BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON HUMAN SERVICES
                               Senator McGuire, Chair
                                2015 - 2016  Regular 

          Bill No:              AB 2346
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          |Author:   |Baker                                                 |
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          |Version:  |March 31, 2016         |Hearing    | June 28, 2016   |
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          |Urgency:  |No                     |Fiscal:    |Yes              |
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          |Consultant|Taryn Smith                                           |
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                     Subject:  Public social services:  hearings


            SUMMARY


          This bill requires specified position statements related to  
          state hearings to be made available electronically no less than  
          two days prior to the date of a hearing, unless specified steps  
          are taken by a county.  


            ABSTRACT
          
          Existing law:

          1)Requires the California Department of Social Services (CDSS)  
            and the Department of Health Care Services (DHCS) to hold a  
            fair hearing in the event that an applicant for or recipient  
            of public social services is dissatisfied with any action of a  
            county department, as specified. (WIC) 10950 et seq.) 


          2)Requires an applicant for or recipient of public social  
            services to file his or her request for a hearing within 90  
            days after the order or action on which the request for a  
            hearing is based.  (WIC 10951)


          3)Requires the department to set the hearing within 30 working  







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            days after the request is filed, and to notify all parties at  
            least 10 days prior to the hearing of the time and place of  
            the hearing.  (WIC 10952)



          4)Requires a public or private agency to make available a  
            mandated position statement concerning issues raised at the  
            hearing not less than two working days prior to the date of a  
            hearing, and further requires that the private or public  
            agency make a copy of the agency's position statement  
            available to the applicant or recipient at the county welfare  
            department.  (WIC 10952.5) 



          5)Mandates that, if a public or private agency does not make the  
            position statement available not less than two working days  
            prior to the hearing or the agency decides to modify the  
            position statement, the hearing shall be postponed upon the  
            request of the applicant or recipient.  (WIC 10952.5)



          6)Exempts DHCS from requirements to make position statements  
            available. (WIC 10952.5)

          7)Limits the issues at a state hearing to those that are  
            reasonably related to the request for hearing or other issues  
            that have been identified by either party and mutually agreed  
            upon, as specified.  (WIC 10958.1) 


          8)Provides that a hearing award, if the decision is in favor of  
            the applicant or recipient, shall be determined within 30 days  
            of the date of the hearing decision, and requires the county  
            and the claimant to be notified of the determination regarding  
            the county's compliance with the decision.  (WIC 10961)




          This bill:









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          1)Requires a public or private agency to make its position  
            statement available at the county welfare office and through  
            electronic means.


          2)Requires the DHCS to make its position statement available to  
            the applicant or recipient and to the CDSS through electronic  
            means not less than two business days before the scheduled  
            hearing.


          3)Stipulates that a public or private agency is not required to  
            make a copy of its position statement available electronically  
            if it has submitted a report to the CDSS detailing the  
            barriers to providing position statements electronically, and  
            what steps the agency is taking to address these barriers.


          4)Makes other technical changes.


           
          FISCAL IMPACT
          
          According the Assembly Appropriations Committee, this bill may  
          result in unknown, but potential costs to counties which are not  
          reimbursable.  The bill may also generate minor and absorbable  
          costs to CDSS to annually review any reports sent by public or  
          private agencies explaining why they can't make position  
          statements available electronically.  The analysis projects no  
          fiscal impact to CDSS regarding development of the Appeals Case  
          Management System project.



            BACKGROUND AND DISCUSSION
          
          Purpose of the bill:

          According to the author, current law limits the availability of  
          state hearing documents because the documents can only be picked  
          up at the county welfare offices.  This inability to access  
          hearing documents electronically imposes additional  
          transportation costs on low-income persons, especially those  








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          living in rural areas, per the author.


          Public social services - state hearings

          State laws and regulations define the benefits and services  
          provided to low-income individuals and families that receive  
          public social services from programs for which state hearings  
          can be requested. These programs include, but are not limited  
          to, CalWORKs, CalFresh, the Supplemental Security Income/State  
          Supplementary Payment, Medi-Cal, and California Assistance  
          Program for Immigrants.  

          These programs are generally administered at the county level.   
          Under current law, an applicant or recipient of public social  
          services can request a state hearing if they are dissatisfied  
          with any action of the county relating to his or her application  
          or receipt of public social services.  An applicant can also  
          request a hearing if the application is not acted upon with  
          reasonable promptness.  Current law and regulations set forth  
          timeframes for requesting a state hearing and adjudication of  
          the complaint, in addition to county requirements to send  
          notices pertaining to the hearing.  Applicants and recipients  
          must file a request with the CDSS or the DHCS, whichever  
          department administers the public social service.

