Senate BillNo. 579


Introduced by Senator Berryhill

February 22, 2013


An act to amend Section 12306.1 of the Welfare and Institutions Code, relating to public social services.

LEGISLATIVE COUNSEL’S DIGEST

SB 579, as introduced, Berryhill. In-home supportive services.

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 in order to permit them to remain in their own homes and avoid institutionalization. Existing law requires, except as provided, a county to use county-only funds to fund both the county share and the state share when any increase in IHSS provider wages or benefits is negotiated or agreed to by a public authority or nonprofit consortium, as specified.

This bill would make a technical, nonsubstantive change to that provision.

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

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

P1    1

SECTION 1.  

Section 12306.1 of the Welfare and Institutions
2Code
, as amended by Section 38 of Chapter 439 of the Statutes of
32012, is amended to read:

4

12306.1.  

(a) Whenbegin delete anyend deletebegin insert anend insert increase in provider wages or
5benefits is negotiated or agreed to by a public authority or nonprofit
6consortium under Section 12301.6, then the county shall use
7county-only funds to fund both the county share and the state share,
P2    1including employment taxes, of any increase in the cost of the
2program, unless otherwise provided for in the annual Budget Act
3or appropriated by statute. No increase in wages or benefits
4negotiated or agreed to pursuant to this section shall take effect
5unless and until, prior to its implementation, the department has
6obtained the approval of the State Department of Health Care
7Services for the increase pursuant to a determination that it is
8consistent with federal law and to ensure federal financial
9participation for the services under Title XIX of the federal Social
10Security Act, and unless and until all of the following conditions
11have been met:

12(1) Each county has provided the department with
13documentation of the approval of the county board of supervisors
14of the proposed public authority or nonprofit consortium rate,
15including wages and related expenditures. The documentation shall
16be received by the department before the department and the State
17Department of Health Care Services may approve the increase.

18(2) Each county has met department guidelines and regulatory
19requirements as a condition of receiving state participation in the
20rate.

21(b) Any rate approved pursuant to subdivision (a) shall take
22 effect commencing on the first day of the month subsequent to the
23month in which final approval is received from the department.
24The department may grant approval on a conditional basis, subject
25to the availability of funding.

26(c) The state shall pay 65 percent, and each county shall pay 35
27percent, of the nonfederal share of wage and benefit increases
28negotiated by a public authority or nonprofit consortium pursuant
29to Section 12301.6 and associated employment taxes, only in
30accordance with subdivisions (d) to (f), inclusive.

31(d) (1) The state shall participate as provided in subdivision (c)
32in wages up to seven dollars and fifty cents ($7.50) per hour and
33individual health benefits up to sixty cents ($0.60) per hour for all
34public authority or nonprofit consortium providers. This paragraph
35shall be operative for the 2000-01 fiscal year and each year
36 thereafter unless otherwise provided in paragraphs (2), (3), (4),
37and (5), and without regard to when the wage and benefit increase
38becomes effective.

39(2) The state shall participate as provided in subdivision (c) in
40a total of wages and individual health benefits up to nine dollars
P3    1and ten cents ($9.10) per hour, if wages have reached at least seven
2dollars and fifty cents ($7.50) per hour. Counties shall determine,
3pursuant to the collective bargaining process provided for in
4subdivision (c) of Section 12301.6, what portion of the nine dollars
5and ten cents ($9.10) per hour shall be used to fund wage increases
6above seven dollars and fifty cents ($7.50) per hour or individual
7health benefit increases, or both. This paragraph shall be operative
8for the 2001-02 fiscal year and each fiscal year thereafter, unless
9otherwise provided in paragraphs (3), (4), and (5).

10(3) The state shall participate as provided in subdivision (c) in
11a total of wages and individual health benefits up to ten dollars
12and ten cents ($10.10) per hour, if wages have reached at least
13seven dollars and fifty cents ($7.50) per hour. Counties shall
14determine, pursuant to the collective bargaining process provided
15for in subdivision (c) of Section 12301.6, what portion of the ten
16dollars and ten cents ($10.10) per hour shall be used to fund wage
17increases above seven dollars and fifty cents ($7.50) per hour or
18individual health benefit increases, or both. This paragraph shall
19be operative commencing with the next state fiscal year for which
20the May Revision forecast of General Fund revenue, excluding
21transfers, exceeds by at least 5 percent, the most current estimate
22of revenue, excluding transfers, for the year in which paragraph
23(2) became operative.

