BILL ANALYSIS                                                                                                                                                                                                    Ó



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

          AB 1930 (Lackey) - In-home supportive services:  family  
          caregivers:  advisory committee
          
           ----------------------------------------------------------------- 
          |                                                                 |
          |                                                                 |
          |                                                                 |
           ----------------------------------------------------------------- 
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Version: August 1, 2016         |Policy Vote: HUMAN S. 4 - 0     |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Urgency: No                     |Mandate: No                     |
          |                                |                                |
          |--------------------------------+--------------------------------|
          |                                |                                |
          |Hearing Date: August 1, 2016    |Consultant: Debra Cooper        |
          |                                |                                |
           ----------------------------------------------------------------- 


          This bill meets the criteria for referral to the Suspense File.


          Bill  
          Summary:  AB 1930 would create the In-Home Supportive Services  
          (IHSS) Family Caregiver Benefits Advisory Committee, as  
          specified, to study and provide a report on employment-based  
          supports and protections for IHSS providers.


          Fiscal  
          Impact:  
           Estimated costs to the Department of Social Services (DSS) of  
            $373,000 in fiscal year 2016-17 and $331,000 in fiscal year  
            for administrative costs to support the advisory group,  
            assuming the committee will meet quarterly. This includes  
            three new staffing positions to assist in staffing the  
            committee and to prepare the peer-reviewed report. (GF)


           Costs to DSS of $97,000 for fiscal years 2016-17 and 2017-18  
            for transportation and meeting expenses for committee members,  







          AB 1930 (Lackey)                                       Page 1 of  
          ?
          
          
            county representatives, IHSS providers, IHSS recipients and  
            their providers and for legal research and consultation. (GF)


           Significant cost to DSS of $250,000 for fiscal years 2016-17  
            and 2017-18 for an external contract with the University of  
            California to complete the study and peer-reviewed report.  
            (GF)


           Likely significant cost pressure to implement any  
            recommendations that the advisory committee produces. 


          Background:  The Internal Revenue Code defines "employment" as any service  
          an employee performs for an employer, but contains an exception  
          to this definition for family employment. This exception applies  
          to service in a private home "in the employ of an individual's  
          son, daughter, or spouse." In these cases, according to the IRS,  
          no employment relationship exists. As a result, the CDSS has  
          determined that wages paid through IHSS to parent or spouse  
          providers fall under this exception and are exempt from  
          employment taxes which are typically matched to fund the  
          employee's future Social Security and Medicare benefits. 
          Additionally, Section 631 of the California Unemployment  
          Insurance Code states that "employment' does not include service  
          performed by an individual in the employ of his son, daughter,  
          or spouse. These family employees are therefore also excluded  
          from Unemployment Insurance, Employment Training Tax, and State  
          Disability Insurance coverage.




          Proposed Law:  
            This bill creates an advisory committee, housed within the  
          State Department of Social Services, to describe the  
          availability of, and barriers to accessing, employment-based  
          supports and protections, including, but not limited to, federal  
          social security benefits and state unemployment insurance  
          benefits. This advisory committee would also study the impact of  
          the lack of access to these supports and protections on the  
          lives and communities of individuals who provide the supportive  
          services to a spouse or child. 








          AB 1930 (Lackey)                                       Page 2 of  
          ?
          
          
          The advisory committee would be made up of between eight and 11  
          individuals, inclusive, composed of an individual appointed by  
          the Speaker of the Assembly, an individual appointed by the  
          Senate Committee on Rules, and not more than nine individuals  
          appointed by the Governor including, but not limited to,  
          representatives from the following groups: 
           Academic entities with expertise in the subject matter
           Nonprofit organizations related to IHSS
           The State Department of Social Services
           County governments
           IHSS public authorities
           Current IHSS providers who are a parent or spouse of the  
            individual receiving the personal assistance services
           Individuals who are current or past consumers of personal  
            assistance services provided through IHSS
           Labor organizations that are designated representative of  
            providers of personal assistance services funded as IHSS

          On or before January 1, 2018, the advisory committee would be  
          required to provide a report to specified Legislative committees  
          including a summary of their findings and recommendations on  
          steps that the state can take to ensure that all IHSS providers  
          supporting a child or spouse have access to employment-based  
          supports and protections, as specified. This report must be peer  
          reviewed by the academic entity included in the committee.  


          This bill would remain in effect until January 1, 2019 unless a  
          statute deletes or extends that date. 




                                      -- END --