Amended in Senate May 7, 2013

Senate BillNo. 67


Introduced by Committee on Budget and Fiscal Review

January 10, 2013


An actbegin delete relating to the Budget Act of 2013end deletebegin insert to amend Sections 12306.1 and 12309 of, to add Sections 12301.01, 12301.02, 12301.03, 12301.04, and 12301.05 to, and to repeal Sections 12301.07 and 12309.2 of, the Welfare and Institutions Code, relating to public social services, and making an appropriation therefor, to take effect immediately, bill related to the budgetend insert.

LEGISLATIVE COUNSEL’S DIGEST

SB 67, as amended, Committee on Budget and Fiscal Review. begin deleteBudget Act of 2013. end deletebegin insertIn-home supportive services.end insert

begin insert

Existing law provides for the county-administered In-Home Supportive Services (IHSS) program, under which qualified aged, blind, and disabled persons are provided with services to permit them to remain in their own homes and avoid institutionalization. Existing law requires the State Department of Social Services to implement, under specified circumstances, a 20% reduction in authorized hours of service to each IHSS recipient, beginning January 1, 2012, except as specified.

end insert
begin insert

This bill would delete those provisions.

end insert
begin insert

Existing law requires the department, until July 1, 2013, to implement a 3.6% reduction in authorized hours of service to each IHSS recipient, as specified.

end insert
begin insert

This bill would require the department, from July 1, 2013, to June 30, 2014, inclusive, to implement an 8% reduction in authorized hours of service to each IHSS recipient, as specified. The bill would authorize a county to administratively deny a request for reassessment based only on that reduction. The bill would require a specified notice to be mailed to the recipient at least 10 days before the reduction goes into effect. The bill would also require the department, beginning July 1, 2014, to implement a 7% reduction in authorized hours of service to each IHSS recipient, as specified. The bill would require a specified notice to be mailed to the recipient at least 20 days before the reduction goes into effect.

end insert
begin insert

This bill would state the intent of the Legislature to authorize an assessment on home care services, including, but not limited to, home health care and in-home supportive services. This bill would require the Director of Finance, within 30 days after receipt of specified certification from the State Department of Health Care Services, to, among other things, estimate the total amount of additional funding that would be derived from that assessment for the next fiscal year and calculate, as a percentage, the amount by which the 7% reduction in authorized hours of service for each IHSS recipient is offset by General Fund savings from that assessment. The bill would require the department to perform these activities for the fiscal year that the certification is received and the following fiscal year, and on or before May 14, prior to the 3rd fiscal year after the certification is received. The bill would require the 7% reduction in authorized hours of services to be mitigated by the percentage offset determined by the Director of Finance, as specified. The bill would provide for these provisions to become operative only upon certification by the State Department of Health Care Services that any necessary federal approvals have been obtained.

end insert
begin insert

This bill would create the In-Home Supportive Services Reinvestment Fund to receive moneys to the extent that the assessment is implemented retroactively, and use those moneys to provide goods or services for one-time direct reinvestments benefiting IHSS recipients, as prescribed. The bill would require the Director of Finance to consult with specified plaintiffs to develop a plan to reinvest those funds, and require that plan to be submitted to the appropriate policy and fiscal committees of the Legislature. The bill would require the Director of Finance to provide specified notice to the Joint Legislative Budget Committee at least 30 days prior to allocating any of those funds, as prescribed. The bill would, subject to specified conditions, continuously appropriate the moneys in the fund to the department for these purposes.

end insert
begin insert

Existing law authorizes a county board of supervisors to elect to contract with a nonprofit consortium to provide for the delivery of IHSS or to establish a public authority to provide for the delivery of IHSS. Under existing law, the state is required to pay 65%, and the county 35%, of the nonfederal share of wage and benefit increases negotiated by a public authority or nonprofit consortium, as specified. Existing law, operative July 1, 2009, requires the state to participate in those wage and benefit increases in a total cost of wages up to $9.50 per hour and in individual health benefits up to $0.60 per hour. Existing law provides that those provisions establishing those rates of participation shall not be implemented until July 1, 2012, and shall only be implemented if specified conditions are met.

end insert
begin insert

This bill would delete those latter provisions.

end insert
begin insert

Under existing law, the department is required to develop a uniform needs assessment tool to assure that IHSS are delivered in all counties in a uniform manner. Existing law requires the uniform needs assessment tool to evaluate the recipient’s functioning in activities of daily living and instrumental activities of daily living and quantifies the recipient’s functioning ranks using a general 5-point scale for ranking each function, as specified. Under existing law, beginning September 1, 2009, only individuals who are ranked at a 4 or 5 in the activity of daily living relating to a domestic or related service are eligible for that service, except as specified.

end insert
begin insert

This bill would delete those latter provisions.

end insert
begin insert

Under existing law, beginning September 1, 2009, eligibility for IHSS shall also include functional index scores, which are assigned to a recipient as a weighted average based on his or her individual functional index rankings. Existing law, except as specified, provides that individuals with certain functional index scores are not eligible for IHSS.

end insert
begin insert

This bill would delete those provisions.

end insert
begin insert

The bill would appropriate $1,000 from the General Fund to the State Department of Social Services for its administrative costs during the 2013-14 fiscal year. The bill would require the State Department of Social Services and the State Department of Health Care Services to adopt emergency regulations to implement the bill’s provisions, as specified.

end insert
begin insert

This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.

end insert
begin delete

This bill would express the intent of the Legislature to enact statutory changes relating to the Budget Act of 2013.

end delete

Vote: majority. Appropriation: begin deleteno end deletebegin insertyesend insert. Fiscal committee: begin deleteno end deletebegin insertyesend insert. State-mandated local program: no.

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

P4    1begin insert

begin insertSECTION 1.end insert  

end insert

begin insertSection 12301.01 is added to the end insertbegin insertWelfare and
2Institutions Code
end insert
begin insert, to read:end insert

begin insert
3

begin insert12301.01.end insert  

(a) (1) Notwithstanding any other law, except as
4provided in subdivision (d), the department shall implement an 8
5percent reduction in hours of service to each recipient of services
6under this article, which shall be applied to the recipient’s hours
7as authorized pursuant to the most recent assessment. This
8reduction shall become effective July 1, 2013. This reduction shall
9be effective for 12 months. The reduction required by this section
10shall not preclude any reassessment to which a recipient would
11otherwise be entitled. However, hours authorized pursuant to a
12reassessment shall be subject to the 8 percent reduction required
13by this section.

14(2) A request for reassessment based only on the reduction
15required in paragraph (1) may be administratively denied by the
16county.

17(3) A recipient of services under this article may direct the
18manner in which the reduction of hours is applied to the recipient’s
19previously authorized services.

