justice shall process a request from the
department or a county office with department delegated licensing
authority to receive the notice only if all of the following
conditions are met:
   (i) The request shall be submitted to the Department of Justice by
the agency to be substituted to receive the notification.
   (ii)  The request shall be for the same applicant type as the type
for which the original clearance was obtained.
   (iii) The request shall contain all prescribed data elements and
format protocols pursuant to a written agreement between the
department and the Department of Justice.
   (B) (i) On or before January 7, 2005, the department shall notify
the Department of Justice of all county offices that have department
delegated licensing authority.
   (ii) The department shall notify the Department of Justice within
15 calendar days of the date on which a new county office receives
department delegated licensing authority or a county's delegated
licensing authority is rescinded.
   (C) The Department of Justice shall charge the department or a
county office with department delegated licensing authority a fee for
each time a request to substitute the recipient agency is received
for purposes of this paragraph.  This fee shall not exceed the cost
of providing the service.
   (i) The full criminal record obtained for purposes of this section
may be used by the department or by a licensed adoption agency as a
clearance required for adoption purposes.
   (j) If a licensee or facility is required by law to deny
employment or to terminate employment of any employee based on
written notification from the state department that the employee has
a prior criminal conviction or is determined unsuitable for
employment under Section 1558, the licensee or facility shall not
incur civil liability or unemployment insurance liability as a result
of that denial or termination.
   (k) (1) The Department of Justice shall coordinate with the State
Department of Social Services to establish and implement an automated
live-scan processing system for fingerprints in the district offices
of the Community Care Licensing Division of the State Department of
Social Services by July 1, 1999. These live-scan processing units
shall be connected to the main system at the Department of Justice by
July 1, 1999, and shall become part of that department's pilot
project in accordance with its long-range plan. The
                           State Department of Social Services may
charge a fee for the costs of processing a set of live-scan
fingerprints.
   (2) The Department of Justice shall provide a report to the Senate
and Assembly fiscal committees, the Assembly Human Services
Committee, and to the Senate Health and Human Services Committee by
April 15, 1999, regarding the completion of backlogged criminal
record clearance requests for all facilities licensed by the State
Department of Social Services and the progress on implementing the
automated live-scan processing system in the two district offices
pursuant to paragraph (1).
   (l) Amendments to this section made in the 1999 portion of the
1999-2000 Regular Session shall be implemented commencing 60 days
after the effective date of the act amending this section in the 1999
portion of the 1999-2000 Regular Session, except that those
provisions for the submission of fingerprints for searching the
records of the Federal Bureau of Investigation shall be implemented
90 days after the effective date of that act.
  SEC. 10.  Section 1596.871 of the Health and Safety Code is amended
to read:
   1596.871.  The Legislature recognizes the need to generate timely
and accurate positive fingerprint identification of applicants as a
condition of issuing licenses, permits, or certificates of approval
for persons to operate or provide direct care services in a child
care center or family child care home. Therefore, the Legislature
supports the use of the fingerprint live-scan technology, as defined
in the long-range plan of the Department of Justice for fully
automating the processing of fingerprints and other data by the year
1999, otherwise known as the California Crime Information
Intelligence System (CAL-CII), to be used for applicant fingerprints.
It is the intent of the Legislature in enacting this section to
require the fingerprints of those individuals whose contact with
child day care facility clients may pose a risk to the children's
health and safety.
   (a) (1) Before issuing a license or special permit to any person
to operate or manage a day care facility, the department shall secure
from an appropriate law enforcement agency a criminal record to
determine whether the applicant or any other person specified in
subdivision (b) has ever been convicted of a crime other than a minor
traffic violation or arrested for any crime specified in Section 290
of the Penal Code, for violating Section 245 or 273.5, subdivision
(b) of Section 273a or, prior to January 1, 1994, paragraph (2) of
Section 273a of the Penal Code, or for any crime for which the
department cannot grant an exemption if the person was convicted and
the person has not been exonerated.
   (2) The criminal history information shall include the full
criminal record, if any, of those persons, and subsequent arrest
information pursuant to Section 11105.2 of the Penal Code.
   (3) Except during the 2003-04, 2004-05, and 2005-06 fiscal years,
neither the Department of Justice nor the department may charge a fee
for the fingerprinting of an applicant who will serve six or fewer
children or any family day care applicant for a license, or for
obtaining a criminal record of an applicant pursuant to this section.

   (4) The following shall apply to the criminal record information:

   (A) If the State Department of Social Services finds that the
applicant or any other person specified in subdivision (b) has been
convicted of a crime, other than a minor traffic violation, the
application shall be denied, unless the director grants an exemption
pursuant to subdivision (f).
   (B) If the State Department of Social Services finds that the
applicant, or any other person specified in subdivision (b), is
awaiting trial for a crime other than a minor traffic violation, the
State Department of Social Services may cease processing the
application until the conclusion of the trial.
   (C) If no criminal record information has been recorded, the
Department of Justice shall provide the applicant and the State
Department of Social Services with a statement of that fact.
   (D) If the State Department of Social Services finds after
licensure that the licensee, or any other person specified in
paragraph (2) of subdivision (b), has been convicted of a crime other
than a minor traffic violation, the license may be revoked, unless
the director grants an exemption pursuant to subdivision (f).
   (E) An applicant and any other person specified in subdivision (b)
shall submit a second set of fingerprints to the Department of
Justice, for the purpose of searching the records of the Federal
Bureau of Investigation, in addition to the search required by
subdivision (a). If an applicant meets all other conditions for
licensure, except receipt of the Federal Bureau of Investigation's
criminal history information for the applicant and persons listed in
subdivision (b), the department may issue a license if the applicant
and each person described by subdivision (b) has signed and submitted
a statement that he or she has never been convicted of a crime in
the United States, other than a traffic infraction as defined in
paragraph (1) of subdivision (a) of Section 42001 of the Vehicle
Code. If, after licensure, the department determines that the
licensee or person specified in subdivision (b) has a criminal
record, the license may be revoked pursuant to Section 1596.885. The
department may also suspend the license pending an administrative
hearing pursuant to Section 1596.886.
   (b) (1) In addition to the applicant, this section shall be
applicable to criminal convictions of the following persons:
   (A) Adults responsible for administration or direct supervision of
staff.
   (B) Any person, other than a child, residing in the facility.
   (C) Any person who provides care and supervision to the children.

