BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 138
                                                                  Page  1


          ASSEMBLY THIRD READING
          AB 138 (Beall)
          As Introduced  January 13, 2011
          Majority vote 

           AGING               4-2         APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Yamada, Pan, V. Manuel    |Ayes:|Fuentes, Blumenfield,     |
          |     |Pérez, Torres             |     |Bradford, Charles         |
          |     |                          |     |Calderon, Campos, Davis,  |
          |     |                          |     |Gatto, Hall, Hill, Lara,  |
          |     |                          |     |Mitchell, Solorio         |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Halderman, Wagner         |Nays:|Harkey, Donnelly,         |
          |     |                          |     |Nielsen, Norby, Wagner    |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :   Requires the California Department of Aging (CDA) and 
          Area Agencies on
          Aging (AAA's) to utilize the Elder Economic Security Standard 
          Index (Elder Index), as defined, to specify the costs in the 
          private market of meeting the basic needs of elders in each 
          planning and service area, and identify the number, or 
          percentage, of elders who are living at or below the Elder 
          Index.  Directs the CDA to track the progress of participants in 
          the state-administered Senior and Community Service Employment 
          Program (SCSEP).

           EXISTING LAW  : 

          1)Establishes the federal Older Americans Act (OAA) which 
            provides a national network of state units on aging and AAA's 
            to deliver home and community-based programs for older adults. 
             Programs include nutrition, transportation, information and 
            assistance, elder abuse prevention and caregiver support.

          2)Establishes the Older Californians Act which provides 
            state-funded programs and services for older adults and people 
            living with disabilities.  

          3)Establishes CDA as the state unit on aging to administer a 
            broad range of home and community-based programs.  The CDA 








                                                                  AB 138
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            mission is to provide leadership to the AAA's in developing 
            systems of home and community-based services that maintain 
            individuals in their own homes or least restrictive homelike 
            environments.

          4)Requires CDA to develop minimum standards for service delivery 
            to ensure that programs meet consumer needs, operate in a 
            cost-effective manner, and preserve the independence and 
            dignity of aging Californians.

          5)Requires AAA's to conduct regular needs assessments in their 
            planning and service area to document the service needs of 
            older adults and adults with disabilities.  

           FISCAL EFFECT  :   According to the Assembly Appropriations 
          Committee:

          1)Unknown, likely minor administrative costs to the extent CDA 
            and AAAs are required to work with UCLA to disaggregate the 
            data in order to identify the standard and associated data for 
            each service area.

          2)No direct fiscal impact to CDA to administer the Elder Index 
            if the data and analysis is provided by the University of 
            California, Los Angeles (UCLA) Center for Health Policy 
            Research. 
           
          3)Unknown, likely minor administrative savings to AAA to the 
            extent use of the Elder Index reduces duplicative planning 
            efforts and increases the reliability of quantitative analyses 
            of local information. 

          4)While this bill clearly states that nothing in the bill shall 
            be construed to mandate changes in means tested programs or in 
            the current funding allocations, applying the Elder Index as a 
            standard measure for planning purposes would likely bring tens 
            of millions of dollars in cost pressure to bear on these 
            programs because under that measure approximately one-half of 
            the seniors in California fall below the specified economic 
            security threshold.

           COMMENTS  :   California has 33 AAA's that contract and support a 
          wide range of services designed to keep older adults and adults 
          with disabilities independent and in their own homes and 








                                                                  AB 138
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          communities for as long as possible.  To ensure that programs 
          and services funded by the AAA adequately serve the older adults 
          within each community, AAA's are required to conduct a needs 
          assessment every four years to document the service needs of 
          community residents and any gaps in the service network, 
          focusing on seniors in the "greatest social and economic need." 
          The needs assessment process typically includes a community-wide 
          survey, community meetings, and information received from 
          stakeholders and key informants.  

           Senior Community Service Employment Program  .  According to the 
          Older Americans Act, SCSEP is designed to foster individual 
          economic self-sufficiency and promote useful opportunities in 
          community service activities for unemployed, low-income persons 
          who are age 55 or older.   SCSEP in California provides 
          part-time work at local community service agencies for older 
          workers who have poor employment prospects.  
           
           Federal poverty guidelines (FPG) and the Elder Index  .  Since 
          1965, there have been two slightly different versions of the 
          federal poverty measure - the FPG and the federal poverty 
          thresholds.  The poverty thresholds are the original version of 
          the federal poverty measure and are updated by the Census Bureau 
          each year.  The thresholds are used primarily for statistical 
          purposes.  The FPG is issued each year in the Federal Register 
          and are a simplification of the poverty thresholds.  They are 
          used for administrative purposes, including determining 
          financial eligibility for certain federal programs.  The FPG is 
          sometimes loosely referred to as the federal poverty level.  For 
          2011, an individual with an income below $10,890 is considered 
          impoverished using the FPG.  


          Analysis Prepared by  :    Robert MacLaughlin / AGING & L.T.C. / 
          (916) 319-3990


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