20(4) For those individuals who have a documented unmet need,
21excluding protective supervision because of the limitations on
22authorized hours under Section 12303.4, the reduction shall be
23taken first from the documented unmet need.

24(b) The reduction in hours of service pursuant to paragraph (1)
25of subdivision (a) shall cease to be implemented 12 months after
26the reduction takes effect.

27(c) The notice of action informing the recipient of the reduction
28pursuant to subdivision (a) shall be mailed at least 10 days prior
29to the reduction going into effect. The notice of action shall be
30understandable to the recipient and translated into all languages
31spoken by a substantial number of the public served by the In-Home
32Supportive Services program, in accordance with Section 7295.2
33of the Government Code. The notice shall not contain any recipient
34financial or confidential identifying information other than the
35recipient’s name, address, and Case Management Information
P5    1and Payroll System (CMIPS) client identification number, and
2shall include, but not be limited to, all of the following information:

3(1) The aggregate number of authorized hours before the
4reduction pursuant to subdivision (a) and the aggregate number
5of authorized hours after the reduction.

6(2) That the recipient may direct the manner in which the
7reduction of authorized hours is applied to the recipient’s
8previously authorized services.

9(3) That a county shall assess a recipient’s need for supportive
10services any time that the recipient notifies the county of a need
11to adjust the supportive services hours authorized, or when there
12are other indications or expectations of a change in circumstances
13affecting the recipient’s need for supportive services. Counties
14shall not require recipients to submit a medical certification form
15or a doctor’s note to show evidence of a change in the recipient’s
16circumstances.

17(d) A recipient shall have all appeal rights otherwise provided
18for under Chapter 7 (commencing with Section 10950) of Part 2.

end insert
19begin insert

begin insertSEC. 2.end insert  

end insert

begin insertSection 12301.02 is added to the end insertbegin insertWelfare and
20Institutions Code
end insert
begin insert, to read:end insert

begin insert
21

begin insert12301.02.end insert  

(a) (1) Notwithstanding any other law, except as
22provided in subdivision (c), the department shall implement a 7
23percent reduction in hours of service to each recipient of services
24under this article, which shall be applied to the recipient’s hours
25as authorized pursuant to the most recent assessment. This
26reduction shall become effective 12 months after the
27implementation of the reduction set forth in Section 12301.01. The
28reduction required by this section shall not preclude any
29reassessment to which a recipient would otherwise be entitled.
30However, hours authorized pursuant to a reassessment shall be
31subject to the 7 percent reduction required by this section.

32(2) A request for reassessment based only on the reduction
33required in paragraph (1) may be administratively denied by the
34county.

35(3) A recipient of services under this article may direct the
36manner in which the reduction of hours is applied to the recipient’s
37previously authorized services.

38(4) For those individuals who have a documented unmet need,
39excluding protective supervision because of the limitations on
P6    1authorized hours under Section 12303.4, the reduction shall be
2taken first from the documented unmet need.

3(b) The notice of action informing the recipient of the reduction
4pursuant to subdivision (a) shall be mailed at least 20 days prior
5to the reduction going into effect. The notice of action shall be
6understandable to the recipient and translated into all languages
7spoken by a substantial number of the public served by the In-Home
8Supportive Services program, in accordance with Section 7295.2
9of the Government Code. The notice shall not contain any recipient
10financial or confidential identifying information other than the
11recipient’s name, address, and Case Management Information
12and Payroll System (CMIPS) client identification number, and
13shall include, but not be limited to, all of the following information:

14(1) The aggregate number of authorized hours before the
15reduction pursuant to subdivision (a) and the aggregate number
16of authorized hours after the reduction.

17(2) That the recipient may direct the manner in which the
18reduction of authorized hours is applied to the recipient’s
19previously authorized services.

20(3) A county shall assess a recipient’s need for supportive
21services any time that the recipient notifies the county of a need
22to adjust the supportive services hours authorized, or when there
23are other indications or expectations of a change in circumstances
24affecting the recipient’s need for supportive services. Counties
25shall not require recipients to submit a medical certification form
26or a doctor’s note to show evidence of a change in the recipient’s
27circumstances.

28(c) A recipient shall have all appeal rights otherwise provided
29for under Chapter 7 (commencing with Section 10950) of Part 2.

30(d) The reduction specified in paragraph (1) of subdivision (a)
31shall be ongoing and may be adjusted pursuant to Section
3212301.03.

end insert
33begin insert

begin insertSEC. 3.end insert  

end insert

begin insertSection 12301.03 is added to the end insertbegin insertWelfare and
34Institutions Code
end insert
begin insert, to read:end insert

begin insert
35

begin insert12301.03.end insert  

(a) It is the intent of this section to offset the
36reductions described in Section 12301.02 to the extent that an
37assessment as described in Section 12301.05 provides General
38Fund savings. This section shall become operative only upon
39certification by the State Department of Health Care Services that
40any necessary federal approvals to implement the assessment
P7    1referenced in Section 12301.05 have been obtained. This
2certification shall be provided promptly to the Joint Legislative
3Budget Committee and the Department of Finance.

4(b) Within 30 days after receipt of the certification described
5in subdivision (a), the Director of Finance shall perform the
6obligations described in this subdivision for the fiscal year in which
7the certification is received and for the following fiscal year.
8Specifically, the Director of Finance shall do the following:

9(1) Estimate the total amount of additional funding, less refunds,
10that will be derived from the assessment for the next fiscal year.

11(2) Estimate the amount of the total revenues, if any, that are
12attributable to any permitted retroactive implementation of the
13assessment.

14(3) Estimate the amount of the total General Fund savings
15generated by the assessment revenues that remain after taking into
16account reductions such as the revenues attributable to any
17retroactive application of the assessment that will be allocated
18pursuant to Section 12301.04, and any General Fund costs
19associated with establishment and administration of the assessment.
20The General Fund costs shall be estimated following consultation
21with the appropriate budget subcommittees of the Legislature.

22(4) Calculate, as a percentage, the amount by which the
23reduction described in Section 12301.02 is offset by General Fund
24savings. In making this calculation, the Director of Finance shall
25estimate the amount of the reduction that may be partially or
26completely offset. If the estimated General Fund savings from the
27assessment are less than the amount required to fully offset the
28reduction pursuant to Section 12301.02, then the percentage offset
29shall be proportionate to the level of General Fund savings. At no
30point may the reduction pursuant to Section 12301.02 become
31negative or go below zero.

32(5) Notify the Joint Legislative Budget Committee of the
33determinations made in paragraphs (1) to (4), inclusive.

34(c) On or before May 14, prior to the third fiscal year after the
35certification described in subdivision (a) is received, the Director
36of Finance shall perform the activities described in paragraphs
37(1) to (5), inclusive, of subdivision (b).