24(4) The state shall participate as provided in subdivision (c) in
25a total of wages and individual health benefits up to eleven dollars
26and ten cents ($11.10) per hour, if wages have reached at least
27seven dollars and fifty cents ($7.50) per hour. Counties shall
28determine, pursuant to the collective bargaining process provided
29for in subdivision (c) of Section 12301.6, what portion of the eleven
30dollars and ten cents ($11.10) per hour shall be used to fund wage
31increases or individual health benefits, or both. This paragraph
32shall be operative commencing with the next state fiscal year for
33which the May Revision forecast of General Fund revenue,
34excluding transfers, exceeds by at least 5 percent, the most current
35estimate of revenues, excluding transfers, for the year in which
36paragraph (3) became operative.

37(5) The state shall participate as provided in subdivision (c) in
38a total cost of wages and individual health benefits up to twelve
39dollars and ten cents ($12.10) per hour, if wages have reached at
40least seven dollars and fifty cents ($7.50) per hour. Counties shall
P4    1determine, pursuant to the collective bargaining process provided
2for in subdivision (c) of Section 12301.6, what portion of the
3twelve dollars and ten cents ($12.10) per hour shall be used to fund
4wage increases above seven dollars and fifty cents ($7.50) per hour
5or individual health benefit increases, or both. This paragraph shall
6be operative commencing with the next state fiscal year for which
7the May Revision forecast of General Fund revenue, excluding
8transfers, exceeds by at least 5 percent, the most current estimate
9of revenues, excluding transfers, for the year in which paragraph
10(4) became operative.

11(6) Notwithstanding paragraphs (2) to (5), inclusive, the state
12shall participate as provided in subdivision (c) in a total cost of
13wages up to nine dollars and fifty cents ($9.50) per hour and in
14individual health benefits up to sixty cents ($0.60) per hour. This
15paragraph shall become operative on July 1, 2009.

16(7) (A) The Legislature finds and declares that injunctions
17issued by the courts have prevented the state from implementing
18the changes described in paragraph (6) during the pendency of
19litigation. To avoid confusion for providers, recipients, and other
20stakeholders, it is therefore the intent of the Legislature to
21temporarily suspend the reductions described in that paragraph
22until July 1, 2012, to allow the litigation to reach a final result.

23(B) Paragraph (6) shall not be implemented until July 1, 2012,
24and as of that date shall only be implemented if a court of
25competent jurisdiction has issued an order, that is not subject to
26appeal or for which the time to appeal has expired, upholding its
27validity.

28(e) (1) On or before May 14 immediately prior to the fiscal
29 year for which state participation is provided under paragraphs (2)
30to (5), inclusive, of subdivision (d), the Director of Finance shall
31certify to the Governor, the appropriate committees of the
32Legislature, and the department that the condition for each
33subdivision to become operative has been met.

34(2) For purposes of certifications under paragraph (1), the
35General Fund revenue forecast, excluding transfers, that is used
36for the relevant fiscal year shall be calculated in a manner that is
37consistent with the definition of General Fund revenues, excluding
38transfers, that was used by the Department of Finance in the
392000-01 Governor’s Budget revenue forecast as reflected on
40Schedule 8 of the Governor’s Budget.

P5    1(f) Any increase in overall state participation in wage and benefit
2increases under paragraphs (2) to (5), inclusive, of subdivision (d),
3shall be limited to a wage and benefit increase of one dollar ($1)
4per hour with respect to any fiscal year. With respect to actual
5changes in specific wages and health benefits negotiated through
6the collective bargaining process, the state shall participate in the
7costs, as approved in subdivision (c), up to the maximum levels
8as provided under paragraphs (2) to (6), inclusive, of subdivision
9(d).

