BILL NUMBER: AB 2876 CHAPTERED 07/10/00 CHAPTER 108 FILED WITH SECRETARY OF STATE JULY 10, 2000 APPROVED BY GOVERNOR JULY 7, 2000 PASSED THE ASSEMBLY JUNE 22, 2000 PASSED THE SENATE JUNE 15, 2000 AMENDED IN SENATE JUNE 15, 2000 AMENDED IN ASSEMBLY MAY 25, 2000 INTRODUCED BY Assembly Member Aroner (Coauthor: Assembly Members Alquist, Cedillo, Davis, Gallegos, Hertzberg, Honda, Kuehl, Longville, Romero, Shelley, Steinberg, Strom-Martin, Villaraigosa, Washington, Wiggins, and Wildman) (Coauthors: Senators Alarcon, Figueroa, Perata, Solis, Soto, and Vasconcellos) MARCH 6, 2000 An act to add Section 69541 to the Education Code, to add Section 17703 to the Family Code, to amend Sections 1091.2 and 11019 of, and to add Section 11753.1 to, the Government Code, to amend Sections 1588, 1588.3, 1588.5, 1588.7, 1596.8713, 11758.46, 11840.1, and 11970.2 of, to amend, renumber, and add Section 1589 of, and to add Sections 11756.8 and 11871 to, the Health and Safety Code, to amend Section 1611.5 of, to add Sections 9617 and 10201.5 to, to add Article 2.5 (commencing with Section 10529) to Chapter 4.5 of, and to add Chapter 7 (commencing with Section 11020) to, Part 1 of Division 3 of, the Unemployment Insurance Code, and to amend Sections 366.21, 366.22, 366.3, 903.7, 9305, 10544.1, 10609.3, 11265.2, 11363, 11367, 11372, 11461, 11462, 11463, 12301.6, 13002, 15200.05, 15204.3, 18930, 18938, 19352, 19356, and 19806 of, to add Sections 9113, 10609.6, 11374, 11375, 11465.6, 11467.2, 12306.2, 12306.3, 14021.35, 16001.7, 18918, and 19356.65 to, to add and repeal Article 3.5 (commencing with Section 18959) of Chapter 11 of Part 6 of Division 9 of, and to repeal and add Section 12306.1 of, the Welfare and Institutions Code, relating to human services, making an appropriation therefor, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGEST AB 2876, Aroner. Health and welfare programs. Existing law provides for grants to certain eligible students under the Cal Grant program. This bill would, to the extent funds are appropriated in the annual Budget Act, provide for supplemental grants to eligible recipients of Cal Grant awards who have been declared a dependent or ward of the court, and who meet certain other eligibility requirements. Existing law provides that certain state and local officers and employees shall not be financially interested in any contract made by them in their official capacity, or by any body or board of which they are members. Nor shall state, county, district, judicial district, and city officers or employees be purchasers at any sale or vendors at any purchase made by them in their official capacity. Existing law specifies that this provision does not apply to private industry councils, except in certain circumstances. This bill would, instead, specify the provision shall not apply to any contract or grant made by local workforce investment boards created pursuant to the federal Work Force Investment Act of 1998 except in certain circumstances. Existing law establishes the Foster Children and Parent Training Fund, which shall be used exclusively for foster parent training, and requires the State Department of Social Services to determine the amount equivalent to the state share of collections attributable to the enforcement of parental fiscal liability for allocation to the fund. This bill would transfer that responsibility to the Department of Child Support Services, and would revise the method of calculating the amount of collections attributable to the enforcement of parental fiscal liability for allocation to the fund. Existing law establishes the Welfare Advance Fund, for the purpose of making payments or advances to counties or the Employment Development Department of the state and federal shares of assistance, child support incentive, work incentive or medical care programs, or the cost of administration of these programs, to other states of the federal shares of child support incentives, and for the payment of refunds. This bill would establish the Child Support Services Advance Fund in the State Treasury for the purpose of making a consolidated payment or advance to counties, state agencies, or other governmental entities comprised of the state and federal shares of local assistance costs associated with programs administered by the Department of Child Support Services. Under existing law, the name of the Health and Welfare Agency Data Center was changed to the California Health and Human Services Agency Data Center. This bill would make a statement of intent with respect to that name change, and with reference to other statutes. Existing law, the California Adult Day Health Care Act, governs the provision of adult day health care services. Existing law requires the State Department of Health Services to conduct a grants-in-aid program to assist in the establishment of new adult day health care centers and the stabilization of existing centers that meet specified requirements. This bill would also allow grants to be awarded to assist existing adult day health care centers in expanding their operations, in accordance with specified criteria. Under existing law, the grant amount available for a single project is prohibited from exceeding $100,000. This bill would increase this amount to $125,000. Existing law requires that special consideration be given to applicants for these grants that meet certain criteria. This bill would modify these criteria. It would also modify requirements that must be met prior to the awarding of a grant to an applicant. The bill would also permit planning and development grants to be awarded to public and private nonprofit entities that request assistance in conducting feasibility and needs analysis, if the applicants meet certain requirements. Existing law provides for the licensure and regulation of child day care facilities by the State Department of Social Services. Existing law requires an applicant and other specified persons to submit fingerprints to the department and permits the department to obtain a criminal record of these persons. Existing law prohibits fees from being charged between January 1, 2000, and July 1, 2000, for the processing of fingerprints or for the obtaining of certain criminal records of volunteers at a child care facility who are required to be fingerprinted, and would prohibit the charging of fees after that date if funds for those purposes are appropriated in the annual Budget Act. This bill would prohibit fees from being charged between July 1, 2000, and July 1, 2001, for any costs associated with obtaining a criminal record or for conducting a child abuse index check of volunteers at a child care facility who are required to be fingerprinted, and would prohibit the charging of fees after that date if funds for those purposes are appropriated in the annual Budget Act. Existing law requires the State Department of Alcohol and Drug Programs to develop and test a comprehensive client-centered system of care that is outcome-based and addresses the costs of substance abuse to individuals, families, and communities. This bill would require the department to provide semiannual status updates to the Legislature on its progress in implementing the project. Existing law requires the State Department of Alcohol and Drug Programs to publish procedures for contracting for drug-Medi-Cal services with certified providers and for claiming payments and to automate the claiming process and the process for the submission of data required in connection with reimbursement for those services, and defines drug-Medi-Cal services for those purposes. This bill would expand the definitions of drug-Medi-Cal services, for those purposes, subject to the receipt of a state plan amendment to obtain federal financial participation under the Medi-Cal program and subject to the appropriation of funds. Existing law requires 10% of county matching funds for support of certain alcohol abuse treatment programs and services provided by a county of more than 100,000 population. This bill would provide that no county matching funds shall be required for funding received for the purposes of funding certain existing residential perinatal treatment programs. Existing law requires the county alcohol and drug administrator and the presiding judge in the county to develop and submit a comprehensive multiagency drug court plan for implementing cost-effective local drug court systems for adults, juveniles, and parents of children who are detained by, or are dependents of, the juvenile court. Existing law provides that the local action plan may include various types of drug court systems. This bill would include within the types of drug court systems allowable under these provisions drug courts for parents of children in family law cases involving custody and visitation issues. Existing law provides a method of allocation of money appropriated in the Budget Act of 1999 from the Employment Training Fund for purposes of funding the local assistance portion of funding welfare-to-work activities under the CalWORKs program. This bill would extend that provision to include money appropriated in the Budget Act of 2000. Existing law establishes and regulates various employment and training services. Existing law also provides for the regulation of health care providers. This bill would establish the Caregiver Training Initiative to develop and implement proposals designed to recruit, train, and retain health care providers such as certified nurse assistants, certified nurses, registered nurses, licensed vocational nurses, and other types of nursing and direct-care staff. Under the initiative, contracts would be awarded to regional collaborative programs selected through a competitive request for proposals process. The bill would require the Employment Development Department, in consultation with the State Department of Social Services, to administer regional collaborative program selection and funding and would specify various duties of the Employment Development Department. The bill would establish an advisory council with a designated membership and specified duties for purposes of the initiative. This bill would establish the California Workforce and Economic Information Program that would require the Employment Development Department, among other things, to coordinate with specified state agencies in developing economic and workforce information. The bill would also provide competitive grants to faith-based organizations meeting certain criteria to provide services, to the extent funds are provided in the Budget Act of 2000-01 for this purpose. Existing law provides for the establishment of an employment training program and the Employment Training Panel in the Employment Development Department. This bill would specify that with respect to funds appropriated in the annual Budget Act to the Employment Development Department for allocation by the Employment Training Panel for training of workers in regions suffering from high unemployment and low job creation, the Employment Training Panel may waive the minimum wage requirements for participation in the program in certain circumstances. Under existing law, area agencies on aging, through funds allocated by the California Department of Aging, contract with entities to provide various types of local programs. This bill would require area agencies on aging to maintain in effect contracts funded from appropriations made by the Budget Act of 2000 until July 1, 2004. Existing law provides that funds for the California Senior Legislature will be derived from specified sources, and expresses the intent of the Legislature that the General Fund shall not be liable for any of the costs of the California Senior Legislature. This bill would eliminate this statement of Legislative intent. Existing law provides that if, at certain custody and parental rights hearings relating to the termination of rights of children adjudged to be dependent children of the court in which a guardianship is established for the child with a relative, the relative shall be eligible for aid under the Kin-GAP program. This bill would limit those provisions to situations in which the juvenile court dependency is subsequently dismissed. Existing law requires that if a dependent child of the court over which the court has dependency jurisdiction has been placed with a relative guardian for at least 12 months, the court shall terminate its dependency jurisdiction and retain jurisdiction over the child as a ward of the guardianship, except upon a finding of exceptional circumstances. This bill would expand that exception to include circumstances where the guardian objects. Existing law provides that termination of a guardianship with a kinship guardian shall terminate eligibility for Kin-GAP benefits, except that if a successor guardian is appointed who is also a kinship guardian, the successor guardian shall be entitled to receive Kin-GAP benefits on behalf of the child. This bill would, instead, apply this exception to an alternate guardian or coguardian, and would provide that a new period of 12 months of placement with the alternate guardian or coguardian shall not be required if specified conditions have been met. Existing law authorizes the State Department of Social Services to exempt children in receipt of Kin-GAP benefits from any CalWORKs requirement that the department deems necessary, as long as the exemption would not jeopardize federal financial participation in the payment. This bill would, instead, exempt the Kin-GAP Guardianship Assistance Payment program from the provisions of the CalWORKs program, with certain exceptions, and would authorize recipients of Kin-GAP benefits to request and receive independent living services and to retain certain cash savings. This bill, by revising the level of benefits under the Kin-GAP program, for which a continuous appropriation is made, would revise the amount continuously appropriated, and would result in an appropriation. By revising limitations of the Kin-GAP program, this bill would result in the addition of county responsibilities in administering the Kin-GAP program, and would result in a state-mandated local program. Existing federal law provides for allocation of federal funds through the federal Temporary Assistance for Needy Families (TANF) block grant program to eligible states. Existing law provides for the California Work Opportunity and Responsibility to Kids (CalWORKs) program for the allocation of federal funds received through the TANF program, under which each county provides cash assistance and other benefits to qualified low-income families. Existing law states the intent of the Legislature to provide counties with a portion of the state share of savings resulting from moving CalWORKs program recipients to employment, and contains requirements relating to the allocation of these funds. This bill would revise the statement of intent to state the intent of the Legislature regarding the use of the incentive funds, would delete the limitation on the amount of the incentive funds counties shall receive, subject to amounts appropriated in the annual Budget Act, would revise the method of determining the county share of savings, would require counties to submit a plan describing how they would expend the incentive funds, and would require the State Department of Social Services to evaluate the programs supported by the county share of incentive funds. This bill would also specify that incentive funds shall be used to provide nonassistance services, as defined, for any family in which the minor child is living with a parent or adult relative caregiver and the family's income is less than 200% of the official federal poverty guidelines. By expanding the scope of eligibility for the receipt of federal TANF program funds, this bill would increase the responsibilities of counties in the administration of aid grants of those funds, thereby creating a state-mandated local program. Existing law required the State Department of Social Services to contract with an appropriate and qualified entity to conduct an evaluation of the adequacy of current child welfare services budgeting methodology and to report, by January 30, 2000, to the appropriate committees of the Legislature. This bill would require the department to convene a 7-member task force, composed of specified representatives, for the purpose of creating a plan to implement the recommendations of the evaluation. Existing law provides for the county-administered In-Home Supportive Services (IHSS) program, under which qualified aged, blind, and disabled persons are provided with services in order to permit them to remain in their own homes and avoid institutionalization. Existing law permits services to be provided under the IHSS program either through the employment of individual providers, a contract between the county and an entity for the provision of services, the creation by the county of a public authority, or a contract between the county and a nonprofit consortium. This bill would establish a formula with regard to provider