38(d) Within 10 days of the effective date of any federal change
39or action that prevents or reduces the amount of General Fund
40savings received from the assessment, the Director of Health Care
P8    1Services shall provide a notification to the Joint Legislative Budget
2Committee and the Director of Finance of that change. Within 30
3days of the receipt of this notification, the Director of Finance
4shall perform the activities described in paragraphs (1) to (5),
5inclusive, of subdivision (b).

6(e) Notwithstanding any provision of Section 12301.02, the
7reduction of services required by Section 12301.02 shall be
8mitigated by the percentage offset determined by the Director of
9Finance in paragraph (4) of subdivision (b).

10(f) (1) Any change in the percentage reduction of services as
11provided in Section 12301.02 shall occur on the first day of the
12first full month occurring 30 days after the determination provided
13for in subdivision (b) is made by the Director of Finance.

14(2) Any change in the percentage reduction of services as
15provided in Section 12301.02 due to a determination of the
16Director of Finance required by subdivision (c) shall occur on
17July 1 of the fiscal year immediately following the determination.

18(3) If a change in the percentage reduction of services as
19provided in Section 12301.02 is triggered based on a determination
20of the Director of Finance required by subdivision (d), that change
21in hours of service shall occur on July 1 after the notification
22referenced in subdivision (d) from the Director of Health Care
23Services is received, if the notification is received between the
24preceding September 30 and January 2. If the notification is
25received on any other date, then a change in hours shall occur on
26the first of the month that is nine months after the notification is
27received.

28(g) In preparation of every Governor’s Budget and for every
29May Revision, the Director of Finance shall perform the obligation
30described in paragraphs (1) to (3), inclusive, of subdivision (b).

end insert
31begin insert

begin insertSEC. 4.end insert  

end insert

begin insertSection 12301.04 is added to the end insertbegin insertWelfare and
32Institutions Code
end insert
begin insert, to read:end insert

begin insert
33

begin insert12301.04.end insert  

(a) There is hereby created in the State Treasury
34an In-Home Supportive Services Reinvestment Fund, which shall
35receive moneys to the extent that an assessment described in
36Section 12301.05 is implemented retroactively.

37(b) The fund shall be used to provide goods or services for
38one-time direct reinvestments benefiting IHSS recipients.

39(c) The fund shall be used in a manner that does not create
40ongoing General Fund obligations.

P9    1(d) Pursuant to Section 12301.03, the Director of Finance shall
2estimate the amount of retroactive assessment due to the fund. In
3each fiscal year for which there are estimated retroactive revenues,
4the Director of Finance shall provide the Controller a schedule
5of what portion of the assessment shall be deposited in the fund.

6(e) The resources in the fund shall be reinvested for the benefit
7of IHSS recipients, in compliance with the requirements in this
8section and those in the settlement agreement pertaining to Oster
9v. Lightbourne, N.D. Cal., Case No. CV 09-04668 CW, U.S. Court
10of Appeals for the Ninth Circuit, Case No. 12-15366, and
11Dominguez v. Brown, N.D. Cal., Case No. CV 09-02306 CW, U.S.
12Court of Appeals for the Ninth Circuit, Case No. 09-16359.

13(f) The Director of Finance shall consult with plaintiffs in the
14lawsuits identified in subdivision (e) in order to develop a plan to
15reinvest the funds for the benefit of IHSS recipients. After the plan
16is developed and prior to the allocation of any funds, it shall be
17submitted to the appropriate policy and fiscal committees of the
18Legislature.

19(1) If notice of federal approval of retroactive implementation
20of the assessment is received by the Director of Finance between
21January 1 and May 10 of any year, and the plan anticipates any
22expenditure of the funds before June 30 of that year, the Director
23of Finance shall notify the Joint Legislative Budget Committee at
24least 30 days prior to allocating any of those funds, for a purpose
25authorized by this section, if the allocation is proposed to be used
26in the current fiscal year.

27(2) (A) If notice of federal approval of retroactive
28implementation of the assessment is received by the Director of
29Finance between January 1 and May 10 of any year, and the plan
30anticipates any expenditure of the funds after June 30 of that year,
31for a purpose authorized by this section, the Director of Finance
32shall seek legislative approval of those budget year expenditures
33through the annual Budget Act or in other legislation.

34(B) Notwithstanding subparagraph (A), if the Legislature does
35not allocate moneys from the fund pursuant to subparagraph (A)
36in the annual Budget Act or in other legislation, the Director of
37Finance shall, on or after September 15, notify the Joint Legislative
38Budget Committee at least 30 days prior to allocating any of those
39funds, for a purpose authorized by this section, if the allocation is
40proposed to be used in that current fiscal year.

P10   1(3) If notice of federal approval of retroactive implementation
2of the assessment is received by the Director of Finance after May
310 and before January 1 of any year, the Director of Finance shall
4notify the Joint Legislative Budget Committee at least 30 days
5prior to allocating any of those funds, for a purpose authorized
6by this section, if the allocation is proposed to be used in the
7current fiscal year.

8(g) Notwithstanding Section 13340 of the Government Code,
9when the requirements of subdivision (f) have been met, the moneys
10in the fund are continuously appropriated to the State Department
11of Social Services for the purposes of this section.

end insert
12begin insert

begin insertSEC. 5.end insert  

end insert

begin insertSection 12301.05 is added to the end insertbegin insertWelfare and
13Institutions Code
end insert
begin insert, to read:end insert

begin insert
14

begin insert12301.05.end insert  

It is the intent of the Legislature to enact legislation
15in 2013 to authorize an assessment on home care services,
16including, but not limited to, home health care and in-home
17supportive services, consistent with the settlement agreement
18pertaining to Oster v. Lightbourne, N.D. Cal., Case No.
19CV09-04668 CW, U.S. Court of Appeals for the Ninth Circuit,
20Case No. 12-15366, and Dominguez v. Brown, N.D. Cal., Case
21No. CV 09-02306 CW, U.S. Court of Appeals for the Ninth Circuit,
22Case No. 09-16359.

end insert
23begin insert

begin insertSEC. 6.end insert  

end insert

begin insertSection 12301.07 of the end insertbegin insertWelfare and Institutions Codeend insert
24begin insert is repealed.end insert

begin delete
25

12301.07.  

(a) (1) Notwithstanding any other provision of law,
26if subdivision (b) of Section 3.94 of the Budget Act of 2011 is
27operative, the department shall implement a 20-percent reduction
28in authorized hours of service to each in-home supportive services
29recipient as specified in this section, effective January 1, 2012,
30which shall be applied to the recipient’s hours as authorized
31pursuant to his or her most recent assessment.

32(2) The reduction required by this section shall not preclude
33any reassessment to which a recipient would otherwise be entitled.
34However, hours authorized pursuant to a reassessment shall be
35subject to the reduction required by this section.

