Amended in Senate September 6, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 485

Introduced by Assembly Member Gomez

February 19, 2013

An act begin insert to amend Sections 110003, 110005, 110006, 110007, 110008, 110009, 110011, and 110021 of, and to amend and repeal Section 6253.2 of, the Government Code, to amend Sections 12300.5, 12300.7, and 14186.35 of, to amend and repeal Sections 10101.1, 12306, and 12306.1 of, and to repeal Section 12302.25 of, the Welfare and Institutions Code, and to amend Section 34 of Chapter 37 of the Statutes of 2013, end insert relating to begin delete state employees. end delete begin insert in-home supportive services. end insert

LEGISLATIVE COUNSEL’S DIGEST

AB 485, as amended, Gomez. begin delete State employees: memorandum of understanding. end delete begin insert In-home supportive services. end insert

begin insert

Existing law establishes 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 Medi-Cal program, which is administered by the State Department of Health Care Services, under which qualified low-income individuals receive health care services. The Medi-Cal program is, in part, governed and funded by federal Medicaid Program provisions.

end insert begin insert

Existing law establishes, as part of the Coordinated Care Initiative, the In-Home Supportive Services Employer-Employee Relations Act, which serves to resolve disputes regarding wages, benefits, and other terms and conditions of employment between the California In-Home Supportive Services Authority (Statewide Authority) and recognized employee organizations providing in-home supportive services. Existing law establishes the Statewide Authority and requires the authority to be the entity authorized to meet and confer in good faith regarding wages, benefits, and other terms and conditions of employment with representatives of recognized employee organizations for any individual provider who is employed by a recipient of supportive services.

end insert begin insert

Existing law provides, as part of the Coordinated Care Initiative, that IHSS is a Medi-Cal benefit available through managed care health care plans in specified counties and requires enrollment of eligible Medi-Cal beneficiaries into managed care pursuant to a specified demonstration project or other provisions, including managed care for long-term services and supports, as one of the conditions that would be required to be completed before the Statewide Authority assumes the specified responsibilities. Existing law provides that no sooner than March 1, 2013, the Statewide Authority shall assume specified responsibilities in a county or city and county upon notification by the Director of Health Care Services that the enrollment of eligible Medi-Cal beneficiaries described in specified provisions of law has been completed in that county or city and county. Under existing law, in counties where IHSS is a Medi-Cal benefit available through managed care health plans, those health plans are required to assume specified duties, including entering into a memorandum of understanding with a county agency to perform specified activities, after the director provides that notification. Under existing law, the assumption of these responsibilities by the Statewide Authority is also known as the county implementation date.

end insert begin insert

This bill would, instead, make the implementation date January 1, 2014, would delete the reference to the “county” implementation date, and would make conforming changes.

end insert begin insert

Existing law conditions implementation of the Coordinated Care Initiative, as defined, on whether the Director of Finance estimates that the Coordinated Care Initiative will generate net General Fund savings, as specified. Existing law, with certain exceptions, specifies those provisions of law that are within the scope of the initiative to become inoperative if this condition is not met.

end insert begin insert

This bill would modify the definition of the Coordinate Care Initiative for the purposes of determining which provisions become inoperative if the condition is not met, and exclude, among others, those provisions that establish the In-Home Supportive Services Employer-Employee Relations Act, establish the Statewide Authority and determine the duties of, and when those duties are assumed by, the authority, establish the IHSS Fund, which is used to fund the Statewide Authority, and require all counties, commencing July 1, 2012, to have a County IHSS Maintenance of Effort (MOE) and to pay the County IHSS MOE instead of paying the nonfederal share of IHSS costs, as specified. The bill would make conforming changes.

end insert begin delete

Existing law provides that a provision of a memorandum of understanding reached between the state employer and a recognized employee organization representing state civil service employees that requires the expenditure of funds does not become effective unless approved by the Legislature in the annual Budget Act.

end delete begin delete

This bill would approve provisions of a memorandum of understanding entered into between the state employer and State Bargaining Unit 16, Physicians, Dentists, and Podiatrists that require the expenditure of funds, and would provide that these provisions will become effective even if these provisions are approved by the Legislature in legislation other than the annual Budget Act.

end delete begin delete

The bill would provide that provisions of the memorandum of understanding approved by this bill that require the expenditure of funds will not take effect unless funds for those provisions are specifically appropriated by the Legislature, and would require the state employer and the affected employee organization to meet and confer to renegotiate the affected provisions if funds for those provisions are not specifically appropriated by the Legislature.

end delete begin delete

end delete

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

begin insert

begin insert SECTION 1 end insert begin insert . end insert   

end insert

begin insert Section 6253.2 of the end insert begin insert Government Code end insert begin insert , as
amended by Section 1 of Chapter 37 of the Statutes of 2013, is
amended to read: end insert

6253.2.  

(a) Notwithstanding any other provision of this chapter
to the contrary, information regarding persons paid by the state to
provide in-home supportive services pursuant to Article 7
(commencing with Section 12300) of Chapter 3 of Part 3 of
Division 9 of the Welfare and Institutions Code, or services
provided pursuant to Section 14132.95, 14132.952, or 14132.956
of the Welfare and Institutions Code, is not subject to public
disclosure pursuant to this chapter, except as provided in
subdivision (b).

(b) Copies of names, addresses, and telephone numbers of
persons described in subdivision (a) shall be made available, upon
request, to an exclusive bargaining agent and to any labor
organization seeking representation rights pursuant to Section
12301.6 or 12302.25 of the Welfare and Institutions Code or the
In-Home Supportive Services Employer-Employee Relations Act
(Title 23 (commencing with Section 110000)). This information
shall not be used by the receiving entity for any purpose other than
the employee organizing, representation, and assistance activities
of the labor organization.

(c) This section applies solely to individuals who provide
services under the In-Home Supportive Services Program (Article
7 (commencing with Section 12300) of Chapter 3 of Part 3 of
Division 9 of the Welfare and Institutions Code), the Personal Care
Services Program pursuant to Section 14132.95 of the Welfare
and Institutions Code, the In-Home Supportive Services Plus
Option pursuant to Section 14132.952 of the Welfare and
Institutions Code, or the Community First Choice Option pursuant
to Section 14132.956 of the Welfare and Institutions Code.

(d) Nothing in this section is intended to alter or shall be
interpreted to alter the rights of parties under the In-Home
Supportive Services Employer-Employee Relations Act (Title 23
(commencing with Section 110000)) or any other labor relations
law.

begin delete

(e) This section shall be inoperative if the Coordinated Care
Initiative becomes inoperative pursuant to Section 34 of the act
that added this subdivision.

end delete

begin insert

begin insert SEC. 2. end insert   

end insert

begin insert Section 6253.2 of the end insert begin insert Government Code end insert begin insert , as amended
by Section 2 of Chapter 37 of the Statutes of 2013, is repealed. end insert

begin delete

6253.2.  

(a) Notwithstanding any other provision of this chapter
to the contrary, information regarding persons paid by the state to
provide in-home supportive services pursuant to Article 7
(commencing with Section 12300) of Chapter 3 of Part 3 of
Division 9 of the Welfare and Institutions Code or personal care
services pursuant to Section 14132.95 of the Welfare and
Institutions Code, is not subject to public disclosure pursuant to
this chapter, except as provided in subdivision (b).

(b) Copies of names, addresses, and telephone numbers of
persons described in subdivision (a) shall be made available, upon
request, to an exclusive bargaining agent and to any labor
organization seeking representation rights pursuant to subdivision
(c) of Section 12301.6 or Section 12302.25 of the Welfare and
Institutions Code or Chapter 10 (commencing with Section 3500)
of Division 4 of Title 1. This information shall not be used by the
receiving entity for any purpose other than the employee
organizing, representation, and assistance activities of the labor
organization.

