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
           
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          |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  








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            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.









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           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  








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               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.  









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           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