36(3) For those recipients who have a documented unmet need,
37excluding protective supervision, because of the limitations
38contained in Section 12303.4, this reduction shall be applied first
39to the unmet need before being applied to the authorized hours. If
40the recipient believes he or she will be at serious risk of
P11   1out-of-home placement as a consequence of the reduction, the
2recipient may apply for a restoration of the reduction of authorized
3 service hours, pursuant to subdivision (f).

4(4) A recipient of services under this article may direct the
5manner in which the reduction of hours is applied to the recipient’s
6previously authorized services.

7(5) The reduction in service hours made pursuant to paragraph
8(1) shall not apply to in-home supportive services recipients who
9also receive services under Section 9560, subdivision (t) of Section
1014132, and Section 14132.99.

11(b) The department shall work with the counties to develop a
12process to allow for counties to preapprove IHSS Care Supplements
13described in subdivision (f), to the extent that the process is
14permissible under federal law. The preapproval process shall be
15subject to the following conditions:

16(1) The preapproval process shall rely on the criteria for
17assessing IHSS Care Supplement applications, developed pursuant
18to subdivision (f).

19(2) Preapproval shall be granted only to individuals who would
20otherwise be granted a full restoration of their hours pursuant to
21subdivision (f).

22(3) With respect to existing recipients as of the effective date
23of this section, all efforts shall be made to ensure that counties
24complete the process on or before a specific date, as determined
25by the department, in consultation with counties in order to allow
26for the production, printing, and mailing of notices to be issued to
27remaining recipients who are not granted preapproval and who
28thereby are subject to the reduction pursuant to this section.

29(4) The department shall work with counties to determine how
30to apply a preapproval process with respect to new applicants to
31the IHSS program who apply after the effective date of this section.

32(c) The notice of action informing each recipient who is not
33preapproved for an IHSS Care Supplement pursuant to subdivision
34(b) shall be mailed at least 15 days prior to the reduction going
35into effect. The notice of action shall be understandable to the
36recipient and translated into all languages spoken by a substantial
37number of the public served by the In-Home Supportive Services
38program, in accordance with Section 7295.2 of the Government
39Code. The notice shall not contain any recipient financial or
40confidential identifying information other than the recipient’s
P12   1name, address, and Case Management Information and Payroll
2System (CMIPS) client identification number, and shall include,
3but not be limited to, all of the following information:

4(1) The aggregate number of authorized hours before the
5reduction pursuant to paragraph (1) of subdivision (a) and the
6aggregate number of authorized hours after the reduction.

7(2) That the recipient may direct the manner in which the
8reduction of authorized hours is applied to the recipient’s
9previously authorized services.

10(3) How all or part of the reduction may be restored, as set forth
11in subdivision (f), if the recipient believes he or she will be at
12serious risk of out-of-home placement as a consequence of the
13reduction.

14(d) The department shall inform providers of any reduction to
15recipient hours through a statement on provider timesheets, after
16consultation with counties.

17(e) The IHSS Care Supplement application process described
18in subdivision (f) shall be completed before a request for a state
19hearing is submitted. If the IHSS Care Supplement application is
20filed within 15 days of the notice of action required by subdivision
21(c), or before the effective date of the reduction, the recipient shall
22be eligible for aid paid pending. A revised notice of action shall
23be issued by the county following evaluation of the IHSS Care
24Supplement application.

25(f) (1) Any aged, blind, or disabled individual who is eligible
26for services under this article who receives a notice of action
27indicating that his or her services will be reduced under subdivision
28(a) but who believes he or she is at serious risk of out-of-home
29placement unless all or part of the reduction is restored may submit
30an IHSS Care Supplement application. When a recipient submits
31an IHSS Care Supplement application within 15 days of receiving
32the reduction notice or prior to the implementation of the reduction,
33the recipient’s in-home supportive services shall continue at the
34level authorized by the most recent assessment, prior to any
35reduction, until the county finds that the recipient does or does not
36require restoration of any hours through the IHSS Care Supplement.
37If the recipient disagrees with the county’s determination
38concerning the need for the IHSS Care Supplement, the recipient
39may request a hearing on that determination.

P13   1(2) The department shall develop an assessment tool, in
2consultation with stakeholders, to be used by the counties to
3determine if a recipient is at serious risk of out-of-home placement
4as a consequence of the reduction of services pursuant to this
5section. The assessment tool shall be developed utilizing standard
6of care criteria for relevant out-of-home placements that serve
7individuals who are aged, blind, or who have disabilities and who
8would qualify for IHSS if living at home, including, but not limited
9to, criteria set forth in Chapter 7.0 of the Manual of Criteria for
10Medi-Cal Authorization published by the State Department of
11Health Care Services, as amended April 15, 2004, and the IHSS
12uniform assessment guidelines.

13(3) Counties shall give a high priority to prompt screening of
14persons specified in this section to determine their need for an
15IHSS Care Supplement.

16(g) (1) Notwithstanding the rulemaking provisions of the
17Administrative Procedure Act (Chapter 3.5 (commencing with
18Section 11340) of Part 1 of Division 3 of Title 2 of the Government
19Code), the department may implement and administer this section
20through all-county letters or similar instruction from the department
21until regulations are adopted. The department shall adopt
22emergency regulations implementing this section no later than
23March 1, 2013. The department may readopt any emergency
24regulation authorized by this section that is the same as or
25substantially equivalent to an emergency regulation previously
26adopted under this section.

27(2) The initial adoption of emergency regulations implementing
28this section and one readoption of emergency regulations
29authorized by this subdivision shall be deemed an emergency and
30necessary for the immediate preservation of the public peace,
31health, safety, or general welfare. Initial emergency regulations
32and the one readoption of emergency regulations authorized by
33this section shall be exempt from review by the Office of
34Administrative Law. The initial emergency regulations and the
35one readoption of emergency regulations authorized by this section
36shall be submitted to the Office of Administrative Law for filing
37with the Secretary of State and each shall remain in effect for no
38more than 180 days, by which time final regulations may be
39adopted.

P14   1(h) If the Director of Health Care Services determines that
2federal approval is necessary to implement this section, this section
3shall be implemented only after any state plan amendments
4required pursuant to Section 14132.95 are approved.

end delete
5begin insert

begin insertSEC. 7.end insert  

end insert

begin insertSection 12306.1 of the end insertbegin insertWelfare and Institutions Codeend insertbegin insert,
6as amended by Section 39 of Chapter 439 of the Statutes of 2012,
7is amended to read:end insert

8

12306.1.  