(c) This section applies solely to individuals who provide
services under the In-Home Supportive Services Program (Article
7 (commencing with Section 12300) of Chapter 3 of Part 3 of
Division 9 of the Welfare and Institutions Code) or the Personal
Care Services Program pursuant to Section 14132.95 of the Welfare
and Institutions Code.

(d) Nothing in this section is intended to alter or shall be
interpreted to alter the rights of parties under the
Meyers-Milias-Brown Act (Chapter 10 (commencing with Section
3500) of Division 4) or any other labor relations law.

(e) This section shall be operative only if Section 1 of the act
that added this subdivision becomes inoperative pursuant to
subdivision (e) of that Section 1.

end delete

begin insert

begin insert SEC. 3. end insert   

end insert

begin insert Section 110003 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

110003.  

As used in this title:

(a) “Board” means the Public Employment Relations Board
established pursuant to Section 3541.

(b) “Employee” or “individual provider” means any person
authorized to provide in-home supportive services pursuant to
Article 7 (commencing with Section 12300) of Chapter 3 of Part
3 of Division 9 of the Welfare and Institutions Code, and Sections
14132.95, 14132.952, and 14132.956 of the Welfare and
Institutions Code, pursuant to the individual provider mode, as
referenced in Section 12302.2 of the Welfare and Institutions Code.
As used in this title, “employee” or “individual provider” does not
include any person providing in-home supportive services pursuant
to the county-employed homemaker mode or the contractor mode,
as authorized in Section 12302 of the Welfare and Institutions
Code. Individual providers shall not be deemed to be employees
of the Statewide Authority for any other purpose, except as
expressly set forth in this title.

(c) “Employee organization” means an organization that includes
employees, as defined in subdivision (b), and that has as one of
its primary purposes representing those employees in their relations
with the Statewide Authority.

(d) “Employer” means, for the purposes of collective bargaining,
the Statewide Authority established pursuant to Section 6531.5.
The in-home supportive services recipient shall be the employer
of an individual in-home supportive services provider with the
unconditional and exclusive right to hire, fire, and supervise his
or her provider.

(e) “In-home supportive services” or “IHSS” means services
provided pursuant to Article 7 (commencing with Section 12300)
of Chapter 3 of Part 3 of Division 9 of the Welfare and Institutions
Code, and Sections 14132.95, 14132.952, and 14132.956 of the
Welfare and Institutions Code.

(f) “In-home supportive services recipient” means the individual
who receives the in-home supportive services provided by the
individual provider. The in-home supportive services recipient is
the employer for the purposes of hiring, firing, and supervising
his or her respective individual provider.

(g) “Mediation” means effort by an impartial third party to assist
in reconciling a dispute regarding wages, benefits, and other terms
and conditions of employment, as defined in Section 110023,
between representatives of the employer and the recognized
employee organization or recognized employee organizations
through interpretation, suggestion, and advice.

(h) “Meet and confer in good faith” means that the employer,
or those representatives as it may designate, and representatives
of recognized employee organizations, shall have the mutual
obligation personally to meet and confer promptly upon request
by either party and continue for a reasonable period of time in
order to exchange freely information, opinions, and proposals, and
to endeavor to reach agreement on matters within the scope of
representation prior to the adoption of the annual Budget Act.

(i) “Predecessor agency” means a county or an entity established
pursuant to Section 12301.6 of the Welfare and Institutions Code
before the effective date of this title.

(j) “Recognized employee organization” means an employee
organization that has been formally acknowledged as follows:

(1) Before the begin delete county end delete implementation date as described in
subdivision (a) of Section 12300.7 of the Welfare and Institutions
Code, by a county or an entity established pursuant to Section
12301.6 of the Welfare and Institutions Code, as the representative
of individual providers in its jurisdiction.

(2) On or after the begin delete county end delete implementation date as described in
subdivision (a) of Section 12300.7 of the Welfare and Institutions
Code, by the Statewide Authority, as the representative of
individual providers subject to this title.

(k) “Statewide Authority” means the California In-Home
Supportive Services Authority established pursuant to Section
6531.5.

begin insert

begin insert SEC. 4. end insert   

end insert

begin insert Section 110005 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

110005.  

For the purposes of this title, the begin delete county end delete
implementation date is defined in subdivision (a) of Section
12300.7 of the Welfare and Institutions Code.

begin insert

begin insert SEC. 5. end insert   

end insert

begin insert Section 110006 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

110006.  

For purposes of collective bargaining, and as expressly
set forth in subdivision (d) of Section 110003, the Statewide
Authority is deemed to be the employer of record of individual
providers in each county as of the begin delete county end delete implementation date.
In-home supportive services recipients shall retain the right to hire,
fire, and supervise the work of the individual providers providing
services to them.

begin insert

begin insert SEC. 6. end insert   

end insert

begin insert Section 110007 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

110007.  

Individual providers employed by any predecessor
agency as of the begin delete county end delete implementation date shall retain employee
status and shall not be required by the Statewide Authority to
requalify to receive payment for providing services pursuant to
Article 7 (commencing with Section 12300) of Chapter 3 of Part
3 of Division 9 of the Welfare and Institutions Code. In the same
manner as set forth in subdivision (e) of Section 12305.86 of the
Welfare and Institutions Code, the Statewide Authority shall accept
a clearance that was obtained or accepted by any predecessor
agency pursuant to Article 7 (commencing with Section 12300)
of Chapter 3 of Part 3 of Division 9 of the Welfare and Institutions
Code. Existence of a clearance shall be determined by verification
through the case management, information, and payroll system of
the predecessor agency that the predecessor agency has deemed
the provider to be eligible to receive payment for providing services
pursuant to Article 7 (commencing with Section 12300) of Chapter
3 of Part 3 of Division 9 of the Welfare and Institutions Code.

begin insert

begin insert SEC. 7. end insert   

end insert

begin insert Section 110008 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

110008.  

On the begin delete county end delete implementation date, separate
bargaining units shall be created consistent with the bargaining
units that have been recognized by predecessor agencies.
Bargaining units consisting of employees in a single county shall
be the only appropriate unit for collective bargaining under this
title. In those counties where no recognized employee organization
exists as of the begin delete county end delete implementation date, a bargaining unit
consisting of all employees in that county shall be deemed an
appropriate unit for collective bargaining.

begin insert

begin insert SEC. 8. end insert   

end insert

begin insert Section 110009 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

110009.  

If, on the begin delete county end delete implementation date, individual
providers are represented by a recognized employee organization,
the Statewide Authority shall be deemed the successor employer
of the predecessor agency for the purposes of negotiating a
collective bargaining agreement, and shall be obligated to recognize
and to meet and confer in good faith with the recognized employee
organization on all matters within the scope of representation, as
defined in Section 110023, as to those individual providers.

begin insert

begin insert SEC. 9. end insert   

end insert

begin insert Section 110011 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

110011.  

(a) Except as otherwise expressly provided in this
title, the enactment of this title shall not be a cause for the employer
or any predecessor agency to modify or eliminate any existing
memorandum of agreement or understanding, or to modify existing
wages, benefits, or other terms and conditions of employment.
Except to the extent set forth in this title, the enactment of this title
shall not prevent the modification of existing wages, benefits, or
terms and conditions of employment through the meet and confer
in good faith process or, in those situations in which the employees
are not represented by a recognized employee organization, through
appropriate procedures.

(b) On the begin delete county end delete implementation date, subject to Section
12306.15 of the Welfare and Institutions Code, the Statewide
Authority shall assume the predecessor agency’s rights and
obligations under any memorandum of understanding or agreement
between the predecessor agency and a recognized employee
organization that is in effect on the begin delete county end delete implementation date
for the duration thereof. Absent mutual consent to reopen, the
terms of any transferred memorandum of understanding or
agreement shall continue until the memorandum of understanding
or agreement has expired. If a memorandum of understanding or
agreement between a recognized employee organization and a
predecessor agency has expired and has not been replaced by a
successor memorandum of understanding or agreement as of the
begin delete county end delete implementation date, the Statewide Authority shall assume
the obligation to meet and confer in good faith with the recognized
employee organization.