   (D) Any staff person, volunteer, or employee who has contact with
the children.
   (i) A volunteer providing time-limited specialized services shall
be exempt from the requirements of this subdivision if this person is
directly supervised by the licensee or a facility employee with a
criminal record clearance or exemption, the volunteer spends no more
than 16 hours per week at the facility, and the volunteer is not left
alone with children in care.
   (ii) A student enrolled or participating at an accredited
educational institution shall be exempt from the requirements of this
subdivision if the student is directly supervised by the licensee or
a facility employee with a criminal record clearance or exemption,
the facility has an agreement with the educational institution
concerning the placement of the student, the student spends no more
than 16 hours per week at the facility, and the student is not left
alone with children in care.
   (iii) A volunteer who is a relative, legal guardian, or foster
parent of a client in the facility shall be exempt from the
requirements of this subdivision.
   (iv) A contracted repair person retained by the facility, if not
left alone with children in care, shall be exempt from the
requirements of this subdivision.
   (v) Any person similar to those described in this subdivision, as
defined by the department in regulations.
   (E) If the applicant is a firm, partnership, association, or
corporation, the chief executive officer, other person serving in
like capacity, or a person designated by the chief executive officer
as responsible for the operation of the facility, as designated by
the applicant agency.
   (F) If the applicant is a local educational agency, the president
of the governing board, the school district superintendent, or a
person designated to administer the operation of the facility, as
designated by the local educational agency.
   (G) Additional officers of the governing body of the applicant, or
other persons with a financial interest in the applicant, as
determined necessary by the department by regulation. The criteria
used in the development of these regulations shall be based on the
person's capability to exercise substantial influence over the
operation of the facility.
   (H) This section does not apply to employees of child care and
development programs under contract with the State Department of
Education who have completed a criminal records clearance as part of
an application to the Commission on Teacher Credentialing, and who
possess a current credential or permit issued by the commission,
including employees of child care and development programs that serve
both children subsidized under, and children not subsidized under, a
State Department of Education contract. The Commission on Teacher
Credentialing shall notify the department upon revocation of a
current credential or permit issued to an employee of a child care
and development program under contract with the State Department of
Education.
   (I) This section does not apply to employees of a child care and
development program operated by a school district, county office of
education, or community college district under contract with the
State Department of Education who have completed a criminal record
clearance as a condition of employment. The school district, county
office of education, or community college district upon receiving
information that the status of an employee's criminal record
clearance has changed shall submit that information to the
department.
   (2) Nothing in this subdivision shall prevent a licensee from
requiring a criminal record clearance of any individuals exempt from
the requirements under this subdivision.
   (c) (1) (A) Subsequent to initial licensure, any person specified
in subdivision (b) and not exempted from fingerprinting shall, as a
condition to employment, residence, or presence in a child day care
facility be fingerprinted and sign a declaration under penalty of
perjury regarding any prior criminal conviction. The licensee shall
submit these fingerprints to the Department of Justice, along with a
second set of fingerprints for the purpose of searching the records
of the Federal Bureau of Investigation, or to comply with paragraph
(1) of subdivision (h), prior to the person's employment, residence,
or initial presence in the child day care facility.
   (B) These fingerprints shall be on a card provided by the State
Department of Social Services for the purpose of obtaining a
permanent set of fingerprints and submitted to the Department of
Justice by the licensee or sent by electronic transmission in a
manner approved by the State Department of Social Services. A
licensee's failure to submit fingerprints to the Department of
Justice, or to comply with paragraph (1) of subdivision (h), as
required in this section, shall result in the citation of a
deficiency, and an immediate assessment of civil penalties in the
amount of one hundred dollars ($100) per violation, per day for a
maximum of five days, unless the violation is a second or subsequent
violation within a 12-month period in which case the civil penalties
shall be in the amount of one hundred dollars ($100) per violation
for a maximum of 30 days, and shall be grounds for disciplining the
licensee pursuant to Section 1596.885 or Section 1596.886. The State
Department of Social Services may assess civil penalties for
continued violations permitted by Sections 1596.99 and 1597.62. The
fingerprints shall then be submitted to the State Department of
Social Services for processing. Within 14 calendar days of the
receipt of the fingerprints, the Department of Justice shall notify
the State Department of Social Services of the criminal record
information, as provided in this subdivision. If no criminal record
information has been recorded, the Department of Justice shall
provide the licensee and the State Department of Social Services with
a statement of that fact within 14 calendar days of receipt of the
fingerprints. If new fingerprints are required for processing, the
Department of Justice shall, within 14 calendar days from the date of
receipt of the fingerprints, notify the licensee that the
fingerprints were illegible.
   (C) Documentation of the individual's clearance or exemption shall
be maintained by the licensee, and shall be available for
inspection. When live-scan technology is operational, as defined in
Section 1522.04, the Department of Justice shall notify the
department, as required by that section, and notify the licensee by
mail within 14 days of electronic transmission of the fingerprints to
the Department of Justice, if the person has no criminal record. Any
violation of the regulations adopted pursuant to Section 1522.04
shall result in the citation of a deficiency and an immediate
assessment of civil penalties in the amount of one hundred dollars
($100) per violation, per day for a maximum of five days, unless the
violation is a second or subsequent violation within a 12-month
period in which case the civil penalties shall be in the amount of
one hundred dollars ($100) per violation for a maximum of 30 days,
and shall be grounds for disciplining the licensee pursuant to
Section 1596.885 or Section 1596.886. The department may assess civil
penalties for continued violations, as permitted by Sections 1596.99
and 1597.62.
   (2) Except for persons specified in paragraph (2) of subdivision
(b), the licensee shall endeavor to ascertain the previous employment
history of persons required to be fingerprinted under this
subdivision. If it is determined by the department, on the basis of
fingerprints submitted to the Department of Justice, that the person
has been convicted of a sex offense against a minor, an offense
specified in Section 243.4, 273a, 273d, 273g, or 368 of the Penal
Code, or a felony, the State Department of Social Services shall
notify the licensee to act immediately to terminate the person's
employment, remove the person from the child day care facility, or
bar the person from entering the child day care facility. The
department may subsequently grant an exemption pursuant to
subdivision (f). If the conviction was for another crime except a
minor traffic violation, the licensee shall, upon notification by the
State Department of Social Services, act immediately to either (1)
terminate the person's employment, remove the person from the child
day care facility, or bar the person from entering the child day care
facility; or (2) seek an exemption pursuant to subdivision (f). The
department shall determine if the person shall be allowed to remain
in the facility until a decision on the exemption is rendered. A
licensee's failure to comply with the department's prohibition of
employment, contact with clients, or presence in the facility as
required by this paragraph shall result in a citation of deficiency
and an immediate assessment of civil penalties by the department
against the licensee, in the amount of one hundred dollars ($100) per
violation, per day for a maximum of five days, unless the violation
is a second or subsequent violation within a 12-month period in which
case the civil penalties shall be in the amount of one hundred
dollars ($100) per violation for a maximum of 30 days, and shall be
grounds for disciplining the licensee pursuant to Section 1596.885 or
1596.886.
   (3) The department may issue an exemption on its own motion
pursuant to subdivision (f) if the person's criminal history
indicates that the person is of good character based on the age,
seriousness, and frequency of the conviction or convictions. The
department, in consultation with interested parties, shall develop
regulations to establish the criteria to grant an exemption pursuant
to this paragraph.
   (4) Concurrently with notifying the licensee pursuant to paragraph
(3), the department shall notify the affected individual of his or
her right to seek an exemption pursuant to subdivision (f). The
individual may seek an exemption only if the licensee terminates the
person's employment or removes the person from the facility after
receiving notice from the department pursuant to paragraph (3).
   (d) (1) For purposes of this section or any other provision of
this chapter, a conviction means a plea or verdict of guilty or a
conviction following a plea of nolo contendere. Any action that the
department is permitted to take following the establishment of a
conviction may be taken when the time for appeal has elapsed, when
the judgment of conviction has been affirmed on appeal, or when an
order granting probation is made suspending the imposition of
sentence, notwithstanding a subsequent order pursuant to Sections
1203.4 and 1203.4a of the Penal Code permitting the person to
withdraw his or her plea of guilty and to enter a plea of not guilty,
or setting aside the verdict of guilty, or dismissing the
accusation, information, or indictment. For purposes of this section
or any other provision of this chapter, the record of a conviction,
or a copy thereof certified by the clerk of the court or by a judge
of the court in which the conviction occurred, shall be conclusive
evidence of the conviction. For purposes of this section or any other
provision of this chapter, the arrest disposition report certified
by the Department of Justice, or documents admissible in a criminal
action pursuant to Section 969b of the Penal Code, shall be prima
facie evidence of conviction, notwithstanding any other provision of
law prohibiting the admission of these documents in a civil or
administrative action.
   (2) For purposes of this section or any other provision of this
chapter, the department shall consider criminal convictions from
another state or federal court as if the criminal offense was
committed in this state.
   (e) The State Department of Social Services may not use a record
of arrest to deny, revoke, or terminate any application, license,
employment, or residence unless the department investigates the
incident and secures evidence, whether or not related to the incident
of arrest, that is admissible in an administrative hearing to
establish conduct by the person that may pose a risk to the health
and safety of any person who is or may become a client. The State
Department of Social Services is authorized to obtain any arrest or
conviction records or reports from any law enforcement agency as
necessary to the performance of its duties to inspect, license, and
investigate community care facilities and individuals associated with
a community care facility.
   (f) (1) After review of the record, the director may grant an
exemption from disqualification for a license or special permit as
specified in paragraphs (1) and (4) of subdivision (a), or for
employment, residence, or presence in a child day care facility as
specified in paragraphs (3), (4), and (5) of subdivision (c) if the
director has substantial and convincing evidence to support a
reasonable belief that the applicant and the person convicted of the
crime, if other than the applicant, are of good character so as to
justify issuance of the license or special permit or granting an
exemption for purposes of subdivision (c). However, an exemption may
not be granted pursuant to this subdivision if the conviction was for
any of the following offenses:
   (A) An offense specified in Section 220, 243.4, or 264.1,
subdivision (a) of Section 273a or, prior to January 1, 1994,
paragraph (1) of Section 273a, Section 273d, 288, or 289, subdivision
(a) of Section 290, or Section 368 of the Penal Code, or was a
conviction of another crime against an individual specified in
subdivision (c) of Section 667.5 of the Penal Code.
   (B) A felony offense specified in Section 729 of the Business and
Professions Code or Section 206 or 215, subdivision (a) of Section
347, subdivision (b) of Section 417, or subdivision (a) or (b) of
Section 451 of the Penal Code.
   (2) The department may not prohibit a person from being employed
or having contact with clients in a facility on the basis of a denied
criminal record exemption request or arrest information unless the
department complies with the requirements of Section 1596.8897.
   (g) Upon request of the licensee, who shall enclose a
self-addressed stamped postcard for this purpose, the Department of
Justice shall verify receipt of the fingerprints.
   (h) (1) For the purposes of compliance with this section, the
department may permit an individual to transfer a current criminal
record clearance, as defined in subdivision (a), from one facility to
another, as long as the criminal record clearance has been processed
through a state licensing district office, and is being transferred
to another facility licensed by a state licensing district office.
The request shall be in writing to the department, and shall include
a copy of the person's driver's license or valid identification card
issued by the Department of Motor Vehicles, or a valid photo
identification issued by another state or the United States
government if the person is not a California resident. Upon request
of the licensee, who shall enclose a self-addressed stamped envelope
for this purpose, the department shall verify whether the individual
has a clearance that can be transferred.
   (2) The State Department of Social Services shall hold criminal
record clearances in its active files for a minimum of two years
after an employee is no longer employed at a licensed facility in
order for the criminal record clearances to be transferred.
   (3) The following shall apply to a criminal record clearance or
exemption from the department or a county office with department
delegated licensing authority:
   (A) A county office with department delegated licensing authority
may accept a clearance or exemption from the department.
   (B) The department may accept a clearance or exemption from any
county office with department delegated licensing authority.
   (C) A county office with department delegated licensing authority
may accept a clearance or exemption from any other county office with
department delegated licensing authority.
   (4) With respect to notifications issued by the Department of
Justice pursuant to Section 11105.2 of the Penal Code concerning an
individual whose criminal record clearance was originally processed
by the department or a county office with department delegated
licensing authority, all of the following shall apply:
   (A) The Department of Justice shall process a request from the
department or a county office with department delegated licensing
authority to receive the notice, only if all of the following
conditions are met:
   (i) The request shall be submitted to the Department of Justice by
the agency to be substituted to receive the notification.
   (ii) The request shall be for the same applicant type as the type
for which the original clearance was obtained.
   (iii) The request shall contain all prescribed data elements and
format protocols pursuant to a written agreement between the
department and the Department of Justice.
   (B) (i) On or before January 7, 2005, the department shall notify
the Department of Justice of all county offices that have department
delegated licensing authority.
   (ii) The department shall notify the Department of Justice within
15 calendar days of the date on which a new county office receives
department delegated licensing authority or a county's delegated
licensing authority is rescinded.
   (C) The Department of Justice shall charge the department or a
county office with department delegated licensing authority a fee for
each time a request to substitute the recipient agency is received
for purposes of this paragraph.  This fee shall not exceed the cost
of providing the service.
   (i) Amendments to this section made in the 1998 calendar year
shall be implemented commencing 60 days after the effective date of
the act amending this section in the 1998 calendar year, except those
provisions for the submission of fingerprints for searching the
records of the Federal Bureau of Investigation, which shall be
implemented commencing January 1, 1999.
  SEC. 11.  Section 11970.2 is added to the Health and Safety Code,
to read:
   11970.2.  (a) It is the intent of the Legislature that dependency
drug courts be funded unless an evaluation of cost avoidance as
provided in this section with respect to child welfare services and
foster care demonstrates that the program is not cost-effective.
   (b) The State Department of Social Services, in collaboration with
the State Department of Alcohol and Drug Programs and the Judicial
Council, shall conduct an evaluation of cost avoidance with respect
to child welfare services and foster care pursuant to this section.
These parties shall do all of the following:
   (1) Consult with legislative staff and at least one representative
of an existing dependency drug court program who has experience
conducting an evaluation of cost avoidance, to clarify the elements
to be reviewed.
   (2) Identify requirements, such as specific measures of cost
savings and data to be evaluated, and methodology for use of control
cases for comparison data.
   (3) Whenever possible, use existing evaluation case samples to
gather the necessary additional data.
   (c) The State Department of Social Services, along with the State
Department of Alcohol and Drug Programs and Judicial Council, shall
provide a report to the Legislature on the outcomes of dependency
drug court programs and the amount of savings realized in foster care
out-of-home placement and child welfare services during budget
hearings for the 2006-07 budget.
  SEC. 12.  Section 11970.4 of the Health and Safety Code is amended
to read:
   11970.4.  This article shall remain operative only until January
1, 2007, and as of that date is repealed, unless a later enacted
statute, that is enacted before January 1, 2007, deletes or extends
that date.
  SEC. 12.1.  Section 128200 of the Health and Safety Code is amended
to read:
   128200.  (a) This article shall be known and may be cited as the
Song-Brown Family Physician Training Act.
   (b) The Legislature hereby finds and declares that physicians
engaged in family practice are in very short supply in California.
The current emphasis placed on specialization in medical education
has resulted in a shortage of physicians trained to provide
comprehensive primary health care to families. The Legislature hereby
declares that it regards the furtherance of a greater supply of
competent family physicians to be a public purpose of great
importance and further declares the establishment of the program
pursuant to this article to be a desirable, necessary and economical
method of increasing the number of family physicians to provide
needed medical services to the people of California. The Legislature
further declares that it is to the benefit of the state to assist in
increasing the number
of competent family physicians graduated by colleges and universities
of this state to provide primary health care services to families
within the state.
   The Legislature finds that the shortage of family physicians can
be improved by the placing of a higher priority by public and private
medical schools, hospitals, and other health care delivery systems
in this state, on the recruitment and improved training of medical
students and residents to meet the need for family physicians. To
help accomplish this goal, each medical school in California is
encouraged to organize a strong family practice program or
department. It is the intent of the Legislature that the programs or
departments be headed by a physician who possesses specialty
certification in the field of family practice, and has broad clinical
experience in the field of family practice.
   The Legislature further finds that encouraging the training of
primary care physician's assistants and primary care nurse
practitioners will assist in making primary health care services more
accessible to the citizenry, and will, in conjunction with the
training of family physicians, lead to an improved health care
delivery system in California.
   Community hospitals in general and rural community hospitals in
particular, as well as other health care delivery systems, are
encouraged to develop family practice residencies in affiliation or
association with accredited medical schools, to help meet the need
for family physicians in geographical areas of the state with
recognized family primary health care needs. Utilization of expanded
resources beyond university-based teaching hospitals should be
emphasized, including facilities in rural areas wherever possible.
   The Legislature also finds and declares that nurses are in very
short supply in California. The Legislature hereby declares that it
regards the furtherance of a greater supply of nurses to be a public
purpose of great importance and further declares the expansion of the
program pursuant to this article to include nurses to be a
desirable, necessary, and economical method of increasing the number
of nurses to provide needed nursing services to the people of
California.
   It is the intent of the Legislature to provide for a program
designed primarily to increase the number of students and residents
receiving quality education and training in the specialty of family
practice and as primary care physician's assistants, primary care
nurse practitioners, and registered nurses and to maximize the
delivery of primary care family physician services to specific areas
of California where there is a recognized unmet priority need. This
program is intended to be implemented through contracts with
accredited medical schools, programs that train primary care
physician's assistants, programs that train primary care nurse
practitioners, programs that train registered nurses, hospitals, and
other health care delivery systems based on per-student or
per-resident capitation formulas. It is further intended by the
Legislature that the programs will be professionally and
administratively accountable so that the maximum cost-effectiveness
will be achieved in meeting the professional training standards and
criteria set forth in this article and Article 2 (commencing with
Section 128250).
  SEC. 12.2.  Section 128205 of the Health and Safety Code is amended
to read:
   128205.  As used in this article, and Article 2 (commencing with
Section 128250), the following terms mean:
   (a) "Family physician" means a primary care physician who is
prepared to and renders continued comprehensive and preventative
health care services to families and who has received specialized
training in an approved family practice residency for three years
after graduation from an accredited medical school.
   (b) "Associated" and "affiliated" mean that relationship that
exists by virtue of a formal written agreement between a hospital or
other health care delivery system and an approved medical school
which pertains to the family practice training program for which
state contract funds are sought. This definition shall include
agreements that may be entered into subsequent to October 2, 1973, as
well as those relevant agreements that are in existence prior to
October 2, 1973.
   (c) "Commission" means the California Healthcare Workforce Policy
Commission.
   (d) "Programs that train primary care physician's assistants"
means a program that has been approved for the training of primary
care physician assistants pursuant to Section 3513 of the Business
and Professions Code.
   (e) "Programs that train primary care nurse practitioners" means a
program that is operated by a California school of medicine or
nursing, or that is authorized by the Regents of the University of
California or by the Trustees of the California State University, or
that is approved by the Board of Registered Nursing.
   (f) "Programs that train registered nurses" means a program that
is operated by a California school of nursing and approved by the
Board of Registered Nursing, or that is authorized by the Regents of
the University of California, the Trustees of the California State
University, or the Board of Governors of the California Community
Colleges, and that is approved by the Board of Registered Nursing.