(a) When any increase in provider wages or benefits
9is negotiated or agreed to by a public authority or nonprofit
10consortium under Section 12301.6, then the county shall use
11county-only funds to fund both the county share and the state share,
12including employment taxes, of any increase in the cost of the
13program, unless otherwise provided for in the annual Budget Act
14or appropriated by statute. No increase in wages or benefits
15negotiated or agreed to pursuant to this section shall take effect
16unless and until, prior to its implementation, the department has
17obtained the approval of the State Department of Health Care
18Services for the increase pursuant to a determination that it is
19consistent with federal law and to ensure federal financial
20participation for the services under Title XIX of the federal Social
21Security Act, and unless and until all of the following conditions
22have been met:

23(1) Each county has provided the department with
24documentation of the approval of the county board of supervisors
25of the proposed public authority or nonprofit consortium rate,
26including wages and related expenditures. The documentation shall
27be received by the department before the department and the State
28Department of Health Care Services may approve the increase.

29(2) Each county has met department guidelines and regulatory
30requirements as a condition of receiving state participation in the
31rate.

32(b) Any rate approved pursuant to subdivision (a) shall take
33effect commencing on the first day of the month subsequent to the
34month in which final approval is received from the department.
35The department may grant approval on a conditional basis, subject
36to the availability of funding.

37(c) The state shall pay 65 percent, and each county shall pay 35
38percent, of the nonfederal share of wage and benefit increases
39negotiated by a public authority or nonprofit consortium pursuant
P15   1to Section 12301.6 and associated employment taxes, only in
2accordance with subdivisions (d) to (f), inclusive.

3(d) (1) The state shall participate as provided in subdivision (c)
4in wages up to seven dollars and fifty cents ($7.50) per hour and
5individual health benefits up to sixty cents ($0.60) per hour for all
6public authority or nonprofit consortium providers. This paragraph
7shall be operative for the 2000-01 fiscal year and each year
8thereafter unless otherwise provided in paragraphs (2), (3), (4),
9and (5), and without regard to when the wage and benefit increase
10becomes effective.

11(2) The state shall participate as provided in subdivision (c) in
12a total of wages and individual health benefits up to nine dollars
13and ten cents ($9.10) per hour, if wages have reached at least seven
14dollars and fifty cents ($7.50) per hour. Counties shall determine,
15pursuant to the collective bargaining process provided for in
16subdivision (c) of Section 12301.6, what portion of the nine dollars
17and ten cents ($9.10) per hour shall be used to fund wage increases
18above seven dollars and fifty cents ($7.50) per hour or individual
19health benefit increases, or both. This paragraph shall be operative
20for the 2001-02 fiscal year and each fiscal year thereafter, unless
21otherwise provided in paragraphs (3), (4), and (5).

22(3) The state shall participate as provided in subdivision (c) in
23a total of wages and individual health benefits up to ten dollars
24and ten cents ($10.10) per hour, if wages have reached at least
25seven dollars and fifty cents ($7.50) per hour. Counties shall
26determine, pursuant to the collective bargaining process provided
27for in subdivision (c) of Section 12301.6, what portion of the ten
28dollars and ten cents ($10.10) per hour shall be used to fund wage
29increases above seven dollars and fifty cents ($7.50) per hour or
30individual health benefit increases, or both. This paragraph shall
31be operative commencing with the next state fiscal year for which
32the May Revision forecast of General Fund revenue, excluding
33transfers, exceeds by at least 5 percent, the most current estimate
34of revenue, excluding transfers, for the year in which paragraph
35(2) became operative.

36(4) The state shall participate as provided in subdivision (c) in
37a total of wages and individual health benefits up to eleven dollars
38and ten cents ($11.10) per hour, if wages have reached at least
39seven dollars and fifty cents ($7.50) per hour. Counties shall
40determine, pursuant to the collective bargaining process provided
P16   1for in subdivision (c) of Section 12301.6, what portion of the eleven
2dollars and ten cents ($11.10) per hour shall be used to fund wage
3increases or individual health benefits, or both. This paragraph
4shall be operative commencing with the next state fiscal year for
5which the May Revision forecast of General Fund revenue,
6excluding transfers, exceeds by at least 5 percent, the most current
7estimate of revenues, excluding transfers, for the year in which
8paragraph (3) became operative.

9(5) The state shall participate as provided in subdivision (c) in
10a total cost of wages and individual health benefits up to twelve
11dollars and ten cents ($12.10) per hour, if wages have reached at
12least seven dollars and fifty cents ($7.50) per hour. Counties shall
13determine, pursuant to the collective bargaining process provided
14for in subdivision (c) of Section 12301.6, what portion of the
15twelve dollars and ten cents ($12.10) per hour shall be used to fund
16wage increases above seven dollars and fifty cents ($7.50) per hour
17or individual health benefit increases, or both. This paragraph shall
18be operative commencing with the next state fiscal year for which
19the May Revision forecast of General Fund revenue, excluding
20transfers, exceeds by at least 5 percent, the most current estimate
21of revenues, excluding transfers, for the year in which paragraph
22(4) became operative.

begin delete end deletebegin delete

23(6) Notwithstanding paragraphs (2) to (5), inclusive, the state
24shall participate as provided in subdivision (c) in a total cost of
25wages up to nine dollars and fifty cents ($9.50) per hour and in
26individual health benefits up to sixty cents ($0.60) per hour. This
27paragraph shall become operative on July 1, 2009.

end delete
begin delete end deletebegin delete end deletebegin delete

28(7) (A) The Legislature finds and declares that injunctions
29issued by the courts have prevented the state from implementing
30the changes described in paragraph (6) during the pendency of
31litigation. To avoid confusion for providers, recipients, and other
32stakeholders, it is therefore the intent of the Legislature to
33temporarily suspend the reductions described in that paragraph
34until July 1, 2012, to allow the litigation to reach a final result.

end delete
begin delete end deletebegin delete end deletebegin delete

35(B) Paragraph (6) shall not be implemented until July 1, 2012,
36and as of that date shall only be implemented if a court of
37competent jurisdiction has issued an order, that is not subject to
38appeal or for which the time to appeal has expired, upholding its
39validity.

end delete
begin delete end delete

P17   1(e) (1) On or before May 14 immediately prior to the fiscal
2year for which state participation is provided under paragraphs (2)
3to (5), inclusive, of subdivision (d), the Director of Finance shall
4certify to the Governor, the appropriate committees of the
5Legislature, and the department that the condition for each
6subdivision to become operative has been met.

7(2) For purposes of certifications under paragraph (1), the
8General Fund revenue forecast, excluding transfers, that is used
9for the relevant fiscal year shall be calculated in a manner that is
10consistent with the definition of General Fund revenues, excluding
11transfers, that was used by the Department of Finance in the
122000-01 Governor’s Budget revenue forecast as reflected on
13Schedule 8 of the Governor’s Budget.