(c) Notwithstanding any other provision of law, except to the
extent set forth in this chapter and as limited by Section 110023,
the terms and conditions of any memorandum of understanding
or agreement between a predecessor agency and a recognized
employee organization in effect on the begin delete county end delete implementation date
shall not be reduced, except by mutual agreement between the
recognized employee organization and the Statewide Authority.

(d) Nothing in this title shall be construed to relieve any
predecessor agency of its obligation to meet and confer in good
faith with a recognized employee organization pursuant to the
Meyers-Milias-Brown Act (Chapter 10 (commencing with Section
3500) of Division 4 of Title 1) until the begin delete county end delete implementation
date. Nothing in this title shall permit the predecessor agency to
meet and confer after the Statewide Authority assumes the
predecessor agency’s rights and obligations on the begin delete county end delete
implementation date.

(e) With the exception of all economic terms covered by Section
12306.15 of the Welfare and Institutions Code and notwithstanding
any other provision of law, beginning July 1, 2012, and ending on
the begin delete county end delete implementation date as set forth in subdivision (a) of
Section 12300.7 of the Welfare and Institutions Code, any
alterations or modifications to either current or expired memoranda
of understanding that were in effect on July 1, 2012, and any newly
negotiated memoranda of understanding or agreements reached
after July 1, 2012, shall be submitted for review to the State
Department of Social Services, hereafter referred to as the
department. This review begin delete requirement end delete shall begin delete not begin until a county
commences transition pursuant to subdivision (g) of Section
14132.275 of the Welfare and Institutions Code, and shall end delete be
performed by the department until the Statewide Authority becomes
operational, after which date the Statewide Authority shall continue
to perform this review begin delete requirement end delete . If, upon review, but not later
than 180 days begin delete after the county commences transition pursuant to
subdivision (g) of Section 14132.275 of the Welfare and
Institutions Code, end delete begin insert before the implementation date, end insert the department
or Statewide Authority reasonably determines that there are one
or more newly negotiated or amended noneconomic terms in the
memorandum of understanding or agreement to which it objects
for a bona fide business-related reason, the department or Statewide
Authority shall provide written notice to the signatory recognized
employee organization of each objection and the reason for it.
Upon demand from the recognized employee organization, the
department, or the Statewide Authority, those parties shall meet
and confer regarding the objection and endeavor to reach agreement
prior to the begin delete county end delete implementation date. If an agreement is reached,
it shall not become effective prior to the begin delete county end delete implementation
date. If an agreement is not reached by the begin delete county end delete implementation
date, the objectionable language is deemed inoperable as of the
begin delete county end delete implementation date. All terms to which no objection is
made shall be deemed accepted by the Statewide Authority. If the
Statewide Authority or the department fails to provide the 180
days’ notice of objection, it shall be deemed waived.

begin insert

begin insert SEC. 10. end insert   

end insert

begin insert Section 110021 of the end insert begin insert Government Code end insert begin insert is amended
to read: end insert

110021.  

If a predecessor agency is party to any memorandum
of understanding or agreement with any bargaining unit that
includes individual providers that contains an agency shop
provision as of the effective date of this title, the predecessor
agency and the employer shall be obligated to honor the terms of
the agency shop provision, including indemnification provisions,
if any, for the duration of the memorandum of understanding or
agreement, and until the adoption of a successor memorandum of
understanding or agreement. However, upon the request of a
recognized employee organization, an agency shop provision in
effect on the begin delete county end delete implementation date may be reopened for the
sole purpose of renegotiating the terms of that provision in
accordance with this title. The implementation of this title shall
not be a cause for a new agency shop election.

begin insert

begin insert SEC. 11. end insert   

end insert

begin insert Section 10101.1 of the end insert begin insert Welfare and Institutions Code end insert begin insert ,
as amended by Section 5 of Chapter 37 of the Statutes of 2013, is
amended to read: end insert

10101.1.  

(a) For the 1991-92 fiscal year and each fiscal year
thereafter, the state’s share of the costs of the county services block
grant and the in-home supportive services administration
requirements shall be 70 percent of the actual nonfederal
expenditures or the amount appropriated by the Legislature for
that purpose, whichever is less.

(b) Federal funds received under Title 20 of the federal Social
Security Act (42 U.S.C. Sec. 1397 et seq.) and appropriated by the
Legislature for the county services block grant and the in-home
supportive services administration shall be considered part of the
state share of cost and not part of the federal expenditures for this
purpose.

(c) For the period during which Section 12306.15 is operative,
each county’s share of the nonfederal costs of the county services
block grant and the in-home supportive services administration
requirements as specified in subdivision (a) shall remain, but the
County IHSS Maintenance of Effort pursuant to Section 12306.15
shall be in lieu of that share.

begin delete

(d) This section shall be inoperative if the Coordinated Care
Initiative becomes inoperative pursuant to Section 34 of the act
that added this subdivision.

end delete

begin insert

begin insert SEC. 12. end insert   

end insert

begin insert Section 10101.1 of the end insert begin insert Welfare and Institutions Code end insert begin insert ,
as amended by Section 6 of Chapter 37 of the Statutes of 2013, is
repealed. end insert

begin delete

10101.1.  

(a) For the 1991-92 fiscal year and each fiscal year
thereafter, the state’s share of the costs of the county services block
grant and the in-home supportive services administration
requirements shall be 70 percent of the actual nonfederal
expenditures or the amount appropriated by the Legislature for
that purpose, whichever is less.

(b) Federal funds received under Title 20 of the federal Social
Security Act (42 U.S.C. Sec. 1397 et seq.) and appropriated by the
Legislature for the county services block grant and the in-home
supportive services administration shall be considered part of the
state share of cost and not part of the federal expenditures for this
purpose.

(c) This section shall be operative only if Section 5 of the act
that added this subdivision becomes inoperative pursuant to
subdivision (d) of that Section 5.

end delete

begin insert

begin insert SEC. 13. end insert   

end insert

begin insert Section 12300.5 of the end insert begin insert Welfare and Institutions Code end insert
begin insert is amended to read: end insert

12300.5.  

(a) The California In-Home Supportive Services
Authority, hereafter referred to as the Statewide Authority,
established pursuant to Section 6531.5 of the Government Code,
shall be the entity authorized to meet and confer in good faith
regarding wages, benefits, and other terms and conditions of
employment in accordance with Title 23 (commencing with Section
110000) of the Government Code, with representatives of
recognized employee organizations for any individual provider
who is employed by a recipient of in-home supportive services
described in Section 12300 after the begin delete county end delete implementation date
as described in subdivision (a) of Section 12300.7.

(b) The Statewide Authority and the Department of Human
Resources and other state departments may enter into a
memorandum of understanding or other agreement to have the
Department of Human Resources meet and confer on behalf of the
Statewide Authority for the purposes described in subdivision (a)
or to provide the Statewide Authority with other services,
including, but not limited to, administrative and legal services.

(c) The state, the Statewide Authority, or any county that has
met the conditions in Section 12300.7 shall not be deemed to be
the employer of any individual provider who is employed by a
recipient of in-home supportive services as described in Section
12300 for purposes of liability due to the negligence or intentional
torts of the individual provider.

begin insert

begin insert SEC. 14. end insert   

end insert

begin insert Section 12300.7 of the end insert begin insert Welfare and Institutions Code end insert
begin insert is amended to read: end insert

12300.7.  

