BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 855


                                                                    Page  1





          Date of Hearing:  August 10, 2016


                            ASSEMBLY COMMITTEE ON BUDGET


                                 Philip Ting, Chair


          SB  
          855 (Committee on Budget and Fiscal Review) - As Amended August  
          8, 2016


          SENATE VOTE:  25-11


          SUBJECT:  Budget Act of 2016


          SUMMARY:  Makes substantive and technical statutory changes  
          impacting and corresponding to the Health and Human Services  
          portions of the Budget Act of 2016 (SB 826, Chapter 23, Statutes  
          of 2016).  Specifically, this bill makes the following changes: 

           Managed Care Organizations Tax
           
             1.   Makes technical, clarifying corrections to the statute  
               implementing the Managed Care Organization (MCO) tax,  
               adopted through SB X2 2 (Chapter 2, Hernández, Statutes of  
               2016, Second Extraordinary Session) to clarify that  
               insurers whose gross premiums tax rate has been reduced to  
               $0 during the operation of the MCO tax shall not be  
               required to make pre-payments to the state since their tax  
               liability will be $0.  

             2.   Provides that for health insurers subject to the 0%  
               gross premiums tax rate prepayments are not required  
               between July 1, 2016, and on or before June 30, 2019, and  








                                                                     SB 855


                                                                    Page  2





               would additionally provide that for prepayments due on or  
               after June 30, 2019, the amount due is 25% of the amount of  
               what the annual insurance tax liability reported on the  
               return of the health insurer for the preceding calendar  
               year would have been if the provision reducing the gross  
               premiums tax rate to 0% described above had never been  
               operative.  

           Child Abuse Prevention and Treatment Act (CAPTA) Compliance:  
          Child Fatalities 
           
             3.   Adds the following to the documents to be released by  
               the custodian of records upon request, subject to  
               redactions set forth in existing law: a description of  
               child protective or other services provided and actions  
               taken by the county child welfare services agency regarding  
               any services and actions not otherwise disclosed within  
               other documents required to be released.  Provides an  
               additional ten business days for this information to be  
               released.  

             4.   Requires that no information that reveals the identity  
               of a person or persons who provided information related to  
               suspected abuse, neglect, or maltreatment of a child be  
               disclosed.  

             5.   Provides that juvenile case file records that are not  
               subject to disclosure pursuant to this section shall only  
               be disclosed upon an order by the juvenile court pursuant  
               to Welfare and Institutions Code Section 827.

             6.   Authorizes the Department of Social Services (DSS) to  
               implement these changes through all-county letters or  
               similar instructions following consultation with  
               stakeholders, which will commence no later than October 1,  
               2016, and shall include, but not be limited to, child  
               welfare advocates, labor organizations, representatives of  
               counties, and legislative staff.  









                                                                     SB 855


                                                                    Page  3





             7.   Requires rulemaking to implement these changes pursuant  
               to the Administrative Procedure Act to commence no later  
               than January 1, 2018.  

           CAPTA Compliance: Near Child Fatalities 
           
             8.   Defines "near fatality" as the identical meaning in  
               federal law. 

             9.   Establishes that abuse or neglect is determined to have  
               resulted in a child's near fatality if one of the following  
               conditions is met:
               a)     A law enforcement investigation concludes that child  
                 abuse or neglect occurred.
               b)     A county child welfare services agency determines  
                 that the child abuse or neglect was substantiated.

             1.   Establishes that abuse or neglect does not include near  
               fatalities caused by an alleged perpetrator who was unknown  
               to the child or family prior to the abuse that caused the  
               near fatality, or a minor, unless acting in the role of  
               caretaker, who is alleged to have caused the near fatality.

             2.   Requires that within 10 business days of learning that a  
               child near fatality that has been determined to have been  
               caused by abuse or neglect has occurred in the county, the  
               custodian of records for the county child welfare agency,  
               upon request, shall release all of the following  
               information: 
               a)     The age and gender of the child. 
               b)     The date of the near fatality. 
               c)     Whether the child resided in foster care or in the  
                 home of his or her parent or guardian at the time of the  
                 near fatality. 
               d)     Whether an investigation is being conducted by a law  
                 enforcement agency or the county child welfare agency.

