BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    AB 1930


                                                                     Page 1


          CONCURRENCE IN SENATE AMENDMENTS


          AB  
          1930 (Lackey)


          As Amended  August 1, 2016


          Majority vote


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          |ASSEMBLY:  |77-0  |(June 1, 2016) |SENATE: |37-0  |(August 16,      |
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          Original Committee Reference:  HUM. S.




          SUMMARY:  Establishes the In-Home Supportive Services (IHSS)  
          Family Caregiver Benefits Advisory Committee for the purpose of  
          studying, and providing a report on, employment-based supports  
          and protections as they pertain to IHSS providers.  


          The Senate amendments:


          1)Modify and clarify certain aspects of the advisory committee,  
            including the following: establishes the committee within the  
            Department of Social Services (DSS); states that it should  
            consider, alongside other employment-based supports and  
            protections, factors related to state unemployment insurance  
            benefits; and changes the required composition of the  
            committee by including nonprofit organizations related to  








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            IHSS, removing the Department of Finance and Legislative  
            Analyst's Office, and specifying that the labor organizations  
            to be included should be designated representatives of  
            providers of personal assistance services funded as IHSS, as  
            specified.


          2)Change the bill's required size of the advisory committee from  
            not more than 15 individuals to no fewer than eight  
            individuals and not more than 11 individuals, and authorize  
            the Governor to appoint no more than nine individuals, and  
            require the Speaker of the Assembly and the Senate Committee  
            on Rules to each appoint one individual to the committee.   
            Further, require the Governor's appointees to include only  
            representatives of groups specified by the bill, but permit  
            the other two appointees to include representatives not from  
            these groups, and require all appointments to ensure that the  
            advisory committee includes representatives of all specified  
            groups.


          3)Make technical changes.


          EXISTING LAW:


          1)Establishes the IHSS program to provide supportive services,  
            including domestic, protective supervision, personal care, and  
            paramedical services as specified, to individuals who are  
            aged, blind, or living with disabilities, and who are unable  
            to perform the services themselves or remain safely in their  
            homes without receiving these services.  (Welfare and  
            Institutions Code Section (WIC) 12300 et seq.)


          2)States those counties may choose to contract with a nonprofit  
            consortium or establish a public authority for the provision  
            of IHSS services.  Requires nonprofit consortia and public  
            authorities to, among other things, establish a registry to  
            assist recipients in locating IHSS providers, and to  
            investigate the background and qualifications of potential  








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            providers, as specified.  (WIC 12301.6)


          3)Maintains an IHSS recipient's right to hire, fire, and  
            supervise the work of any IHSS provider, regardless of the  
            employer responsibilities of a public authority or nonprofit  
            consortium, as specified.  (WIC 12301.6)


          4)Requires the application for IHSS to contain a notice to the  
            recipient that his or her provider(s) will be given written  
            notice of the recipient's authorized services and allotted  
            hours and further requires the application to inform  
            recipients of specified Media-Cal contact information for  
            reporting fraud or abuse.  (WIC 12301.15)


          FISCAL EFFECT:  According to the Senate Appropriations Committee  
          on August 1, 2016, this bill may result in the following costs:


          1)Estimated costs to 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.  (General Fund)


          2)Costs to DSS of $97,000 for fiscal years 2016-17 and 2017-18  
            for transportation and meeting expenses for committee members,  
            county representatives, IHSS providers, IHSS recipients and  
            their providers and for legal research and consultation.   
            (General Fund)


          3)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.   
            (General Fund)










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


          COMMENTS:  


          In-Home Supportive Services:  The IHSS program enables  
          low-income individuals who are at least 65 years old, living  
          with disabilities, or blind to remain in their own homes by  
          paying for care providers to assist with personal care services  
          (such as toileting, bathing, and grooming), domestic and related  
          services (meal preparation, housecleaning, and the like),  
          paramedical services, and protective supervision.  Approximately  
          464,000 Californians receive IHSS, with approximately 99%  
          receiving it as a Medicaid benefit. 


          When an individual is determined eligible for IHSS services by a  
          county social worker, he or she is authorized for a certain  
          number of hours of care.  IHSS recipients are responsible for  
          hiring, firing, directing, and supervising their IHSS workers.   
          These responsibilities include some administrative duties, such  
          as scheduling and signing timesheets; however, the state handles  
          payroll.  There are currently about 433,400 IHSS providers in  
          the state; approximately 69% are relatives and an estimated 50%  
          are live-in.  Providers must complete an enrollment process,  
          including submitting fingerprint images for a criminal  
          background check and participating in a provider orientation  
          prior to receiving payment for services.


          Access to some employment-based benefits and protections may be  
          limited for certain IHSS providers, particularly if a provider  
          is related to the IHSS consumer.  According to IHSS provider  
          training materials from DSS, "some family members, especially  
          spouses and parents of consumers, are not eligible to have  
          Social Security (FICA) funds withheld from paychecks," and  
          "Unemployment Insurance benefits may be available to you if you  
          are not the parent or spouse of your employer/recipient and  
          become unemployed, able and available to work and you meet  
          certain eligibility requirements."








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          Need for this bill:  According to the author, this bill "would  
          establish an advisory committee to study how this exclusion [of  
          certain relative IHSS providers from Social Security, state  
          unemployment insurance and other coverage] impacts the economic  
          security of individuals who provide these critical services and  
          their communities.  This committee would include policy experts  
          as well as those directly impacted by the exclusion.  The  
          committee would be tasked with drafting a report to the  
          Legislature with recommendations on steps the state can take to  
          ensure that all IHSS providers have access to social security,  
          Medicare, and unemployment insurance.  Over several decades, the  
          fact that these workers cannot access Social Security, Medicare  
          or Unemployment Insurance benefits has resulted in terrible  
          economic hardship for tens of thousands of IHSS workers who are  
          at or near retirement age.  It also results in indirect costs to  
          taxpayers as hard working seniors are forced into poverty and  
          reliance on state public assistance programs.  It is worth  
          exploring why benefits that are provided to one category of  
          workers that are denied to another category of workers in the  
          same program."


          Analysis Prepared by:                                             
                          Daphne Hunt / HUM. S. / (916) 319-2089  FN:  
          0004248