10(g) This section shall become operative only if Chapter 45 of
11the Statutes of 2012 is deemed inoperative pursuant to Section 15
12of that chapter.

13

SEC. 2.  

Section 12306.1 of the Welfare and Institutions Code,
14as amended by Section 39 of Chapter 439 of the Statutes of 2012,
15is amended to read:

16

12306.1.  

(a) Whenbegin delete anyend deletebegin insert anend insert increase in provider wages or
17benefits is negotiated or agreed to by a public authority or nonprofit
18consortium under Section 12301.6, then the county shall use
19county-only funds to fund both the county share and the state share,
20including employment taxes, of any increase in the cost of the
21program, unless otherwise provided for in the annual Budget Act
22or appropriated by statute. No increase in wages or benefits
23negotiated or agreed to pursuant to this section shall take effect
24unless and until, prior to its implementation, the department has
25obtained the approval of the State Department of Health Care
26Services for the increase pursuant to a determination that it is
27consistent with federal law and to ensure federal financial
28participation for the services under Title XIX of the federal Social
29Security Act, and unless and until all of the following conditions
30have been met:

31(1) Each county has provided the department with
32documentation of the approval of the county board of supervisors
33of the proposed public authority or nonprofit consortium rate,
34including wages and related expenditures. The documentation shall
35be received by the department before the department and the State
36Department of Health Care Services may approve the increase.

37(2) Each county has met department guidelines and regulatory
38requirements as a condition of receiving state participation in the
39rate.

P6    1(b) Any rate approved pursuant to subdivision (a) shall take
2 effect commencing on the first day of the month subsequent to the
3month in which final approval is received from the department.
4The department may grant approval on a conditional basis, subject
5to the availability of funding.

6(c) The state shall pay 65 percent, and each county shall pay 35
7percent, of the nonfederal share of wage and benefit increases
8negotiated by a public authority or nonprofit consortium pursuant
9to Section 12301.6 and associated employment taxes, only in
10accordance with subdivisions (d) to (f), inclusive.

11(d) (1) The state shall participate as provided in subdivision (c)
12in wages up to seven dollars and fifty cents ($7.50) per hour and
13individual health benefits up to sixty cents ($0.60) per hour for all
14public authority or nonprofit consortium providers. This paragraph
15shall be operative for the 2000-01 fiscal year and each year
16 thereafter unless otherwise provided in paragraphs (2), (3), (4),
17and (5), and without regard to when the wage and benefit increase
18becomes effective.

19(2) The state shall participate as provided in subdivision (c) in
20a total of wages and individual health benefits up to nine dollars
21and ten cents ($9.10) per hour, if wages have reached at least seven
22dollars and fifty cents ($7.50) per hour. Counties shall determine,
23pursuant to the collective bargaining process provided for in
24subdivision (c) of Section 12301.6, what portion of the nine dollars
25and ten cents ($9.10) per hour shall be used to fund wage increases
26above seven dollars and fifty cents ($7.50) per hour or individual
27health benefit increases, or both. This paragraph shall be operative
28for the 2001-02 fiscal year and each fiscal year thereafter, unless
29otherwise provided in paragraphs (3), (4), and (5).

30(3) The state shall participate as provided in subdivision (c) in
31a total of wages and individual health benefits up to ten dollars
32and ten cents ($10.10) per hour, if wages have reached at least
33seven dollars and fifty cents ($7.50) per hour. Counties shall
34determine, pursuant to the collective bargaining process provided
35for in subdivision (c) of Section 12301.6, what portion of the ten
36dollars and ten cents ($10.10) per hour shall be used to fund wage
37increases above seven dollars and fifty cents ($7.50) per hour or
38individual health benefit increases, or both. This paragraph shall
39be operative commencing with the next state fiscal year for which
40the May Revision forecast of General Fund revenue, excluding
P7    1transfers, exceeds by at least 5 percent, the most current estimate
2of revenue, excluding transfers, for the year in which paragraph
3(2) became operative.

