BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                      AB 11


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          Date of Hearing:  April 15, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
                       11 (Gonzalez) - As Amended March 11, 2015


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          Urgency:  No State Mandated Local Program:  NoReimbursable:  No
          SUMMARY:


          This bill revises the definition of an employee under the  
          Healthy Workplaces, Healthy Families Act of 2014 to include  
          providers of in-home support services (IHSS) starting July 1,  
          2016.  This change in law would allow IHSS providers to accrue  
          one hour of sick leave for every 30 hours worked.











                                                                      AB 11


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          FISCAL EFFECT:


          Annual General Fund costs in the range of approximately $100  
          million starting in the 2016-17 fiscal year. There are  
          approximately 462,000 IHSS providers in California. Current law  
          authorizes an employer to limit paid sick days to 24 hours or  
          three days each year.  On average, providers would accrue 2.8  
          hours of sick leave each month. Under the county maintenance of  
          effort (MOE) financing structure, the state General Fund assumes  
          100 percent of the costs above counties' MOE expenditure levels.


          COMMENTS: 


          1)Purpose. AB 1522 (Gonzalez) of 2014 enacted the Health  
            Workplaces, Healthy Families Act of 2014 provides paid sick  
            days to certain California employees effective July 1, 2015.   
            The new law provides the right to paid sick days to an  
            estimated 6.5 million California workers. IHSS providers were  
            originally included in AB 1522 but were excluded towards the  
            end of the Legislative process due to cost concerns. This bill  
            deletes that exclusion effective July 1, 2016, allowing IHSS  
            providers to accrue hours of sick leave each month.  According  
            to supporters, this bill ensures that IHSS caregivers are  
            afforded the same basic right as the rest of California's  
            workforce.



          2)County IHSS MOE. The IHSS program provides personal care and  
            domestic services to low-income aged, blind and disabled  
            persons to help them remain safely in their own homes and  
            communities. IHSS is considered an alternative to out-of-home  
            care, such as nursing homes, and is a Home and Community-Based  
            Service.












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            Effective July 2012, as part of the Coordinated Care  
            Initiative (CCI), a county maintenance-of-effort (MOE) funding  
            formula was established for the IHSS program. Historically,  
            for almost all IHSS recipients, 50 percent of program costs  
            were paid for by the federal government, with 32.5 percent  
            paid by the state and 17.5 percent by the counties. CCI  
            statute altered the historical county contribution by enacting  
            an MOE, which replaces the county contribution of 17.5 percent  
            with a requirement that counties generally maintain their  
            2011-12 expenditure level for IHSS beginning in 2012-13, to be  
            adjusted annually for inflation beginning in 2014-15. Under  
            the county MOE financing structure, the state General Fund  
            assumes all nonfederal IHSS costs above counties' MOE  
            expenditure levels.





          3)Oppose unless amended.  The Alliance, a statewide coalition  
            supporting people with Intellectual and Developmental  
            Disabilities, support improving wages and benefits for IHSS  
            workers, but are concerned with the associated costs and are  
            opposed to the bill unless dedicated state funding is  
            specifically provided for this purpose.  
          Analysis Prepared  
          by:              Misty Feusahrens / APPR. / (916) 319-2081






















                                                                      AB 11


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