BILL ANALYSIS Ó AB 1930 Page 1 CONCURRENCE IN SENATE AMENDMENTS AB 1930 (Lackey) As Amended August 1, 2016 Majority vote -------------------------------------------------------------------- |ASSEMBLY: |77-0 |(June 1, 2016) |SENATE: |37-0 |(August 16, | | | | | | |2016) | | | | | | | | | | | | | | | -------------------------------------------------------------------- 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 AB 1930 Page 2 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 AB 1930 Page 3 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) AB 1930 Page 4 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." AB 1930 Page 5 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