  SEC. 12.3.  Section 128210 of the Health and Safety Code is amended
to read:
   128210.  There is hereby created a state medical contract program
with accredited medical schools, programs that train primary care
physician's assistants, programs that train primary care nurse
practitioners, programs that train registered nurses, hospitals, and
other health care delivery systems to increase the number of students
and residents receiving quality education and training in the
specialty of family practice or in nursing and to maximize the
delivery of primary care family physician services to specific areas
of California where there is a recognized unmet priority need for
those services.
  SEC. 12.4.  Section 128215 of the Health and Safety Code is amended
to read:
   128215.  There is hereby created a California Healthcare Workforce
Policy Commission. The commission shall be composed of 15 members
who shall serve at the pleasure of their appointing authorities:
   (a) Nine members appointed by the Governor, as follows:
   (1) One representative of the University of California medical
schools, from a nominee or nominees submitted by the University of
California.
   (2) One representative of the private medical or osteopathic
schools accredited in California from individuals nominated by each
of these schools.
   (3) One representative of practicing family physicians.
   (4) One representative who is a practicing osteopathic physician
or surgeon and who is board certified in either general or family
practice.
   (5) One representative of undergraduate medical students in a
family practice program or residence in family practice training.
   (6) One representative of trainees in a primary care physician's
assistant program or a practicing physician's assistant.
   (7) One representative of trainees in a primary care nurse
practitioners program or a practicing nurse practitioner.
   (8) One representative of the Office of Statewide Health Planning
and Development, from nominees submitted by the office director.
   (9) One representative of practicing registered nurses.
   (b) Two consumer representatives of the public who are not elected
or appointed public officials, one appointed by the Speaker of the
Assembly and one appointed by the Chairperson of the Senate Committee
on Rules.
   (c) Two representatives of practicing registered nurses, one
appointed by the Speaker of the Assembly and one appointed by the
Chairperson of the Senate Committee on Rules.
   (d) Two representatives of students in a registered nurse training
program, one appointed by the Speaker of the Assembly and one
appointed by the Chairperson of the Senate Committee on Rules.
   (e) The Chief of the Health Professions Development Program in the
Office of Statewide Health Planning and Development, or the chief's
designee, shall serve as executive secretary for the commission.
  SEC. 12.5.  Section 128224 of the Health and Safety Code is amended
to read:
   128224.  The commission shall identify specific areas of the state
where unmet priority needs for dentists, physicians, and registered
nurses exist.
  SEC. 12.6.  Section 128225 of the Health and Safety Code is amended
to read:
   128225.  The commission shall do all of the following:
   (a) Identify specific areas of the state where unmet priority
needs for primary care family physicians and registered nurses exist.

   (b) Establish standards for family practice training programs and
family practice residency programs, postgraduate osteopathic medical
programs in family practice, and primary care physician assistants
programs and programs that train primary care nurse practitioners,
including appropriate provisions to encourage family physicians,
osteopathic family physicians, primary care physician's assistants,
and primary care nurse practitioners who receive training in
accordance with this article and Article 2 (commencing with Section
128250) to provide needed services in areas of unmet need within the
state. Standards for family practice residency programs shall provide
that all the residency programs contracted for pursuant to this
article and Article 2 (commencing with Section 128250) shall both
meet the Residency Review Committee on Family Practice's "Essentials"
for Residency Training in Family Practice and be approved by the
Residency Review Committee on Family Practice. Standards for
postgraduate osteopathic medical programs in family practice, as
approved by the American Osteopathic Association Committee on
Postdoctoral Training for interns and residents, shall be established
to meet the requirements of this subdivision in order to ensure that
those programs are comparable to the other programs specified in
this subdivision. Every program shall include a component of training
designed for medically underserved multicultural communities, lower
socioeconomic neighborhoods, or rural communities, and shall be
organized to prepare program graduates for service in those
neighborhoods and communities.  Medical schools receiving funds under
this article and Article 2 (commencing with Section 128250) shall
have programs or departments that recognize family practice as a
major independent specialty. Existence of a written agreement of
affiliation or association between a hospital and an accredited
medical school shall be regarded by the commission as a favorable
factor in considering recommendations to the director for allocation
of funds appropriated to the state medical contract program
established under this article and Article 2 (commencing with Section
128250).
   For purposes of this subdivision, "family practice" includes the
general practice of medicine by osteopathic physicians.
   (c) Establish standards for registered nurse training programs.
The commission may accept those standards established by the Board of
Registered Nursing.
   (d) Review and make recommendations to the Director of the Office
of Statewide Health Planning and Development concerning the funding
of family practice programs or departments and family practice
residencies and programs for the training of primary care physician
assistants and primary care nurse practitioners that are submitted to
the Health Professions Development Program for participation in the
contract program established by this article and Article 2
(commencing with Section 128250). If the commission determines that a
program proposal that has been approved for funding or that is the
recipient of funds under this article and Article 2 (commencing with
Section 128250) does not meet the standards established by the
commission, it shall submit to the Director of the Office of
Statewide Health Planning and Development and the Legislature a
report detailing its objections. The commission may request the
Office of Statewide Health Planning and Development to make advance
allocations for program development costs from amounts appropriated
for the purposes of this article and Article 2 (commencing with
Section 128250).
   (e) Review and make recommendations to the Director of the Office
of Statewide Health Planning and Development concerning the funding
of registered nurse training programs that are submitted to the
Health Professions Development Program for participation in the
contract program established by this article. If the commission
determines that a program proposal that has been approved for funding
or that is the recipient of funds under this article does not meet
the standards established by the commission, it shall submit to the
Director of the Office of Statewide Health Planning and Development
and the Legislature a report detailing its objections. The commission
may request the Office of Statewide Health Planning and Development
to make advance allocations for program development costs from
amounts appropriated for the purposes of this article.
   (f) Establish contract criteria and single per-student and
per-resident capitation formulas that shall determine the amounts to
be transferred to institutions receiving contracts for the training
of family practice students and residents and primary care physician'
s assistants and primary care nurse practitioners and registered
nurses pursuant to this article and Article 2 (commencing with
Section 128250), except as otherwise provided in subdivision (d).
Institutions applying for or in receipt of contracts pursuant to this
article and Article 2 (commencing with Section 128250) may appeal to
the director for waiver of these single capitation formulas. The
director may grant the waiver in exceptional cases upon a clear
showing by the institution that a waiver is essential to the
institution's ability to provide a program of a quality comparable to
those provided by institutions that have not received waivers,
taking into account the public interest in program
cost-effectiveness. Recipients of funds appropriated by this article
and Article 2 (commencing with Section 128250) shall, as a minimum,
maintain the level of expenditure for family practice or primary care
physician's assistant or family care nurse practitioner training
that was provided by the recipients during the 1973-74 fiscal year.
Recipients of funds appropriated for registered nurse training
pursuant to this article shall, as a minimum, maintain the level of
expenditure for registered nurse training that was provided by
recipients during the 2004-05 fiscal year. Funds appropriated under
this article and Article 2 (commencing with Section 128250) shall be
used to develop new programs or to expand existing programs, and
shall not replace funds supporting current family practice or
registered nurse training programs. Institutions applying for or in
receipt of contracts pursuant to this article and Article 2
(commencing with Section 128250) may appeal to the director for
waiver of this maintenance of effort provision. The director may
grant the waiver if he or she determines that there is reasonable and
proper cause to grant the waiver.
   (g) Review and make recommendations to the Director of the Office
of Statewide Health Planning and Development concerning the funding
of special programs that may be funded on other than a capitation
rate basis. These special programs may include the development and
funding of the training of primary health care teams of family
practice residents or family physicians and primary care physician
assistants or primary care nurse practitioners or registered nurses,
undergraduate medical education programs in family practice, and
programs that link training programs and medically underserved
communities in California that appear likely to result in the
location and retention of training program graduates in those
communities. These special programs also may include the development
phase of new family practice residency, primary care physician
assistant programs, primary care nurse practitioner programs, or
registered nurse programs.
   The commission shall establish standards and contract criteria for
special programs recommended under this subdivision.
   (h) Review and evaluate these programs regarding compliance with
this article and Article 2 (commencing with Section 128250). One
standard for evaluation shall be the number of recipients who, after
completing the program, actually go on to serve in areas of unmet
priority for primary care family physicians in California or
registered nurses who go on to serve in areas of unmet priority for
registered nurses.
   (i) Review and make recommendations to the Director of the Office
of Statewide Health Planning and Development on the awarding of funds
for the purpose of making loan assumption payments for medical
students who contractually agree to enter a primary care specialty
and practice primary care medicine for a minimum of three consecutive
years following completion of a primary care residency training
program pursuant to Article 2 (commencing with Section 128250).
  SEC. 12.7.  Section 128230 of the Health and Safety Code is amended
to read:
   128230.  When making recommendations to the Director of the Office
of Statewide Health Planning and Development concerning the funding
of family practice programs or departments, family practice
residencies, and programs for the training of primary care physician
assistants, primary care nurse practitioners, or registered nurses,
the commission shall give priority to programs that have demonstrated
success in the following areas:
   (a) Actual placement of individuals in medically underserved
areas.
   (b) Success in attracting and admitting members of minority groups
to the program.
   (c) Success in attracting and admitting individuals who were
former residents of medically underserved areas.
   (d) Location of the program in a medically underserved area.
   (e) The degree to which the program has agreed to accept
individuals with an obligation to repay loans awarded pursuant to the
Health Professions Education Fund.
  SEC. 12.8.  Section 128235 of the Health and Safety Code is amended
to read:
   128235.  Pursuant to this article and Article 2 (commencing with
Section 128250), the Director of the Office of Statewide Health
Planning and Development shall do all of the following:
   (a) Determine whether family practice, primary care physician
assistant training program proposals, primary care nurse practitioner
training program proposals, and registered nurse training program
proposals submitted to the California Healthcare Workforce Policy
Commission for participation in the state medical contract program
established by this article and Article 2 (commencing with Section
128250) meet the standards established by the commission.
   (b) Select and contract on behalf of the state with accredited
medical schools, programs that train primary care physician
assistants, programs that train primary care nurse practitioners,
hospitals, and other health care delivery systems for the purpose of
training undergraduate medical students and residents in the
specialty of family practice.  Contracts shall be awarded to those
institutions that best demonstrate the ability to provide quality
education and training and to retain students and residents in
specific areas of California where there is a recognized unmet
priority need for primary care family physicians. Contracts shall be
based upon the recommendations of the commission and in conformity
with the contract criteria and program standards established by the
commission.
   (c) Select and contract on behalf of the state with programs that
train registered nurses. Contracts shall be awarded to those
institutions that best demonstrate the ability to provide quality
education and training and to retain students and residents in
specific areas of California where there is a recognized unmet
priority need for registered nurses. Contracts shall be based upon
the recommendations of the commission and in conformity with the
contract criteria and program standards established by the
commission.
   (d) Terminate, upon 30 days' written notice, the contract of any
institution whose program does not meet the standards established by
the commission or that otherwise does not maintain proper compliance
with this part, except as otherwise provided in contracts entered
into by the director pursuant to this article and Article 2
(commencing with Section 128250).
  SEC. 12.9.  Section 128240.1 is added to the Health and Safety
Code, to read:
   128240.1.  The department shall adopt emergency regulations, as
necessary to implement the changes made to this article by the act
that added this section during the first year of the 2005-06 Regular
Session, no later than September 30, 2005, unless notification of a
delay is made to the Chair of the Joint Legislative Budget Committee
prior to that date. The adoption of regulations implementing the
applicable provisions of this act shall be deemed to be an emergency
and necessary for the immediate preservation of the public peace,
health, safety, or general welfare. The emergency regulations
authorized by this section shall be submitted to the Office of
Administrative Law for filing with the Secretary of State and shall
remain in effect for no more than 180 days, by which time the final
regulations shall be developed.
  SEC. 13.  Section 1611.5 of the Unemployment Insurance Code is
amended to read:
   1611.5.  Notwithstanding Section 1611, the Legislature may
appropriate from the Employment Training Fund thirty-seven million
nine hundred thirty thousand dollars ($37,930,000) in the Budget Act
of 2005 to fund the local assistance portion of welfare-to-work
activities under the CalWORKs program, provided for pursuant to
Article 3.2 (commencing with Section 11320) of Chapter 2 of Part 3 of
Division 9 of the Welfare and Institutions Code, as administered by
the State Department of Social Services.
  SEC. 14.  Section 9102 of the Welfare and Institutions Code is
amended to read:
   9102.  The duties and powers of the department shall be:
   (a) To administer all programs under the Older Americans Act of
1965, as amended, and this division, including providing ongoing
oversight, monitoring, and service quality evaluation to ensure that
service providers are meeting standards of service performance
established by the department. This shall include, but is not limited
to, all of the following:
   (1) Setting program standards and providing standard materials for
training.
   (2) Providing technical assistance to area agencies on aging,
program managers, staff, and volunteers providing services.
   (3) Development of the state plan on aging according to federal
law.
   (4) Maintain a clearinghouse of information related to the
interests and needs of older individuals and provide referral
services, if appropriate.
   (5) Maintain a management information and reporting system;
including a data base on service utilization patterns and demographic
characteristics of the older population to be cross-classified by
age, sex, race, and other information required for the planning
process, and eliminate redundant and unnecessary reporting
requirements.
   (6) Encourage and support the involvement of volunteers in
services to older individuals.
   (7) Seek ways to utilize the private sector to assume greater
responsibility in meeting the needs of older individuals.
   (8) Encourage internships to be coordinated with schools of
gerontology or related disciplines, including internships for older
individuals.
   (b) The department shall have primary responsibility for
information received and dispersed to the area agencies on aging.
   (c) The department shall be responsible for activities that
promote the development, coordination, and utilization of resources
to meet the long-term care needs of older individuals, consistent
with its mission. The responsibilities shall include, but not be
limited to, all of the following:
   (1) Conduct research in the areas of alternative social and health
care systems for older individuals.
   (2) As specified in Section 9002, coordinate with agencies and
departments that administer health, social, and related services for
the purposes of policy development, development of care standards,
consistency in application of policy, evaluation of alternative uses
of available resources toward greater effectiveness in service
delivery, including seeking additional federal and private dollars to
support achievement of program goals, and ensure ongoing response to
the identified special needs of the chronically impaired to provide
support that maximizes their level of functioning.
   (3) Monitor and evaluate programs and services administered by the
department, utilizing standardized methodology.
   (4) Develop and implement training and technical assistance
programs designed to achieve program goals.
   (5) Establish criteria for the designation, sanctioning and
defunding of area agencies on aging.
   (d) In conjunction with the management information and reporting
system required under paragraph (5) of subdivision (a), beginning in
the 2006 calendar year, the department shall annually submit by
January 10 of each year, to the budget, fiscal, and policy committees
of the Legislature, and the Legislative Analyst, all of the
following information:
   (1) The number of persons served statewide in each of the prior
and current fiscal years for each state or federally funded program
or service administered by the department. This information shall
also be provided for each Area Agency on Aging service area.
   (2) To the extent feasible, the number of unduplicated persons
served statewide in the prior and current fiscal years for all state
or federally funded programs and services administered by the
department. To the extent feasible, this information shall also be
provided for each Area Agency on Aging service area.
   (3) Total estimated statewide expenditures in the prior, current,
and budget fiscal years for each state or federally funded program or
service administered by the department. This information shall also
be provided for each Area Agency on Aging service area.
  SEC. 15.  Section 9654 of the Welfare and Institutions Code is
amended to read:
   9654.  "Senior wellness program" means the program established
pursuant to Article 2 (commencing with Section 9660).
                                                                SEC.
16.  The heading of Article 2 (commencing with Section 9660) of
Chapter 10.5 of Division 8.5 of the Welfare and Institutions Code is
amended to read:

      Article 2.  Senior Wellness Program

  SEC. 17.  Section 9660 of the Welfare and Institutions Code is
amended to read:
   9660.  There is in the California Department of Aging a senior
wellness program.
  SEC. 18.  Section 9661 of the Welfare and Institutions Code is
amended to read:
   9661.  (a) The senior wellness program shall have all of the
following functions:
   (1) Focus on educating California's seniors, as well as
caregivers, families, and health care professions, about the
importance of living a healthy lifestyle, including, but not limited
to, nutrition, exercise, injury prevention, and mental well-being.
   (2) Provide information on, and help California's culturally and
ethnically diverse seniors and adults with, functional impairments.
   (3) Provide educational information on the resources and services
available for seniors from both private and public entities in
communities throughout the state and the area agencies on aging. The
educational material shall accommodate the diverse linguistic needs
of various populations in the state, including, but not limited to,
English, Spanish, Russian, Chinese, and Braille.
   (4) Promote education and training for professionals and
caregivers who work directly with seniors in order to maximize
wellness.
   (5) Generate a cultural shift to a more positive vision and
expectation with respect to how aging is viewed by all Californians.

   (6) Transform perceptions of aging into a more hopeful,
appreciative, and aspiring mode of being.
   (7) Create a new culture that cherishes each of us, including the
population of older adults, adults with disabilities, our aging, our
ethnic and racial diversity, our becoming elders, and our maturity.
   (8) Advance the recognition of the unique status, experience,
capacity, and role of seniors to become our models for guidance and
inspiration.
   (9) Replace the image of seniors who are "self-interested" with an
image of seniors who are actively engaged and involved in their
communities.
   (10) Promote and mobilize older adults and adults with
disabilities into emerging roles for the public benefit.
   (11) Challenge the prevailing culture, to the extent that it
discounts the value of age.
   (12) Rid our culture of the negative attitudes toward adults who
are aging and adults with disabilities.
   (b) Notwithstanding Section 9663, state funds shall not be
appropriated for the purpose of implementing paragraphs (5) to (12),
inclusive, of subdivision (a), and the department is not required to
undertake implementation of those paragraphs, unless it receives
federal or private funds for that purpose.
  SEC. 19.  Section 9662 of the Welfare and Institutions Code is
amended to read:
   9662.  The department shall deliver, or provide for the delivery
of, senior wellness program information through a variety of means,
including, but not limited to, the Internet, radio, television, and
newspaper advertising, brochures, posters, and newsletters.
  SEC. 19.5.  Section 9757.5 of the Welfare and Institutions Code is
amended to read:
   9757.5.  (a) The California Department of Aging shall assess
annually a fee of not less than one dollar and forty cents ($1.40),
but not more than one dollar and sixty-five cents ($1.65), on a
health care service plan for each person enrolled in a health care
service plan as of December 31 of the previous year under a prepaid
Medicare program that serves Medicare eligible beneficiaries within
the state, and on a health care service plan for each enrollee under
a Medicare supplement contract, including a Medicare Select contract,
as of December 31 of the previous year, to offset the cost of
counseling Medicare eligible beneficiaries on the benefits and
programs available through health maintenance organizations instead
of the traditional Medicare provider system.
   (b) All fees collected pursuant to this section shall be deposited
into the State HICAP Fund for the implementation of the Health
Insurance Counseling and Advocacy Program, and shall be available for
expenditure for activities as specified in Section 9541 when
appropriated by the Legislature.
   (c) The department may use up to 7 percent of the fee collected
pursuant to subdivision (a) for the administration, assessment, and
collection of that fee.
   (d) It is the intent of the Legislature, in enacting this act and
funding the Health Insurance Counseling and Advocacy Program, to
maintain a ratio of two dollars ($2) collected from the Insurance
Fund to every one dollar ($1) collected pursuant to subdivision (a).
This ratio shall be reviewed by the Department of Finance within 30
days of January 1, 1999, and biennially thereafter to examine changes
in the demographics of Medicare imminent populations, including, but
not limited to, the number of citizens residing in California 55
years of age and older, the number and average duration of counseling
sessions performed by counselors of the Health Insurance Counseling
and Advocacy Program, particularly the number of counseling sessions
regarding prepaid Medicare programs and counseling sessions regarding
Medi-Gap programs, and the use of other long-term care and
health-related products. Upon review, the Department of Finance shall
make recommendations to the Joint Legislative Budget Committee
regarding appropriate changes to the ratio of funding from the
Insurance Fund and the fees collected pursuant to subdivision (a).
   (e) It is the intent of the Legislature that the revenue raised
from the fee assessed pursuant to subdivision (a), and according to
the ratio established pursuant to subdivision (d), be used to
partially offset and reduce the amount of revenue appropriated
annually from the Insurance Fund for funding of the Health Insurance
Counseling and Advocacy Program.
   (f) There shall be established in the State Treasury a "State
HICAP Fund" administered by the California Department of Aging for
the purpose of collecting fee assessments described in subdivision
(a), and for the sole purpose of funding the Health Insurance
Counseling and Advocacy Program.
   (g) The department shall issue a supplemental billing during the
2005-06 fiscal year to generate additional revenue authorized by the
act that amended this section during the 2005 portion of the 2005-06
Regular Session.  Notwithstanding subdivision (h), the department may
use a portion of the additional revenue generated in the 2005-06
fiscal year to pay for the costs associated with issuing this
supplemental billing.
   (h) It is the intent of the Legislature that, starting in the
2005-06 fiscal year, two million dollars ($2,000,000) of additional
funding shall be made available to local HICAP programs, to be
derived from an increase in the HICAP fee and the corresponding
Insurance Fund pursuant to subdivision (d). Any additional funding
shall only be used for local HICAP funding and shall not be used for
department or local area agencies on aging administration.
  SEC. 20.  Section 10075.6 of the Welfare and Institutions Code is
amended to read:
   10075.6.  The Office of Systems Integration shall be the project
manager of the electronic benefits transfer system, and shall be
responsible for system planning, procurement, development,
implementation, conversion, maintenance and operations, contract
management, and all other activities that are consistent with a
state-managed project and a statewide system.
  SEC. 21.  Section 10609.8 is added to the Welfare and Institutions
Code, to read:
   10609.8.  On an annual basis, at the time of budget hearings, the
State Department of Social Services shall provide information to the
budget committees of the Legislature comparing the Governor's
proposed statewide budget for the child welfare services program,
including the augmentation and hold harmless funds, to the caseload
standards recommended by the evaluation required under Section
10609.5, updated for an analysis of cost-of-doing-business increases
and to account for the use of child welfare services funding for
noncase-carrying activities, based on information supplied by
counties, and measured on a statewide basis. The department shall
consult with representatives of the County Welfare Directors
Association in the development of statewide cost-of-doing-business
increases and the average proportion of expenditures on
noncase-carrying activities.
  SEC. 22.  Section 10823 of the Welfare and Institutions Code, as
added by Section 20 of Chapter 606 of the Statutes of 1997, is
amended to read:
   10823.  (a) (1) The Office of Systems Integration shall implement
a statewide automated welfare system for the following public
assistance programs:
   (A) The CalWORKs program.
   (B) The Food Stamp Program.
   (C) The Medi-Cal Program.
   (D) The foster care program.
   (E) The refugee program.
   (F) County medical services programs.
   (2) Statewide implementation of the statewide automated welfare
system for the programs listed in paragraph (1) shall be achieved
through no more than four county consortia, including the Interim
Statewide Automated Welfare System Consortium, and the Los Angeles
Eligibility, Automated Determination, Evaluation, and Reporting
System.
   (b) Nothing in subdivision (a) transfers program policy
responsibilities related to the public assistance programs specified
in subdivision (a) from the State Department of Social Services or
the State Department of Health Services to the Office of Systems
Integration.
   (c) On February 1 of each year, the Office of Systems Integration
shall provide an annual report to the appropriate committees of the
Legislature on the statewide automated welfare system implemented
under this section. The report shall address the progress of state
and consortia activities and any significant schedule, budget, or
functionality changes in the project.
  SEC. 23.  Section 10823.1 of the Welfare and Institutions Code is
repealed.
  SEC. 25.  Section 11322.8 of the Welfare and Institutions Code is
amended to read:
   11322.8.  (a) Unless otherwise exempt, an adult recipient in a
one-parent assistance unit shall participate in welfare-to-work
activities for 32 hours each week.
   (b) Unless otherwise exempt, an adult recipient who is an
unemployed parent, as defined in Section 11201, shall participate in
at least 35 hours of welfare-to-work activities each week. However,
both parents in a two-parent assistance unit may contribute to the 35
hours if at least one parent meets the federal one-parent work
requirement applicable on January 1, 1998.
   (c) An adult recipient required to participate under subdivision
(a) or (b) shall participate for at least 20 hours each week in core
welfare-to-work activities. The welfare-to-work activities listed in
subdivisions (a) to (j), inclusive, and (m) and (n) of Section
11322.6, are core activities for the purposes of this section.
Participation in core activities under subdivision (m) of Section
11322.6 shall be limited to a total of 12 months. Additional hours
that the applicant or recipient is required to participate under
subdivisions (a) or (b) of this section may be satisfied by any of
the welfare-to-work activities described in Section 11322.6 that are
consistent with the assessment performed in accordance with Section
11325.4, and included in the individual's welfare-to-work plan,
described in Section 11325.21.
   (d) Hours spent in activities listed under subdivision (q) of
Section 11322.6 shall count toward the core activity requirement in
subdivision (c) to the extent that these activities are necessary to
enable the individual to participate in core activities and to the
extent these activities cannot be accomplished within the additional
noncore hours of participation required by subdivision (c).
   (e) Hours spent in classroom, laboratory, or internship activities
pursuant to subdivisions (k), (l), (o), and (p) of Section 11322.6
shall count toward the core activity requirement in subdivision (c)
to the extent these activities cannot be accomplished within the
additional noncore hours of participation, the county determines the
program is likely to lead to self-supporting employment, and the
recipient makes satisfactory progress. The provisions in paragraph
(2), and subparagraphs (A) and (B) of paragraph (3), of subdivision
(a) of Section 11325.23 shall apply to participants in these
activities.
   (f) Spending hours in any or all of the activities specified in
subdivision (r) of Section 11322.6 shall not make a recipient
ineligible to count activities set forth in subdivisions (d) and (e)
toward the core activities requirements, as appropriate.
  SEC. 26.  Section 11453 of the Welfare and Institutions Code is
amended to read:
   11453.  (a) Except as provided in subdivision (c), the amounts set
forth in Section 11452 and subdivision (a) of Section 11450 shall be
adjusted annually by the department to reflect any increases or
decreases in the cost of living. These adjustments shall become
effective July 1 of each year, unless otherwise specified by the
Legislature.  For the 2000-01 fiscal year to the 2003-04 fiscal year,
inclusive, these adjustments shall become effective October 1 of
each year. The cost-of-living adjustment shall be calculated by the
Department of Finance based on the changes in the California
Necessities Index, which as used in this section means the weighted
average changes for food, clothing, fuel, utilities, rent, and
transportation for low-income consumers. The computation of annual
adjustments in the California Necessities Index shall be made in
accordance with the following steps:
   (1) The base period expenditure amounts for each expenditure
category within the California Necessities Index used to compute the
annual grant adjustment are:



Food...............................       $ 3,027

Clothing (apparel and upkeep)......           406

Fuel and other       utilities.....           529

Rent, residential..................         4,883

Transportation.....................         1,757

                                       -----------

   Total............................       $10,602


   (2) Based on the appropriate components of the Consumer Price
Index for All Urban Consumers, as published by the United States
Department of Labor, Bureau of Labor Statistics, the percentage
change shall be determined for the 12-month period ending with the
December preceding the year for which the cost-of-living adjustment
will take effect, for each expenditure category specified in
subdivision (a) within the following geographical areas: Los
Angeles-Long Beach-Anaheim, San Francisco-Oakland, San Diego, and, to
the extent statistically valid information is available from the
Bureau of Labor Statistics, additional geographical areas within the
state which include not less than 80 percent of recipients of aid
under this chapter.
   (3) Calculate a weighted percentage change for each of the
expenditure categories specified in subdivision (a) using the
applicable weighting factors for each area used by the State
Department of Industrial Relations to calculate the California
Consumer Price Index (CCPI).
   (4) Calculate a category adjustment factor for each expenditure
category in subdivision (a) by (1) adding 100 to the applicable
weighted percentage change as determined in paragraph (2) and (2)
dividing the sum by 100.
   (5) Determine the expenditure amounts for the current year by
multiplying each expenditure amount determined for the prior year by
the applicable category adjustment factor determined in paragraph
(4).
   (6) Determine the overall adjustment factor by dividing (1) the
sum of the expenditure amounts as determined in paragraph (4) for the
current year by (2) the sum of the expenditure amounts as determined
in subdivision (d) for the prior year.
   (b) The overall adjustment factor determined by the preceding
computation steps shall be multiplied by the schedules established
pursuant to Section 11452 and subdivision (a) of Section 11450 as are
in effect during the month of June preceding the fiscal year in
which the adjustments are to occur and the product rounded to the
nearest dollar.  The resultant amounts shall constitute the new
schedules which shall be filed with the Secretary of State.
   (c) (1) No adjustment to the maximum aid payment set forth in
subdivision (a) of Section 11450 shall be made under this section for
the purpose of increasing the benefits under this chapter for the
1990-91, 1991-92, 1992 -93, 1993-94, 1994-95, 1995-96, 1996-97, and
1997-98 fiscal years, and through October 31, 1998, to reflect any
change in the cost of living. For the 1998-99 fiscal year, the
cost-of-living adjustment that would have been provided on July 1,
1998, pursuant to subdivision (a) shall be made on November 1, 1998.
No adjustment to the maximum aid payment set forth in subdivision (a)
of Section 11450 shall be made under this section for the purpose of
increasing the benefits under this chapter for the 2005-06 and
2006-07 fiscal years to reflect any change in the cost-of-living.
Elimination of the cost-of-living adjustment pursuant to this
paragraph shall satisfy the requirements of Section 11453.05, and no
further reduction shall be made pursuant to that section.
   (2) No adjustment to the minimum basic standard of adequate care
set forth in Section 11452 shall be made under this section for the
purpose of increasing the benefits under this chapter for the 1990-91
and 1991-92 fiscal years to reflect any change in the cost of
living.
   (3) In any fiscal year commencing with the 2000-01 fiscal year to
the 2003-04 fiscal year, inclusive, when there is any increase in tax
relief pursuant to the applicable paragraph of subdivision (a) of
Section 10754 of the Revenue and Taxation Code, then the increase
pursuant to subdivision (a) of this section shall occur. In any
fiscal year commencing with the 2000-01 fiscal year to the 2003-04
fiscal year, inclusive, when there is no increase in tax relief
pursuant to the applicable paragraph of subdivision (a) of Section
10754 of the Revenue and Taxation Code, then any increase pursuant to
subdivision (a) of this section shall be suspended.
   (4) Notwithstanding paragraph (3), an adjustment to the maximum
aid payments set forth in subdivision (a) of Section 11450 shall be
made under this section for the 2002-03 fiscal year, but the
adjustment shall become effective June 1, 2003.
   (d) For the 2004-05 fiscal year, the adjustment to the maximum aid
payment set forth in subdivision (a) shall be suspended for three
months commencing on the first day of the first month following the
effective date of the act adding this subdivision.
   (e) Adjustments for subsequent fiscal years pursuant to this
section shall not include any adjustments for any fiscal year in
which the cost of living was suspended pursuant to subdivision (c).

  SEC. 27.  Section 11462 of the Welfare and Institutions Code is
amended to read:
   11462.  (a) (1) Effective July 1, 1990, foster care providers
licensed as group homes, as defined in departmental regulations,
including public child care institutions, as defined in Section
11402.5, shall have rates established by classifying each group home
program and applying the standardized schedule of rates. The
department shall collect information from group providers beginning
January 1, 1990, in order to classify each group home program.
   (2) Notwithstanding paragraph (1), foster care providers licensed
as group homes shall have rates established only if the group home is
organized and operated on a nonprofit basis as required under
subdivision (h) of Section 11400. The department shall terminate the
rate effective January 1, 1993, of any group home not organized and
operated on a nonprofit basis as required under subdivision (h) of
Section 11400.
   (3) (A) The department shall determine, consistent with the
requirements of this chapter and other relevant requirements under
law, the rate classification level (RCL) for each group home program
on a biennial basis. Submission of the biennial rate application
shall be made according to a schedule determined by the department.
   (B) The department shall adopt regulations to implement this
paragraph. The adoption, amendment, repeal, or readoption of a
regulation authorized by this paragraph is deemed to be necessary for
the immediate preservation of the public peace, health and safety,
or general welfare, for purposes of Sections 11346.1 and 11349.6 of
the Government Code, and the department is hereby exempted from the
requirement to describe specific facts showing the need for immediate
action.
   (b) A group home program shall be initially classified, for
purposes of emergency regulations, according to the level of care and
services to be provided using a point system developed by the
department and described in the report, "The Classification of Group
Home Programs under the Standardized Schedule of Rates System,"
prepared by the State Department of Social Services, August 30, 1989.

