BILL ANALYSIS                                                                                                                                                                                                    Ó



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          SENATE THIRD READING


          SB  
          855 (Committee on Budget and Fiscal Review)


          As Amended  August 8, 2016


          Majority vote


          SENATE VOTE:  25-11


           ------------------------------------------------------------------ 
          |Committee       |Votes|Ayes                  |Noes                |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
          |----------------+-----+----------------------+--------------------|
          |Budget          |18-2 |Ting, Bloom, Bonta,   |Harper, Wilk        |
          |                |     |Campos, Chiu, Cooper, |                    |
          |                |     |Gordon, Holden,       |                    |
          |                |     |Irwin, Kim, McCarty,  |                    |
          |                |     |Melendez, Mullin,     |                    |
          |                |     |Nazarian, O'Donnell,  |                    |
          |                |     |Rodriguez, Thurmond,  |                    |
          |                |     |Williams              |                    |
          |                |     |                      |                    |
          |                |     |                      |                    |
           ------------------------------------------------------------------ 


          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: 








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          Managed Care Organizations Tax


          1)Makes technical, clarifying corrections to the statute  
            implementing the Managed Care Organization (MCO) tax, adopted  
            through SB 2 X2 (Hernández ), Chapter 2, , Statutes of 2015-16  
            Second Extraordinary Session, to clarify that insurers whose  
            gross premiums tax rate has been reduced to $0 during the  
            operation of the  Managed Care Organizations (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 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 


          1)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.  









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          2)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.  


          3)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.


          4)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.  


          5)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 


          1)Defines "near fatality" as the identical meaning in federal  
            law. 


          2)Establishes that abuse or neglect is determined to have  
            resulted in a child's near fatality if one of the following  
            conditions is met:










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             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.


          3)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.


          4)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.


          5)Requires that findings or information disclosed regarding the  
            child near fatality, upon request, must consist of a written  








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            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.  


          6)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  








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            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.  


          7)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: 


             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. 










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          8)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.


          9)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.  


          10)Prohibits the following information and records from 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.  









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             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.  


          11)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.  


          12)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.  


          13)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.


          14)Requires each child welfare services agency to notify DSS of  
            every child near fatality that occurred within its  








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            jurisdiction that was the result of child abuse or neglect.   
            Based on these notices and any other relevant information 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.  


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


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


          17)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.  


          18)Authorizes 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.  


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


          Approved Relative Caregiver 










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          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.


          CalWORKs Expanded Subsidized Employment 


          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 


          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 


          1)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  
            the California Constitution Article XIII and to determinations  
            by the Commission on State Mandates.  


          2)States that this action is a bill providing for an  
            appropriation related to the Budget Bill and has been  








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            identified as related to the budget in the Budget Bill, and  
            shall take effect immediately.  


          FISCAL EFFECT:  Specific changes to appropriations detailed  
          above.  


          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 federal Administration for Children,  
          Youth, and Families (ACYF) (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 ACYF has indicated that  
          statutory compliance prior to October 1, 2016 is necessary to  
          not jeopardize this funding.  









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          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 California DSS 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.




          Analysis Prepared by:                                             
                          Nicole Vazquez / BUDGET / (916) 319-2099  FN:  
          0004105