14(f) Any increase in overall state participation in wage and benefit
15increases under paragraphs (2) to (5), inclusive, of subdivision (d),
16shall be limited to a wage and benefit increase of one dollar ($1)
17per hour with respect to any fiscal year. With respect to actual
18changes in specific wages and health benefits negotiated through
19the collective bargaining process, the state shall participate in the
20costs, as approved in subdivision (c), up to the maximum levels
21as provided under paragraphs (2) tobegin delete (6),end deletebegin insert (5),end insert inclusive, of
22subdivision (d).

23(g) For the period during which Section 12306.15 is operative,
24each county’s share of the costs of negotiated wage and benefit
25increases specified in subdivision (c) shall remain, but the County
26IHSS Maintenance of Effort pursuant to Section 12306.15 shall
27be in lieu of that share.

28(h) This section shall become inoperative only if Chapter 45 of
29the Statutes of 2012 is deemed inoperative pursuant to Section 15
30of that chapter.

31begin insert

begin insertSEC. 8.end insert  

end insert

begin insertSection 12306.1 of the end insertbegin insertWelfare and Institutions Codeend insertbegin insert,
32as amended by Section 38 of Chapter 439 of the Statutes of 2012,
33is amended to read:end insert

34

12306.1.  

(a) When any increase in provider wages or benefits
35is negotiated or agreed to by a public authority or nonprofit
36consortium under Section 12301.6, then the county shall use
37county-only funds to fund both the county share and the state share,
38including employment taxes, of any increase in the cost of the
39program, unless otherwise provided for in the annual Budget Act
40or appropriated by statute. No increase in wages or benefits
P18   1negotiated or agreed to pursuant to this section shall take effect
2unless and until, prior to its implementation, the department has
3obtained the approval of the State Department of Health Care
4Services for the increase pursuant to a determination that it is
5consistent with federal law and to ensure federal financial
6participation for the services under Title XIX of the federal Social
7Security Act, and unless and until all of the following conditions
8have been met:

9(1) Each county has provided the department with
10documentation of the approval of the county board of supervisors
11of the proposed public authority or nonprofit consortium rate,
12including wages and related expenditures. The documentation shall
13be received by the department before the department and the State
14Department of Health Care Services may approve the increase.

15(2) Each county has met department guidelines and regulatory
16requirements as a condition of receiving state participation in the
17rate.

18(b) Any rate approved pursuant to subdivision (a) shall take
19effect commencing on the first day of the month subsequent to the
20month in which final approval is received from the department.
21The department may grant approval on a conditional basis, subject
22to the availability of funding.

23(c) The state shall pay 65 percent, and each county shall pay 35
24percent, of the nonfederal share of wage and benefit increases
25negotiated by a public authority or nonprofit consortium pursuant
26to Section 12301.6 and associated employment taxes, only in
27accordance with subdivisions (d) to (f), inclusive.

28(d) (1) The state shall participate as provided in subdivision (c)
29in wages up to seven dollars and fifty cents ($7.50) per hour and
30individual health benefits up to sixty cents ($0.60) per hour for all
31public authority or nonprofit consortium providers. This paragraph
32shall be operative for the 2000-01 fiscal year and each year
33thereafter unless otherwise provided in paragraphs (2), (3), (4),
34and (5), and without regard to when the wage and benefit increase
35becomes effective.

36(2) The state shall participate as provided in subdivision (c) in
37a total of wages and individual health benefits up to nine dollars
38and ten cents ($9.10) per hour, if wages have reached at least seven
39dollars and fifty cents ($7.50) per hour. Counties shall determine,
40pursuant to the collective bargaining process provided for in
P19   1subdivision (c) of Section 12301.6, what portion of the nine dollars
2and ten cents ($9.10) per hour shall be used to fund wage increases
3above seven dollars and fifty cents ($7.50) per hour or individual
4health benefit increases, or both. This paragraph shall be operative
5for the 2001-02 fiscal year and each fiscal year thereafter, unless
6otherwise provided in paragraphs (3), (4), and (5).

7(3) The state shall participate as provided in subdivision (c) in
8a total of wages and individual health benefits up to ten dollars
9and ten cents ($10.10) per hour, if wages have reached at least
10seven dollars and fifty cents ($7.50) per hour. Counties shall
11determine, pursuant to the collective bargaining process provided
12for in subdivision (c) of Section 12301.6, what portion of the ten
13dollars and ten cents ($10.10) per hour shall be used to fund wage
14increases above seven dollars and fifty cents ($7.50) per hour or
15individual health benefit increases, or both. This paragraph shall
16be operative commencing with the next state fiscal year for which
17the May Revision forecast of General Fund revenue, excluding
18transfers, exceeds by at least 5 percent, the most current estimate
19of revenue, excluding transfers, for the year in which paragraph
20(2) became operative.

21(4) The state shall participate as provided in subdivision (c) in
22a total of wages and individual health benefits up to eleven dollars
23and ten cents ($11.10) per hour, if wages have reached at least
24seven dollars and fifty cents ($7.50) per hour. Counties shall
25determine, pursuant to the collective bargaining process provided
26for in subdivision (c) of Section 12301.6, what portion of the eleven
27dollars and ten cents ($11.10) per hour shall be used to fund wage
28increases or individual health benefits, or both. This paragraph
29shall be operative commencing with the next state fiscal year for
30which the May Revision forecast of General Fund revenue,
31excluding transfers, exceeds by at least 5 percent, the most current
32estimate of revenues, excluding transfers, for the year in which
33paragraph (3) became operative.

34(5) The state shall participate as provided in subdivision (c) in
35a total cost of wages and individual health benefits up to twelve
36dollars and ten cents ($12.10) per hour, if wages have reached at
37least seven dollars and fifty cents ($7.50) per hour. Counties shall
38determine, pursuant to the collective bargaining process provided
39for in subdivision (c) of Section 12301.6, what portion of the
40twelve dollars and ten cents ($12.10) per hour shall be used to fund
P20   1wage increases above seven dollars and fifty cents ($7.50) per hour
2or individual health benefit increases, or both. This paragraph shall
3be operative commencing with the next state fiscal year for which
4the May Revision forecast of General Fund revenue, excluding
5transfers, exceeds by at least 5 percent, the most current estimate
6of revenues, excluding transfers, for the year in which paragraph
7(4) became operative.

begin delete end deletebegin delete

8(6) Notwithstanding paragraphs (2) to (5), inclusive, the state
9shall participate as provided in subdivision (c) in a total cost of
10wages up to nine dollars and fifty cents ($9.50) per hour and in
11individual health benefits up to sixty cents ($0.60) per hour. This
12paragraph shall become operative on July 1, 2009.

end delete
begin delete end deletebegin delete end deletebegin delete

13(7) (A) The Legislature finds and declares that injunctions issued
14by the courts have prevented the state from implementing the
15changes described in paragraph (6) during the pendency of
16litigation. To avoid confusion for providers, recipients, and other
17stakeholders, it is therefore the intent of the Legislature to
18temporarily suspend the reductions described in that paragraph
19until July 1, 2012, to allow the litigation to reach a final result.

end delete
begin delete end deletebegin delete end deletebegin delete

20(B) Paragraph (6) shall not be implemented until July 1, 2012,
21and as of that date shall only be implemented if a court of
22competent jurisdiction has issued an order, that is not subject to
23appeal or for which the time to appeal has expired, upholding its
24validity.

end delete
begin delete end delete

25(e) (1) On or before May 14 immediately prior to the fiscal
26year for which state participation is provided under paragraphs (2)
27to (5), inclusive, of subdivision (d), the Director of Finance shall
28certify to the Governor, the appropriate committees of the
29Legislature, and the department that the condition for each
30subdivision to become operative has been met.

