BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                       AB 211


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          ASSEMBLY THIRD READING


          AB  
          211 (Gomez)


          As Introduced  February 2, 2015


          Majority vote


           ------------------------------------------------------------------- 
          |Committee       |Votes |Ayes                |Noes                  |
          |                |      |                    |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Human Services  |6-0   |Chu, Mayes,         |                      |
          |                |      |Calderon, Lopez,    |                      |
          |                |      |Mark Stone,         |                      |
          |                |      |Thurmond            |                      |
          |                |      |                    |                      |
          |----------------+------+--------------------+----------------------|
          |Appropriations  |13-3  |Gomez, Bonta,       |Gallagher, Jones,     |
          |                |      |Calderon, Chang,    |Wagner                |
          |                |      |Daly, Eggman,       |                      |
          |                |      |Eduardo Garcia,     |                      |
          |                |      |Gordon, Holden,     |                      |
          |                |      |Quirk, Rendon,      |                      |
          |                |      |Weber, Wood         |                      |
          |                |      |                    |                      |
          |                |      |                    |                      |
           ------------------------------------------------------------------- 


          SUMMARY:  Disconnects implementation of the Statewide Authority  
          for collective bargaining within the In-Home Support Services  
          (IHSS) program from the state's Coordinated Care Initiative (CCI)  








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          and implements it separately, beginning January 1, 2016.
          Specifically, this bill:


          1)Requires the In-Home Supportive Services Statewide Authority to  
            assume collective bargaining responsibility for IHSS providers  
            in all 58 counties, beginning January 1, 2016.
          2)Deletes the requirement that the statewide collective bargaining  
            activities of the Statewide Authority are conditioned upon  
            implementation of the CCI and therefore subject to the timeline  
            and other restrictions within the CCI demonstration project.


          3)Deletes the authority of the Director of Finance to terminate  
            the Statewide Authority or the collective bargaining  
            responsibilities of the Statewide Authority if the CCI  
            demonstration project is terminated due to not generating  
            anticipated General Fund savings.


          4)Makes permanent the IHSS maintenance of effort (MOE) requirement  
            for all counties in lieu of their share of non-federal costs, as  
            well as the inclusion of a county's IHSS MOE when calculating  
            that county's share of cost for negotiated wage and benefit  
            increases.


          EXISTING LAW:


          1)Establishes the IHSS program as a benefit available to Medi-Cal  
            beneficiaries that provides in-home care and supportive services  
            to low-income aged, blind, or disabled persons who are unable to  
            provide or care for themselves and who cannot live safely in  
            their homes without assistance.  Defines supportive services  
            within the program to include domestic services, personal care  
            services, protective supervision, paramedical services, and  
            other services, as specified.  (Welfare and Institutions Code  
            (WIC) Section 12300 et seq.)








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          2)Establishes the CCI demonstration project in up to eight  
            counties, subject to federal approval, to better serve the  
            state's low-income seniors and persons with disabilities by  
            integrating the delivery of medical, behavioral, and long-term  
            care services.  (SB 1008 (Budget and Fiscal Review Committee),  
            Chapter 33, Statutes of 2012, and SB 1036 (Budget and Fiscal  
            Review Committee), Chapter 45, Statutes of 2012).


          3)Requires, as an additional component of the CCI, that all  
            Medi-Cal long-term services and supports, which include IHSS, be  
            services that are covered under managed care health plan  
            contracts and be available only through managed care health  
            plans to beneficiaries residing in counties participating in the  
            CCI demonstration project, with specified exceptions.  (WIC  
            Section 14186 et seq.)


          4)Establishes the IHSS Statewide Authority as a joint powers  
            authority, as specified, that is required to be the entity  
            authorized to meet and confer regarding wages and benefits with  
            recognized employee organizations for IHSS providers commencing  
            after the "county implementation date" within the CCI, which  
            occurs when a county that is one of the CCI demonstration  
            counties is notified by the Director of the Department of Health  
            Care Services (DHCS) that the enrollment of eligible Medi-Cal  
            beneficiaries, as specified, has been completed in that county.   
            (California Government Code (GOV) Section 6531.5, WIC Section  
            12300.5)


          5)Requires, beginning July 1, 2012, all counties to have a County  
            IHSS MOE, as specified, which the counties pay in lieu of paying  
            the non-federal share of IHSS costs, as specified.  Also  
            requires the MOE to be paid in lieu of a county's share of the  
            costs of negotiated wage and benefit increases.  Makes these MOE  
            provisions inoperative, and reverts counties back to the  
            otherwise specified share of cost, if the CCI becomes  
            inoperative.  (WIC Section 12306.15)