(a)  begin delete No sooner than March 1, 2013, the end delete begin insert On January
1, 2014, the end insert begin insert end insert California In-Home Supportive Services Authority
shall assume the responsibilities set forth in Title 23 (commencing
with Section 110000) of the Government Code begin delete in a county or city
and county upon notification by the Director of Health Care
Services that the enrollment of eligible Medi-Cal beneficiaries
described in Section 14132.275 or 14182.16, or Article 5.7
(commencing with Section 14186) of Chapter 7 has been completed
in that county or city and county end delete .

(b) A county or city and county, subject to subdivision begin delete (a) and
upon notification from the Director of Health Care Services, end delete begin insert (a), end insert
shall do one or both of the following:

(1) Have the entity that performed functions set forth in the
county ordinance or contract in effect begin delete at the time of the notification
pursuant to subdivision (a) end delete begin insert prior to January 1, 2014, end insert and
established pursuant to Section 12301.6 continue to perform those
functions, excluding subdivision (c) of that section.

(2) Assume the functions performed by the entity, begin delete at the time
of the notification pursuant to subdivision (a) end delete begin insert prior to January 1,
2014 end insert , pursuant to Section 12301.6, excluding subdivision (c) of
that section.

(c) If a county or city and county assumes the functions
described in paragraph (2) of subdivision (b), it may establish or
contract with an entity for the performance of any or all of the
functions assumed.

begin insert

begin insert SEC. 15. end insert   

end insert

begin insert Section 12302.25 of the end insert begin insert Welfare and Institutions
Code end insert begin insert , as amended by Section 34 of Chapter 8 of the Statutes of
2011, is repealed. end insert

begin delete

12302.25.  

(a) On or before January 1, 2003, each county shall
act as, or establish, an employer for in-home supportive service
providers under Section 12302.2 for the purposes of Chapter 10
(commencing with Section 3500) of Division 4 of Title 1 of the
Government Code and other applicable state or federal laws. Each
county may utilize a public authority or nonprofit consortium as
authorized under Section 12301.6, the contract mode as authorized
under Sections 12302 and 12302.1, county administration of the
individual provider mode as authorized under Sections 12302 and
12302.2 for purposes of acting as, or providing, an employer under
Chapter 10 (commencing with Section 3500) of Division 4 of Title
1 of the Government Code, county civil service personnel as
authorized under Section 12302, or mixed modes of service
authorized pursuant to this article and may establish regional
agreements in establishing an employer for purposes of this
subdivision for providers of in-home supportive services. Within
30 days of the effective date of this section, the department shall
develop a timetable for implementation of this subdivision to
ensure orderly compliance by counties. Recipients of in-home
supportive services shall retain the right to choose the individuals
that provide their care and to recruit, select, train, reject, or change
any provider under the contract mode or to hire, fire, train, and
supervise any provider under any other mode of service. Upon
request of a recipient, and in addition to a county’s selected method
of establishing an employer for in-home supportive service
providers pursuant to this subdivision, counties with an IHSS
caseload of more than 500 shall be required to offer an individual
provider employer option.

(b) Nothing in this section shall prohibit any negotiations or
agreement regarding collective bargaining or any wage and benefit
enhancements.

(c) Nothing in this section shall be construed to affect the state’s
responsibility with respect to the state payroll system,
unemployment insurance, or workers’ compensation and other
provisions of Section 12302.2 for providers of in-home supportive
services.

(d) Prior to implementing subdivision (a), a county may establish
an advisory committee as authorized by Section 12301.3 and solicit
recommendations from the advisory committee on the preferred
mode or modes of service to be utilized in the county for in-home
supportive services.

(e) If a county establishes an in-home supportive services
advisory committee pursuant to Section 12301.3, the county shall
take into account the advice and recommendations of the committee
prior to making policy and funding decisions about the program
on an ongoing basis.

(f) In implementing and administering this section, no county,
public authority, nonprofit consortium, contractor, or a combination
thereof, that delivers in-home supportive services shall reduce the
hours of service for any recipient below the amount determined
to be necessary under the uniform assessment guidelines
established by the department.

(g) Any agreement between a county and an entity acting as an
employer under subdivision (a) shall include a provision that
requires that funds appropriated by the state for wage increases
for in-home supportive services providers be used exclusively for
that purpose. Counties or the state may undertake audits of the
entities acting as employers under the terms of subdivision (a) to
verify compliance with this subdivision.

(h) On or before January 15, 2003, each county shall provide
the department with documentation that demonstrates compliance
with the January 1, 2003, deadline specified in subdivision (a).
The documentation shall include, but is not limited to, any of the
following:

(1) The public authority ordinance and employee relations
procedures.

(2) The invitations to bid and requests for proposal for contract
services for the contract mode.

(3) An invitation to bid and request for proposal for the operation
of a nonprofit consortium.

(4) A county board of supervisors’ resolution resolving that the
county has chosen to act as the employer required by subdivision
(a) either by utilizing county employees, as authorized by Section
12302, to provide in-home supportive services or through county
administration of individual providers.

(5) Any combination of the documentation required under
paragraphs (1) to (4), inclusive, that reflects the decision of a
county to provide mixed modes of service as authorized under
subdivision (a).

(i) Any county that is unable to provide the documentation
required by subdivision (h) by January 15, 2003, may provide, on
or before that date, a written notice to the department that does all
of the following:

(1) Explains the county’s failure to provide the required
documentation.

(2) Describes the county’s plan for coming into compliance
with the requirements of this section.

(3) Includes a timetable for the county to come into compliance
with this section, but in no case shall the timetable extend beyond
March 31, 2003.

(j) Any county that fails to provide the documentation required
by subdivision (h) and also fails to provide the written notice as
allowed under subdivision (i), shall be deemed by operation of
law to be the employer of IHSS individual providers for purposes
of Chapter 10 (commencing with Section 3500) of Division 4 of
Title 1 of the Government Code as of January 15, 2003.

(k) Any county that provides a written notice as allowed under
subdivision (i), but fails to provide the documentation required
under subdivision (h) by March 31, 2003, shall be deemed by
operation of law to be the employer of IHSS individual providers
for purposes of Chapter 10 (commencing with Section 3500) of
Division 4 of Title 1 of the Government Code as of April 1, 2003.

(l) Any county deemed by operation of law, pursuant to
subdivision (j) or (k), to be the employer of IHSS individual
providers for purposes of Chapter 10 (commencing with Section
3500) of Division 4 of Title 1 of the Government Code shall
continue to act in that capacity until the county notifies the
department that it has established another employer as permitted
by this section, and has provided the department with the
documentation required under subdivision (h) demonstrating the
change.

end delete

begin insert

begin insert SEC. 16. end insert   

end insert

begin insert Section 12306 of the end insert begin insert Welfare and Institutions Code end insert begin insert ,
as amended by Section 8 of Chapter 37 of the Statutes of 2013, is
amended to read: end insert

12306.  

(a) The state and counties shall share the annual cost
of providing services under this article as specified in this section.

(b) Except as provided in subdivisions (c) and (d), the state shall
pay to each county, from the General Fund and any federal funds
received under Title XX of the federal Social Security Act available
for that purpose, 65 percent of the cost of providing services under
this article, and each county shall pay 35 percent of the cost of
providing those services.

(c) For services eligible for federal funding pursuant to Title
XIX of the federal Social Security Act under the Medi-Cal program
and, except as provided in subdivisions (b) and (d) the state shall
pay to each county, from the General Fund and any funds available
for that purpose 65 percent of the nonfederal cost of providing
services under this article, and each county shall pay 35 percent
of the nonfederal cost of providing those services.

(d) (1) For the period of July 1, 1992, to June 30, 1994,
inclusive, the state’s share of the cost of providing services under
this article shall be limited to the amount appropriated for that
purpose in the annual Budget Act.

