BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 564 (Eggman) - Regional centers:  parental fees
          
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          |Version: July 16, 2015          |Policy Vote: HUMAN S. 5 - 0     |
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          |Urgency: No                     |Mandate: No                     |
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          |Hearing Date: August 27, 2015   |Consultant: Brendan McCarthy    |
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          *********** ANALYSIS ADDENDUM - SUSPENSE FILE ***********
             The following information is revised to reflect amendments 
                     adopted by the committee on August 27, 2015


          Bill  
          Summary:  AB 564 would revise the requirements of the existing  
          Parental Fee Program for children placed in 24-hour out-of-home  
          care, primarily by establishing a fee structure based on family  
          income.


          Fiscal  
          Impact:  
           Likely one-time costs of about $150,000 to revise existing  
            formulas and procedures and to revise existing regulations by  
            the Department of Developmental Services (General Fund).

           Projected annual revenue loss of about $190,000 due to changes  
            to the Parental Fee Structure (Program Development Fund). The  
            bill would exempt families with incomes between 100% and 200%  
            of the federal poverty level from paying fees, leading to a  
            reduction in annual fee revenues. In addition, the bill would  







          AB 564 (Eggman)                                        Page 1 of  
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            authorize families to request a recalculation of their fee  
            before the annual fee redetermination. In combination, the  
            Department indicates that these changes will reduce annual fee  
            revenues by $190,000 per year.

           Unknown potential increase if fee revenues due to simplified  
            program requirements (Program Development Fund). According to  
            the Department, the current structure of the program has led  
            to inconsistent application of fees across the state. By  
            simplifying the program rules, the Department indicates that  
            compliance with the program's requirements may actually  
            increase, increasing overall fee revenues. For example, a  
            simpler, more consistent fee structure is likely to reduce  
            appeals and eliminate the subjectivity from calculating fee  
            levels. Also, a recent audit of the program found that there  
            are significant amounts of uncollected fees. In part, this may  
            be due to resistance to paying fees by families who feel that  
            their fee calculations were unfair. 


          Committee  
          Amendments:  Delete the continuous appropriation and make  
          technical corrections.


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