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 --