wages or benefits increases negotiated or agreed to by a public authority or nonprofit consortium, and would specify the percentages required to be paid by the state and counties with regard to the nonfederal share of any increases. Existing law requires the State Department of Social Services to conduct a comprehensive evaluation of the Independent Living Program established pursuant to federal law and requires that the department permit, with the approval of the federal government, all eligible children to be served by the program up to the age of 21 years. This bill would require the department to develop and implement a stipend for youths who are eligible for the program and have been emancipated from foster care, and would specify that the state shall pay 100% of the costs of the stipend allowance, subject to the availability of funding. Existing law authorizes, for a specified period, Los Angeles County and up to 8 other counties to conduct an annual public assistance eligibility redetermination with a face-to-face interview with the recipient and make the redetermination according to specified guidelines. This bill would revise the period of that authorization. Existing law requires the State Department of Social Services to seek any federal funds available for the Kin-GAP program. This bill would limit that requirement to specify that seeking certain federal funds shall not be done if it would be detrimental to the General Fund. Existing law establishes a schedule of payments for licensed or approved family home foster care providers and foster family agencies for the provision of foster care to eligible children, and continuously appropriates funds for that purpose. This bill would increase the rate of reimbursement of those providers and would require the payment of a supplemental clothing allowance under those provisions, and would extend, for 1 year, limitations on the rate paid to those providers for program changes. Existing law continuously appropriates funds from the General Fund for allocation to counties for the provision of foster care benefits under the AFDC-FC program. This bill, by requiring an increase in the rates for children receiving foster care benefits, would increase the level of funding through the continuous appropriation, and would result in an appropriation. To the extent this bill would increase the level of responsibilities of the counties in providing foster care benefits, this bill would result in a state mandated local program. Existing law requires that, on or after July 1, 1999, the schedule of payment rates and rate calculation components for foster family agencies shall be adjusted by an amount equal to the California Necessities Index. This bill would limit that rate adjustment to the availability of funds. Existing law provides that for the 1998-99 and 1999-2000 fiscal years foster care group home reimbursement rates shall not increase as the result of a program change except under specified conditions. This bill would extend these requirements to the 2000-01 fiscal year. This bill would also require the State Department of Social Services to contract with an independent evaluator to conduct a study of alternative group home funding mechanisms and to propose a funding system for the care and supervision of children placed in group home care. It would require the department to provide the Legislature with a copy of the final report of the evaluator on or before October 1, 2001. The bill would also require the department, subject to the availability of funds, to contract with the California Youth Connection to provide technical assistance and outreach to current and former foster youth. The bill would also require the department to establish a program in up to 5 consenting counties under which licensed family homes and relative caregivers would be provided with reimbursement for the cost of licensed child care for each foster child under 13 years of age, if any of specified conditions are met. Existing law provides a schedule for the allocation of federal block grant funds for certain social service and health care programs, and specifies that the allocations shall include funding for the In-Home Support Services (IHSS) program services component, child welfare services, protective services and foster care services for adults, and in-home supportive services administration. This bill would eliminate the IHSS program services component from the allocation schedule would revise the methodology of reimbursement of public authorities and nonprofit consortiums, and would require the department to evaluate options for providing health care benefits for IHSS providers. Existing law requires the State Department of Health Services, in conjunction with the Managed Risk Medical Insurance Board, to develop and implement a community outreach and education campaign to help families learn about, and apply for, the Medi-Cal program and the Healthy Families Program. This bill would require the State Department of Social Services, in conjunction with the State Department of Health Services to develop and submit to the Legislature a community outreach and educational program to help families learn about, and apply for, the federal Food Stamp Program and the California Food Assistance Program, to submit the plan to the United States Department of Agriculture, and to request federal funding for the implementation of the program. Existing law provides that federal block grant funds received for the TANF program shall be deposited in, and shall be administered through, the Temporary Assistance for Needy Families Fund in the State Treasury, for use, upon authorization by the Director of Finance. Special accounts may be established within this fund, for use in accounting for any federal Temporary Assistance for Needy Families block grant funds received from the federal government after August 22, 1996. This bill would make the deposit and administration of those funds through the fund discretionary, and would provide that a fund condition statement for the federal block grant received for the Temporary Assistance for Needy Families program shall be provided to the Department of Finance with estimates required to be submitted by the State Department of Social Services to the Department of Finance on assumptions underlying estimates on various aid programs, whether or not the Temporary Assistance for Needy Families Fund is used for the deposit and administration of those moneys. Existing law expresses the intent of the Legislature that the annual Budget Act appropriate state and federal funds in a single allocation to the counties for the support of administrative activities undertaken by the counties to provide benefit payments to CalWORKs recipients and to provide required work activities and supportive services in order to efficiently and effectively carry out the purposes of that program. This bill would express the intent of the Legislature that, for purposes of this provision, limited-term housing assistance be considered as part of the cost-based allocation methodology, where appropriate. Under existing law, the Office of Child Abuse Prevention in the State Department of Social Services administers various child abuse programs. This bill would establish, under the administration of that office, a Juvenile Crime Prevention Program, which would consist of up to 16 sites throughout the state, with programs to be selected by the office pursuant to a competitive process. Existing law requires the State Department of Social Services to establish programs to provide food assistance and cash assistance for noncitizens who, due to their immigration status, are not eligible for federal food stamps and for SSI/SSP benefits, and specifies that an applicant who is otherwise eligible for the program but entered the United States after August 22, 1996, and who is not otherwise exempt, shall be eligible for assistance for the period beginning on October 1, 1999, and ending September 30, 2000. This bill would revise the termination date of that period of eligibility. Existing law provides for the establishment of rates for work-activity program services for certain developmentally disabled persons. This bill would revise the method of calculating those rates. Under existing law, a $27.50 hourly rate has been established for the fiscal year for supported employment services, except that this rate is required to be reduced by the percentage necessary to ensure that projected total General Fund expenditures and reimbursements for habilitation services and vocational rehabilitation supported employment services do not exceed the General Fund and reimbursement appropriations for these services in the Budget Act of 1999. This bill would, effective July 1, 2000, and subject to the reduction requirement, increase this hourly rate. The bill would also increase rates to pay for wage and benefit increases for direct service professionals, as defined, with a work activity program. Existing law requires the Department of Rehabilitation to provide assistance and funding to independent living centers for individuals with disabilities. This bill would provide a formula for the allocation of funds appropriated by the Legislature for the purpose of providing assistive technology services, and would require that the nonprofit provider provide certain services and assistance to independent living centers' assistive technology services programs. To the extent this bill would expand the responsibilities of counties, this bill would result in a state-mandated local program. Existing law provides for the allocation of funds to area agencies on aging for the provision of benefits to seniors. This bill would revise the formula for the allocation of funds through the Budget Act of 2000. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement, including the creation of a State Mandates Claims Fund to pay the costs of mandates that do not exceed $1,000,000 statewide and other procedures for claims whose statewide costs exceed $1,000,000. This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions. This bill would declare that it is to take effect immediately as an urgency statute. Appropriation: yes. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 69541 is added to the Education Code, to read: 69541. (a) The Student Aid Commission, to the extent funds are appropriated for the purposes of this section in the annual Budget Act, shall provide a supplemental grant equal to two thousand eight hundred dollars ($2,800) to recipients of Cal Grant awards who fulfill the following requirements: (1) The person has been declared a dependent or ward of the court pursuant to Section 300 or Section 602 of the Welfare and Institutions Code. (2) The person, within the 60-day period immediately prior to his or her 18th birthday, had a permanent plan of long-term foster care or guardianship. (3) The person received aid pursuant to Part 3 (commencing with Section 11000) of Division 9 of the Welfare and Institutions Code. (b) The State Department of Social Services shall enter into an interagency agreement with the Student Aid Commission to allocate funds to the commission appropriated in the Budget Act for the purposes of this section. SEC. 2. Section 17703 is added to the Family Code, to read: 17703. (a) A revolving fund in the State Treasury is hereby created to be known as the Child Support Services Advance Fund. All moneys deposited into the fund are for the purpose of making a consolidated payment or advance to counties, state agencies, or other governmental entities, comprised of the state and federal share of costs associated with the programs administered by the Department of Child Support Services, inclusive of the payment of refunds. In addition, the fund may be used for the purpose of making a consolidated payment to any payee, comprised of the state and federal shares of local assistance costs associated with the programs administered by the Department of Child Support Services. (b) Payments or advances of funds to counties, state agencies, or other governmental agencies and other payees doing business with the state that are properly chargeable to appropriations or other funds in the State Treasury, may be made by a Controller's warrant drawn against the Child Support Services Advance Fund. For every warrant so issued, a remittance advice shall be issued by the Department of Child Support Services to identify the purposes and amounts for which it was drawn. (c) The amounts to be transferred to the Child Support Services Advance Fund at any time shall be determined by the department, and, upon order of the Controller, shall be transferred from the funds and appropriations otherwise properly chargeable. (d) Refunds of amounts disbursed from the Child Support Services Advance Fund shall, on order of the Controller, be deposited in the Child Support Services Advance Fund, and, on order of the Controller, shall be transferred therefrom to the funds and appropriations from which those amounts were originally derived. Claims for amounts erroneously deposited into the Child Support Services Advance Fund shall be submitted by the department to the Controller who, if he or she approves the claims, shall draw a warrant in payment thereof against the Child Support Services Advance Fund. (e) All amounts increasing the cash balance in the Child Support Services Advance Fund, that were derived from the cancellation of warrants issued therefrom, shall, on order of the Controller, be transferred to the appropriations from which the amounts were originally derived. SEC. 3. Section 1091.2 of the Government Code is amended to read: 1091.2. Section 1090 shall not apply to any contract or grant made by local workforce investment boards created pursuant to the federal Workforce Investment Act of 1998 except where both of the following conditions are met: (a) The contract or grant directly relates to services to be provided by any member of a local workforce investment board or the entity the member represents or financially benefits the member or the entity he or she represents. (b) The member fails to recuse himself or herself from making, participating in making, or in any way attempting to use his or her official position to influence a decision on the grant or grants. SEC. 4. Section 11019 of the Government Code is amended to read: 11019. (a) Any department or authority specified in subdivision (b) may, upon determining that an advance payment is essential for the effective implementation of a program within the provisions of this section, and to the extent funds are available, advance to a community-based private nonprofit agency with which it has contracted, pursuant to federal law and related state law, for the delivery of services, not to exceed 25 percent of the annual allocation to be made pursuant to the contract and those laws, during the fiscal year to the private nonprofit agency. Advances in excess of 25 percent may be made on contracts financed by a federal program when the advances are not prohibited by federal guidelines. Advance payments may be provided for services to be performed under any contract with a total annual contract amount of four hundred thousand dollars ($400,000) or less. This amount shall be increased by 5 percent, as determined by the Department of Finance, for each year commencing with 1989. Advance payments may also be made with respect to any contract which the Department of Finance determines has been entered into with any community-based private nonprofit agency with modest reserves and potential cash-flow problems. No advance payment shall be granted if the total annual contract exceeds four hundred thousand dollars ($400,000), without the prior approval of the Department of Finance. The specific departments and authority mentioned in subdivision (b) shall develop a plan to establish control procedures for advance payments. Each plan shall include a procedure whereby the department or authority determines whether or not an advance payment is essential for the effective implementation of a particular program being funded. Each plan is required to be approved by the Department of Finance. (b) Subdivision (a) shall apply to the Emergency Medical Service Authority, the California Department of Aging, the State Department of Developmental Services, the State Department of Alcohol and Drug Programs, the Department of Corrections, the Department of Economic Opportunity, the Employment Development Department, the State Department of Health Services, the State Department of Mental Health, the Department of Rehabilitation, the State Department of Social Services, the Department of Child Support Services, the Department of the Youth Authority, the State Department of Education, the area boards on developmental disabilities, the Organization of Area Boards, the Office of Statewide Health Planning and Development, and the California Environmental Protection Agency, including all boards and departments contained therein. Subdivision (a) shall also apply to the Health and Welfare Agency