BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     AB 564


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          Date of Hearing:  May 27, 2015


                        ASSEMBLY COMMITTEE ON APPROPRIATIONS


                                 Jimmy Gomez, Chair


          AB  
          564 (Eggman) - As Amended May 6, 2015


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          Urgency:  No  State Mandated Local Program:  NoReimbursable:  No


          SUMMARY:


          This bill eliminates inconsistency in Parental Fee Program  
          determinations and appeals processes for families with children  
          receiving 24-hour out-of-home care through a regional center.  
          Specifically, this bill:  








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          1)Adds major unusual expenses to the factors that must be taken  
            into account in establishing the parental fee amount.


          2)Requires the parental fee schedule to be adjusted for the  
            level of annual gross income and the number of persons living  
            in the family home.


          3)Codifies the ability for a parent to appeal the Department of  
            Developmental Services' (DDS) determination of the amount of  
            the parental fee pursuant to department regulations.


          4)Requires DDS to consider the same information regarding a  
            parent's gross income and the factors required to be taken  
            into account when determining a parental fee, and when  
            considering an appeal of a parental fee determination.


          5)Requires a parental fee amount that is adjusted as the result  
            of an appeal to be determined in accordance with the parental  
            fee schedule.


          FISCAL EFFECT:


          No significant fiscal impact to DDS. 


          COMMENTS:


          1)Purpose. This bill seeks to provide greater consistency in the  
            implementation of the Parental Fee Program for families with  
            children in out-of-home care.  Based on the recommendations in  








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            a January 2015 State Auditor's Report, this bill clarifies the  
            factors to be considered when determining the amount of a  
            parental fee, codifies a parent's right to an appeal of a  
            parental fee determination, and requires the same type of  
            information to be used when making parental fee determinations  
            and when considering appeals. 


          2)Parental Fee Program.  Established in the early years of the  
            Lanterman Act, the Parental Fee Program requires parents of  
            children who are under 18 years of age and receive 24-hour  
            out-of-home care, paid for by a regional center, to pay a  
            share of cost based on their ability to pay.  The money the  
            Department of Developmental Services (DDS) receives from the  
            Parental Fee Program is required by law to be deposited into  
            the Program Development Fund, which is used to initiate new  
            programs consistent with the California Developmental  
            Disabilities State Plan.





            Parental fees are established for families with income at or  
            above 100% of the Federal Poverty Level, and they range from  
            $59 to $1,877 per month, based on family size and income.  
            Currently, there are 559 children in the Parental Fee Program.





            If parents disagree with the determination that they are  
            required to pay a parental fee, or if they wish to dispute the  
            actual monthly amount, they must submit a written request to  
            appeal the determination or the amount within 30 days of  
            receiving notification from DDS stating that they are to pay a  
            parental fee.  Within 30 days of receiving the appeal and all  
            pertinent financial information, DDS is required to review the  








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            appeal and provide written notice of the decision to the  
            appellant and the appropriate regional center.





          3)State Auditor's Report. A January 2015, California State  
            Auditor's report called into question whether implementation  
            of the Parental Fee Program was effective and equitable.   
            Among the Auditor's findings was that DDS was using different  
            sets of income data for first determining a parent's ability  
            to pay than in the appeals process. The Auditor recommended  
            that DDS eliminate inconsistencies between the information  
            used for initial fee determinations and the information used  
            when an appeal is filed.
          





          Analysis Prepared by:Jennifer Swenson / APPR. / (916)  
          319-2081