31(2) For purposes of certifications under paragraph (1), the
32General Fund revenue forecast, excluding transfers, that is used
33for the relevant fiscal year shall be calculated in a manner that is
34consistent with the definition of General Fund revenues, excluding
35transfers, that was used by the Department of Finance in the
362000-01 Governor’s Budget revenue forecast as reflected on
37Schedule 8 of the Governor’s Budget.

38(f) Any increase in overall state participation in wage and benefit
39increases under paragraphs (2) to (5), inclusive, of subdivision (d),
40shall be limited to a wage and benefit increase of one dollar ($1)
P21   1per hour with respect to any fiscal year. With respect to actual
2changes in specific wages and health benefits negotiated through
3the collective bargaining process, the state shall participate in the
4costs, as approved in subdivision (c), up to the maximum levels
5as provided under paragraphs (2) tobegin delete (6),end deletebegin insert (5),end insert inclusive, of
6subdivision (d).

7(g) This section shall become operative only if Chapter 45 of
8the Statutes of 2012 is deemed inoperative pursuant to Section 15
9of that chapter.

10begin insert

begin insertSEC. 9.end insert  

end insert

begin insertSection 12309 of the end insertbegin insertWelfare and Institutions Codeend insertbegin insert is
11amended to read:end insert

12

12309.  

(a) In order to assure that in-home supportive services
13are delivered in all counties in a uniform manner, the department
14shall develop a uniform needs assessment tool.

15(b) (1) Each county shall, in administering this article, use the
16uniform needs assessment tool developed pursuant to subdivision
17(a) in collecting and evaluating information.

18(2) For purposes of paragraph (1), “information” includes, but
19is not limited to, all of the following:

20(A) The recipient’s living environment.

21(B) Alternative resources.

22(C) The recipient’s functional abilities.

23(c) (1) The uniform needs assessment tool developed pursuant
24to subdivision (a) shall evaluate the recipient’s functioning in
25activities of daily living and instrumental activities of daily living.

26(2) The recipient’s functioning shall be quantified, using the
27general hierarchical five-point scale for ranking each function, as
28specified in subdivision (d).

29(d) The recipient’s functioning ranks shall be as follows:

30(1) Rank one. A recipient’s functioning shall be classified as
31rank one if his or her functioning is independent, and he or she is
32able to perform the function without human assistance, although
33the recipient may have difficulty in performing the function, but
34the completion of the function, with or without a device or mobility
35aid, poses no substantial risk to his or her safety.

36(2) Rank two. A recipient’s functioning shall be classified as
37rank two if he or she is able to perform a function, but needs verbal
38assistance, such as reminding, guidance, or encouragement.

39(3) Rank three. A recipient’s functioning shall be classified as
40rank three if he or she can perform the function with some human
P22   1assistance, including, but not limited to, direct physical assistance
2from a provider.

3(4) Rank four. A recipient’s functioning shall be classified as
4rank four if he or she can perform a function, but only with
5substantial human assistance.

6(5) Rank five. A recipient’s functioning shall be classified as
7rank five if he or she cannot perform the function, with or without
8human assistance.

begin delete end deletebegin delete

9(e) (1) Notwithstanding any other law, and effective September
101, 2009, individuals shall be eligible for each domestic or related
11service only if assessed at a rank four or five, as defined in
12subdivision (d), in the activity of daily living relating to that
13service. The activities of daily living that relate to domestic and
14related services are defined in regulations and include housework,
15laundry, shopping and errands, meal preparation, and meal cleanup.
16The rank for each domestic and related service shall be determined
17based on an assessment of need for supportive services by the
18county, in accordance with this section and the hourly task
19guidelines as defined by Section 12301.2. This paragraph does not
20apply to individuals meeting one of the conditions specified in
21paragraph (2).

end delete
begin delete end deletebegin delete end deletebegin delete

22(2) Paragraph (1) shall not apply to individuals authorized to
23receive either protective supervision pursuant to subdivision (b)
24of Section 12300 and Section 12301.21 or paramedical services
25pursuant to Section 12300.1, or to individuals authorized to receive
26over 120 hours of services per month.

end delete
begin delete end deletebegin delete end deletebegin delete

27(3) To the extent necessary to maintain federal financial
28participation, the director may waive any or all of the provisions
29of paragraph (2), after consultation with the State Department of
30Health Care Services.

end delete
begin delete end deletebegin delete end deletebegin delete

31(f) A recipient shall be assigned a functional index score. The
32functional index score for a recipient shall be a weighted average
33based on the individual functional index rankings, as described in
34subdivision (d), to provide a single measure of a recipient’s relative
35dependence on human assistance for performance of activities of
36daily living that are used in the assessment of services provided
37pursuant to this article.

end delete
begin delete end deletebegin delete end deletebegin delete

38(g) (1) Notwithstanding the rulemaking provisions of the
39Administrative Procedure Act (Chapter 3.5 (commencing with
40Section 11340) of Part 1 of Division 3 of Title 2 of the Government
P23   1Code) the department may implement and administer this section
2through all-county letters or similar instruction from the department
3until regulations are adopted. The department shall adopt
4emergency regulations implementing this section no later than July
51, 2010. The department may readopt any emergency regulation
6authorized by this section that is the same as or substantially
7equivalent to an emergency regulation previously adopted under
8this section.

end delete
begin delete end deletebegin delete end deletebegin delete

9(2) The initial adoption of emergency regulations implementing
10this section and one readoption of emergency regulations shall be
11deemed an emergency and necessary for the immediate
12preservation of the public peace, health, safety, or general welfare.
13Initial emergency regulations and the one readoption of emergency
14regulations authorized by this subdivision shall be exempt from
15review and approval by the Office of Administrative Law. The
16initial emergency regulations and the one readoption of emergency
17regulations authorized by this subdivision shall be submitted to
18the Office of Administrative Law for filing with the Secretary of
19State and each shall remain in effect for no more than 180 days,
20by which time final regulations may be adopted.