which may make advance payments, pursuant to the requirements of that subdivision, to multipurpose senior services projects as established in Sections 9400 to 9413, inclusive, of the Welfare and Institutions Code. (c) A county may, upon determining that an advance payment is essential for the effective implementation of a program within the provisions of this section, and to the extent funds are available, and not more frequently than once each fiscal year, advance to a community-based private nonprofit agency with which it has contracted, pursuant to any applicable federal or state law, for the delivery of services, not to exceed 25 percent of the annual allocation to be made pursuant to the contract and those laws, during the fiscal year to the private nonprofit agency. SEC. 5. Section 11753.1 is added to the Government Code, to read: 11753.1. (a) The Legislature finds and declares that the name of the Health and Welfare Agency Data Center was changed to the California Health and Human Services Agency Data Center by Chapter 873 of the Statutes of 1999, effective January 1, 2000. The Legislature further finds and declares that this change of name was and is not intended to alter or modify any power, right, obligation, or duty of the data center that is found in statute, regulation, or contract. (b) (1) Any reference in statute, regulation, or contract to the Health and Welfare Agency Data Center shall be deemed to refer to the California Health and Human Services Agency Data Center. (2) Any reference to the prior Health and Welfare Data Center Revolving Fund shall be deemed to refer to the California Health and Human Services Agency Data Center Revolving Fund. SEC. 6. Section 1588 of the Health and Safety Code is amended to read: 1588. (a) The state department shall, subject to the availability of funds appropriated therefor, conduct a grants-in-aid program for the following purposes: (1) To assist in the establishment of new adult day health care centers. (2) To assist in stabilizing or expanding the health care operations of adult day health care centers which have been licensed for a period of two years or less. (3) To assist in expanding the health care operations of adult day health care centers which have been licensed for a period of two years or more when identified expansion meets criteria outlined in the specific guidelines established for the grant-supported activities. Expansion under this paragraph shall be based on documented unmet need. (b) The grants authorized pursuant to this article shall be limited in purpose to defraying operating expenses of the center, including staffing costs, required renovation costs, and facility rental costs. SEC. 7. Section 1588.3 of the Health and Safety Code is amended to read: 1588.3. The grant amount available from funds appropriated through the Budget Act for the Adult Day Health Care Program shall not exceed one hundred twenty-five thousand dollars ($125,000) for a single project. SEC. 8. Section 1588.5 of the Health and Safety Code is amended to read: 1588.5. In developing policies and priorities pertaining to the allocation of grant funds, the state department shall give primary consideration to the following factors: (a) The applicant's immediate need for funds. (b) The demonstrated community support for the project. (c) The applicant's long-term prospects for financial stability. (d) The applicant's demonstrated marketing strategies. (e) The applicant's ability to provide innovative services and to coordinate with other services in the continuum of care. (f) Special consideration shall be given to any applicant who is in any one of the following categories: (1) Applicants in rural areas. (2) Applicants in counties or service areas where there are no other centers. (3) Applicants who will deliver services in an area with a high elderly ethnic minority population. (4) Applicants who will deliver services in a service area with a high percentage of elderly Medi-Cal beneficiaries when compared to the total elderly population of the service area. SEC. 9. Section 1588.7 of the Health and Safety Code is amended to read: 1588.7. (a) The state department shall adopt specific guidelines for the establishment of grant-supported activities, including criteria for evaluation of each activity and monitoring to assure compliance with grant conditions and applicable regulations of the state department. The guidelines shall be developed in consultation with the Long-Term Care Committee. Funds shall be awarded only after the local adult day health care planning council has had opportunity to review and comment on the applicant's proposal pursuant to guidelines established for these grants and is approved by the state department. If an area does not have an active planning council, the department may exempt the applicant from local planning council review. (b) The state department shall develop a contract with each selected project. SEC. 10. Section 1589 of the Health and Safety Code is amended and renumbered to read: 1589.5. State administrative costs on grants issued pursuant to this article shall not exceed 10 percent of the amount of the grants. SEC. 11. Section 1589 is added to the Health and Safety Code, to read: 1589. Subject to the appropriation of funds pursuant to the annual Budget Act, the department may establish planning and development grants for public or private nonprofit applicants that request assistance in conducting feasibility and needs analysis and that represent areas of the state meeting either of the following criteria: (a) The area does not have an adult day health care planning council or the planning council has been inactive for at least three years. (b) The area has not had a local needs assessment for adult day health services or the needs assessment has not been updated for at least 10 years. SEC. 12. Section 1596.8713 of the Health and Safety Code is amended to read: 1596.8713. (a) The Department of Justice may charge a fee sufficient to cover its costs in providing services in accordance with Section 1596.871 to comply with the 14-day requirement for provision to the department of the criminal record information, as contained in subdivision (c) of Section 1596.871. (b) (1) Between July 1, 2000, and July 1, 2001, no fee shall be charged by the Department of Justice or the State Department of Social Services for any costs associated with obtaining a California or Federal Bureau of Investigation criminal record or for conducting a child abuse index check, of a volunteer at a child care facility who is required to be fingerprinted pursuant to subdivision (b) of Section 1596.871, provided that the exemption does not cause an increase in fees for other providers. (2) On or after July 1, 2001, no fee shall be charged for the purposes specified in paragraph (1) if funds for those purposes are appropriated in the annual Budget Act and the exemption does not cause an increase in fees for other providers. (3) For purposes of this subdivision, "volunteer" means a person who provides services at a child care facility and does not receive any payment of a salary or hourly wage in exchange for these services. SEC. 13. Section 11756.8 is added to the Health and Safety Code, to read: 11756.8. The department shall provide semiannual updates to the Legislature on its progress in implementing the systems of care redesign project, including, but not limited to, an updated timeline for the project. SEC. 14. Section 11758.46 of the Health and Safety Code is amended to read: 11758.46. (a) For purposes of this section, "drug-Medi-Cal services" means all of the following services, administered by the department, and to the extent consistent with state and federal law: (1) Narcotic treatment program services, as set forth in Section 11758.42. (2) Day care habilitative services. (3) Perinatal residential services for pregnant women and women in the postpartum period. (4) Naltrexone services. (5) Outpatient drug-free services. (b) Upon federal approval of a federal medicaid state plan amendment authorizing federal financial participation in the following services, and subject to appropriation of funds, "drug-Medi-Cal" services shall also include the following services, administered by the department, and to the extent consistent with state and federal law: (1) Notwithstanding subdivision (a) of Section 14132.90 of the Welfare and Institutions Code, day care habilitative services, which, for purposes of this paragraph, are outpatient counseling and rehabilitation services provided to persons with alcohol or other drug abuse diagnoses. (2) Case management services, including supportive services to assist persons with alcohol or other drug abuse diagnoses in gaining access to medical, social, educational, and other needed services. (3) Aftercare services. (c) The department shall adopt emergency regulations to implement subdivision (b). The regulations shall be developed in conjunction with appropriate stakeholders. (d) (1) By July 1, 1997, and annually thereafter, the department shall publish procedures for contracting for drug-Medi-Cal services with certified providers and for claiming payments, including procedures and specifications for electronic data submission for services rendered. (2) By July 1, 1997, the department, county alcohol and drug program administrators, and alcohol and drug service providers shall automate the claiming process and the process for the submission of specific data required in connection with reimbursement for drug-Medi-Cal services, except that this requirement applies only if funding is available from sources other than those made available for treatment or other services. (e) A county or a contractor for the provision of drug-Medi-Cal services shall notify the department, within 30 days of the receipt of the county allocation, of its intent to contract, as a component of the single state-county contract, for and provide certified services pursuant to Section 11758.42 for the proposed budget year. The notification shall include an accurate and complete budget proposal, the structure of which shall be mutually agreed to by county alcohol and drug program administrators and the department, in the format provided by the department, for specific services, for a specific time period, estimated units of service, estimated rate per unit consistent with law and regulations, and total estimated cost for appropriate services. (f) (1) Within 30 days of receipt of the proposal described in subdivision (e), the department shall provide, to counties and contractors proposing to provide drug-Medi-Cal services in the proposed budget year, a proposed multiple-year contract, as a component of the single state-county contract, for these services, a current utilization control plan, and appropriate administrative procedures. (2) A county contracting for alcohol and drug services shall receive a single state-county contract for the net negotiated amount and drug-Medi-Cal services. (3) Contractors contracting for drug-Medi-Cal services shall receive a drug-Medi-Cal contract. (g) (1) Upon receipt of a contract proposal pursuant to subdivision (e), a county and a contractor seeking to provide reimbursable drug-Medi-Cal services and the department may begin negotiations and the process for contract approval. (2) If a county does not approve a contract by July 1 of the appropriate fiscal year, in accordance with subdivisions (d) to (f), inclusive, the county shall have 30 additional days in which to approve a contract. If the county has not approved the contract by the end of that 30-day period, the department shall contract directly for services within 30 days. (3) Counties shall negotiate contracts only with providers certified to provide reimbursable drug-Medi-Cal services and that elect to participate in this program. Upon contract approval by the department, a county shall establish approved contracts with certified providers within 30 days following enactment of the annual Budget Act. A county may establish contract provisions to ensure interim funding pending the execution of final contracts, multiple-year contracts pending final annual approval by the department, and, to the extent allowable under the annual Budget Act, other procedures to ensure timely payment for services. (h) (1) For counties and contractors providing drug-Medi-Cal services, pursuant to approved contracts, and that have accurate and complete claims, reimbursement for services from state General Fund moneys shall commence no later than 45 days following the enactment of the annual Budget Act for the appropriate state fiscal year. (2) For counties and contractors providing drug-Medi-Cal services, pursuant to approved contracts, and that have accurate and complete claims, reimbursement for services from federal medicaid funds shall commence no later than 45 days following the enactment of the annual Budget Act for the appropriate state fiscal year. (3) By July 1, 1997, the State Department of Health Services and the department shall develop methods to ensure timely payment of drug-Medi-Cal claims. (4) The State Department of Health Services, in cooperation with the department, shall take steps necessary to streamline the billing system for reimbursable drug-Medi-Cal services, to assist the department in meeting the billing provisions set forth in this subdivision. (i) The department shall submit a proposed interagency agreement to the State Department of Health Services by May 1 for the following fiscal year. Review and interim approval of all contractual and programmatic requirements, except final fiscal estimates, shall be completed by the State Department of Health Services by July 1. The interagency agreement shall not take effect until the annual Budget Act is enacted and fiscal estimates are approved by the State Department of Health Services. Final approval shall be completed within 45 days of enactment of the Budget Act. (j) (1) A county or a provider certified to provide reimbursable drug-Medi-Cal services, that is contracting with the department, shall estimate the cost of those services by April 1 of the fiscal year covered by the contract, and shall amend current contracts, as necessary, by the following July 1. (2) A county or a provider, except for a provider to whom subdivision (k) applies, shall submit accurate and complete cost reports for the previous state fiscal year by November 1, following the end of the state fiscal year. The department may settle cost for drug-Medi-Cal services, based on the cost report as the final amendment to the approved single state-county contract. (k) Certified narcotic treatment program providers, that are exclusively billing the state or the county for services under Section 11758.42, shall submit accurate and complete performance reports for the previous state fiscal year by November 1 following the end of that state fiscal year. A provider to which this subdivision applies shall estimate its budgets using the uniform state monthly reimbursement rate. The format and content of the performance reports shall be mutually agreed to by the department, the County Alcohol and Drug Program Administrators Association of California, and representatives of the narcotic treatment providers. SEC. 15. Section 11840.1 of the Health and Safety Code is amended to read: 11840.1. (a) Commencing January 1, 1985, and for every fiscal year thereafter, 10 percent county matching funds shall be required for support of programs and services provided under this part by a county of more than 100,000 population. (b) Notwithstanding any other provision of law, no county matching funds shall be required pursuant to this section for funding received for the purposes of funding existing residential perinatal treatment programs that were begun through federal Center for Substance Abuse Treatment grants but whose grants expired on or before October 1, 2000. For counties in which there is such a provider, the State Department of Alcohol and Drug Programs shall include language in those counties' allocation letters that indicates the amount of the allocation designated for the provider during the fiscal year. This exemption shall only apply to the state funding provided to replace the expiring federal grants, and shall not apply to any subsequent program expansions. SEC. 15.5 Section 11871 is added to the Health and Safety Code, to read: 11871. It is the intent of the Legislature that the State Department of Alcohol and Drug Programs, in collaboration with the State Department of Health Services and stakeholders in the medical and treatment provider communities, work to identify methods for better informing medical doctors of the benefits of diagnosing and treating substance abuse among their patient population, including, but not limited to, improved outreach efforts at the state and local levels and the use of information dissemination strategies, where appropriate. SEC. 16. Section 11970.2 of the Health and Safety Code is amended to read: 11970.2. (a) A county alcohol and drug program administrator and the presiding judge in the