             1.   Requires that findings or information disclosed  
               regarding the child near fatality, upon request, must  








                                                                     SB 855


                                                                    Page  4





               consist of a written report that includes all of the  
               following information:
               a)     A child's age and gender;
               b)     The date the abuse or neglect occurred that resulted  
                 in the near fatality, and the date that a licensed  
                 physician  determined the child victim to be in serious  
                 or critical medical condition, if known;
               c)     Whether the child resided in foster care or in the  
                 home of his or her parent or guardian at the time of the  
                 near fatality.
               d)     The cause and circumstances of the near fatality.
               e)     A description of reports received, child protective  
                 or other services provided, and actions taken by the  
                 county child welfare services agency regarding (i)  
                 suspected or substantiated abuse or neglect of the child  
                 near fatality victim and (ii) suspected or substantiated  
                 abuse or neglect of other children pertinent to the abuse  
                 or neglect of the near fatality victim.
               f)     A written narrative that includes the dates of  
                 reports, investigations, services rendered, actions  
                 taken, investigative disposition for each report, and any  
                 comments provided by the involved social worker or  
                 workers regarding the investigations, services provided,  
                 and actions taken.  

             1.   Requires that when the written narrative as described  
               above is requested, the county shall submit a copy of the  
               description and written narrative to DSS within 20 calendar  
               days of the request or the disposition of the  
               investigation, whichever is later, and within 10 days of  
               receipt, the DSS shall review the documents submitted by  
               the county against the case file and notify the county of  
               any discrepancies or other concerns prior to the county's  
               release of the information.  

             2.   For cases in which the child's near fatality occurred  
               while living with a parent or guardian, requires a county  
               welfare department or agency to disclose the following to  
               the public, upon request: 








                                                                     SB 855


                                                                    Page  5





               a)     All previous referrals of abuse or neglect of the  
                 child suffering the near fatality while living with that  
                 parent or guardian. 
               b)     The emergency response referral information form and  
                 emergency response notice of referral disposition form  
                 completed by the county child welfare agency relating to  
                 the abuse or neglect that caused the near fatality of the  
                 child. 
               c)     Any cross reports completed by the county child  
                 welfare services agency to law enforcement relating to  
                 the child suffering the near fatality. 
               d)     All risk and safety assessments completed by the  
                 county child welfare services agency relating to the  
                 child suffering the near fatality. 
               e)     Copies of police reports about the person against  
                 whom the child abuse or neglect was substantiated. 

             1.   For cases in which the child's near fatality occurred  
               while the child was in foster care, requires a county  
               welfare department or agency to disclose the following  
               documents, in addition to those specified above, generated  
               while the child was living in the foster care placement  
               that was the placement at the time of the child's near  
               fatality: 
               a)     Records pertaining to the foster parents' initial  
                 licensing and renewals and type of license or licenses  
                 held if in the case file.
               b)     All reported licensing violations, including notices  
                 of action, if in the case file. 
               c)     Records of the training completed by the foster  
                 parents if in the case file.

             1.   Requires a county welfare department or agency to  
               release all required findings and information to the  
               public, if disclosure is requested, within 30 calendar days  
               of either the request or the disposition of the  
               investigation, whichever is later.  

             2.   Prohibits the following information and records from  








                                                                     SB 855


                                                                    Page  6





               being disclosed:
               a)     Names, addresses, telephone numbers, ethnicity,  
                 religion, or any other identifying information of any  
                 person or institution, other than the county or DSS.
               b)     Any information that would jeopardize a criminal  
                 investigation or proceeding.  
               c)     Any information that is privileged, confidential, or  
                 not subject to disclosure pursuant to any other state or  
                 federal law.  
               d)     All health records related to the child or the  
                 child's family.  
               e)     Any information not relevant to the near fatality,  
                 including, but not limited to, any information regarding  
                 any adult whose activities are not relevant to the near  
                 fatality.  

             1.   Requires the county welfare department or agency to  
               notify and provide a copy of the request to counsel for any  
               child who is connected to the juvenile case file, and that  
               if counsel for a child objects to the release of any part  
               of the information, they may petition the court to prevent  
               the release of any document or part of a document  
               requested.  

             2.   Provides that juvenile case file records that are not  
               subject to disclosure pursuant to this section shall only  
               be disclosed upon an order by the juvenile court pursuant  
               to Welfare and Institutions Code Section 827.  

             3.   Authorizes DSS or a county welfare department to comment  
               on the case once documents have been released.  If a county  
               welfare department or agency comments on the case, the  
               social worker on the case may also comment publicly about  
               the case within the scope of the release.

             4.   Requires each child welfare services agency to notify  
               DSS of every child near fatality that occurred within its  
               jurisdiction that was the result of child abuse or neglect.  
                Based on these notices and any other relevant information  








                                                                     SB 855


                                                                    Page  7





               in the possession of DSS, the department shall annually  
               issue a report identifying the child near fatalities and  
               any systemic issues or patterns revealed by the notices and  
               other relevant information.  