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          FISCAL EFFECT:  According the Assembly Appropriations Committee:


          1)Potentially major ongoing costs (General Fund (GF)) in the tens  
            of millions of dollars to the extent the provisions of this bill  
            result in an increase in IHSS provider wages and health benefits  
            with the implementation of the Statewide Authority in all 58  
            counties.  Only those wage and benefit increases that are  
            locally negotiated or imposed before the Statewide Authority  
            assumes employer responsibility result in an adjustment to the  
            County IHSS MOE.  Thus, any increases negotiated by the  
            Statewide Authority do not require a county share of costs.  The  
            nonfederal share of the increase will be fully funded by the  
            state, resulting in ongoing costs to the GF. 


          2)Annual costs in the range of $7 million (50% GF, 50% federal  
            funds) to the Department of Human Resources (CalHR) to implement  
            and operate a collective bargaining platform on behalf of the  
            Statewide Authority expanded to cover all 58 counties. 


          COMMENTS:   


          In-Home Supportive Services (IHSS):  The IHSS program provides  
          personal care and domestic services to approximately 420,000  
          qualified, low-income individuals who are aged, blind, or  
          disabled.  Through the IHSS program, recipients are cared for and  
          assisted with activities of daily living, allowing them to remain  
          safely in their own homes and avoid institutionalization.  IHSS  
          services include:  Paramedical services, such as giving  
          medications and changing a colostomy bag; Non-Medical Personal  
          Care services, such as toileting, dressing, and transportation;  
          Domestic services, such as housework, shopping for groceries and  
          meal preparation; and, Protective supervision for those who, due  
          to cognitive decline or dementia, cannot be left alone for  








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          extended periods. 


          County social workers determine eligibility for IHSS and the  
          authorized hours of care after conducting a standardized in-home  
          assessment, and periodic reassessments, of an individual's ability  
          to perform specified activities of daily living.  Once eligible,  
          recipients are responsible for hiring, firing, directing and  
          supervising their own IHSS provider or providers.  Prior to  
          receiving payment for services, providers must submit to a  
          criminal background check and a provider orientation.  IHSS is  
          funded with federal, state, and county resources, and prior to  
          implementation of the CCI demonstration project, county public  
          authorities or nonprofit consortia were designated as "employers  
          of record" for collective bargaining purposes on a statewide  
          basis, while the state administered payroll and benefits.  


          Coordinated Care Initiative (CCI):  The Budget Act of 2012 enacted  
          the CCI, also referred to as Cal MediConnect, a framework for  
          integrating delivery of medical, behavioral and long-term care  
          services through a single health plan for persons eligible for  
          both Medicare and Medi-Cal.  The CCI was originally limited to the  
          following eight demonstration counties:  Alameda, Los Angeles,  
          Orange, San Diego, San Mateo, Riverside, San Bernardino, and Santa  
          Clara, in which approximately 65% of IHSS recipients reside.   
          Alameda County withdrew from the CCI demonstration in 2014.


          As part of the CCI, collective bargaining responsibilities  
          shifted, in the demonstration counties, from local county public  
          authorities or non-profit consortia to the new Statewide  
          Authority, which is composed of specified members and an advisory  
          committee.  The CCI also created an IHSS MOE funding requirement  
          for counties, which replaced the previously existing county share  
          of non-federal funding for IHSS.  Under the demonstration project,  
          the shift to the Statewide Authority is set to occur in each  
          county once enrollment into managed care pursuant to the CCI has  
          been completed in that county.  According to the Department of  








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          Health Care Services (DHCS), this shift was scheduled to have  
          occurred in April 2014.  


          Need for the bill:  While the statute creating the CCI anticipated  
          a fairly seamless roll-out within the eight demonstration  
          counties, delays have resulted in enrollment still being underway  
          for five counties, with San Mateo being the only county that has  
          already completed enrollment and transitioned to collective  
          bargaining under the Statewide Authority.  According to the  
          author, this bill is necessary to shift to statewide collective  
          bargaining for all IHSS providers despite delays in the  
          implementation of the CCI and despite the lack of a plan to  
          transition collective bargaining to the state level in the  
          remaining 51 counties not included in the CCI. 




          Analysis Prepared by:                                               
                          Myesha Jackson / HUM. S. / (916) 319-2089  FN:  
          0000599