BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 564 (Eggman) - Regional centers: parental fees ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: July 16, 2015 |Policy Vote: HUMAN S. 5 - 0 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: No | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 27, 2015 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- *********** 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 ? 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. -- END --