4(4) The state shall participate as provided in subdivision (c) in
5a total of wages and individual health benefits up to eleven dollars
6and ten cents ($11.10) per hour, if wages have reached at least
7seven dollars and fifty cents ($7.50) per hour. Counties shall
8determine, pursuant to the collective bargaining process provided
9for in subdivision (c) of Section 12301.6, what portion of the eleven
10dollars and ten cents ($11.10) per hour shall be used to fund wage
11increases or individual health benefits, or both. This paragraph
12shall be operative commencing with the next state fiscal year for
13which the May Revision forecast of General Fund revenue,
14excluding transfers, exceeds by at least 5 percent, the most current
15estimate of revenues, excluding transfers, for the year in which
16paragraph (3) became operative.

17(5) The state shall participate as provided in subdivision (c) in
18a total cost of wages and individual health benefits up to twelve
19dollars and ten cents ($12.10) per hour, if wages have reached at
20least seven dollars and fifty cents ($7.50) per hour. Counties shall
21determine, pursuant to the collective bargaining process provided
22for in subdivision (c) of Section 12301.6, what portion of the
23twelve dollars and ten cents ($12.10) per hour shall be used to fund
24wage increases above seven dollars and fifty cents ($7.50) per hour
25or individual health benefit increases, or both. This paragraph shall
26be operative commencing with the next state fiscal year for which
27the May Revision forecast of General Fund revenue, excluding
28transfers, exceeds by at least 5 percent, the most current estimate
29of revenues, excluding transfers, for the year in which paragraph
30(4) became operative.

31(6) Notwithstanding paragraphs (2) to (5), inclusive, the state
32shall participate as provided in subdivision (c) in a total cost of
33wages up to nine dollars and fifty cents ($9.50) per hour and in
34individual health benefits up to sixty cents ($0.60) per hour. This
35paragraph shall become operative on July 1, 2009.

36(7) (A) The Legislature finds and declares that injunctions
37issued by the courts have prevented the state from implementing
38the changes described in paragraph (6) during the pendency of
39litigation. To avoid confusion for providers, recipients, and other
40stakeholders, it is therefore the intent of the Legislature to
P8    1temporarily suspend the reductions described in that paragraph
2until July 1, 2012, to allow the litigation to reach a final result.

3(B) Paragraph (6) shall not be implemented until July 1, 2012,
4and as of that date shall only be implemented if a court of
5competent jurisdiction has issued an order, that is not subject to
6appeal or for which the time to appeal has expired, upholding its
7validity.

8(e) (1) On or before May 14 immediately prior to the fiscal
9 year for which state participation is provided under paragraphs (2)
10to (5), inclusive, of subdivision (d), the Director of Finance shall
11certify to the Governor, the appropriate committees of the
12Legislature, and the department that the condition for each
13subdivision to become operative has been met.

14(2) For purposes of certifications under paragraph (1), the
15General Fund revenue forecast, excluding transfers, that is used
16for the relevant fiscal year shall be calculated in a manner that is
17consistent with the definition of General Fund revenues, excluding
18transfers, that was used by the Department of Finance in the
192000-01 Governor’s Budget revenue forecast as reflected on
20Schedule 8 of the Governor’s Budget.

21(f) Any increase in overall state participation in wage and benefit
22increases under paragraphs (2) to (5), inclusive, of subdivision (d),
23shall be limited to a wage and benefit increase of one dollar ($1)
24per hour with respect to any fiscal year. With respect to actual
25changes in specific wages and health benefits negotiated through
26the collective bargaining process, the state shall participate in the
27costs, as approved in subdivision (c), up to the maximum levels
28as provided under paragraphs (2) to (6), inclusive, of subdivision
29(d).

30(g) For the period during which Section 12306.15 is operative,
31each county’s share of the costs of negotiated wage and benefit
32increases specified in subdivision (c) shall remain, but the County
33IHSS Maintenance of Effort pursuant to Section 12306.15 shall
34be in lieu of that share.

35(h) This section shall become inoperative only if Chapter 45 of
36the Statutes of 2012 is deemed inoperative pursuant to Section 15
37of that chapter.



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