(2) The department shall restore the funding reductions required
by subdivision (c) of Section 12301, fully or in part, as soon as
administratively practicable, if the amount appropriated from the
General Fund for the 1992-93 fiscal year under this article is
projected to exceed the sum of the General Fund expenditures
under Section 14132.95 and the actual General Fund expenditures
under this article for the 1992-93 fiscal year. The entire amount
of the excess shall be applied to the restoration. Services shall not
be restored under this paragraph until the Department of Finance
has determined that the restoration of services would result in no
additional costs to the state or to the counties relative to the
combined state appropriation and county matching funds for
in-home supportive services under this article in the 1992-93 fiscal
year.

(e) For the period during which Section 12306.15 is operative,
each county’s share of the costs of providing services pursuant to
this article specified in subdivisions (b) and (c) shall remain, but
the County IHSS Maintenance of Effort pursuant to Section
12306.15 shall be in lieu of that share.

begin delete

(f) This section shall be inoperative if the Coordinated Care
Initiative becomes inoperative pursuant to Section 34 of the act
that added this subdivision.

end delete

begin insert

begin insert SEC. 17. end insert   

end insert

begin insert Section 12306 of the end insert begin insert Welfare and Institutions Code end insert begin insert ,
as amended by Section 9 of Chapter 37 of the Statutes of 2013, is
repealed. end insert

begin delete

12306.  

(a) The state and counties shall share the annual cost
of providing services under this article as specified in this section.

(b) Except as provided in subdivisions (c) and (d), the state shall
pay to each county, from the General Fund and any federal funds
received under Title XX of the federal Social Security Act available
for that purpose, 65 percent of the cost of providing services under
this article, and each county shall pay 35 percent of the cost of
providing those services.

(c) For services eligible for federal funding pursuant to Title
XIX of the federal Social Security Act under the Medi-Cal program
and, except as provided in subdivisions (b) and (d) the state shall
pay to each county, from the General Fund and any funds available
for that purpose 65 percent of the nonfederal cost of providing
services under this article, and each county shall pay 35 percent
of the nonfederal cost of providing those services.

(d) (1) For the period of July 1, 1992, to June 30, 1994,
inclusive, the state’s share of the cost of providing services under
this article shall be limited to the amount appropriated for that
purpose in the annual Budget Act.

(2) The department shall restore the funding reductions required
by subdivision (c) of Section 12301, fully or in part, as soon as
administratively practicable, if the amount appropriated from the
General Fund for the 1992-93 fiscal year under this article is
projected to exceed the sum of the General Fund expenditures
under Section 14132.95 and the actual General Fund expenditures
under this article for the 1992-93 fiscal year. The entire amount
of the excess shall be applied to the restoration. Services shall not
be restored under this paragraph until the Department of Finance
has determined that the restoration of services would result in no
additional costs to the state or to the counties relative to the
combined state appropriation and county matching funds for
in-home supportive services under this article in the 1992-93 fiscal
year.

(e) This section shall be operative only if Section 8 of the act
that added this subdivision becomes inoperative pursuant to
subdivision (f) of that Section 8.

end delete

begin insert

begin insert SEC. 18. end insert   

end insert

begin insert Section 12306.1 of the end insert begin insert Welfare and Institutions Code end insert begin insert ,
as amended by Section 10 of Chapter 37 of the Statutes of 2013,
is amended to read: end insert

12306.1.  

(a) When any increase in provider wages or benefits
is negotiated or agreed to by a public authority or nonprofit
consortium under Section 12301.6, then the county shall use
county-only funds to fund both the county share and the state share,
including employment taxes, of any increase in the cost of the
program, unless otherwise provided for in the annual Budget Act
or appropriated by statute. No increase in wages or benefits
negotiated or agreed to pursuant to this section shall take effect
unless and until, prior to its implementation, the department has
obtained the approval of the State Department of Health Care
Services for the increase pursuant to a determination that it is
consistent with federal law and to ensure federal financial
participation for the services under Title XIX of the federal Social
Security Act, and unless and until all of the following conditions
have been met:

(1) Each county has provided the department with
documentation of the approval of the county board of supervisors
of the proposed public authority or nonprofit consortium rate,
including wages and related expenditures. The documentation shall
be received by the department before the department and the State
Department of Health Care Services may approve the increase.

(2) Each county has met department guidelines and regulatory
requirements as a condition of receiving state participation in the
rate.

(b) Any rate approved pursuant to subdivision (a) shall take
effect commencing on the first day of the month subsequent to the
month in which final approval is received from the department.
The department may grant approval on a conditional basis, subject
to the availability of funding.

(c) The state shall pay 65 percent, and each county shall pay 35
percent, of the nonfederal share of wage and benefit increases
negotiated by a public authority or nonprofit consortium pursuant
to Section 12301.6 and associated employment taxes, only in
accordance with subdivisions (d) to (f), inclusive.

(d) (1) The state shall participate as provided in subdivision (c)
in wages up to seven dollars and fifty cents ($7.50) per hour and
individual health benefits up to sixty cents ($0.60) per hour for all
public authority or nonprofit consortium providers. This paragraph
shall be operative for the 2000-01 fiscal year and each year
thereafter unless otherwise provided in paragraphs (2), (3), (4),
and (5), and without regard to when the wage and benefit increase
becomes effective.

(2) The state shall participate as provided in subdivision (c) in
a total of wages and individual health benefits up to nine dollars
and ten cents ($9.10) per hour, if wages have reached at least seven
dollars and fifty cents ($7.50) per hour. Counties shall determine,
pursuant to the collective bargaining process provided for in
subdivision (c) of Section 12301.6, what portion of the nine dollars
and ten cents ($9.10) per hour shall be used to fund wage increases
above seven dollars and fifty cents ($7.50) per hour or individual
health benefit increases, or both. This paragraph shall be operative
for the 2001-02 fiscal year and each fiscal year thereafter, unless
otherwise provided in paragraphs (3), (4), and (5).

(3) The state shall participate as provided in subdivision (c) in
a total of wages and individual health benefits up to ten dollars
and ten cents ($10.10) per hour, if wages have reached at least
seven dollars and fifty cents ($7.50) per hour. Counties shall
determine, pursuant to the collective bargaining process provided
for in subdivision (c) of Section 12301.6, what portion of the ten
dollars and ten cents ($10.10) per hour shall be used to fund wage
increases above seven dollars and fifty cents ($7.50) per hour or
individual health benefit increases, or both. This paragraph shall
be operative commencing with the next state fiscal year for which
the May Revision forecast of General Fund revenue, excluding
transfers, exceeds by at least 5 percent, the most current estimate
of revenue, excluding transfers, for the year in which paragraph
(2) became operative.

(4) The state shall participate as provided in subdivision (c) in
a total of wages and individual health benefits up to eleven dollars
and ten cents ($11.10) per hour, if wages have reached at least
seven dollars and fifty cents ($7.50) per hour. Counties shall
determine, pursuant to the collective bargaining process provided
for in subdivision (c) of Section 12301.6, what portion of the eleven
dollars and ten cents ($11.10) per hour shall be used to fund wage
increases or individual health benefits, or both. This paragraph
shall be operative commencing with the next state fiscal year for
which the May Revision forecast of General Fund revenue,
excluding transfers, exceeds by at least 5 percent, the most current
estimate of revenues, excluding transfers, for the year in which
paragraph (3) became operative.

(5) The state shall participate as provided in subdivision (c) in
a total cost of wages and individual health benefits up to twelve
dollars and ten cents ($12.10) per hour, if wages have reached at
least seven dollars and fifty cents ($7.50) per hour. Counties shall
determine, pursuant to the collective bargaining process provided
for in subdivision (c) of Section 12301.6, what portion of the
twelve dollars and ten cents ($12.10) per hour shall be used to fund
wage increases above seven dollars and fifty cents ($7.50) per hour
or individual health benefit increases, or both. This paragraph shall
be operative commencing with the next state fiscal year for which
the May Revision forecast of General Fund revenue, excluding
transfers, exceeds by at least 5 percent, the most current estimate
of revenues, excluding transfers, for the year in which paragraph
(4) became operative.