             5.   Establishes that this law shall only apply to near  
               fatalities that occur on, or after, January 1, 2017.

             6.   Clarifies that nothing in this section of law requires a  
               county welfare department or agency to obtain documents not  
               in the case file.

             7.   Requires that no information that reveals the identity  
               of a person or persons who provided information related to  
               suspected abuse, neglect, or maltreatment of a child be  
               disclosed.  

             8.   Authorizes the Department of Social Services (DSS) to  
               implement these changes through all-county letters or  
               similar instructions following consultation with  
               stakeholders, which will commence no later than October 1,  
               2016, and shall include, but not be limited to, child  
               welfare advocates, labor organizations, representatives of  
               counties, and legislative staff.  

             9.   Requires rulemaking to implement these changes pursuant  
               to the Administrative Procedure Act to commence no later  
               than January 1, 2018.  

           Approved Relative Caregiver 
           
             10.  Makes a technical change to change "calendar" year to  
               "fiscal" year to indicate the basis for which counties  
               participating in the Approved Relative Caregiver Funding  
               Option Program (ARC), administered by DSS, may request  
               reimbursement for funding appropriated by the state for ARC  
               if the entire amount of funding has not been fully  
               allocated to or utilized by participating counties.









                                                                     SB 855


                                                                    Page  8





           


          CalWORKs Expanded Subsidized Employment 
           
             11.  Deletes an obsolete reporting provision for the CalWORKs  
               Expanded Subsidized Employment program that was due on  
               April 1, 2015 and that was fulfilled by DSS.  

          Independent Living Centers Appropriation 
           
             12.  Appropriates $705,000 from the General Fund to the  
               Department of Rehabilitation for the three independent  
               living centers that have been both established and  
               maintained using federal funding, to the exclusion of  
               subsequent state funds, as their primary base grant.  

           Additional Provisions 
           
             13.  Subjects any overall effect of increasing the costs  
               already borne by a local agency for programs or levels of  
               service mandated by the 2011 Realignment Legislation to  
               Section 36 of Article XIII of the California Constitution  
               and to determinations by the Commission on State Mandates.   


             14.  States that this action is a bill providing for an  
               appropriation related to the Budget Bill and has been  
               identified as related to the budget in the Budget Bill, and  
               shall take effect immediately.  

          


          EXISTING LAW:   


          FISCAL EFFECT:  Specific changes to appropriations detailed  
          above.  








                                                                     SB 855


                                                                    Page  9








          COMMENTS:  The federal Child Abuse Prevention and Treatment Act  
          (CAPTA) and its implementing regulations establish requirements  
          regarding the disclosure of findings and information in child  
          near fatality incidents resulting from abuse and neglect.  The  
          Administration has stated that achieving compliance with CAPTA  
          is necessary in order for California to continue receiving $4.8  
          million annually in federal child abuse prevention funding.  In  
          the 2016 May Revision, the Administration released proposed  
          trailer bill language that was subsequently held open to allow  
          for more time to consider a potential compromise.  

          At the end of 2015, the ACYF required California to prepare a  
          Program Improvement Plan describing how the State will comply  
          with CAPTA Section 106(b)(4), as a condition of retaining its $3  
          million CAPTA grant and its $1.8 million Children's Justice Act  
          grant administered by the California Office of Emergency  
          Services.  DSS asserts that achieving compliance is necessary to  
          continue receipt of the federal grants identified. 

          California has been out of compliance with the CAPTA  
          requirements of CAPTA concerning the disclosure of findings and  
          information in child near fatality cases since 2012, when  
          federal guidance was issued, because California has no existing  
          laws governing the disclosure of information following  
          near-fatal incidents for children.  The federal Administration  
          for Children, Youth, and Families (ACYF) has indicated that  
          statutory compliance prior to October 1, 2016 is necessary to  
          not jeopardize this funding.  

          Over $500,000 in combined state and federal funding for purposes  
          of compliance was proposed and approved in the 2016 Budget Act,  
          displayed as the "Reports of Child Near Fatalities" premise in  
          the CDSS Local Assistance Budget.  The budgeted amounts reflect  
          generally the costs associated with compiling and publishing  
          reports, and disclosing information on all near fatalities  
          caused by suspected child abuse or neglect, but have not yet  








                                                                     SB 855


                                                                    Page  10





          been fully reconciled


          REGISTERED SUPPORT / OPPOSITION:




          None on file.


          Analysis Prepared by:Nicole Vazquez / BUDGET / (916)  
          319-2099