BILL ANALYSIS �
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|SENATE RULES COMMITTEE | SB 67|
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THIRD READING
Bill No: SB 67
Author: Senate Budget and Fiscal Review Committee
Amended: 5/7/13
Vote: 21 - Urgency
SENATE BUDGET & FISCAL REVIEW COMMITTEE : 10-4, 5/9/13
AYES: Leno, Beall, Block, DeSaulnier, Hancock, Jackson,
Monning, Roth, Wolk, Wright
NOES: Emmerson, Anderson, Nielsen, Wyland
NO VOTE RECORDED: Berryhill, Price
SUBJECT : Budget Act of 2012: In-Home Support Services
SOURCE : Author
DIGEST : This bill makes statutory changes needed to
effectuate a settlement agreement reached by plaintiffs and the
Administration in several lawsuits against the State based on
reductions to the In-Home Support Services (IHSS) program
enacted in recent years.
ANALYSIS : Among several other changes to IHSS that were
adopted in the past four budgets, and that have taken effect, a
3.6% across-the-board reduction in authorized hours for all
recipients has been in effect since the 2010-11 fiscal year.
This reduction is currently scheduled to expire on June 30,
2013.
In 2010-11, the Budget also included savings that would have
resulted from enhanced federal funding obtained as a match on
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revenues the State expected to receive and use to fund IHSS from
extending the sales tax to support services, including IHSS.
IHSS providers would have received a supplemental payment equal
to the amount of their new tax liability. The Department of
Health Care Services submitted its plan to implement this
funding mechanism to the federal government, but the State has
still not received a formal response.
As summarized in the chart below, several additional reductions
to the IHSS program made in the last four state budgets were
enjoined by federal courts from taking effect.
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| Policy | Name of Lawsuit |
| | Enjoining Policy |
| | from Taking Effect |
|------------------------------------+---------------------|
|Loss of eligibility for individuals |Oster (V.L.) v. |
|with assessed needs below specified |Lightbourne, et al. |
|thresholds |(Oster I) |
| | |
|------------------------------------+---------------------|
|Across-the-board reduction of 20% |Oster (V.L.) v. |
|of authorized hours, with |Lightbourne, et al. |
|exceptions as specified |(Oster II) |
| | |
|------------------------------------+---------------------|
|Reduction in state participation in |Dominguez v. |
|provider wages (from maximum of |Schwarzenegger, et |
|$12.10 to $10.10 per hour) |al. |
| | |
| | |
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In March 2013, the Administration and plaintiffs in these cases
reached a settlement agreement, which a federal district court
has tentatively approved. This bill reflects the language
proposed to effectuate the settlement agreement, with some
technical, non-substantive changes.
This bill:
1. Repeals the provisions underlying the reductions at issue in
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the lawsuits settled by the agreement, including:
A. Provisions that had required the Department of Social
Services to implement, under specified circumstances, a
20% reduction in authorized hours of service for each IHSS
recipient, beginning January 1, 2012, except as specified.
B. Provisions that had reduced the state contribution to
IHSS provider wages and benefits from a maximum of $12.10
per hour to $10.10 per hour, effective July 1, 2009.
C. Provisions that had established a stricter threshold
of need to receive IHSS hours based on a recipient's
assessed functional index score (requiring IHSS recipients
to have an overall functional index score equal to or
greater than two on the five-point scale in order to
qualify).
D. Provisions that had established a stricter threshold
of need to receive domestic and related care services,
such as housework, meal preparation, and laundry
(requiring a functional index ranking greater than four
for each activity in order to receive service hours).
1. Establishes an across-the-board reduction of 8% in
authorized hours of IHSS that would apply to all recipients
for a period of 12 months, starting July 1, 2013;
2. Establishes an ongoing, across-the-board reduction of up to
7% in authorized hours of IHSS that would apply to all
recipients upon the expiration of the 8% reduction described
above, unless it is triggered off, in whole or in part, by an
"assessment" on home care services, including IHSS, which
results in enhanced federal funding for IHSS.
3. Specifies with respect to these across-the-board reductions
that:
A. They shall be applied to the recipient's hours as
authorized pursuant to the most recent assessment, and, if
applicable, shall be taken first from any documented unmet
need.
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B. IHSS recipients may direct the manner in which the
reduction of hours is applied to previously authorized
services.
C. If a recipient requests a reassessment based only on
the 8% or 7% reductions, his/her request can be
administratively denied. At the same time, this bill
reiterates existing law that a county shall assess a
recipient's need for supportive services any time the
recipient notifies the county of a need for adjustment or
when there are other indications of a change in
circumstances that affects the recipient's need for
services.
D. The notices of action informing recipients of the 8%
and 7% reductions shall be mailed at least 10 and 20 days,
respectively, prior to the reduction taking effect and
include specified information.
E. Recipients continue to have all appeal rights as
otherwise provided under existing law.
1. Establishes the intent of the Legislature to enact an
assessment on home care services, including IHSS, to offset
the up to 7% reduction described above.
2. Specifies that, to the extent that the assessment is
implemented retroactively, any resulting funds shall be used
to provide one-time direct reinvestments benefiting IHSS
recipients that do not create ongoing General Fund (GF)
obligations. Further, specifies that the fund created to
receive those retroactive resources shall be continuously
appropriated after specified notice or legislative approval
requirements, as applicable, are met.
3. Specifies that the Department of Health Care Services and
Department of Social Services may implement and administer
its provisions through all-county letters or similar
instructions until regulations are adopted, as specified.
4. Makes an appropriation and declares this bill to take effect
immediately as a bill providing for appropriations related to
the Budget Bill.
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FISCAL EFFECT : Appropriation: Yes Fiscal Com.: Yes
Local: No
According to the Senate Budget and Fiscal Review Committee, the
Administration estimates that the 8% and 7% across-the-board
reductions in 2013-14 and 2014-15 would save approximately $160
million GF and $159 million GF, respectively.
JA:k 5/10/13 Senate Floor Analyses
SUPPORT/OPPOSITION: NONE RECEIVED
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