(e) (1) On or before May 14 immediately prior to the fiscal
year for which state participation is provided under paragraphs (2)
to (5), inclusive, of subdivision (d), the Director of Finance shall
certify to the Governor, the appropriate committees of the
Legislature, and the department that the condition for each
subdivision to become operative has been met.

(2) For purposes of certifications under paragraph (1), the
General Fund revenue forecast, excluding transfers, that is used
for the relevant fiscal year shall be calculated in a manner that is
consistent with the definition of General Fund revenues, excluding
transfers, that was used by the Department of Finance in the
2000-01 Governor’s Budget revenue forecast as reflected on
Schedule 8 of the Governor’s Budget.

(f) Any increase in overall state participation in wage and benefit
increases under paragraphs (2) to (5), inclusive, of subdivision (d),
shall be limited to a wage and benefit increase of one dollar ($1)
per hour with respect to any fiscal year. With respect to actual
changes in specific wages and health benefits negotiated through
the collective bargaining process, the state shall participate in the
costs, as approved in subdivision (c), up to the maximum levels
as provided under paragraphs (2) to (5), inclusive, of subdivision
(d).

(g) For the period during which Section 12306.15 is operative,
each county’s share of the costs of negotiated wage and benefit
increases specified in subdivision (c) shall remain, but the County
IHSS Maintenance of Effort pursuant to Section 12306.15 shall
be in lieu of that share.

begin delete

(h) This section shall be inoperative if the Coordinated Care
Initiative becomes inoperative pursuant to Section 34 of the act
that added this subdivision.

end delete

begin insert

begin insert SEC. 19. end insert   

end insert

begin insert Section 12306.1 of the end insert begin insert Welfare and Institutions Code end insert begin insert ,
as amended by Section 11 of Chapter 37 of the Statutes of 2013,
is repealed. end insert

begin delete

12306.1.  

(a) When any increase in provider wages or benefits
is negotiated or agreed to by a public authority or nonprofit
consortium under Section 12301.6, then the county shall use
county-only funds to fund both the county share and the state share,
including employment taxes, of any increase in the cost of the
program, unless otherwise provided for in the annual Budget Act
or appropriated by statute. No increase in wages or benefits
negotiated or agreed to pursuant to this section shall take effect
unless and until, prior to its implementation, the department has
obtained the approval of the State Department of Health Care
Services for the increase pursuant to a determination that it is
consistent with federal law and to ensure federal financial
participation for the services under Title XIX of the federal Social
Security Act, and unless and until all of the following conditions
have been met:

(1) Each county has provided the department with
documentation of the approval of the county board of supervisors
of the proposed public authority or nonprofit consortium rate,
including wages and related expenditures. The documentation shall
be received by the department before the department and the State
Department of Health Care Services may approve the increase.

(2) Each county has met department guidelines and regulatory
requirements as a condition of receiving state participation in the
rate.

(b) Any rate approved pursuant to subdivision (a) shall take
effect commencing on the first day of the month subsequent to the
month in which final approval is received from the department.
The department may grant approval on a conditional basis, subject
to the availability of funding.

(c) The state shall pay 65 percent, and each county shall pay 35
percent, of the nonfederal share of wage and benefit increases
negotiated by a public authority or nonprofit consortium pursuant
to Section 12301.6 and associated employment taxes, only in
accordance with subdivisions (d) to (f), inclusive.

(d) (1) The state shall participate as provided in subdivision (c)
in wages up to seven dollars and fifty cents ($7.50) per hour and
individual health benefits up to sixty cents ($0.60) per hour for all
public authority or nonprofit consortium providers. This paragraph
shall be operative for the 2000-01 fiscal year and each year
thereafter unless otherwise provided in paragraphs (2), (3), (4),
and (5), and without regard to when the wage and benefit increase
becomes effective.

(2) The state shall participate as provided in subdivision (c) in
a total of wages and individual health benefits up to nine dollars
and ten cents ($9.10) per hour, if wages have reached at least seven
dollars and fifty cents ($7.50) per hour. Counties shall determine,
pursuant to the collective bargaining process provided for in
subdivision (c) of Section 12301.6, what portion of the nine dollars
and ten cents ($9.10) per hour shall be used to fund wage increases
above seven dollars and fifty cents ($7.50) per hour or individual
health benefit increases, or both. This paragraph shall be operative
for the 2001-02 fiscal year and each fiscal year thereafter, unless
otherwise provided in paragraphs (3), (4), and (5).

(3) The state shall participate as provided in subdivision (c) in
a total of wages and individual health benefits up to ten dollars
and ten cents ($10.10) per hour, if wages have reached at least
seven dollars and fifty cents ($7.50) per hour. Counties shall
determine, pursuant to the collective bargaining process provided
for in subdivision (c) of Section 12301.6, what portion of the ten
dollars and ten cents ($10.10) per hour shall be used to fund wage
increases above seven dollars and fifty cents ($7.50) per hour or
individual health benefit increases, or both. This paragraph shall
be operative commencing with the next state fiscal year for which
the May Revision forecast of General Fund revenue, excluding
transfers, exceeds by at least 5 percent, the most current estimate
of revenue, excluding transfers, for the year in which paragraph
(2) became operative.

(4) The state shall participate as provided in subdivision (c) in
a total of wages and individual health benefits up to eleven dollars
and ten cents ($11.10) per hour, if wages have reached at least
seven dollars and fifty cents ($7.50) per hour. Counties shall
determine, pursuant to the collective bargaining process provided
for in subdivision (c) of Section 12301.6, what portion of the eleven
dollars and ten cents ($11.10) per hour shall be used to fund wage
increases or individual health benefits, or both. This paragraph
shall be operative commencing with the next state fiscal year for
which the May Revision forecast of General Fund revenue,
excluding transfers, exceeds by at least 5 percent, the most current
estimate of revenues, excluding transfers, for the year in which
paragraph (3) became operative.

(5) The state shall participate as provided in subdivision (c) in
a total cost of wages and individual health benefits up to twelve
dollars and ten cents ($12.10) per hour, if wages have reached at
least seven dollars and fifty cents ($7.50) per hour. Counties shall
determine, pursuant to the collective bargaining process provided
for in subdivision (c) of Section 12301.6, what portion of the
twelve dollars and ten cents ($12.10) per hour shall be used to fund
wage increases above seven dollars and fifty cents ($7.50) per hour
or individual health benefit increases, or both. This paragraph shall
be operative commencing with the next state fiscal year for which
the May Revision forecast of General Fund revenue, excluding
transfers, exceeds by at least 5 percent, the most current estimate
of revenues, excluding transfers, for the year in which paragraph
(4) became operative.

(e) (1) On or before May 14 immediately prior to the fiscal
year for which state participation is provided under paragraphs (2)
to (5), inclusive, of subdivision (d), the Director of Finance shall
certify to the Governor, the appropriate committees of the
Legislature, and the department that the condition for each
subdivision to become operative has been met.

(2) For purposes of certifications under paragraph (1), the
General Fund revenue forecast, excluding transfers, that is used
for the relevant fiscal year shall be calculated in a manner that is
consistent with the definition of General Fund revenues, excluding
transfers, that was used by the Department of Finance in the
2000-01 Governor’s Budget revenue forecast as reflected on
Schedule 8 of the Governor’s Budget.