   (c) The rate for each RCL has been determined by the department
with data from the AFDC-FC Group Home Rate Classification Pilot
Study. The rates effective July 1, 1990, were developed using 1985
calendar year costs and reflect adjustments to the costs for each
fiscal year, starting with the 1986-87 fiscal year, by the amount of
the California Necessities Index computed pursuant to the methodology
described in Section 11453. The data obtained by the department
using 1985 calendar year costs shall be updated and revised by
January 1, 1993.
   (d) As used in this section, "standardized schedule of rates"
means a listing of the 14 rate classification levels, and the single
rate established for each RCL.
   (e) Except as specified in paragraph (1), the department shall
determine the RCL for each group home program on a prospective basis,
according to the level of care and services that the group home
operator projects will be provided during the period of time for
which the rate is being established.
   (1) (A) For new and existing providers requesting the
establishment of an RCL, and for existing group home programs
requesting an RCL increase, the department shall determine the RCL no
later than 13 months after the effective date of the provisional
rate. The determination of the RCL shall be based on a program audit
of documentation and other information that verifies the level of
care and supervision provided by the group home program during a
period of the two full calendar months or 60 consecutive days,
whichever is longer, preceding the date of the program audit, unless
the group home program requests a lower RCL. The program audit shall
not cover the first six months of operation under the provisional
rate. Pending the department's issuance of the program audit report
that determines the RCL for the group home program, the group home
program shall be eligible to receive a provisional rate that shall be
based on the level of care and service that the group home program
proposes it will provide. The group home program shall be eligible to
receive only the RCL determined by the department during the
pendency of any appeal of the department's RCL determination.
   (B) A group home program may apply for an increase in its RCL no
earlier than two years from the date the department has determined
the group home program's rate, unless the host county, the primary
placing county, or a regional consortium of counties submits to the
department in writing that the program is needed in that county, that
the provider is capable of effectively and efficiently operating the
proposed program, and that the provider is willing and able to
accept AFDC-FC children for placement who are determined by the
placing agency to need the level of care and services that will be
provided by the program.
   (C) To ensure efficient administration of the department's audit
responsibilities, and to avoid the fraudulent creation of records,
group home programs shall make records that are relevant to the RCL
determination available to the department in a timely manner. Except
as provided in this section, the department may refuse to consider,
for purposes of determining the rate, any documents that are relevant
to the determination of the RCL that are not made available by the
group home provider by the date the group home provider requests a
hearing on the department's RCL determination.  The department may
refuse to consider, for purposes of determining the rate, the
following records, unless the group home provider makes the records
available to the department during the fieldwork portion of the
department's program audit:
   (i) Records of each employee's full name, home address,
occupation, and social security number.
   (ii) Time records showing when the employee begins and ends each
work period, meal periods, split shift intervals, and total daily
hours worked.
   (iii) Total wages paid each payroll period.
   (iv) Records required to be maintained by licensed group home
providers under Title 22 of the California Code of Regulations that
are relevant to the RCL determination.
   (D) To minimize financial abuse in the startup of group home
programs, when the department's RCL determination is more than three
levels lower than the RCL level proposed by the group home provider,
and the group home provider does not appeal the department's RCL
determination, the department shall terminate the rate of a group
home program 45 days after issuance of its program audit report. When
the group home provider requests a hearing on the department's RCL
determination, and the RCL determined by the director under
subparagraph (E) is more than three levels lower than the RCL level
proposed by the group home provider, the department shall terminate
the rate of a group home program within 30 days of issuance of the
director's decision. Notwithstanding the reapplication provisions in
subparagraph (B), the department shall deny any request for a new or
increased RCL from a group home provider whose RCL is terminated
pursuant to this subparagraph, for a period of no greater than two
years from the effective date of the RCL termination.
   (E) A group home provider may request a hearing of the department'
s RCL determination under subparagraph (A) no later than 30 days
after the date the department issues its RCL determination. The
department's RCL determination shall be final if the group home
provider does not request a hearing within the prescribed time.
Within 60 days                                            of receipt
of the request for hearing, the department shall conduct a hearing on
the RCL determination. The standard of proof shall be the
preponderance of the evidence and the burden of proof shall be on the
department. The hearing officer shall issue the proposed decision
within 45 days of the close of the evidentiary record. The director
shall adopt, reject, or modify the proposed decision, or refer the
matter back to the hearing officer for additional evidence or
findings within 100 days of issuance of the proposed decision. If the
director takes no action on the proposed decision within the
prescribed time, the proposed decision shall take effect by operation
of law.
   (2) Group home programs that fail to maintain at least the level
of care and services associated with the RCL upon which their rate
was established shall inform the department. The department shall
develop regulations specifying procedures to be applied when a group
home fails to maintain the level of services projected, including,
but not limited to, rate reduction and recovery of overpayments.
   (3) The department shall not reduce the rate, establish an
overpayment, or take other actions pursuant to paragraph (2) for any
period that a group home program maintains the level of care and
services associated with the RCL for children actually residing in
the facility. Determinations of levels of care and services shall be
made in the same way as modifications of overpayments are made
pursuant to paragraph (2) of subdivision (b) of Section 11466.2.
   (4) A group home program that substantially changes its staffing
pattern from that reported in the group home program statement shall
provide notification of this change to all counties that have placed
children currently in care. This notification shall be provided
whether or not the RCL for the program may change as a result of the
change in staffing pattern.
   (f) (1) The standardized schedule of rates for the 2002-03,
2003-04, 2004-05, and 2005-06 fiscal years is:



                               FY 2002-03, 2003-
      Rate       Point Ranges         04,

                                  2004-05, and
Classification                     2005-06

      Level                      Standard Rate

        1            Under 60        $1,454

        2              60- 89         1,835

        3              90-119         2,210

        4             120-149         2,589

        5             150-179         2,966

        6             180-209         3,344

        7             210-239         3,723

        8             240-269         4,102

        9             270-299         4,479

       10             300-329         4,858

       11             330-359         5,234

       12             360-389         5,613

       13             390-419         5,994

       14            420 & Up         6,371


   (2) (A) For group home programs that receive AFDC-FC payments for
services performed during the 2002-03, 2003-04, 2004-05, and 2005-06
fiscal years, the adjusted RCL point ranges below shall be used for
establishing the biennial rates for existing programs, pursuant to
paragraph (3) of subdivision (a) and in performing program audits and
in determining any resulting rate reduction, overpayment assessment,
or other actions pursuant to paragraph (2) of subdivision (e):



                   Adjusted Point
      Rate             Ranges

                  for the 2002-03,
Classification       2003-04,

                 2004-05, and 2005-
      Level       06 Fiscal Years

        1             Under 54

        2              54- 81

        3              82-110

        4             111-138

        5             139-167

        6             168-195

        7             196-224

        8             225-253

        9             254-281

       10             282-310

       11             311-338

       12             339-367

       13             368-395

       14             396 & Up


   (B) Notwithstanding subparagraph (A), foster care providers
operating group homes during the 2002-03, 2003-04, 2004-05, and
2005-06 fiscal years shall remain responsible for ensuring the health
and safety of the children placed in their programs in accordance
with existing applicable provisions of the Health and Safety Code and
community care licensing regulations, as contained in Title 22 of
the Code of California Regulations.
   (C) Subparagraph (A) shall not apply to program audits of group
home programs with provisional rates established pursuant to
paragraph (1) of subdivision (e). For those program audits, the RCL
point ranges in paragraph (1) shall be used.
   (g) (1) (A) For the 1999-2000 fiscal year, the standardized rate
for each RCL shall be adjusted by an amount equal to the California
Necessities Index computed pursuant to the methodology described in
Section 11453. The resultant amounts shall constitute the new
standardized schedule of rates, subject to further adjustment
pursuant to subparagraph (B).
   (B) In addition to the adjustment in subparagraph (A), commencing
January 1, 2000, the standardized rate for each RCL shall be
increased by 2.36 percent, rounded to the nearest dollar. The
resultant amounts shall constitute the new standardized schedule of
rates.
   (2) Beginning with the 2000-01 fiscal year, the standardized
schedule of rates shall be adjusted annually by an amount equal to
the CNI computed pursuant to Section 11453, subject to the
availability of funds. The resultant amounts shall constitute the new
standardized schedule of rates.
   (3) Effective January 1, 2001, the amount included in the standard
rate for each Rate Classification Level (RCL) for the salaries,
wages, and benefits for staff providing child care and supervision or
performing social work activities, or both, shall be increased by 10
percent. This additional funding shall be used by group home
programs solely to supplement staffing, salaries, wages, and benefit
levels of staff specified in this paragraph. The standard rate for
each RCL shall be recomputed using this adjusted amount and the
resultant rates shall constitute the new standardized schedule of
rates. The department may require a group home receiving this
additional funding to certify that the funding was utilized in
accordance with the provisions of this section.
   (h) The standardized schedule of rates pursuant to subdivisions
(f) and (g) shall be implemented as follows:
   (1) Any group home program that received an AFDC-FC rate in the
prior fiscal year at or above the standard rate for the RCL in the
current fiscal year shall continue to receive that rate.
   (2) Any group home program that received an AFDC-FC rate in the
prior fiscal year below the standard rate for the RCL in the current
fiscal year shall receive the RCL rate for the current year.
   (i) (1) The department shall not establish a rate for a new
program of a new or existing provider, or for an existing program at
a new location of an existing provider, unless the provider submits a
letter of recommendation from the host county, the primary placing
county, or a regional consortium of counties that includes all of the
following:
   (A) That the program is needed by that county.
   (B) That the provider is capable of effectively and efficiently
operating the program.
   (C) That the provider is willing and able to accept AFDC-FC
children for placement who are determined by the placing agency to
need the level of care and services that will be provided by the
program.
   (D) That, if the letter of recommendation is not being issued by
the host county, the primary placing county has notified the host
county of its intention to issue the letter and the host county was
given the opportunity 30 days to respond to this notification and to
discuss options with the primary placing county.
   (2) The department shall encourage the establishment of consortia
of county placing agencies on a regional basis for the purpose of
making decisions and recommendations about the need for, and use of,
group home programs and other foster care providers within the
regions.
   (3) The department shall annually conduct a county-by-county
survey to determine the unmet placement needs of children placed
pursuant to Section 300 and Section 601 or 602, and shall publish its
findings by November 1 of each year.
   (j) The department shall develop regulations specifying
ratesetting procedures for program expansions, reductions, or
modifications, including increases or decreases in licensed capacity,
or increases or decreases in level of care or services.
   (k) (1) For the purpose of this subdivision, "program change"
means any alteration to an existing group home program planned by a
provider that will increase the RCL or AFDC-FC rate. An increase in
the licensed capacity or other alteration to an existing group home
program that does not increase the RCL or AFDC-FC rate shall not
constitute a program change.
   (2) For the 1998-99, 1999-2000, and 2000-01 fiscal years, the rate
for a group home program shall not increase, as the result of a
program change, from the rate established for the program effective
July 1, 2000, and as adjusted pursuant to subparagraph (B) of
paragraph (1) of subdivision (g), except as provided in paragraph
(3).
   (3) (A) For the 1998-99, 1999-2000, and 2000-01 fiscal years, the
department shall not establish a rate for a new program of a new or
existing provider or approve a program change for an existing
provider that either increases the program's RCL or AFDC-FC rate, or
increases the licensed capacity of the program as a result of
decreases in another program with a lower RCL or lower AFDC-FC rate
that is operated by that provider, unless both of the following
conditions are met:
   (i) The licensee obtains a letter of recommendation from the host
county, primary placing county, or regional consortium of counties
regarding the proposed program change or new program.
   (ii) The county determines that there is no increased cost to the
General Fund.
   (B) Notwithstanding subparagraph (A), the department may grant a
request for a new program or program change, not to exceed 25 beds,
statewide, if both of the following conditions are met:
   (i) The licensee obtains a letter of recommendation from the host
county, primary placing county, or regional consortium of counties
regarding the proposed program change or new program.
   (ii) The department determines that the new program or program
change will result in a reduction of referrals to state hospitals
during the 1998-99 fiscal year.
   (l) General unrestricted or undesignated private charitable
donations and contributions made to charitable or nonprofit
organizations shall not be deducted from the cost of providing
services pursuant to this section. The donations and contributions
shall not be considered in any determination of maximum expenditures
made by the department.
   (m) The department shall, by October 1 of each year, commencing
October 1, 1992, provide the Joint Legislative Budget Committee with
a list of any new departmental requirements established during the
previous fiscal year concerning the operation of group homes, and of
any unusual, industrywide increase in costs associated with the
provision of group care that may have significant fiscal impact on
providers of group homes care. The committee may, in fiscal year
1993-94 and beyond, use the list to determine whether an
appropriation for rate adjustments is needed in the subsequent fiscal
year.
  SEC. 28.  Section 11522 is added to the Welfare and Institutions
Code, to read:
   11522.  The department, in conjunction with participating
representatives of counties and the Legislature, shall develop
approaches to improving data collection and management information
reporting in the CalWORKs program.
  SEC. 29.  Section 12201 of the Welfare and Institutions Code is
amended to read:
   12201.  (a) Except as provided in subdivision (d), the payment
schedules set forth in Section 12200 shall be adjusted annually to
reflect any increases or decreases in the cost of living. Except as
provided in subdivision (e), these adjustments shall become effective
January 1 of each year. The cost-of-living adjustment shall be based
on the changes in the California Necessities Index, which as used in
this section shall be the weighted average of changes for food,
clothing, fuel, utilities, rent, and transportation for low-income
consumers. The computation of annual adjustments in the California
Necessities Index shall be made in accordance with the following
steps:
   (1) The base period expenditure amounts for each expenditure
category within the California Necessities Index used to compute the
annual grant adjustment are:



Food...............................       $ 3,027

Clothing (apparel and upkeep)......           406

Fuel and other utilities...........           529

Rent, residential..................         4,883

Transportation.....................         1,757

                                       -----------

   Total............................       $10,602


   (2) Based on the appropriate components of the Consumer Price
Index for All Urban Consumers, as published by the United States
Department of Labor, Bureau of Labor Statistics, the percentage
change shall be determined for the 12-month period which ends 12
months prior to the January in which the cost-of-living adjustment
will take effect, for each expenditure category specified in
paragraph (1) within the following geographical areas: Los
Angeles-Long Beach-Anaheim, San Francisco-Oakland, San Diego, and, to
the extent statistically valid information is available from the
Bureau of Labor Statistics, additional geographical areas within the
state which include not less than 80 percent of recipients of aid
under this chapter.
   (3) Calculate a weighted percentage change for each of the
expenditure categories specified in subdivision (a) using the
applicable weighting factors for each area used by the State
Department of Industrial Relations to calculate the California
Consumer Price Index (CCPI).
   (4) Calculate a category adjustment factor for each expenditure
category in paragraph (1) by (1) adding 100 to the applicable
weighted percentage change as determined in paragraph (2) and (2)
dividing the sum by 100.
   (5) Determine the expenditure amounts for the current year by
multiplying each expenditure amount determined for the prior year by
the applicable category adjustment factor determined in paragraph
(4).
   (6) Determine the overall adjustment factor by dividing (1) the
sum of the expenditure amounts as determined in paragraph (4) for the
current year by (2) the sum of the expenditure amounts as determined
in paragraph (4) for the prior year.
   (b) The overall adjustment factor determined by the preceding
computational steps shall be multiplied by the payment schedules
established pursuant to Section 12200 as are in effect during the
month of December preceding the calendar year in which the
adjustments are to occur, and the product rounded to the nearest
dollar. The resultant amounts shall constitute the new schedules for
the categories given under subdivisions (a), (b), (c), (d), (e), (f),
and (g) of Section 12200, and shall be filed with the Secretary of
State. The amount as set forth in subdivision (h) of Section 12200
shall be adjusted annually pursuant to this section in the event that
the secretary agrees to administer payment under that subdivision.
The payment schedule for subdivision (i) of Section 12200 shall be
computed as specified, based on the new payment schedules for
subdivisions (a), (b), (c), and (d) of Section 12200.
   (c) The department shall adjust any amounts of aid under this
chapter to insure that the minimum level required by the Social
Security Act in order to maintain eligibility for funds under Title
XIX of that act is met.
   (d) (1) No adjustment shall be made under this section for the
1991, 1992, 1993, 1994, 1995, 1996, 1997, 1998, 2004, 2006 and 2007
calendar years to reflect any change in the cost of living.
Elimination of the cost-of-living adjustment pursuant to this
paragraph shall satisfy the requirements of Section 12201.05, and no
further reduction shall be made pursuant to that section.
   (2) Any cost-of-living adjustment granted under this section for
any calendar year shall not include adjustments for any calendar year
in which the cost of living was suspended pursuant to paragraph (1).

   (e) For the 2003 calendar year, the adjustment required by this
section shall become effective June 1, 2003.
   (f) For the 2005 calendar year, the adjustment required by this
section shall become effective April 1, 2005.
  SEC. 29.3.  Section 12201.03 of the Welfare and Institutions Code
is amended to read:
   12201.03.  (a) For the 1992, 1993, 1994, 1995, 1996, 1997, and
1998 calendar years, or for the period of January 1, 2003, to May 31,
2003, inclusive, if no cost-of-living adjustment is made pursuant to
Section 12201, the payment schedules set forth in Sections 12200,
13920, and 13921, as adjusted pursuant to Section 12201, shall
include the pass along of any cost-of-living increases in federal
benefits under Subchapter 16 (commencing with Section 1381) of
Chapter 7 of Title 42 of the United States Code.
   (b) Notwithstanding paragraph (2) of subdivision (d) of Section
12201, any adjustments made pursuant to this section to reflect the
pass along of federal cost-of-living adjustments shall be included in
the base amounts for purposes of determining cost-of-living
adjustments made pursuant to Section 12201.
   (c) Notwithstanding subdivision (a), no pass along of any
cost-of-living increase in federal benefits under Subchapter 16
(commencing with Section 1381) of Chapter 7 of Title 42 of the United
States Code shall be made in 1994.  This provision shall not apply
to those persons receiving payments pursuant to subdivisions (e),
(g), and (h) of Section 12200.
   (d) Notwithstanding subdivision (a), in no event shall the payment
schedules be reduced below the level required by the federal Social
Security Act in order to maintain eligibility for federal funding
under Title XIX of the federal Social Security Act, contained in
Subchapter 19 (commencing with Section 1396) of Chapter 7 of Title 42
of the United States Code.
   (e) Notwithstanding subdivisions (a) and (c), for the 2006
calendar year, the pass along of any cost-of-living increase in
federal benefits under Subchapter 16 (commencing with Section 1381)
of Chapter 7 of Title 42 of the United States Code shall not become
effective until April 1, 2006, and for the 2007 calendar year, the
pass along of any cost-of-living increase in federal benefits under
Subchapter 16 (commencing with Section 1381) of Chapter 7 of Title 42
of the United States Code shall not become effective until April 1,
2007. This subdivision shall not apply to those persons receiving
payments pursuant to subdivisions (e), (g), and (h) of Section 12200.

  SEC. 29.5.  Section 12201.05 of the Welfare and Institutions Code
is amended to read:
   12201.05.  (a) Commencing with the 2004 calendar year, and
thereafter, in any calendar year in which no cost-of-living
adjustment is made pursuant to Section 12201, the payment schedules
set forth in Sections 12200, 13920, and 13921, as adjusted pursuant
to Section 12201, shall include the pass along of any cost-of-living
increases in federal benefits under Subchapter 16 (commencing with
Section 1381) of Chapter 7 of Title 42 of the United States Code,
except as follows:
   (1) For the 2006 calendar year, the federal pass along shall not
become effective until April 1, 2006. This delay shall not apply to
those persons receiving payments pursuant to subdivisions (e), (g),
and (h) of Section 12200.
   (2) For the 2007 calendar year, the federal pass along shall not
become effective until April 1, 2007. This delay shall not apply to
those persons receiving payments pursuant to subdivisions (e), (g),
and (h) of Section 12200.
   (b) Notwithstanding paragraph (2) of subdivision (d) of Section
12201, any adjustments made pursuant to this section to reflect the
pass-along of federal cost-of-living adjustments shall be included in
the base amounts for purposes of determining cost-of-living
adjustments made pursuant to Section 12201.
  SEC. 30.  Section 12305.1 of the Welfare and Institutions Code is
amended to read:
   12305.1.  (a) Any aged, blind, or disabled individual who is
receiving Medi-Cal personal care services pursuant to subdivision (p)
of Section 14132.95, and who would otherwise be deemed a
categorically needy recipient pursuant to Section 12305, is eligible
to receive a supplementary payment under this article to be used
towards the purchase of personal care services. Additionally, any
aged, blind, or disabled individual who is receiving services
pursuant to Section 14132.951, and who would otherwise be deemed a
categorically needy recipient pursuant to Section 12305 is eligible
to receive a supplementary payment under this article to be used
towards the purchase of services under Section 14132.951.
   (b) A supplementary payment pursuant to this section shall be the
difference between the following amounts:
   (1) A beneficiary's excess income as determined under Section
12304.5.
   (2) The beneficiary's nonexempt income as determined pursuant to
Section 14005.7, in excess of the income levels for maintenance need
pursuant to Section 14005.12.
   (c) Notwithstanding subdivisions (a) and (b), no supplementary
payment shall be made pursuant to this section unless the amount
specified in paragraph (2) of subdivision (b) is larger than the
amount specified in paragraph (1) of subdivision (b).
   (d) In the event of a final judicial determination by any court of
appellate jurisdiction or a final determination by the Administrator
of the federal Centers for Medicare and Medicaid Services that
supplemental payments to medically needy persons not receiving
services pursuant to subdivision (p) of Section 14132.95 must be
made, then this section and subdivision (p) of Section 14132.95 shall
cease to be operative on the first day of the month that begins
after the expiration of a period of 30 days subsequent to a
notification in writing by the Director of Finance to the chairperson
of the committee in each house that considers appropriations, the
chairpersons of the committees and the appropriate subcommittees in
each house that consider the State Budget, and the Chairperson of the
Joint Legislative Budget Committee.
   (e) In the event that the Department of Finance determines that
the costs of the supplementary payments made under this section
exceed the savings resulting from federal financial participation in
providing services under subdivision (p) of Section 14132.95, this
section and subdivision (p) of Section 14132.95 shall cease to be
operative on the first day of the first month following such a
determination and a 30-day notification in writing by the Department
of Finance to the chairperson of the committee in each house of the
Legislature that considers appropriations, the chairperson of the
committees and the appropriate subcommittees in each house that
consider the State Budget, and the Chairperson of the Joint
Legislative Budget Committee. Persons who had been eligible for a
supplementary payment under this section shall be eligible to receive
uninterrupted services pursuant to Article 7 (commencing with
Section 12300) of Chapter 3, if otherwise eligible.
   (f) (1) Notwithstanding the rulemaking provisions of the
Administrative Procedure Act, Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code,
until emergency regulations are filed with the Secretary of State,
the department may implement this section through all-county letters
or similar instructions from the director. The department shall adopt
emergency regulations implementing this section no later than
September 30, 2006, unless notification of a delay is made to the
Chair of the Joint Legislative Budget Committee prior to that date.
The notification shall include the reason for the delay, the current
status of the emergency regulations, a date by which the emergency
regulations shall be adopted, and a statement of need to continue use
of all-county letters or similar instructions. Under no
circumstances shall the adoption of emergency regulations be delayed,
or the use of all-county letters or similar instructions be
extended, beyond June 30, 2007.
   (2) The adoption of regulations implementing this section shall be
deemed an emergency and necessary for the immediate preservation of
the public peace, health, safety, or general welfare. The emergency
regulations authorized by this section shall be exempt from review by
the Office of Administrative Law. The emergency regulations
authorized by this section shall be submitted to the Office of
Administrative Law for filing with the Secretary of State and shall
remain in effect for no more than 180 days, by which time final
regulations shall be promulgated.
  SEC. 31.  Section 15200 of the Welfare and Institutions Code, as
amended by Section 7 of Chapter 1055 of the Statutes of 1998, is
repealed.
  SEC. 32.  Section 15200 of the Welfare and Institutions Code, as
amended by Section 8 of Chapter 1055 of the Statutes of 1998, is
amended to read:
   15200.  There is hereby appropriated out of any money in the State
Treasury not otherwise appropriated, and after deducting federal
funds available, the following sums:
   (a) To each county for the support and maintenance of needy
children, 95 percent of the sums specified in subdivision (a), and
paragraphs (1) and (2) of subdivision (e), of Section 11450.
   (b) To each county for the support and maintenance of pregnant
mothers, 95 percent of the sum specified in subdivisions (b) and (c)
of Section 11450.
   (c) For the adequate care of each child pursuant to subdivision
(d) of Section 11450, as follows:
   (1) For any county that meets the performance standards or outcome
measures in Section 11215, an amount equal to 40 percent of the sum
necessary for the adequate care of each child.
   (2) For any county that does not meet the performance standards or
outcome measures in Section 11215, an amount which shall not be less
than 67.5 percent of one hundred twenty dollars ($120), and
multiplied by the number of children receiving foster care in the
county, added to an additional twelve dollars and fifty cents
($12.50) a month per eligible child.
                                                  (3) The department
shall determine the percentage of state reimbursement for those
counties that fail to meet the requirements of subparagraph (1)
according to the regulations required by subdivision (b) of Section
11215.
   (d) Notwithstanding subdivision (c), the amount of funds
appropriated from the General Fund in the annual Budget Act that
equates to the amount claimed under the Emergency Assistance Program
that has been included in the state's Temporary Assistance for Needy
Families block grant for foster care maintenance payments shall be
considered federal funds for the purposes of calculating the county
share of cost, provided the expenditure of these funds contributes to
the state meeting its federal maintenance of effort requirements.
   (e) To each county for the support and care of hard-to-place
adoptive children, 75 percent of the nonfederal share of the amount
specified in Section 16121.
   (f) To each county for the support and care of former dependent
children who have been made wards of related guardians, an amount
equal to 50 percent of the Kin-GAP payment under Article 4.5
(commencing with Section 11360) of Chapter 2 minus the federal TANF
block grant contribution specified in Section 11364.
   (g) The State Department of Social Services shall not implement
any change in the current funding ratios to counties as a
reimbursement for out-of-home care placement until the development of
a new performance standard system.  The State Department of Social
Services shall notify the Department of Finance when the new
performance standard system is developed and ready for
implementation. The Department of Finance, pursuant to the provisions
of Section 28 of the Budget Act, shall notify the Joint Legislative
Budget Committee in writing of its intent to implement a new
performance standard that would impact the counties' funding
allocation. The notification shall include the text of the draft
regulations to implement the performance standards. Any adjustment in
the county funding allocation shall not be implemented sooner than
60 days after receipt and review of the new performance standard by
the Joint Legislative Budget Committee and a review of the proposed
changes by the Legislative Analyst.
   (h) Federal funds received under Title XX of the federal Social
Security Act (42 U.S.C. Sec. 1397 et seq.) and appropriated by the
Legislature for the Aid to Families with Dependent Children-Foster
Care (AFDC-FC) program shall be considered part of the state share of
cost and not part of the federal expenditures for purposes of
subdivision (c).
  SEC. 33.  Section 15204.2 of the Welfare and Institutions Code is
amended to read:
   15204.2.  (a) It is the intent of the Legislature that the annual
Budget Act appropriate state and federal funds in a single allocation
to counties for the support of administrative activities undertaken
by the counties to provide benefit payments to recipients of aid
under Chapter 2 (commencing with Section 11200) of Part 3 and to
provide required work activities and supportive services in order to
efficiently and effectively carry out the purposes of that chapter.
   (b) (1) No later than 30 days after the enactment of the Budget
Act of 2004, the State Department of Social Services, in consultation
with the County Welfare Directors Association, shall estimate the
amount of unspent funds appropriated in the 2003-04 fiscal year
single allocation described in this section.
   (2) Unspent funds appropriated in the 2003-04 fiscal year single
allocation, not to exceed forty million dollars ($40,000,000), shall
be reappropriated to, and in augmentation of, Item 5180-101-0890 of
Section 2.00 of the Budget Act of 2004. The State Department of
Social Services, in consultation with the County Welfare Directors
Association, shall develop an allocation methodology for these funds.
A planning allocation, based on the estimated amount of unspent
funds and the agreed upon allocation methodology, shall be provided
to the counties no later than 30 days after the enactment of the
Budget Act of 2004.
   (c) (1) No later than 30 days after the enactment of the Budget
Act of 2005, the State Department of Social Services, in consultation
with the County Welfare Directors Association, shall estimate the
amount of unspent funds appropriated in the 2004-05 fiscal year
single allocation described in this section.
   (2) Unspent funds appropriated in the 2004-05 fiscal year single
allocation, not to exceed fifty million dollars ($50,000,000), shall
be reappropriated to, and in augmentation of, Item 5180-101-0890 of
Section 2.00 of the Budget Act of 2005. The State Department of
Social Services, in consultation with the County Welfare Directors
Association, shall develop an allocation methodology for these funds
in order to partially offset the estimated savings due to the
implementation of the quarterly reporting/prospective budgeting. A
planning allocation, based on the estimated amount of unspent funds
and the agreed upon allocation methodology, shall be provided to the
counties no later than 30 days after the enactment of the Budget Act
of 2005.
   (d) The State Department of Social Services shall work with the
County Welfare Directors Association to determine the effect of
implementation of the quarterly reporting/prospective budgeting
system on eligibility activities and evaluate the impact on
administrative costs.
  SEC. 34.  Section 15204.6 is added to the Welfare and Institutions
Code, to read:
   15204.6.  (a) Contingent upon a Budget Act appropriation, for the
2006-07, 2007-08, and 2008-09 fiscal years, a Pay for Performance
Program shall provide additional funding for counties that meet the
standards developed according to subdivision (c) in their
welfare-to-work programs under Article 3.2 (commencing with Section
11320) of Chapter 2.  The state shall have no obligation to pay
incentives earned that exceed the funds appropriated for the year in
which the incentives were earned.
   (b) To the extent that funds are appropriated, the maximum total
funds available to each county each year under the Pay for
Performance Program shall be 5 percent of the funds the county
receives that year, less the amount for child care, from the single
allocation under Section 15204.2. If funds appropriated for this
section are less than the incentives earned under this subdivision,
each county's allocation under this section shall be prorated based
on the amount of funds appropriated for that year.
   (c) The funds available to each county under the Pay for
Performance Program shall be divided each year into as many equal
parts as there are measures established for the year under this
subdivision. A county shall earn payment of one equal part for each
improvement standard that it achieves for the year or by ranking in
the top 20 percent of all counties in a measure identified in
paragraphs (1), (2), (3), and (4). The department shall consult with
the County Welfare Directors Association, legislative staff, and
other stakeholders, when developing improvement standards and the
methodology for earning and distributing incentives for each of the
following measures:
   (1) The employment rate of county CalWORKs cases.
   (2) The federal participation rates of county CalWORKs cases,
calculated in accordance with Section 607 of Title 42 of the United
States Code, but excluding individuals who are exempt in accordance
with Section 11320.3 and including sanctioned cases and cases
participating in activities described in subdivision (q) of Section
11322.6. If valid data does not exist to measure this outcome, the
funds for this measure shall be made available for the Pay for
Performance Program in the following fiscal year.
   (3) The percentage of county CalWORKs cases that have earned
income three months after ceasing to receive assistance under Section
11450.
   (4) Any additional measures that the department may establish in
consultation with the County Welfare Directors Association,
legislative staff, and other stakeholders.
   (d) Performance measures, standards, outcomes, and payments to
counties under subdivisions (a), (b), and (c) shall be based on the
following schedule:
   (1) For the performance measure described in paragraph (2) of
subdivision (c), payments in fiscal year 2006-07 shall be based on
outcomes for the period of July 1, 2005, through December 31, 2005,
compared to outcomes for the period of January 1, 2006, through June
30, 2006, and payments in fiscal year 2007-08 and 2008-09 shall be
based on outcomes for the fiscal year prior to payment, compared to
outcomes for the fiscal year two years prior to payment.
   (2) For all other performance measures, payments shall be based on
outcomes for the fiscal year prior to payment, compared to outcomes
for the fiscal year two years prior to payment.
   (e) The department may make further adjustments to any of the
performance measures listed under subdivision (c), in consultation
with the County Welfare Directors Association, legislative staff, and
other stakeholders.
   (f) The funds paid in accordance with this section may only be
used in accordance with subdivisions (f) and (g) of Section 10544.1
and only for the purpose of enhancing family self-sufficiency. Funds
earned by a county in accordance with this section shall be available
for expenditure in the fiscal year that they are received and the
following two fiscal years. Following the period of availability, and
notwithstanding any provisions of subdivision (f) of Section 10544.1
to the contrary, any unspent balance shall revert to the Temporary
Assistance for Needy Families (TANF) block grant.
   (g) Any funds appropriated by the Legislature for the Pay for
Performance Program, but not earned by a county, shall revert to the
TANF block grant at the end of the fiscal year for which the funds
were appropriated.
   (h) Notwithstanding the rulemaking provisions of Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code, the department may implement this section
through all-county letters throughout the duration of the Pay for
Performance Program.
  SEC. 35.  Section 16500.9 is added to the Welfare and Institutions
Code, to read:
   16500.9.  The department shall establish one full-time position,
within the office of the director, to assist counties in complying
with the federal Indian Child Welfare Act (25 U.S.C. Sec. 1901 et
seq.) and related state laws, regulations, and rules of court. This
assistance shall include, but not be limited to, all of the
following:
   (a) Acting as a clearinghouse for up-to-date information regarding
tribes within and outside of the state.
   (b) Providing information and support regarding the requirements
of laws, regulations, and rules of court in juvenile dependency cases
involving a child who is subject to the federal Indian Child Welfare
Act.
   (c) Providing or coordinating training and technical assistance
for counties regarding the requirements described in subdivision (b).