county shall develop and submit a comprehensive multiagency drug court plan for implementing cost-effective local drug court systems for adults, juveniles, and parents of children who are detained by, or are dependents of the juvenile court to be eligible for funding under this chapter. The plan shall do all of the following: (1) Describe existing programs that serve substance abusing adults, juveniles, and parents of children who are detained by, or are dependents of, the juvenile court. (2) Provide a local action plan for implementing cost-effective drug court systems, including any or all of the following drug court systems: (A) Drug courts operating pursuant to Sections 1000 to 1000.5, inclusive, of the Penal Code. (B) Drug courts for juvenile offenders. (C) Drug courts for parents of children who are detained by, or are dependents of, the juvenile court. (D) Drug courts for parents of children in family law cases involving custody and visitation issues. (E) Other drug court systems that are approved by the Drug Court Partnership Executive Steering Committee. (3) Develop information-sharing systems to ensure that county actions are fully coordinated, and to provide data for measuring the success of the local action plan in achieving its goals. (4) Identify outcome measures that will determine the cost effectiveness of the local action plan. (b) The department, in collaboration with the Judicial Council, shall distribute funds to eligible counties using the two thousand five hundred dollars ($2,500) per million/remainder per capita methodology, subject to appropriation in the Budget Act. Funding shall be used to supplement, rather than supplant, existing programs. Funding for counties that opt not to participate in the program shall be distributed on a per capita basis to participating counties. (1) Funds distributed to counties shall be used for programs that are identified in the local plan. Acceptable uses may include, but are not limited to, any of the following: drug court coordinators, case management, training, drug testing, treatment, transportation, and other costs related to the implementation of the plan. (2) No funds shall be distributed unless the applicant makes available resources in an amount equal to at least 10 percent of the amount of the funds distributed in years one and two, and 20 percent of the amount of the funds distributed in years three, four, and five. (c) The department, with concurrence from the Judicial Council, shall establish minimum standards, funding schedules, and procedures for funding programs. (d) The department, in collaboration with the Judicial Council, shall create an evaluation design for the Comprehensive Drug Court Implementation Act of 1999, that will assess the effectiveness of the program. The department, together with the Judicial Council, shall develop an interim report to be submitted to the Legislature on or before March 1, 2004, and a final analysis of the program in a report to be submitted to the Legislature on or before March 1, 2005. SEC. 17. Section 1611.5 of the Unemployment Insurance Code is amended to read: 1611.5. (a) Notwithstanding Section 1611, the Legislature may appropriate from the Employment Training Fund twenty million dollars ($20,000,000) in the Budget Act of 1997 and five million dollars ($5,000,000) in the Budget Act of 1999 for training programs designed for workers who are current or recent recipients of benefits under the CalWORKs program pursuant to Section 10214.7. The Legislature may appropriate from the Employment Training Fund thirty million dollars ($30,000,000) in the Budget Act of 1999 and the Budget Act of 2000 for purposes of funding the local assistance portion of welfare-to-work activities under the CalWORKs program, provided for pursuant to Article 3.2 (commencing with Section 11320) of Chapter 2 of Part 3 of Division 9 of the Welfare and Institutions Code, as administered by the State Department of Social Services. (b) Funds available pursuant to the Budget Act of 1997 pursuant to this section that are not encumbered in the 1997-98 fiscal year may, upon appropriation by the Legislature, be carried over into the 1998-99 fiscal year for expenditures consistent with Section 10214.7. SEC. 17.5. Section 9617 is added to the Unemployment Insurance Code, to read: 9617. (a) To the extent that funds are provided in the Budget Act of 2000 for the purposes of providing competitive grants to faith-based organizations that are not owned or operated as pervasively sectarian organizations, those organizations receiving funding shall demonstrate that they are able to meet the following six criteria in the provision of services: (1) Establishing linkages with local workforce development service delivery systems. (2) Leveraging resources through collaboration and partnerships. (3) Establishing intermediate and long-term outcome goals, with measurable indicators. (4) Collecting and maintaining data that can be used for management decisionmaking. (5) Using data to assess progress and evaluate effectiveness. (6) Sharing information with stakeholders. (b) The department shall provide technical assistance to organizations as needed to enable them to meet the six criteria specified in paragraphs (1) to (6), inclusive, of subdivision (a). (c) The department shall collect and analyze the following information as it relates to the organizations funded under this section: (1) The number of participants who experienced job placements, wage gains, increased job retention, increased educational achievement, and reduced use of public assistance programs. (2) The cost per participant. (3) Organizations' effectiveness in serving populations with barriers to employment who are missed by traditional service providers. (4) The department's success in transitioning the organizations to longer-term funding sources. (d) The department shall provide an interim report with regard to the competitive grants provided under this section to the Legislature on or before May 15, 2001, and shall provide a final report to the Legislature on or before September 1, 2001. SEC. 18. Section 10201.5 is added to the Unemployment Insurance Code, to read: 10201.5. With respect to funding appropriated in the annual Budget Act to the Employment Development Department for allocation by the Employment Training Panel and identified for training of workers in regions suffering from high unemployment and low job creation, including the working poor, the panel, notwithstanding subdivision (g) of Section 10201, may waive the minimum wage requirements included in that subdivision provided that the post-retention wage of each trainee who has completed training and the required training period exceeds his or her wage before and during training. This determination shall be made on a case-by-case basis to ensure that post-training improvements in earnings are sufficient to warrant the investment of public funds. SEC. 18.2. Article 2.5 (commencing with Section 10529) is added to Chapter 4.5 of Part 1 of Division 3 of the Unemployment Insurance Code, to read: Article 2.5. California Workforce and Economic Information Program 10529. (a) The services provided by the existing labor market information system within the department shall include workforce and economic information that does all of the following: (1) Provides data and information to the state Workforce Investment Board created pursuant to Section 2821 of Title 29 of the United States Code, to enable the board to plan, operate, and evaluate investments in the state's workforce preparation system that will make the California economy more productive and competitive. (2) Provides data and information to the California Economic Strategy Panel for continuous strategic planning and the development of policies for the growth and competitiveness of the California economy. (3) Identifies and combines information from various state data bases to produce useful, geographically based analysis and products, to the extent possible using existing resources. (4) Provides technical assistance related to accessing workforce and economic information to local governments, public-sector entities, research institutes, nonprofit organizations, and community groups that have various levels of expertise, to the extent possible using existing resources. (b) The department shall coordinate with the Trade and Commerce Agency, the State Department of Education, the Chancellor of the California Community Colleges, the State Department of Social Services, the California Postsecondary Education Commission, the Department of Finance, and the Franchise Tax Board in developing economic and workforce information. The department shall also solicit input in the operation of the program from public and private agencies and individuals that make use of the labor market information provided by the department. SEC. 18.4. Chapter 7 (commencing with Section 11020) is added to Part 1 of Division 3 of the Unemployment Insurance Code, to read: CHAPTER 7. CAREGIVER TRAINING INITIATIVE 11020. (a) There is hereby established a project known as the Caregiver Training Initiative. (b) It is the intent of the Legislature that the Caregiver Training Initiative develop and implement proposals to recruit, train, and retain health care providers such as certified nurse assistants, certified nurses, registered nurses, licensed vocational nurses, and other types of nursing and direct-care staff. (c) (1) An advisory council is hereby established for purposes of the Caregiver Training Initiative. (2) The advisory council shall develop goals, policies, and a general work plan for the Caregiver Training Initiative. For purposes of this paragraph, the advisory council shall consider the program model set forth in Section 11024. (3) The duties of the advisory council shall include all of the following: (A) Making recommendations regarding the identification of regions of the state for purposes of the initiative. (B) Making recommendations to the Employment Development Department and the State Department of Social Services regarding the number of regional collaborative programs that should be funded under the initiative. (C) Based on the number and size of the regions and programs to be funded, making recommendations to the Employment Development Department and the State Department of Social Services regarding the number of staff that should be assigned to the regions to assist in developing collaborative programs consisting of partnerships and funding proposals. (D) Making suggestions and recommendations to the Employment Development Department and the State Department of Social Services with regard to the selection of the collaborative programs to be funded in each region under the initiative and of the contracts entered into between the state and the local agencies representing regional partners. (E) Providing oversight of the progress of the initiative and identifying any needed corrective actions. (F) Designating a member of the advisory council to participate in the work group established by the Employment Development Department, in conjunction with the State Department of Social Services, pursuant to paragraph (2) of subdivision (a) of Section 11022. (d) The advisory council shall consist of the following: (1) Each director, or a designee of the director, of the following departments in the California Health and Human Services Agency: (A) Employment Development Department. (B) Office of Statewide Health Planning and Development. (C) State Department of Social Services. (D) State Department of Health Services. (E) California Department of Aging. (2) A representative from each of the following: (A) County Welfare Directors Association. (B) State Department of Education. (C) Chancellor's Office of the California Community Colleges. (D) California Association of Health Facilities. (E) California Association of Homes and Services for the Aging. (F) American Red Cross. (G) California Nurses Association. (H) Service Employees International Union. 11022. (a) (1) The Employment Development Department, in consultation with the State Department of Social Services, shall administer regional collaborative program selection and funding under the Caregiver Training Initiative. (2) The Employment Development Department, in conjunction with the State Department of Social Services, shall establish and lead a work group that shall be responsible for staff support to the advisory committee established pursuant to subdivision (c) of Section 11020. (3) The Employment Development Department, in conjunction with the State Department of Social Services, shall be responsible for all of the following: (A) Under the direction of the California Health and Human Services Agency, developing the criteria for regional collaborative programs, the number of staff to be assigned to regions, and the process for selecting regional collaborative programs to be funded. (B) Assigning staff to each region to assist in developing collaborative programs consisting of partnerships and proposals for funding. (C) Determining the date by which collaborative programs from each region shall submit their proposals for consideration. (D) Selecting the collaborative program proposal from each region that best meets the criteria established by the department. (E) Working with representatives from the health care provider and caregiver industries and labor, negotiating contract terms that best serve the initiative's goals. (F) Approving all contracts for participation under the initiative. (G) Distributing funds to the appropriate local agencies to commence the regional collaborative programs. (H) Providing staff support to the advisory council established under subdivision (c) of Section 11020. (I) Carrying out state-level activities identified by the department that are necessary for the initiative's success. (b) The Employment Development Department, in conjunction with the State Department of Social Services, shall evaluate or contract for the evaluation of the regional collaborative programs funded under the initiative. The evaluation of each program site funded under the initiative shall include the following elements: (1) A thorough assessment of implementation issues faced by grantees. (2) An analysis, using appropriate statistical techniques, of identified outcomes of interest, including employment retention, advancement, earnings, and worker well-being measures. (3) Annual population-based surveys of current and former CalWORKs recipients as they enter training programs and make choices about employment or subsequent job change. (4) Identification and collection of well-being data regarding health care providers and caregivers and the recipients of their care. (5) Construction and analysis of longitudinal administrative data. (6) In-depth interviews with workers, staff, health care providers, and caregivers. (c) The Employment Development Department shall develop a strategy to improve understanding of the demand and supply of labor, and the labor market dynamics for low-skilled workers who choose occupations such as certified nurse assistants. To develop the strategy, the department shall develop information about and analyze all of the following: (1) Alternative occupations competing for available labor. (2) The effect of conditions in other occupations using similar skill sets on the supply of labor in occupations related to health care providers and caregivers. (3) Occupational ladders for health care providers and caregivers. (4) The efforts by county welfare departments to increase interest in the health care provider and caregiver industry. (5) Factors that draw individuals into or push them away from entering the health care provider or caregiver industry. (6) Ways that nursing homes, long-term care facilities, and in-home care provider communities can improve the quality of employment of health care providers and caregivers. (7) The treatment of staff in nursing homes and long-term care facilities. (8) Worker compensation claims and claims of workplace violence due to patients with Alzheimer's disease or dementia. (9) Benefit packages. (10) On-the-job training for career advancement as a health care provider or caregiver in nursing homes or long-term care facilities or advancement in fields related to an occupation as a health care provider or caregiver. 