(f) Any increase in overall state participation in wage and benefit
increases under paragraphs (2) to (5), inclusive, of subdivision (d),
shall be limited to a wage and benefit increase of one dollar ($1)
per hour with respect to any fiscal year. With respect to actual
changes in specific wages and health benefits negotiated through
the collective bargaining process, the state shall participate in the
costs, as approved in subdivision (c), up to the maximum levels
as provided under paragraphs (2) to (5), inclusive, of subdivision
(d).

(g) This section shall be operative only if Section 10 of the act
that added this subdivision becomes inoperative pursuant to
subdivision (h) of that Section 10.

end delete

begin insert

begin insert SEC. 20. end insert   

end insert

begin insert Section 14186.35 of the end insert begin insert Welfare and Institutions Code end insert
begin insert is amended to read: end insert

14186.35.  

(a) Not sooner than March 1, 2013, in-home
supportive services (IHSS) shall be a Medi-Cal benefit available
through managed care health plans in a county where this article
is effective. Managed care health plans shall cover IHSS in
accordance with the standards and requirements set forth in Article
7 (commencing with Section 12300) of Chapter 3. Specifically,
managed care health plans shall do all of the following:

(1) Ensure access to, provision of, and payment for IHSS for
individuals who meet the eligibility criteria for IHSS.

(2) Ensure recipients retain the right to be the employer, to
select, engage, direct, supervise, schedule, and terminate IHSS
providers in accordance with Section 12301.6.

(3) Assume all financial liability for payment of IHSS services
for recipients receiving said services pursuant to managed care.

(4) Create a care coordination team, as needed, unless the
consumer objects. If the consumer is an IHSS recipient, his or her
participation and the participation of his or her provider shall be
at the recipient’s option. The care coordination team shall include
the consumer, his or her authorized representative, managed care
health plan, county social services agency, Community Based
Adult Services (CBAS) case manager for CBAS clients,
Multipurpose Senior Services Program (MSSP) case manager for
MSSP clients, and may include others as identified by the
consumer.

(5) Maintain the paramedical role and function of providers as
authorized pursuant to Sections 12300 and 12301.

(6) Ensure compliance with all requirements set forth in Section
14132.956 and any resulting state plan amendments.

(7) Adhere to quality assurance provisions and individual data
and other standards and requirements as specified by the State
Department of Social Services including state and federal quality
assurance requirements.

(8) Share confidential beneficiary data with the contractors
specified in this section to improve care coordination, promote
shared understanding of the consumer’s needs, and ensure
appropriate access to IHSS and other long-term services and
supports.

(9) (A) Enter into a memorandum of understanding with a
county agency and the county’s public authority or nonprofit
consortium pursuant to Section 12301.6 to continue to perform
their respective functions and responsibilities pursuant to the
existing ordinance or contract until the begin delete Director of Health Care
Services provides notification pursuant to end delete begin insert implementation date set
forth in end insert subdivision (a) of Section begin delete 12300.7 for that county end delete begin insert 12300.7 end insert .

(B) Following the begin delete notification pursuant to end delete begin insert implementation date
set forth in end insert subdivision (a) of Section 12300.7, enter into a
memorandum of understanding with the county agencies to perform
the following activities:

(i) Assess, approve, and authorize each recipient’s initial and
continuing need for services pursuant to Article 7 (commencing
with Section 12300) of Chapter 3. County agency assessments
shall be shared with the care coordination teams established under
paragraph (4), when applicable, and the county agency thereafter
may receive and consider additional input from the care
coordination team.

(ii) Plans may contract with counties for additional assessments
for purposes of paragraph (6) of subdivision (b) of Section 14186.

(iii) Enroll providers, conduct provider orientation, and retain
enrollment documentation pursuant to Sections 12301.24 and
12305.81.

(iv) Conduct criminal background checks on all potential
providers and exclude providers consistent with the provisions set
forth in Sections 12305.81, 12305.86, and 12305.87.

(v) Provide assistance to IHSS recipients in finding eligible
providers through the establishment of a provider registry as well
as provide training for providers and recipients as set forth in
Section 12301.6.

(vi) Refer all providers to the California In-Home Supportive
Services Authority or nonprofit consortium for the purposes of
wages, benefits, and other terms and conditions of employment in
accordance with subdivision (a) of Section 12300.7 and Title 23
(commencing with Section 110000) of the Government Code.

(vii) Pursue overpayment recovery pursuant to Section 12305.83.

(viii) Perform quality assurance activities including routine case
reviews, home visits, and detecting and reporting suspected fraud
pursuant to Section 12305.71.

(ix) Share confidential data necessary to implement the
provisions of this section.

(x) Appoint an advisory committee of not more than 11 people,
and no less than 50 percent of the membership of the advisory
committee shall be individuals who are current or past users of
personal assistance paid for through public or private funds or
recipients of IHSS services.

(xi) Continue to perform other functions necessary for the
administration of the IHSS program pursuant to Article 7
(commencing with Section 12300) of Chapter 3 and regulations
promulgated by the State Department of Social Services pursuant
to that article.

(C) A county may contract with an entity or may establish a
public authority pursuant to Section 12301.6 for the performance
of any or all of the activities set forth in a contract with a managed
care health plan pursuant to this section.

(10) Enter into a contract with the State Department of Social
Services to perform the following activities:

(A) Pay wages and benefits to IHSS providers in accordance
with the wages and benefits negotiated pursuant to Title 23
(commencing with Section 110000) of the Government Code.

(B) Perform obligations on behalf of the IHSS recipient as the
employer of his or her provider, including unemployment
compensation, disability benefits, applicable federal and state
taxes, and federal old age survivor’s and disability insurance
through the state’s payroll system for IHSS in accordance with
Sections 12302.2 and 12317.

(C) Provide technical assistance and support for all
payroll-related activities involving the state’s payroll system for
IHSS, including, but not limited to, the monthly restaurant
allowance as set forth in Section 12303.7, the monthly cash
payment in advance as set forth in Section 12304, and the direct
deposit program as set forth in Section 12304.4.

(D) Share recipient and provider data with managed care health
plans for members who are receiving IHSS to support care
coordination.

(E) Provide an option for managed care health plans to
participate in quality monitoring activities conducted by the State
Department of Social Services pursuant to subdivision (f) of
Section 12305.7 for recipients who are plan members.

(11) In concert with the department, timely reimburse the state
for payroll and other obligations of the beneficiary as the employer,
including unemployment compensation, disability benefits,
applicable federal and state taxes, and federal old age survivors
and disability insurance benefits through the state’s payroll system.

(12) In a county where services are provided in the homemaker
mode, enter into a contract with the county to implement the
provision of services pursuant to the homemaker mode as set forth
in Section 12302.

(13) Retain the IHSS individual provider mode as a choice
available to beneficiaries in all participating managed care health
plans in each county.

(14) In a county where services are provided pursuant to a
contract, and as needed, enter into a contract with a city, county,
or city and county agency, a local health district, a voluntary
nonprofit agency, or a proprietary agency as set forth in Section
12302 and in accordance with Section 12302.6.

(15) Assume the financial risk associated with the cost of payroll
and associated activities set forth in paragraph (10).

(b) IHSS recipients receiving services through managed care
health plans shall retain all of the following:

(1) The responsibilities as the employer of the IHSS provider
for the purposes of hiring, firing, and supervising their provider
of choice as set forth in Section 12301.6.

(2) The ability to appeal any action relating to his or her
application for or receipt of services pursuant to Article 7
(commencing with Section 12300) of Chapter 3.

(3) The right to employ a provider applicant who has been
convicted of an offense specified in Section 12305.87 by submitting
a waiver of the exclusion.

(4) The ability to request a reassessment pursuant to Section
12301.1.

(c) The department and the State Department of Social Services,
along with the counties, managed care health plans, consumers,
advocates, and other stakeholders, shall develop a referral process
and informational materials for the appeals process that is
applicable to home- and community-based services plan benefits
authorized by a managed care health plan. The process established
by this paragraph shall ensure ease of access for consumers.