          CDSS's State Hearings Division is responsible for conducting  
          these hearings in order to resolve disputes of applicants and  
          recipients of public social services in an impartial,  
          independent, fair, and timely manner, while ensuring that due  
          process is met in accordance with federal and state law.  Data  
          provided by CDSS shows that the State Hearings Division is  
          projected to receive more than 100,000 requests for hearings in  
          FY 2015-16 and FY 2016-17. 

          Appeals Case Management System 

          According to CDSS, the secure electronic notifications  
          technology called for in AB 2346 will be available on a  
          statewide basis when CDSS's new Appeals Case Management System  
          (ACMS) is launched.  CDSS and the Office of System Integration  
          are currently working to develop the ACMS which will allow  
          claimants, their authorized representatives, counties,  
          departments, and respondents to securely upload and download  








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          documents, such as the Statement of Position. The new system is  
          reportedly designed to meet Health Insurance Portability and  
          Accountability Act (HIPPA) and language requirements. It will  
          include a portal for individuals to request hearings, check  
          their hearing or case status and access case information.  ACMS  
          is currently projected to launch in mid-2018 and will integrate  
          intake, scheduling and reporting of cases.  

                                      COMMENTS:


          Current law does not prohibit or require position statements to  
          be made available electronically or via US mail. However, some  
          counties provide positions statements via email upon request.   
          Additionally, DHCS reports that its procedures call for mailing  
          position statements via certified US mail 10 days prior to a  
          hearing. 


          The following amendments are suggested in response to concerns  
          that the bill would require counties and state agencies to  
          provide personal identifying information and other sensitive  
          information via electronic means might jeopardize privacy rights  
          and potentially violate HIPPA requirements.  These amendments  
          would allow the entities to provide the position statements in  
          person, via US mail or via email, upon request.  Additionally,  
          in anticipation of CDSS's new statewide Appeals Case Management  
          System, the amendments would make provisions that allow entities  
          to opt out of electronic notifications inoperable when the new  
          Appeals Case Management System is fully operational. Therefore,  
          the committee recommends the following amendments: 


          WIC 10952.5. 
          (a) If regulations require a public or private agency to write a  
          position statement concerning the issues in question in a fair  
          hearing, or if the public or private agency chooses to develop  
          that statement, not less than two business days before the date  
          of a hearing provided for pursuant to this chapter, the public  
          or private agency shall make available to the applicant for, or  
          recipient of, public social services requesting a fair hearing,  
          a copy of the public or private agency's position statement on  
          the forthcoming hearing. The public or private agency shall make  
          the copy available to the applicant or recipient  , upon request,   








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          at the county welfare department  , via US mail, or   and  through  
          electronic means.  If the applicant or recipient requests the  
          position statement to be delivered via electronic means and the  
          position statement contains personal identifying information,  
          the position statement must be delivered via secure electronic  
          means, except as provided for in subsection (d)  . A public or  
          private agency shall be required to comply with this section  
          only if the public or private agency has received a 10-day prior  
          notice of the date and time of the scheduled hearing.

          (b) If the public or private agency does not make the position  
          statement available not less than two business days before the  
          hearing or if the public or private agency decides to modify the  
          position statement, the hearing shall be postponed upon the  
          request of the applicant or recipient, if an applicant or  
          recipient agrees to waive the right to obtain a decision on the  
          hearing within the deadline that would otherwise be applicable  
          under regulations. A postponement for reason of the public or  
          private agency not making the position statement available  
          within not less than two business days shall be deemed a  
          postponement for good cause for purposes of determining  
          eligibility to any applicable benefits pending disposition of  
          the hearing.

          (c) Subdivisions (a) and (b) shall not apply to the State  
          Department of Health Care Services or the State Department of  
          Public Health, except that the State Department of Health Care  
          Services shall make its position statement available to the  
          applicant or recipient and the State Department of Social  
          Services through electronic means not less than two business  
          days before the scheduled hearing.

          (d) A public or private agency shall not be required to make a  
          copy of its position statement available to an applicant or  
          recipient through electronic means if the agency submits a  
          report by December 31 of each year to the State Department of  
          Social Services that includes both of the following:
          (1) The barriers the agency has identified that substantially  
          impede or prohibit the electronic provision of hearing  
          documents.
          (2) The steps the agency is taking to address these barriers.
           
          (e) Subsection (d) shall become inoperative once the Department  
          of Social Services' statewide electronic case management system  








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          is operational and has the capacity to provide position  
          statements via secure electronic means to claimants.
           
            PRIOR VOTES
          
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          |Assembly Floor:                                            |76 - |
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          |Assembly Appropriations Committee:                         |20 - |
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          |Assembly Human Services Committee:                         |6 -  |
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            POSITIONS
                                          
          Support:
               Coalition of California Welfare Rights Organization  
          (Sponsor)                                              
               Housing California

          Oppose:
               None.
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