11024. (a) The program model for implementation of the Caregiver Training Initiative shall consist of a solicitation and competitive selection process to identify proposals from regional collaborative programs that offer the best solutions to removing barriers for attracting and retaining qualified health care providers, such as certified nurse assistants, certified nurses, registered nurses, licensed vocational nurses, and other types of nursing and direct care staff. (b) Proposals for funding under the initiative submitted by regional collaborative programs shall address all of the following topics: (1) Marketing and outreach strategies that will attract eligible participants to begin careers in the health care provider industry and promote public awareness, especially among employers, to the opportunity to hire trained health care providers. (2) Collaboration and agreements with state and local agency partners to help identify, refer, and provide services to eligible participants. (3) Development and use of innovative training strategies, coupled with industry cooperation, to provide matching career paths that will enable participants to advance in the health care industry, including in nursing occupations such as certified nurse assistants, certified nurses, registered nurses, and licensed vocational nurses. (4) Strategies for providing incentives to health care employers to hire program participants, such as taking advantage of existing tax credits, and incentives for participants to remain in and graduate from the program, such as postemployment training and support components. (5) Leveraging additional resources to support activities that are not allowable with local welfare-to-work (Article 3.2 (commencing with Section 11320) of Chapter 1 of Part 3 of Division 9 of the Welfare and Institutions Code) funds and Workforce Investment Act of 1998 (29 U.S.C. Sec. 2801, et seq.) funds and that will provide flexibility in serving participants. (c) The regional collaborative programs that compete for contracts under the initiative may include partnerships of any combination of local governmental entities, private nonprofit entities, and employer or employee groups. In order to ensure oversight for funds used in these contracts, fiscal agents representing these collaborative programs shall demonstrate all of the following: (1) The capacity to retain fiduciary responsibility for funds. (2) That the fiscal agent was chosen by agreement of collaborating partners. (3) Previous experience using public funds for similar projects. (4) The ability to properly account for and administer funds. SEC. 19. Section 366.21 of the Welfare and Institutions Code is amended to read: 366.21. (a) Every hearing conducted by the juvenile court reviewing the status of a dependent child shall be placed on the appearance calendar. The court shall advise all persons present at the hearing of the date of the future hearing and of their right to be present and represented by counsel. (b) Except as provided in Section 366.23 and subdivision (a) of Section 366.3, notice of the hearing shall be mailed by the social worker to the same persons as in the original proceeding, to the child's parent or guardian, to the foster parents, relative caregivers, community care facility, or foster family agency having physical custody of the child in the case of a child removed from the physical custody of his or her parent or guardian, and to the counsel of record if the counsel of record was not present at the time that the hearing was set by the court, by first-class mail addressed to the last known address of the person to be notified, or shall be personally served on those persons, not earlier than 30 days nor later than 15 days preceding the date to which the hearing was continued. Service of a copy of the notice personally or by certified mail return receipt requested, or any other form of actual notice is equivalent to service by first-class mail. The notice shall contain a statement regarding the nature of the hearing to be held and any change in the custody or status of the child being recommended by the supervising agency. The notice to the foster parent, relative caregiver, or a certified foster parent who has been approved for adoption by the State Department of Social Services when it is acting as an adoption agency or by a licensed adoption agency shall indicate that the foster parent, relative caregiver, or a certified foster parent who has been approved for adoption by the State Department of Social Services when it is acting as an adoption agency or by a licensed adoption agency may attend all hearings or may submit any information he or she deems relevant to the court in writing. (c) At least 10 calendar days prior to the hearing, the social worker shall file a supplemental report with the court regarding the services provided or offered to the parent or guardian to enable him or her to assume custody and the efforts made to achieve legal permanence for the child if efforts to reunify fail, the progress made, and, where relevant, the prognosis for return of the child to the physical custody of his or her parent or guardian, and make his or her recommendation for disposition. If the child is a member of a sibling group described in paragraph (3) of subdivision (a) of Section 361.5, the report and recommendation may also take into account those factors described in subdivision (e) relating to the child's sibling group. If the recommendation is not to return the child to a parent or guardian, the report shall specify why the return of the child would be detrimental to the child. The social worker shall provide the parent or guardian with a copy of the report, including his or her recommendation for disposition, at least 10 calendar days prior to the hearing. In the case of a child removed from the physical custody of his or her parent or guardian, the social worker shall provide a summary of his or her recommendation for disposition to the counsel for the child, any court-appointed child advocate, foster parents, relative caregivers, certified foster parents who have been approved for adoption by the State Department of Social Services when it is acting as an adoption agency or by a licensed adoption agency, community care facility, or foster family agency having the physical custody of the child at least 10 calendar days before the hearing. (d) Prior to any hearing involving a child in the physical custody of a community care facility or foster family agency that may result in the return of the child to the physical custody of his or her parent or guardian, or in adoption or the creation of a legal guardianship, the facility or agency shall file with the court a report containing its recommendation for disposition. Prior to the hearing involving a child in the physical custody of a foster parent, a relative caregiver, or a certified foster parent who has been approved for adoption by the State Department of Social Services when it is acting as an adoption agency or by a licensed adoption agency, the foster parent, relative caregiver, or the certified foster parent who has been approved for adoption by the State Department of Social Services when it is acting as an adoption agency or by a licensed adoption agency, may file with the court a report containing his or her recommendation for disposition. The court shall consider the report and recommendation filed pursuant to this subdivision prior to determining any disposition. (e) At the review hearing held six months after the initial dispositional hearing, the court shall order the return of the child to the physical custody of his or her parent or guardian unless the court finds, by a preponderance of the evidence, that the return of the child to his or her parent or guardian would create a substantial risk of detriment to the safety, protection, or physical or emotional well-being of the child. The social worker shall have the burden of establishing that detriment. The failure of the parent or guardian to participate regularly and make substantive progress in court-ordered treatment programs shall be prima facie evidence that return would be detrimental. In making its determination, the court shall review and consider the social worker's report and recommendations and the report and recommendations of any child advocate appointed pursuant to Section 356.5; and shall consider the efforts or progress, or both, demonstrated by the parent or guardian and the extent to which he or she availed himself or herself of services provided. Evidence of any or all of the following circumstances shall not, in and of themselves, be deemed a failure to provide or offer reasonable services: (1) The child has been placed with a foster family that is eligible to adopt a child, or has been placed in a preadoptive home. (2) The case plan includes services to achieve legal permanence for the child if efforts to reunify fail. (3) Services to achieve legal permanence for the child, if efforts to reunify fail, are provided concurrently with services to reunify the family. Whether or not the child is returned to a parent or guardian, the court shall specify the factual basis for its conclusion that the return would be detrimental or would not be detrimental. The court also shall make appropriate findings pursuant to subdivision (a) of Section 366; and where relevant, shall order any additional services reasonably believed to facilitate the return of the child to the custody of his or her parent or guardian. The court shall also inform the parent or guardian that if the child cannot be returned home by the 12-month permanency hearing, a proceeding pursuant to Section 366.26 may be instituted. This section does not apply in a case where, pursuant to Section 361.5, the court has ordered that reunification services shall not be provided. If the child was under the age of three years on the date of the initial removal or is a member of a sibling group described in paragraph (3) of subdivision (a) of Section 361.5 and the court finds by clear and convincing evidence that the parent failed to participate regularly and make substantive progress in a court-ordered treatment plan, the court may schedule a hearing pursuant to Section 366.26 within 120 days. If, however, the court finds there is a substantial probability that the child, who was under the age of three years on the date of initial removal or is a member of a sibling group described in paragraph (3) of subdivision (a) of Section 361.5, may be returned to his or her parent or guardian within six months or that reasonable services have not been provided, the court shall continue the case to the 12-month permanency hearing. For the purpose of placing and maintaining a sibling group together in a permanent home, the court, in making its determination to schedule a hearing pursuant to Section 366.26 for some or all members of a sibling group, as described in paragraph (3) of subdivision (a) of Section 361.5, shall review and consider the social worker's report and recommendations. Factors the report shall address, and the court shall consider, may include, but need not be limited to, whether the sibling group was removed from parental care as a group, the closeness and strength of the sibling bond, the ages of the siblings, the appropriateness of maintaining the sibling group together, the detriment to the child if sibling ties are not maintained, the likelihood of finding a permanent home for the sibling group, whether the sibling group is currently placed together in a preadoptive home or has a concurrent plan goal of legal permanency in the same home, the wishes of each child whose age and physical and emotional condition permits a meaningful response, and the best interest of each child in the sibling group. The court shall specify the factual basis for its finding that it is in the best interest of each child to schedule a hearing pursuant to Section 366.26 in 120 days for some or all of the members of the sibling group. If the child was removed initially under subdivision (g) of Section 300 and the court finds by clear and convincing evidence that the whereabouts of the parent are still unknown, or the parent has failed to contact and visit the child, the court may schedule a hearing pursuant to Section 366.26 within 120 days. If the court finds by clear and convincing evidence that the parent has been convicted of a felony indicating parental unfitness, the court may schedule a hearing pursuant to Section 366.26 within 120 days. If the child had been placed under court supervision with a previously noncustodial parent pursuant to Section 361.2, the court shall determine whether supervision is still necessary. The court may terminate supervision and transfer permanent custody to that parent, as provided for by paragraph (1) of subdivision (a) of Section 361.2. In all other cases, the court shall direct that any reunification services previously ordered shall continue to be offered to the parent or guardian pursuant to the time periods set forth in subdivision (a) of Section 361.5, provided that the court may modify the terms and conditions of those services. If the child is not returned to his or her parent or guardian, the court shall determine whether reasonable services have been provided or offered to the parent or guardian that were designed to aid the parent or guardian in overcoming the problems that led to the initial removal and the continued custody of the child. The court shall order that those services be initiated, continued, or terminated. (f) The permanency hearing shall be held no later than 12 months after the date the child entered foster care, as that date is determined pursuant to subdivision (a) of Section 361.5. At the permanency hearing, the court shall determine the permanent plan for the child, that shall include a determination of whether the child will be returned to the child's home and, if so, when, within the time limits of subdivision (a) of Section 361.5. The court shall order the return of the child to the physical custody of his or her parent or guardian unless the court finds, by a preponderance of the evidence, that the return of the child to his or her parent or guardian would create a substantial risk of detriment to the safety, protection, or physical or emotional well-being of the child. The social worker shall have the burden of establishing that detriment. The court shall also determine whether reasonable services have been provided or offered to the parent or guardian that were designed to aid the parent or guardian to overcome the problems that led to the initial removal and continued custody of the child. The failure of the parent or guardian to participate regularly and make substantive progress in court-ordered treatment programs shall be prima facie evidence that return would be detrimental. In making its determination, the court shall review and consider the social worker' s report and recommendations and the report and recommendations of any child advocate appointed pursuant to Section 356.5; shall consider the efforts or progress, or both, demonstrated by the parent or guardian and the extent to which he or she availed himself or herself of services provided; and shall make appropriate findings pursuant to subdivision (a) of Section 366. Evidence of any or all of the following circumstances shall not, in and of themselves, be deemed a failure to provide or offer reasonable services: (1) The child has been placed with a foster family that is eligible to adopt a child, or has been placed in a preadoptive home. (2) The case plan includes services to achieve legal permanence for the child if efforts to reunify fail. (3) Services to achieve legal permanence for the child, if efforts to reunify fail, are provided concurrently with services to reunify the family. Whether or not the child is returned to his or her parent or guardian, the court shall specify the factual basis for its decision. If the child is not returned to a parent or guardian, the court shall specify the factual basis for its conclusion that the return would be detrimental. The court also shall make a finding pursuant to subdivision (a) of Section 366. (g) If the time period in which the court-ordered services were provided has met or exceeded the time period set forth in paragraph (1), (2), or (3) of subdivision (a) of Section 361.5, as appropriate, and a child is not returned to the custody of a parent or guardian at the permanency hearing held pursuant to subdivision (f), the court shall do one of the following: (1) Continue the case for up to six months for a permanency review hearing, provided that the hearing shall occur within 18 months of the date the child was originally taken from the physical custody of his or her parent or guardian. The court shall continue the case only if it finds that there is a substantial probability that the child will be returned to the physical custody of his or her parent or guardian and safely maintained in the home within the extended period of time or that reasonable services have not been provided to the parent or guardian. For the purposes of this section, in order to find a substantial probability that the child will be returned to the physical custody of his or her parent or guardian and safely maintained in the home within the extended period of time, the court shall be required to find all of the following: (A) That the parent or guardian has consistently and regularly contacted and visited with the child. (B) That the parent or guardian has made significant progress in resolving problems that led to the child's removal from the home. (C) The parent or guardian has demonstrated the capacity and ability both to complete the objectives of his or her treatment plan and to provide for the child's