(d) For services provided through managed care health plans,
the IHSS provider shall continue to adhere to the requirements set
forth in subdivision (b) of Section 12301.24, subdivision (a) of
Section 12301.25, subdivision (a) of Section 12305.81, and
subdivision (a) of Section 12306.5.

(e) In accordance with Section 14186.2, as the provision of
IHSS transitions to managed care health plans in a phased-in
approach, the State Department of Social Services shall do all of
the following:

(1) Retain program administration functions, in coordination
with the department, including policy development, provider
appeals and general exceptions, and quality assurance and program
integrity for the IHSS program in accordance with Article 7
(commencing with Section 12300) of Chapter 3.

(2) Perform the obligations on behalf of the recipient as
employer relating to workers’ compensation as set forth in Section
12302.2 and Section 12302.21 for those entities that have entered
into a contract with a managed care health plan pursuant to Section
12302.6.

(3) Retain responsibilities related to the hearing process for
IHSS recipient appeals as set forth in Chapter 7 (commencing with
Section 10950) of Part 2.

(4) Continue to have access to and provide confidential recipient
data necessary for the administration of the program.

(f) A managed care health plan shall not be deemed be the
employer of an individual in-home supportive services provider
referred to recipients under this section for purposes of liability
due to the negligence or intentional torts of the individual provider.

begin insert

begin insert SEC. 21. end insert   

end insert

begin insert Section 34 of Chapter 37 of the Statutes of 2013 is
amended to read: end insert

Sec. 34.  

(a) At least 30 days prior to enrollment of beneficiaries
into the Coordinated Care Initiative, the Director of Finance shall
estimate the amount of net General Fund savings obtained from
the implementation of the Coordinated Care Initiative. This
estimate shall take into account any net savings to the General
Fund achieved through the tax imposed pursuant to Article 5
(commencing with Section 6174) of Chapter 2 of Part 1 of Division
2 of the Revenue and Taxation Code Article 5 (commencing with
Section 6174).

(b) (1) By January 10 for each fiscal year after implementation
of the Coordinated Care Initiative, for as long as the Coordinated
Care Initiative remains operative, the Director of Finance shall
estimate the amount of net General Fund savings obtained from
the implementation of the Coordinated Care Initiative.

(2) Savings shall be determined under this subdivision by
comparing the estimated costs of the Coordinated Care Initiative,
as approved by the federal government, and the estimated costs of
the program if the Coordinated Care Initiative were not operative.
The determination shall also include any net savings to the General
Fund achieved through the tax imposed pursuant to Article 5
(commencing with Section 6174) of Chapter 2 of Part 1 of Division
2 of the Revenue and Taxation Code.

(3) The estimates prepared by the Director of Finance, in
consultation with the Director of Health Care Services, shall be
provided to the Legislature.

(c) (1) Notwithstanding any other law, if, at least 30 days prior
to enrollment of beneficiaries into the Coordinated Care Initiative,
the Director of Finance estimates pursuant to subdivision (a) that
the Coordinated Care Initiative will not generate net General Fund
savings, then the activities to implement the Coordinated Care
Initiative shall be suspended immediately and the Coordinated
Care Initiative shall become inoperative July 1, 2014.

(2) If the Coordinated Care Initiative becomes inoperative
pursuant to this subdivision, the Director of Health Care Services
shall provide any necessary notifications to any affected entities.

(3) For purposes of this subdivision and subdivision (d) only,
“Coordinated Care Initiative” means all of the following statutes
and any amendments to the following:

(A) Sections 14132.275, 14183.6, and 14301.1 of the Welfare
and Institutions Code, as amended by begin delete this act end delete begin insert Chapter 37 of the
Statutes of 2013 end insert .

(B) Sections 14132.276, 14132.277, 14182.16, 14182.17,
14182.18, and 14301.2 of the Welfare and Institutions Code.

(C) Article 5.7 (commencing with Section 14186) of Chapter
7 of Part 3 of Division 9 of the Welfare and Institutions Code.

begin delete

(D) Title 23 (commencing with Section 110000) of the
Government Code.

end delete begin delete

(E) Section 6531.5 of the Government Code.

end delete begin delete

(F) Section 6253.2 of the Government Code, as amended by
this act.

end delete begin delete

(G)

end delete

begin insert (D) end insert  Sections begin delete 12300.5, 12300.6, 12300.7, end delete 12302.6, begin delete 12306.15, end delete
12330, 14186.35, and 14186.36 of the Welfare and Institutions
Code.

begin delete

(H) Sections 10101.1, 12306, and 12306.1 of the Welfare and
Institutions Code, as amended by this act.

end delete begin delete

(I)

end delete

begin insert ( end insert begin insert E) end insert  The amendments made to begin delete Sections end delete begin insert Section end insert 12302.21 begin delete and
12302.25 end delete of the Welfare and Institutions Code, as made by Chapter
439 of the Statutes of 2012.

(d) (1) Notwithstanding any other law, and beginning in 2015,
if the Director of Finance estimates pursuant to subdivision (b)
that the Coordinated Care Initiative will not generate net General
Fund savings, the Coordinated Care Initiative shall become
inoperative January 1 of the following calendar begin delete year, except as
follows: end delete begin insert year. end insert

begin delete

(A) Section 12306.15 of the Welfare and Institutions Code shall
become inoperative as of July 1 of that same calendar year.

(B) For any agreement that has been negotiated and approved
by the Statewide Authority, the Statewide Authority shall continue
to retain its authority pursuant to Section 6531.5 and Title 23
(commencing with Section 110000) of the Government Code and
Sections 12300.5, 12300.6, 12300.7, and 12302.6 of the Welfare
and Institutions Code, and shall remain the employer of record for
all individual providers covered by the agreement until the
agreement expires or is subject to renegotiation, whereby the
authority of the Statewide Authority shall terminate and the county
shall be the employer of record in accordance with Section
12302.25 of the Welfare and Institutions Code and may establish
an employer of record pursuant to Section 12301.6 of the Welfare
and Institutions Code.

(C) For an agreement that has been assumed by the Statewide
Authority that was negotiated and approved by a predecessor
agency, the Statewide Authority shall cease being the employer
of record and the county shall be reestablished as the employer of
record for purposes of bargaining and in accordance with Section
12302.25 of the Welfare and Institutions Code, and may establish
an employer of record pursuant to Section 12301.6 of the Welfare
and Institutions Code.

(2) If the Coordinated Care Initiative becomes inoperative
pursuant to this subdivision, the Director of Health Care Services
shall provide any necessary notifications to any affected entities.

end delete

begin delete

SECTION 1.  

The Legislature finds and declares that the
purpose of this act is to approve an agreement pursuant to Section
3517.5 of the Government Code entered into by the state employer
and State Bargaining Unit 16.

end delete

begin delete

SEC. 2.  

The provisions of the memorandum of understanding
prepared pursuant to Section 3517.5 of the Government Code and
entered into by the state employer and State Bargaining Unit 16
that require the expenditure of funds are hereby approved for the
purposes of subdivision (b) of Section 3517.6 of the Government
Code.

end delete

begin delete

SEC. 3.  

The provisions of the memorandum of understanding
approved by Section 2 of this act that require the expenditure of
funds shall not take effect unless funds for these provisions are
specifically appropriated by the Legislature. If funds for these
provisions are not specifically appropriated by the Legislature, the
state employer and the affected employee organization shall meet
and confer to renegotiate the affected provisions.

end delete

begin delete

SEC. 4.  

Notwithstanding Section 3517.6 of the Government
Code, the provisions of the memorandum of understanding
included in Section 2 that require the expenditure of funds shall
become effective even if the provisions of the memorandum of
understanding are approved by the Legislature in legislation other
than the annual Budget Act.

end delete