end delete
begin delete end deletebegin delete end deletebegin delete

21(h) Subdivisions (e), (f), and (g) shall become operative on
22September 1, 2009.

end delete
begin delete end deletebegin delete end deletebegin delete

23(i) (1) The Legislature finds and declares that injunctions issued
24by the courts have prevented the state from implementing the
25changes described in subdivisions (e), (f), and (g) during the
26pendency of litigation. To avoid confusion for providers, recipients,
27and other stakeholders, it is therefore the intent of the Legislature
28to temporarily suspend the reductions described in those
29subdivisions until July 1, 2012, to allow the litigation to reach a
30final result.

end delete
begin delete end deletebegin delete end deletebegin delete

31(2) Notwithstanding subdivision (h) or any other provision of
32law, subdivisions (e), (f), and (g) shall not be implemented until
33July 1, 2012, and as by that date shall only be implemented if a
34court of competent jurisdiction has issued an order, that is not
35subject to appeal or for which the time to appeal has expired,
36upholding their validity.

end delete
begin delete end delete
37begin insert

begin insertSEC. 10.end insert  

end insert

begin insertSection 12309.2 of the end insertbegin insertWelfare and Institutions Codeend insert
38begin insert is repealed.end insert

begin delete
39

12309.2.  

(a) Notwithstanding any other law, except as provided
40in subdivision (b), and pursuant to subdivision (e) of Section 12309,
P24   1and effective September 1, 2009, eligibility for in-home supportive
2services provided pursuant to Article 7 (commencing with Section
312300) of Chapter 3 shall also include functional index scores
4calculated pursuant to subdivision (f) of Section 12309, as follows:

5(1) Individuals with a functional index score of 2.0 and above
6shall be eligible to receive all appropriate in-home supportive
7services provided pursuant to this article.

8(2) Individuals with a functional index score below 2.0 shall
9not be eligible for any in-home supportive services provided
10pursuant to this article.

11(3) Paragraph (2) shall not apply to individuals authorized to
12receive protective supervision pursuant to subdivision (b) of
13Section 12300 and Section 12301.21 or paramedical services
14pursuant to Section 12300.1, or to individuals authorized to receive
15over 120 hours of services per month pursuant to Section 12301.2.

16(4) To the extent necessary to maintain federal financial
17participation, the director may waive any or all of the provisions
18of paragraph (3), after consultation with the State Department of
19Health Care Services.

20(b) The department shall modify the notice of action forms to
21inform individuals whose hours are reduced or for whom eligibility
22is eliminated by the changes made to Section 12309 or this section
23by the act adding this section of their functional rank and functional
24index score. The form shall be modified no later than September
251, 2009.

26(c) (1) Notwithstanding the rulemaking provisions of the
27Administrative Procedure Act, Chapter 3.5 (commencing with
28Section 11340) of Part 1 of Division 3 of Title 2 of the Government
29Code, the department may implement and administer this section
30through all-county letters or similar instruction from the department
31until regulations are adopted. The department shall adopt
32emergency regulations implementing this section no later than July
331, 2010. The department may readopt any emergency regulation
34authorized by this section that is the same as or substantially
35equivalent to an emergency regulation previously adopted under
36this section.

37(2) The initial adoption of emergency regulations implementing
38this section and the one readoption of emergency regulations
39authorized by this subdivision shall be deemed an emergency and
40necessary for the immediate preservation of the public peace,
P25   1health, safety, or general welfare. Initial emergency regulations
2and the one readoption of emergency regulations authorized by
3this section shall be exempt from review and approval by the Office
4of Administrative Law. The initial emergency regulations and the
5one readoption of emergency regulations authorized by this section
6shall be submitted to the Office of Administrative Law for filing
7with the Secretary of State and each shall remain in effect for no
8more than 180 days, by which time final regulations may be
9adopted.

10(d) This section shall become operative on September 1, 2009.

11(e) (1) The Legislature finds and declares that injunctions issued
12by the courts have prevented the state from implementing the
13changes described in this section during the pendency of litigation.
14To avoid confusion for providers, recipients, and other
15stakeholders, it is therefore the intent of the Legislature to
16temporarily suspend the reductions described in this section until
17July 1, 2012, to allow the litigation to reach a final result.

18(2) Notwithstanding subdivision (d) or any other provision of
19law, this section shall not be implemented until July 1, 2012, and
20as of that date shall only be implemented if a court of competent
21jurisdiction has issued an order, that is not subject to appeal or for
22which the time to appeal has expired, upholding its validity.

end delete
23begin insert

begin insertSEC. 11.end insert  

end insert
begin insert

(a) Notwithstanding the rulemaking provisions of
24the Administrative Procedure Act (Chapter 3.5 (commencing with
25Section 11340) of Part 1 of Division 3 of Title 2 of the Government
26Code), the State Department of Social Services and the State
27Department of Health Care Services may implement and administer
28this act through all-county letters or similar instruction from their
29respective departments until regulations are adopted. Each
30department shall adopt emergency regulations implementing this
31act no later than July 1, 2015. Each department may readopt any
32emergency regulation authorized by this section that is the same
33as or substantially equivalent to an emergency regulation
34previously adopted under this section.

end insert
begin insert

35(b) For each department identified in subdivision (a), the initial
36adoption of emergency regulations implementing this act and one
37readoption of emergency regulations authorized by this section
38shall be deemed an emergency and necessary for the immediate
39preservation of the public peace, health, safety, or general welfare.
40Initial emergency regulations and the one readoption of emergency
P26   1regulations authorized by this section shall be exempt from review
2by the Office of Administrative Law. The initial emergency
3regulations and the one readoption of emergency regulations
4authorized by this section shall be submitted to the Office of
5Administrative Law for filing with the Secretary of State and each
6shall remain in effect for no more than 180 days, by which time
7final regulations may be adopted.

end insert
8begin insert

begin insertSEC. 12.end insert  

end insert
begin insert

The amount of one thousand dollars ($1,000) is
9hereby appropriated from the General Fund to the State
10Department of Social Services for its administrative costs during
11the 2013-14 fiscal year.

end insert
12begin insert

begin insertSEC. 13.end insert  

end insert
begin insert

This act is a bill providing for appropriations related
13to the Budget Bill within the meaning of subdivision (e) of Section
1412 of Article IV of the California Constitution, has been identified
15as related to the budget in the Budget Bill, and shall take effect
16immediately.

end insert
begin delete
17

SECTION 1.  

It is the intent of the Legislature to enact statutory
18changes relating to the Budget Act of 2013.

end delete


O

Corrected 5-9-13—See last page.     98