safety, protection, physical and emotional well-being, and special needs. The court shall inform the parent or guardian that if the child cannot be returned home by the next permanency review hearing, a proceeding pursuant to Section 366.36 may be instituted. The court shall not order that a hearing pursuant to Section 366.26 be held unless there is clear and convincing evidence that reasonable services have been provided or offered to the parent or guardian. (2) Order that the child remain in long-term foster care, but only if the court finds by clear and convincing evidence, based upon the evidence already presented to it, including a recommendation by the State Department of Social Services when it is acting as an adoption agency or by a licensed adoption agency, that there is a compelling reason for determining that a hearing held pursuant to Section 366.26 is not in the best interest of the child because the child is not a proper subject for adoption and has no one willing to accept legal guardianship. For purposes of this section, a recommendation by the State Department of Social Services when it is acting as an adoption agency or by a licensed adoption agency that adoption is not in the best interest of the child shall constitute a compelling reason for the court's determination. That recommendation shall be based on the present circumstances of the child and shall not preclude a different recommendation at a later date if the child's circumstances change. (3) Order that a hearing be held within 120 days, pursuant to Section 366.26, if there is clear and convincing evidence that reasonable services have been provided or offered to the parents. Evidence of any or all of the following circumstances shall not, in and of themselves, be deemed a failure to provide or offer reasonable services: (A) The child has been placed with a foster family that is eligible to adopt a child, or has been placed in a preadoptive home. (B) The case plan includes services to achieve legal permanence for the child if efforts to reunify fail. (C) Services to achieve legal permanence for the child, if efforts to reunify fail, are provided concurrently with services to reunify the family. (h) In any case in which the court orders that a hearing pursuant to Section 366.26 shall be held, it shall also order the termination of reunification services to the parent. The court shall continue to permit the parent to visit the child pending the hearing unless it finds that visitation would be detrimental to the child. (i) Whenever a court orders that a hearing pursuant to Section 366.26 shall be held, it shall direct the agency supervising the child and the licensed county adoption agency, or the State Department of Social Services when it is acting as an adoption agency in counties that are not served by a county adoption agency, to prepare an assessment that shall include: (1) Current search efforts for an absent parent or parents. (2) A review of the amount of and nature of any contact between the child and his or her parents and other members of his or her extended family since the time of placement. Although the extended family of each child shall be reviewed on a case-by-case basis, "extended family" for the purpose of this paragraph shall include, but not be limited to, the child's siblings, grandparents, aunts, and uncles. (3) An evaluation of the child's medical, developmental, scholastic, mental, and emotional status. (4) A preliminary assessment of the eligibility and commitment of any identified prospective adoptive parent or guardian, particularly the caretaker, to include a social history including screening for criminal records and prior referrals for child abuse or neglect, the capability to meet the child's needs, and the understanding of the legal and financial rights and responsibilities of adoption and guardianship. If a proposed guardian is a relative of the minor, and the relative was assessed for foster care placement of the minor prior to January 1, 1998, the assessment shall also consider, but need not be limited to, all of the factors specified in subdivision (a) of Section 361.3. (5) The relationship of the child to any identified prospective adoptive parent or guardian, the duration and character of the relationship, the motivation for seeking adoption or guardianship, and a statement from the child concerning placement and the adoption or guardianship, unless the child's age or physical, emotional, or other condition precludes his or her meaningful response, and if so, a description of the condition. (6) An analysis of the likelihood that the child will be adopted if parental rights are terminated. (j) If, at any hearing held pursuant to Section 366.26, a guardianship is established for the minor with a relative, and juvenile court dependency is subsequently dismissed, the relative shall be eligible for aid under the Kin-GAP program as provided in Article 4.5 (commencing with Section 11360) of Chapter 2 of Part 3 of Division 9. (k) As used in this section, "relative" means an adult who is related to the minor by blood, adoption, or affinity within the fifth degree of kinship, including stepparents, stepsiblings, and all relatives whose status is preceded by the words "great," "great-great," or "grand," or the spouse of any of those persons even if the marriage was terminated by death or dissolution. SEC. 20. Section 366.22 of the Welfare and Institutions Code is amended to read: 366.22. (a) When a case has been continued pursuant to paragraph (1) of subdivision (g) of Section 366.21, the permanency review hearing shall occur within 18 months after the date the child was originally removed from the physical custody of his or her parent or guardian. The court shall order the return of the child to the physical custody of his or her parent or guardian unless the court finds, by a preponderance of the evidence, that the return of the child to his or her parent or guardian would create a substantial risk of detriment to the safety, protection, or physical or emotional well-being of the child. The social worker shall have the burden of establishing that detriment. The failure of the parent or guardian to participate regularly and make substantive progress in court-ordered treatment programs shall be prima facie evidence that return would be detrimental. In making its determination, the court shall review and consider the social worker's report and recommendations and the report and recommendations of any child advocate appointed pursuant to Section 356.5; shall consider the efforts or progress, or both, demonstrated by the parent or guardian and the extent to which he or she availed himself or herself of services provided; and shall make appropriate findings pursuant to subdivision (a) of Section 366. Evidence of any or all of the following circumstances shall not, in and of themselves, be deemed a failure to provide or offer reasonable services: (1) The child has been placed with a foster family that is eligible to adopt a child, or has been placed in a preadoptive home. (2) The case plan includes services to achieve legal permanence for the child if efforts to reunify fail. (3) Services to achieve legal permanence for the child, if efforts to reunify fail, are provided concurrently with services to reunify the family. Whether or not the child is returned to his or her parent or guardian, the court shall specify the factual basis for its decision. If the child is not returned to a parent or guardian, the court shall specify the factual basis for its conclusion that return would be detrimental. If the child is not returned to a parent or guardian at the permanency review hearing, the court shall order that a hearing be held pursuant to Section 366.26 in order to determine whether adoption, guardianship, or long-term foster care is the most appropriate plan for the child. However, if the court finds by clear and convincing evidence, based on the evidence already presented to it, including a recommendation by the State Department of Social Services when it is acting as an adoption agency or by a licensed adoption agency, that there is a compelling reason, as described in paragraph (2) of subdivision (g) of Section 366.21, for determining that a hearing held under Section 366.26 is not in the best interest of the child because the child is not a proper subject for adoption and has no one willing to accept legal guardianship, then the court may, only under these circumstances, order that the child remain in long-term foster care. The hearing shall be held no later than 120 days from the date of the permanency review hearing. The court shall also order termination of reunification services to the parent. The court shall continue to permit the parent to visit the child unless it finds that visitation would be detrimental to the child. The court shall determine whether reasonable services have been offered or provided to the parent or guardian. (b) Whenever a court orders that a hearing pursuant to Section 366.26 shall be held, it shall direct the agency supervising the child and the licensed county adoption agency, or the State Department of Social Services when it is acting as an adoption agency in counties that are not served by a county adoption agency, to prepare an assessment that shall include: (1) Current search efforts for an absent parent or parents. (2) A review of the amount of and nature of any contact between the child and his or her parents and other members of his or her extended family since the time of placement. Although the extended family of each child shall be reviewed on a case-by-case basis, "extended family" for the purposes of this paragraph shall include, but not be limited to, the child's siblings, grandparents, aunts, and uncles. (3) An evaluation of the child's medical, developmental, scholastic, mental, and emotional status. (4) A preliminary assessment of the eligibility and commitment of any identified prospective adoptive parent or guardian, particularly the caretaker, to include a social history including screening for criminal records and prior referrals for child abuse or neglect, the capability to meet the child's needs, and the understanding of the legal and financial rights and responsibilities of adoption and guardianship. If a proposed guardian is a relative of the minor, and the relative was assessed for foster care placement of the minor prior to January 1, 1998, the assessment shall also consider, but need not be limited to, all of the factors specified in subdivision (a) of Section 361.3. (5) The relationship of the child to any identified prospective adoptive parent or guardian, the duration and character of the relationship, the motivation for seeking adoption or guardianship, and a statement from the child concerning placement and the adoption or guardianship, unless the child's age or physical, emotional, or other condition precludes his or her meaningful response, and if so, a description of the condition. (6) An analysis of the likelihood that the child will be adopted if parental rights are terminated. (c) This section shall become operative January 1, 1999. If at any hearing held pursuant to Section 366.26, a guardianship is established for the minor with a relative, and juvenile court dependency is subsequently dismissed, the relative shall be eligible for aid under the Kin-GAP program as provided in Article 4.5 (commencing with Section 11360) of Chapter 2 of Part 3 of Division 9. (d) As used in this section, "relative" means an adult who is related to the minor by blood, adoption, or affinity within the fifth degree of kinship, including stepparents, stepsiblings, and all relatives whose status is preceded by the words "great," "great-great," or "grand," or the spouse of any of those persons even if the marriage was terminated by death or dissolution. SEC. 21. Section 366.3 of the Welfare and Institutions Code is amended to read: 366.3. (a) If a juvenile court orders a permanent plan of adoption or legal guardianship pursuant to Section 360 or 366.26, the court shall retain jurisdiction over the child until the child is adopted or the legal guardianship is established. The status of the child shall be reviewed every six months to ensure that the adoption or guardianship is completed as expeditiously as possible. When the adoption of the child has been granted, the court shall terminate its jurisdiction over the child. Following establishment of a legal guardianship, the court may continue jurisdiction over the child as a dependent child of the juvenile court following the establishment of a legal guardianship or may terminate its dependency jurisdiction and retain jurisdiction over the child as a ward of the guardianship, as authorized by Section 366.4. If, however, a relative of the child is appointed the legal guardian of the child and the child has been placed with the relative for at least 12 months, the court shall, except where the relative guardian objects, or upon a finding of exceptional circumstances, terminate its dependency jurisdiction and retain jurisdiction over the child as a ward of the guardianship, as authorized by Section 366.4. Following a termination of parental rights the parent or parents shall not be a party to, or receive notice of, any subsequent proceedings regarding the child. (b) If the court has dismissed dependency jurisdiction following the establishment of a legal guardianship, or no dependency jurisdiction attached because of the granting of a legal guardianship pursuant to Section 360, and the legal guardianship is subsequently revoked or otherwise terminated, the county department of social services or welfare department shall notify the juvenile court of this fact. The court may vacate its previous order dismissing dependency jurisdiction over the child. Notwithstanding Section 1601 of the Probate Code, the proceedings to terminate a guardianship which has been granted pursuant to Section 360 or 366.26 shall be held in the juvenile court, unless the termination is due to the emancipation or adoption of the child. Prior to the hearing on a petition to terminate guardianship pursuant to this paragraph, the court shall order the county department of social services or welfare department to prepare a report, for the court's consideration, that shall include an evaluation of whether the child could safely remain in the guardian's home, without terminating the guardianship, if services were provided to the child or guardian. If applicable, the report shall also identify recommended services to maintain the guardianship and set forth a plan for providing those services. If the petition to terminate guardianship is granted, the juvenile court may resume dependency jurisdiction over the child, and may order the county department of social services or welfare department to develop a new permanent plan, which shall be presented to the court within 60 days of the termination. If no dependency jurisdiction has attached, the social worker shall make any investigation he or she deems necessary to determine whether the child may be within the jurisdiction of the juvenile court, as provided in Section 328. Unless the parental rights of the child's parent or parents have been terminated, they shall be notified that the guardianship has been revoked or terminated and shall be entitled to participate in the new permanency planning hearing. The court shall try to place the child in another permanent placement. At the hearing, the parents may be considered as custodians but the child shall not be returned to the parent or parents unless they prove, by a preponderance of the evidence, that reunification is the best alternative for the child. The court may, if it is in the best interests of the child, order that reunification services again be provided to the parent or parents. (c) If, following the establishment of a legal guardianship, the county welfare department becomes aware of changed circumstances that indicate adoption may be an appropriate plan for the child, the department shall so notify the court. The court may vacate its previous order dismissing dependency jurisdiction over the child and order that a hearing be held pursuant to Section 366.26 to determine whether adoption or continued guardianship is the most appropriate plan for the child. The hearing shall be held no later than 120 days from the date of the order. Whenever the court orders that a hearing shall be held pursuant to Section 366.26, the court shall direct the agency supervising the child and the licensed county adoption agency, or the State Department of Social Services when it is acting as an adoption agency in counties that are not served by a county adoption agency, to prepare an assessment under subdivision (b) of Section 366.22. (d) If the child is in a placement other than the home of a legal guardian and jurisdiction has not been dismissed, the status of the child shall be reviewed at least every six months. The review of the status of a child for whom the court has ordered parental rights terminated and who has been ordered placed for