BILL ANALYSIS AB 4 X4 Page 1 (Without Reference to File) CONCURRENCE IN SENATE AMENDMENTS AB 4 X4 (Evans) As Amended July 24, 2009 2/3 vote. Urgency ----------------------------------------------------------------- |ASSEMBLY: | |(July 9, 2009) |SENATE: | |(July 24, | | | | | | |2009) | ----------------------------------------------------------------- (vote not relevant) (vote not available) Original Committee Reference: RLS. SUMMARY: This is the Human Services trailer bill, which contains necessary changes to enact modifications to the 2009 Budget Act. The Senate amendments delete the Assembly version of this bill, and instead: 1)Make the following changes to Child Support: a) Effective October 1, 2010, impose a $25 federally-established annual administrative service fee on never-assisted families for whom child support agencies collect $500 or more in order to meet a federal requirement currently being paid using state General Fund (GF) dollars; and, b) Specify the allocation and use of revenue stabilization funds appropriated in the 2009-10 Budget Act for local child support agencies to maintain caseworker staffing levels. The augmentation of $18.7 million ($6.4 million GF) is expected to result in increased recoupment of $14.4 million in public assistance costs ($6.6 million GF revenue) and collection of an additional $70 million in child support payments that would be passed on to custodial parents and their children. Additionally requires the Department of Child Support Services to report to the Legislature, first on January 1, 2010, on the cost-effectiveness of this augmentation. 2)Community Care Licensing. Increase by 10% the application and AB 4 X4 Page 2 annual fees paid by community care facilities, including child care centers; family child care homes; foster family and group homes (GHs); adult residential facilities; and residential care facilities for the elderly. This action results in revenues of $2.1 million to offset GF spending. 3)Child Welfare Services & Foster Care. Make the following changes: a) Ensure that children who are eligible for Kinship Guardianship Assistance Payments (Kin-GAP) and also consumers of regional center services receive a dual-agency rate under specified circumstances. b) Reduce by 10% the rates paid to GHs, foster family agencies, and other programs for which rates are tied to these, for care and services provided to foster children. Results in 2009-10 savings of $26.6 million GF. Provides "rate relief" in 2009-10 by allowing higher reimbursement rates for existing GHs than would otherwise apply under existing law given their staffing and service levels. Allows the Department of Social Services (DSS) to conduct some GH program audits that cover a period of fewer than 12 months. c) Make changes necessary to allow for increased federal financial participation in Adoption Assistance Program (AAP) benefit payments. Specifies that AAP benefits shall not be increased based on age, but may be reassessed based on the child's needs. d) Require, in order to implement components of new federal law, that case plans for children in foster care ensure educational stability and that public health nurses in the child welfare system perform specified duties. 4)Older Californians Act Programs. Delete requirements that Alzheimer's Day Care Resource Centers provide or conduct training to students, services to family members, and community outreach. Instead encourages these activities to the extent possible within existing resources, while continuing to require more direct services to participants. Establishes priority for enrollment in the Linkages case management program for low-income individuals. AB 4 X4 Page 3 5)CalWORKs. Make the following changes: a) Authorize use of federal Temporary Assistance for Needy Families (TANF) Emergency Contingency Fund (ECF) resources for subsidized employment, short-term non-recurring benefits, and basic assistance to families. Under ECF, the federal government pays 80 percent of the costs of specified expenditures; b) From July 1, 2009 to July 1, 2011, exempt parents or relative caregivers of very young children, as specified, from welfare-to-work requirements, and allows counties to exempt additional categories of individuals. Stops the 60-month time-clock of limitations on supportive services and assistance for individuals exempted pursuant to these changes. This is in response to the related funding reduction to counties by $375 million for 2009-10. Exempts counties during those two years from the imposition of penalties resulting from failure to meet federal requirements. Additionally, adds months in which a recipient is excused from participation for good cause to conditions that stop the time-clock; and, c) Delay to April 1, 2012 (from April 1, 2010) the date by which the Work Incentive Nutritional Supplement (WINS) program shall be fully implemented. Delays to October 1, 2011 (from April 1, 2010) the date by which the Temporary Assistance Program (TAP) must begin. TAP is intended to provide a non-MOE funded program for CalWORKs recipients who are exempt from work participation, which would increase the state's caseload reduction credit and improve its ability to comply with federal work participation requirements. 1)Automation Issues. Make the following changes: a) Require the Office of the Chief Information Officer and the Department of Child Support Services to jointly produce an annual report to be initially submitted on March 1, 2010 on the ongoing implementation of the California Child Support Automation System, with specified components; and, b) Allow the consortia of counties implementing the Statewide Automated Welfare System (SAWS) for public AB 4 X4 Page 4 assistance programs to make changes to funding allocations within their approved annual budgets. This flexibility relates to a reduction of $4.5 million GF from the SAWS maintenance and operations budget. 1)Supplemental Security Income/State Supplementary Payment (SSI/SSP). Reduce SSI/SSP grants for married couples who are aged, blind, or disabled to federal minimum level (to a maximum of $1,407 per month). Reduces grants for individuals by $5 or 0.6% (to a maximum of $845 per month). These reductions are effective October 1, 2009 and are in addition to those enacted in February, 2009 they result in an additional GF savings of $115.9 million in 2009-10. 2)In-Home Supportive Services (IHSS). Make the following changes: a) Effective October 1, 2009, eliminate the share-of-cost "buy-out" under which the state pays the difference between some recipients' IHSS share-of-costs and the higher share-of-costs those recipients would have borne under Medi-Cal. Results in savings of $41 million GF in 2009-10; b) Effective September 1, 2009, limit services to those with higher levels of need, as determined by rankings and scores created with a uniform needs-assessment tool. Specifically, deems recipients eligible for "domestic and related" services only if they have a functional index (FI) rank of 4 or above (on a scale of 1 to 5, with 5 as the highest level of need for assistance) for each particular service. Deems ineligible for any services individuals whose FI score (weighted average of individual service-related ranks) is below 2.0. Exempts individuals eligible for paramedical services, protective supervision, or more than 120 hours of services per month from these limitations. Results in savings of $53.2 million GF in 2009-10; and, c) Require DSS to convene a stakeholder group to develop and issue a report that evaluates implementation of quality assurance and fraud prevention and detection efforts, and make recommendations to further prevent errors and reduce fraud. Requires providers to submit required verification of their identities and enrollment forms in person. AB 4 X4 Page 5 1)Drug Medi-Cal. Reduce by 10% the rates paid for DMC services. Results in savings of $8.8 million GF in 2009-10. 2)Community Services Block Grant. Temporarily expand eligibility to individuals with incomes up to 200% of the federal poverty level. Limits this change to the period during which specified federal stimulus funds are available. 3)Implementation and Urgency. Allow for emergency regulations or all-county letters to ensure timely implementation of certain provisions. Declares that this bill is to take effect immediately as an urgency measure. AS PASSED BY THE ASSEMBLY , this bill was a vehicle for the budget trailer bill. Analysis Prepared by : Nicole Vazquez / BUDGET / (916) 319-2099FN: 0002118