  SEC. 36.  Section 16501.7 is added to the Welfare and Institutions
Code, to read:
   16501.7.  (a) On or before December 1, 2005, the State Department
of Social Services shall develop, and provide to the Chairperson of
the Joint Legislative Budget Committee, a Child Welfare Services/Case
Management System system performance commitments plan. The plan
shall be developed in conjunction with the Office of System
Integration, the Department of Technology Services, and the County
Welfare Directors Association.
   (b) (1) The plan developed as required by subdivision (a) shall
include, but not be limited to, performance standards for system
availability, application transaction time, batch processing windows,
data downloads, a process for the identification, tracking, and
response of repair service requests, data backup and recovery, help
desk responsiveness, and a process for security incidents.
   (2) The plan may include print time.
   (3) The plan shall describe all of the following:
   (A) The mechanism for tracking system performance.
   (B) Corrective action protocols.
   (C) The steps that will be taken should performance fall below
standards for a specified period of time.
   (c) It is the intent of the Legislature that the plan developed
pursuant to this section shall do all of the following:
   (1) Appropriately assign responsibility for ensuring service
levels to the entity accountable.
   (2) Prioritize implementation of components of the plan.
   (3) Address implementation feasibility of the plan's components,
including any issues regarding plan implementation that need to be
addressed.
  SEC. 36.5.  Section 18355.5 is added to the Welfare and
Institutions Code, to read:
   18355.5.  Notwithstanding any other provision of law, counties
shall not claim reimbursement pursuant to Part 7 (commencing with
Section 17500) of Division 4 of Title 2 of the Government Code for
costs of 24-hour out-of-home care for seriously emotionally disturbed
children who are placed in accordance with Section 7572.5 of the
Government Code, if those costs are claimed by the county under this
chapter and the county receives reimbursement for those costs through
the Local Revenue Fund established pursuant to Section 17600.
  SEC. 37.  Section 18926 is added to the Welfare and Institutions
Code, to read:
   18926.  (a) To the extent permitted by federal law, the department
shall annually seek a federal waiver of the existing Food Stamp
Program limitation that stipulates that an able-bodied adult without
dependents (ABAWD) participant is limited to three months of food
stamps in a three-year period unless that participant has met the
work participation requirement.
   (b) All eligible counties shall be included in and bound by this
waiver unless a county declines to participate in the waiver request.
If a county declines, the county shall submit documentation from the
board of supervisors of that county to that effect.
   (c) Notwithstanding the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 2 of the Government Code) the department
may implement this section by all county letters or similar
instructions.
  SEC. 38.  (a) The State Department of Alcohol and Drug Programs
shall, by April 1, 2006, conduct and submit to the Legislature a
study of the effectiveness of the Substance Abuse and Crime
Prevention Act of 2000, enacted by the voters by Proposition 36 at
the November 2000 statewide primary election. The study shall
include, but not be limited to, a benefit-cost analysis of the act's
implementation that examines costs and cost avoidance related to
substance abuse treatment, health and social services, criminal
justice, and other benefit costs, such as employment and tax
revenues, for state and local government, where possible.
   (b) The Employment Development Department shall provide to the
State Department of Alcohol and Drug Programs, by January 1, 2006,
any information requested by the State Department of Alcohol and Drug
Programs necessary for the completion of a benefit-cost analysis of
the Substance Abuse Crime Prevention Act of 2000.
  SEC. 39.  The State Department of Social Services shall provide
information, by September 30, 2005, to the chairpersons of the
committees in each house of the Legislature that consider
appropriations and the budget, and the Chairperson of the Joint
Legislative Budget Committee, on the distribution and programmatic
impact, including, but not limited to, on the Community Care
Licensing Division of the department, of the unallocated reduction
included in the Budget Act of 2005. It is the intent of the
Legislature, as reflected in the 2005-06 appropriation for the State
Department of Social Services, that one million four hundred thousand
dollars ($1,400,000) of the unallocated reduction be restored, and
that this funding be used to ensure that all available Community Care
Licensing Division positions are filled and that statutorily
required licensing visit and background check workload is completed.

  SEC. 40.  The California Health and Human Services Agency shall
periodically brief stakeholders in the 2005 and 2006 calendar years
to review options to streamline and standardize criminal background
check requirements and processing.
  SEC. 41.  The State Department of Social Services shall
periodically brief stakeholders in the 2005 and 2006 calendar years
to do both of the following:
   (a) Discuss ongoing efforts to reform the community care licensing
visit process and ensure that all statutorily required visits are
made.
   (b) Consider implementation of the substitute child care employee
registry program.
  SEC. 42.  If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.
  SEC. 43.  This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
   In order to make the necessary statutory changes to implement the
Budget Act of 2005 at the earliest possible time, it is necessary
that this act take effect immediately.