adoption shall be conducted by the court. The review of the status of a child for whom the court has not ordered parental rights terminated and who has not been ordered placed for adoption may be conducted by the court or an appropriate local agency. The court shall conduct the review under the following circumstances: (1) Upon the request of the child's parents or guardians. (2) Upon the request of the child. (3) It has been 12 months since a hearing held pursuant to Section 366.26 or an order that the minor remain in long-term foster care pursuant to Section 366.21, 366.22, 366.26, or subdivision (g). (4) It has been 12 months since a review was conducted by the court. The court shall determine whether or not reasonable efforts to make and finalize a permanent placement for the child have been made. (e) Except as provided in subdivision (f), at the review held every six months pursuant to subdivision (d), the reviewing body shall inquire about the progress being made to provide a permanent home for the child, shall consider the safety of the child, and shall determine all of the following: (1) The continuing necessity for and appropriateness of the placement. (2) The continuing appropriateness and extent of compliance with the permanent plan for the child. (3) The extent of the agency's compliance with the child welfare services case plan in making reasonable efforts to return the child to a safe home and to complete whatever steps are necessary to finalize the permanent placement of the child. (4) The adequacy of services provided to the child. (5) The extent of progress the parents have made toward alleviating or mitigating the causes necessitating placement in foster care. (6) The likely date by which the child may be returned to and safely maintained in the home, placed for adoption, legal guardianship, or in another planned permanent living arrangement. (7) For a child who is 16 years of age or older, the services needed to assist the child to make the transition from foster care to independent living. The reviewing body shall determine whether or not reasonable efforts to make and finalize a permanent placement for the child have been made. Each licensed foster family agency shall submit reports for each child in its care, custody, and control to the court concerning the continuing appropriateness and extent of compliance with the child's permanent plan, the extent of compliance with the case plan, and the type and adequacy of services provided to the child. Unless their parental rights have been permanently terminated, the parent or parents of the child are entitled to receive notice of, and participate in, those hearings. It shall be presumed that continued care is in the best interests of the child, unless the parent or parents prove, by a preponderance of the evidence, that further efforts at reunification are the best alternative for the child. In those cases, the court may order that further reunification services to return the child to a safe home environment be provided to the parent or parents for a period not to exceed six months. (f) At the review conducted by the court and held at least every six months, regarding a child for whom the court has ordered parental rights terminated and who has been ordered placed for adoption, the county welfare department shall prepare and present to the court a report describing the following: (1) The child's present placement. (2) The child's current physical, mental, emotional, and educational status. (3) Whether the child has been placed with a prospective adoptive parent or parents. (4) Whether an adoptive placement agreement has been signed and filed. (5) The progress of the search for an adoptive placement if one has not been identified. (6) Any impediments to the adoption or the adoptive placement. (7) The anticipated date by which the child will be adopted, or placed in an adoptive home. (8) The anticipated date by which an adoptive placement agreement will be signed. (9) Recommendations for court orders that will assist in the placement of the child for adoption or in the finalization of the adoption. The court shall determine whether or not reasonable efforts to make and finalize a permanent placement for the child have been made. The court shall make appropriate orders to protect the stability of the child and to facilitate and expedite the permanent placement and adoption of the child. (g) At the review held pursuant to subdivision (d) for a child in long-term foster care, the court shall consider all permanency planning options for the child including whether the child should be returned to the home of the parent, placed for adoption, or appointed a legal guardian, or whether the child should remain in long-term foster care. The court shall order that a hearing be held pursuant to Section 366.26 unless it determines by clear and convincing evidence, that there is a compelling reason for determining that a hearing held pursuant to Section 366.26 is not in the best interest of the child because the child is being returned to the home of the parent, the child is not a proper subject for adoption, or no one is willing to accept legal guardianship. If the licensed adoption agency, or the department when it is acting as an adoption agency, has determined it is unlikely that the child will be adopted or one of the conditions described in paragraph (1) of subdivision (c) of Section 366.26 applies, that fact shall constitute a compelling reason for purposes of this subdivision. Only upon that determination may the court order that the child remain in long-term foster care, without holding a hearing pursuant to Section 366.26. (h) If, as authorized by subdivision (g), the court orders a hearing pursuant to Section 366.26, the court shall direct the agency supervising the child and the licensed county adoption agency, or the State Department of Social Services when it is acting as an adoption agency in counties that are not served by a county adoption agency, to prepare an assessment as provided for in subdivision (i) of Section 366.21 or subdivision (b) of Section 366.22. A hearing held pursuant to Section 366.26 shall be held no later than 120 days from the date of the 12-month review at which it is ordered, and at that hearing the court shall determine whether adoption, guardianship, or long-term foster care is the most appropriate plan for the child. SEC. 22. Section 903.7 of the Welfare and Institutions Code is amended to read: 903.7. (a) There is in the State Treasury the Foster Children and Parent Training Fund, the moneys contained in which shall be used exclusively for the purposes set forth in this section. (b) For each fiscal year beginning with fiscal year 1981-82, except as provided in Sections 15200.1, 15200.2, 15200.3, 15200.8, and 15200.81, and Section 17704 of the Family Code, the Department of Child Support Services shall determine the amount equivalent to the state share of collections attributable to the enforcement of parental fiscal liability pursuant to Sections 903, 903.4, and 903.5. On July 1, 1982, and every three months thereafter, the department shall notify the Chancellor of the Community Colleges, the Department of Finance, and the Superintendent of Public Instruction of the above-specified amount. The State Department of Social Services shall authorize the quarterly transfer of any portion of this amount for any particular fiscal year exceeding three million seven hundred fifty thousand dollars ($3,750,000) to the Treasurer for deposit in the Foster Children and Parent Training Fund. (c) If sufficient moneys are available in the Foster Children and Parent Training Fund, up to three million dollars ($3,000,000) shall be allocated for the support of foster parent training programs conducted in community colleges. The maximum amount authorized to be allocated pursuant to this subdivision shall be adjusted annually by a cost-of-living increase each year based on the percentage given to discretionary education programs. Funds for the training program shall be provided in a separate budget item in that portion of the Budget Act pertaining to the Chancellor of the California Community Colleges, to be deposited in a separate bank account by the Chancellor of the California Community Colleges. The chancellor shall use these funds exclusively for foster parent training, as specified by the chancellor in consultation with the California State Foster Parents Association and the State Department of Social Services. The plans for each foster parent training program shall include the provision of training to facilitate the development of foster family homes and small family homes to care for no more than six children who have special mental, emotional, developmental, or physical needs. The State Department of Social Services shall facilitate the participation of county welfare departments in the foster parent training program. The State Foster Parents Association, or the local chapters thereof, and the State Department of Social Services shall identify training participants and shall advise the chancellor on the form, content, and methodology of the training program. Funds shall be paid monthly to the foster parent training program until the maximum amount of funds authorized to be expended for that program is expended. No more than 10 percent or seventy-five thousand dollars ($75,000) of these moneys, whichever is greater, shall be used for administrative purposes; of the 10 percent or seventy-five thousand dollars ($75,000), no more than ten thousand dollars ($10,000) shall be expended to reimburse the State Department of Social Services for its services pursuant to this paragraph. (d) Beginning with fiscal year 1983-84, and each fiscal year thereafter, after all allocations for foster parent training in community colleges have been made, any moneys remaining in the Foster Children and Parent Training Fund may be allocated for foster children services programs pursuant to Chapter 11.3 (commencing with Section 42920) of Part 24 of the Education Code. (e) The Controller shall transfer moneys from the Foster Children and Parent Training Fund to the Chancellor of the Community Colleges and the Superintendent of Public Instruction as necessary to fulfill the requirements of subdivisions (c) and (d). After the maximum amount authorized in any fiscal year has been transferred to the Chancellor of the Community Colleges and the Superintendent of Public Instruction, the Controller shall transfer any remaining funds to the General Fund for expenditure for any public purpose. SEC. 23. Section 9113 is added to the Welfare and Institutions Code, to read: 9113. Area agencies on aging shall maintain in effect contracts funded from appropriations made by the Budget Act of 2000 for community-based service program expansion until July 1, 2004. SEC. 24. Section 9305 of the Welfare and Institutions Code is amended to read: 9305. The funds for the California Senior Legislature and the supportive activities of the commission for the California Senior Legislature shall be allocated from the California Fund for Senior Citizens, private funds directed to the Legislature or the commission for the purpose of funding activities of the California Senior Legislature, or appropriate federal funds. SEC. 24.5. Section 10544.1 of the Welfare and Institutions Code is amended to read: 10544.1. (a) It is the intent of the Legislature to provide counties with grant savings as defined in subdivisions (d) and (e) subject to the amounts appropriated in the annual Budget Act. (b) It is the intent of the Legislature that the counties use the funds, when appropriated, to do all of the following: (1) Improve the quality of jobs provided to recipients. (2) Help individuals attain long-term self-sufficiency. (3) Prevent the need for CalWORKs benefits for those families making the transition from the CalWORKs program. (c) It is further the intent of the Legislature to evaluate the efforts of counties in using the funds to improve the state's understanding of how best to assist families in attaining long-term and sustained self-sufficiency. (d) In order to provide counties with additional incentive to move CalWORKs recipients to employment, each county shall receive the state share of savings, including federal funds under the Temporary Assistance for Needy Families block grant subject to the amounts appropriated in the annual Budget Act, resulting from the following outcomes: (1) Recipients exiting the program due to employment that has lasted a minimum of six months. (2) Increased earnings by recipients due to employment. (3) Diversion of applicants from the program pursuant to Section 11266.5 for six months in addition to the number of months equivalent to the diversion payment. (e) (1) For purposes of subdivision (d), the department, shall apply the method for valuing the outcomes to determine county share of savings that was utilized in fiscal years 1998-99 and 1999-2000, except that increased earning by recipients due to employment shall be valued at 50 percent of actual grant savings instead of 100 percent. (2) The method shall be adjusted as appropriate, and determined in consultation with program stakeholders, to account for any changes made to the Temporary Assistance to Needy Families program requirements for block grant funding levels as a result of Congressional reauthorization of the program in 2002. (f) The funds allocated to counties pursuant to subdivisions (d) and (e) that are federal Temporary Assistance for Needy Families block grant funds shall be used only for purposes for which these federal funds may be used. The funds that are state General Fund dollars shall be expended for purposes directly connected to the CalWORKs program and countable towards the state maintenance of effort level required by federal law, unless the Director of Finance determines that all or part of the funds are not needed in that fiscal year to meet the required maintenance of effort. Any unexpended funds may be retained by each county for expenditure in subsequent fiscal years for purposes consistent with this subdivision. (g) (1) Notwithstanding Section 11250 or any other provision of law, commencing October 1, 2000, exclusively for purposes of county performance incentives provided under this section and exclusively for purposes of providing nonassistance services pursuant to Section 42 U.S.C. Sec. 601(a)(1) and (2) to families not receiving aid under this chapter, "needy families" also includes any family in which the minor child is living with a parent or adult relative caregiver and the family's income is less than 200 percent of the official federal poverty guidelines applicable to a family of the size involved. (2) A county shall not expend more than 25 percent of its performance incentive funds for purposes of this subdivision. (3) For purposes of this subdivision, "nonassistance services" means services that do not constitute assistance as defined in applicable federal law and regulations governing the Temporary Assistance for Needy Families program. (h) Each county shall submit a plan to the department describing how it intends to expend its fiscal incentive funds and how the benefits and services relate to the issue of sustaining self-sufficiency. The plan shall also describe how these services will be coordinated with other services within the community that are funded from sources such as the county's single allocation, Welfare-to-Work grants, and community college funds. (i) Each county shall report quarterly on the actual expenditure of funds under this section and shall complete a self-evaluation report annually on the results of the benefits and services provided and any lessons the county has learned from the approach it has taken. (j) The department shall evaluate the programs that have been supported by county incentive funds to determine the extent to which the goals of the TANF program and the goals specified in this section are achieved. (k) Acceptance of incentive funds beginning with the 2000-01 fiscal year shall constitute a waiver of any claim, cause of action, or action whenever filed, with respect to fiscal incentives earned through the 1999-2000 fiscal year under subdivision (c) of this section as enacted by Chapter 270 of the Statutes of 1997, but not allocated to counties by the department. (l) This section shall not be interpreted to entitle any individual or family to assistance or services under any program created and funded under this section. SEC. 25. Section 10609.3 of the Welfare and Institutions Code is amended to read: 10609.3. (a) By January 1, 1995, the State Department of Social Services shall complete, in consultation with county Independent Living Program administrators, placement agencies, providers, advocacy groups, and community groups, a comprehensive evaluation of the Independent Living Program established pursuant to the federal Consolidated Omnibus Budget Reconciliation Act of 1985 (Public Law 99-272) and develop recommendations available to the public on how independent living services could better