BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                     SB 855


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          SENATE THIRD READING


          SB  
          855 (Committee on Budget and Fiscal Review)


          As Amended  August 15, 2016


          Majority vote.  Budget Bill Appropriation Takes Effect  
          Immediately 


          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               |                     |
          |                |     |                       |                     |
          |----------------+-----+-----------------------+---------------------|
          |Budget          |18-2 |Ting, Bloom, Bonta,    |Harper, Wilk         |
          |                |     |Campos, Chiu, Cooper,  |                     |
          |                |     |Gordon, Holden, Irwin, |                     |
          |                |     |Kim, McCarty,          |                     |
          |                |     |Melendez, Mullin,      |                     |
          |                |     |Nazarian, O'Donnell,   |                     |








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          |                |     |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 (Leno), 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 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 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:   








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          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 10 business days for this  
            information to be released.  


          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.  










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          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:


              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. 








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              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) Specifies that the documents in the juvenile case file,  
             subject to the redaction specified in the bill, shall be  
             released, upon request, upon completion of the child abuse or  
             neglect investigation into the child's near fatality. 


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









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              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.  


           7) 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.  


           8) 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. 









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              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. 


           9) 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. 










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              c)    Records of the training completed by the foster  
                parents if in the case file.


           10)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.  


           11)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.  


              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,  
                consistent with the regulations, all-county letters, or  
                similar instructions issued, and that these documents  
                shall provide further guidance regarding persons or  
                conduct that is not relevant.  This includes, but is not  
                limited to, any information in any document regarding any  








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                adult whose activities are not part of an event or events  
                or do not have a material bearing on the circumstances  
                that led to the near fatality.  


           12)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.  


           13)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.  


           14)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.


           15)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 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.  


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









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


           18)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.  


           19)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, representatives of organizations that have filed  
             requests pursuant to Welfare and Institutions Code Section  
             10850.4, advocates for foster youth, labor organizations,  
             representatives of counties, and legislative staff.  


           20)Requires rulemaking to implement these changes pursuant to  
             the Administrative Procedure Act to commence no later than  
             January 1, 2018, and shall be concluded as soon as  
             practicable.  


          Approved Relative Caregiver 


          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.









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          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 (DOR) 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 the California  
            Constitution Article XIII Section 36 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  
            identified as related to the budget in the Budget Bill, and  
            shall take effect immediately.  


          FISCAL EFFECT:  Proposed amendments to SB 853 (Budget and Fiscal  
          Review Committee) and AB 1623 (Budget Committee), both of the  
          current legislative session, the vehicles that include changes  
          to the Budget Act of 2016, provide resources that correspond to  








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          the changes in responsibilities included in this measure.  These  
          add $120,000 General Fund and $120,000 in federal funds for DSS  
          to support four new positions to provide technical assistance to  
          counties and review the circumstances surrounding a near child  
          fatality, among other responsibilities.  The DOR appropriation  
          in this measure qualifies it as a budget trailer bill.  


          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) 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:  
          0004137