prepare foster youth for independence and adulthood. (b) The department shall investigate alternative transition housing models for youth between the ages of 17 and 18 who are in out-of-home placements under the supervision of the county department of social services or county probation department. To the extent federal funds are available and it is in the best interests of the children, the department shall develop and implement a transitional housing model for youth who are preparing for emancipation from foster care. (c) The department shall also investigate alternative transition models for youth discharged from foster care to live on their own. As part of this investigation, the department shall consider the needs of youth for housing, transportation, health care, access to community resources, employment, and other support services. (d) The department shall, with the approval of the federal government, amend the foster care state plan, provided for pursuant to Subtitle IV-E (commencing with Section 470) of the federal Social Security Act (42 U.S.C. Sec. 670, et seq.), and the child welfare services state plan (42 U.S.C. Sec. 622), to permit all eligible children be served by the Independent Living Program up to the age of 21 years. (e) (1) Effective July 1, 2000, the department, in consultation with the Independent Living Program Strategic Planning Committee, shall develop and implement a stipend to supplement and not supplant the Independent Living Program. To qualify for this stipend, a youth shall be otherwise eligible for the Independent Living Program, have been emancipated from foster care to live on his or her own, and be approved by the county. The stipend may provide for, but not be limited to, assisting the youth with the following independent living needs: (A) Bus passes. (B) Housing rental deposits and fees. (C) Housing utility deposits and fees. (D) Work-related equipment and supplies. (E) Training-related equipment and supplies. (F) Education-related equipment and supplies. (2) Notwithstanding Section 10101, the state shall pay 100 percent of the nonfederal costs associated with the stipend program in paragraph (1), subject to the availability of funding provided in the annual Budget Act. SEC. 25.5. Section 10609.6 is added to the Welfare and Institutions Code, to read: 10609.6. (a) The department, in consultation with the seven member task force specified in subdivision (b), shall develop a plan to implement the recommendations of the evaluation required by Section 10609.5. (b) The task force created pursuant to this section shall include all of the following: (1) The director, or his or her designee. (2) One representative from each of the following: (A) The Department of Finance. (B) The County Welfare Directors Association. (C) The California State Association of Counties. (D) Child welfare services consumers. (E) Children's advocacy organizations. (F) Child welfare social worker organizations. (c) If participation on the task force convened pursuant to this section will cause hardship for the representative of child welfare consumers identified in paragraph (4) of subdivision (b), the department, upon the request of the representative, shall provide reimbursement for travel and other expenses directly related to participation in the task force. Except as provided in this subdivision, no task force member shall receive compensation or any other payment for serving on the task force. (d) The department shall submit the implementation plan to the appropriate policy and fiscal committees of the Legislature on or before June 30, 2001. SEC. 30. Section 11265.2 of the Welfare and Institutions Code is amended to read: 11265.2. (a) (1) Notwithstanding any other provision of law, commencing July 1, 2000, subject to the agreement of the local district attorney, Los Angeles County and up to eight counties selected by the department may implement this section. (2) Subject to paragraph (3) and notwithstanding any other provision of law, all counties that have not implemented this section pursuant to paragraph (1) may begin implementation of this section on January 1, 2005, and shall complete implementation of this section no later than January 1, 2006. This paragraph shall become inoperative on January 1, 2005. (3) Counties participating in the eligibility simplification project under Section 11265.6 may delay implementation of this section until the expiration of the eligibility simplification project if implementation of this section would be inconsistent with the federal approval of the eligibility simplification project. (4) On or before January 1, 2004, the department shall evaluate the impact of this section in a sufficient number of participating counties to reliably describe this section's impact. The department shall collaborate with the Office of Criminal Justice Planning in conducting the program integrity aspects of this evaluation. (b) Each county shall conduct an annual eligibility redetermination. A county shall be required to have a face-to-face interview with the recipient at the redetermination, unless the recipient has regular contact with the county through CalWORKs or other similar programs. Subsequent face-to-face interviews for any recipient for purposes related to verification of eligibility or the provision of CalWORKs services may be conducted at the county's discretion. (c) Each county shall redetermine the financial eligibility of each recipient on a quarterly basis. (d) (1) A recipient shall report, in writing, to the county within 10 days any change in resources, his or her household's monthly income, including source of income, his or her address, or the composition of his or her household if the report would be required under the federal food stamp reporting requirement for nonmonthly reporting households. The county shall recalculate an assistance unit's grant level only upon the report of any required change, provided that the department obtains the appropriate waiver, as specified in subdivision (i). If the United States Department of Agriculture denies this waiver, counties shall recalculate an assistance unit's grant level based upon any reported changes. (2) Each quarter the recipient shall complete a quarterly report which shall be signed under penalty of perjury. The report shall include all information necessary from the quarterly report month to determine financial eligibility. (3) For each of the first two months covered by the quarterly report, the recipient shall state whether there was any income, and for each type of reportable change listed in paragraph (1), other than a change of address, whether such a change occurred, and if so, whether the change was reported in writing. If the recipient states that a reportable change occurred during the first two months covered by the quarterly report and was not reported in writing or the county has no record that a recipient made a written report, it shall require that the information that should have been reported pursuant to paragraph (1) be reported in writing and under penalty of perjury within 10 days of receiving notice from the county. A failure to provide the report required by this paragraph within the 10-day period shall result in a termination of benefits, after receiving notice from the county as required by state and federal law. (4) (A) If the recipient fails to submit a quarterly report by the date prescribed by the department, the county shall provide the recipient with a notice, as required by the department, that the county will terminate benefits. (B) Prior to terminating benefits, the county shall attempt to make personal contact to remind the recipient that a completed report is due, or, if contact is not made, shall send a reminder notice to the recipient. (C) Any discontinuance notice shall be rescinded and aid shall be restored if the report is received by the first working day of the month for which aid is paid based on submission of the quarterly report. (e) In recalculating the amount of a recipient's grant pursuant to this section, including the timing and provision of any supplementary payment, changes in the grant amount shall be made on a prospective basis pursuant to food stamp regulations for nonmonthly reporting households. (f) Counties shall provide a mechanism for recipients to retain written documentation of the contents of the report, pursuant to minimum standards established by the department. (g) The department shall define what constitutes a complete report, and shall specify the deadlines for submitting a complete report, as well as the consequences of, and good cause for, failure to submit a complete report. (h) In determining overpayments and underpayments, the county shall use the federal food stamp regulations that are used to determine overissuances and underissuances for nonmonthly reporting households. (i) The department shall seek all necessary waivers from the United States Department of Agriculture to conform the Food Stamp Program requirements to the provisions of this section and to increase the income reporting amount for nonmonthly reporting households to one hundred dollars ($100). (j) Notwithstanding the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), until the department may implement a reporting and budgeting system, as described in this section, through an all county letter or similar instructions from the director for up to six months from the date of initial implementation. (k) The department shall adopt regulations to implement this section no later than six months from the date of initial implementation. Emergency regulations adopted for implementation of the applicable provisions of this section may be adopted by the director in accordance with the Administrative Procedure Act. The initial adoption of emergency regulations and one readoption of these regulations shall be deemed to be an emergency and necessary for immediate preservation of the public peace, health and safety, or general welfare. Initial emergency regulations shall be exempt from review by the Office of Administrative Law. The emergency regulations authorized by this section shall be submitted to the Office of Administrative Law for filing with the Secretary of State and shall remain in effect for no more than 180 days. (l) This section shall remain in effect only until January 1, 2006, and as of that date is repealed, unless a later enacted statute that is enacted on or before January 1, 2006, extends or deletes that date. SEC. 34. Section 11363 of the Welfare and Institutions Code is amended to read: 11363. (a) Aid in the form of Kin-GAP shall be provided under this article on behalf of any child under 18 years of age who meets all of the following conditions: (1) Has been adjudged a dependent child of the juvenile court pursuant to Section 300. (2) Has been living with a relative for at least 12 consecutive months. (3) Has had a kinship guardianship with that relative established as the result of the implementation of a permanent plan pursuant to Section 366.26. (4) Has had his or her dependency dismissed after January 1, 2000, pursuant to Section 366.3, concurrently or subsequent to the establishment of the kinship guardianship. (b) Kin-GAP payments shall continue after the child's 18th birthday if the conditions specified in Section 11403 are met. (c) Termination of the guardianship with a kinship guardian shall terminate eligibility for Kin-GAP; provided, however, that if an alternate guardian or coguardian is appointed pursuant to Section 366.3 who is also a kinship guardian, the alternate or coguardian shall be entitled to receive Kin-GAP on behalf of the child pursuant to this article. A new period of 12 months of placement with the alternate guardian or coguardian shall not be required if that alternate guardian or coguardian has been assessed pursuant to Section 361.3 and the court terminates dependency jurisdiction. SEC. 35. Section 11367 of the Welfare and Institutions Code is amended to read: 11367. (a) Kin-GAP, in an amount equal to the then current Kin-GAP rate, shall be paid utilizing the applicable regional per-child CalWORKs grant from federal funds received as a part of the TANF block grant program grant. The balance of Kin-GAP shall be paid in equal portions by the state and the counties. (b) The department shall seek any federal funds available for implementation of this article, including, but not limited to, funds available under Title IV of the federal Social Security Act (42 U.S.C. Sec. 601 et seq.), unless doing so would be detrimental to the state General Fund. Implementation of the Kin-GAP program shall not, however, be contingent upon receipt of any federal funding. (c) Any savings that accrue to the department as a result of this article shall revert to the General Fund. Savings that accrue to a county shall accrue to that county's social services subaccount in its local health and welfare trust fund. SEC. 36. Section 11372 of the Welfare and Institutions Code is amended to read: 11372. Notwithstanding any other provision of law, the Kinship Guardianship Assistance Payment Program implemented under this article is exempt from the provisions of Chapter 2 (commencing with Section 11200) of Part 3, except Sections 11253.5, and 11265.8, as long as these exemptions would not jeopardize federal financial participation in the payment. Any exemptions exercised pursuant to this section shall be implemented in accordance with Section 11369. SEC. 37. Section 11374 is added to the Welfare and Institutions Code, to read: 11374. (a) Each county that formally had court ordered jurisdiction under Section 300 over a child receiving benefits under the Kin-GAP program shall be responsible for paying the child's aid regardless of where the child actually resides, so long as the child resides in California. (b) Notwithstanding any other provision of law, when a child receiving benefits under the CalWORKs program or the AFDC-FC foster care program becomes eligible for benefits under the Kin-GAP program during any month, the child shall continue to receive benefits under the CalWORKs program or the AFDC-FC foster care program, as appropriate, to the end of that calendar month, and Kin-GAP payments shall begin the first day of the following month. SEC. 38. Section 11375 is added to the Welfare and Institutions Code, to read: 11375. The following shall apply to any child in receipt of Kin-GAP benefits: (a) He or she is eligible to request and receive independent living services pursuant to Section 10609.3. (b) He or she may retain cash savings, not to exceed ten thousand dollars ($10,000), including interest, in addition to any other property accumulated pursuant to Section 11257 or 11257.5. SEC. 40. Section 11461 of the Welfare and Institutions Code is amended to read: 11461. (a) For children placed in a licensed or approved family home with a capacity of six or less, or in an approved home of a relative or nonrelated legal guardian, the per child per month rates in the following schedule shall be in effect for the period July 1, 1989, through December 31, 1989: Age Basic rate 0-4 ......................... $ 294 5-8 ......................... 319 9-11 ........................ 340 12-14 ........................ 378 15-20 ........................ 412 (b) (1) Any county that, as of October 1, 1989, has in effect a basic rate that is at the levels set forth in the schedule in subdivision (a), shall continue to receive state participation, as specified in subdivision (c) of Section 15200, at these levels. (2) Any county that, as of October 1, 1989, has in effect a basic rate that exceeds a level set forth in the schedule in subdivision (a), shall continue to receive the same level of state participation as it received on October 1, 1989. (c) The amounts in the schedule of basic rates in subdivision (a) shall be adjusted as follows: (1) Effective January 1, 1990, the amounts in the schedule of basic rates in subdivision (a) shall be increased by 12 percent. (2) Effective May 1, 1990, any county that did not increase the basic rate by 12 percent on January 1, 1990, shall do both of the following: (A) Increase the basic rate in effect December 31, 1989, for which state participation is received by 12 percent. (B) Increase the basic rate, as adjusted pursuant to subparagraph (A) by an additional 5 percent. (3) (A) Except as provided in subparagraph (B), effective July 1, 1990, for the 1990-91 fiscal year, the amounts in the schedule of basic rates in subdivision (a) shall be increased by an additional 5 percent. (B) The rate increase required by subparagraph (A) shall not be applied to rates increased May 1, 1990, pursuant to paragraph (2). (4) Effective July 1, 1998, the amounts in the schedule of basic rates in subdivision (a) shall be increased by 6 percent. Notwithstanding any other provision of law, the 6-percent increase provided for in this paragraph shall, retroactive to July 1, 1998, apply to every county, including any county to which paragraph (2) of subdivision (b) applies, and shall apply to foster care for every age group. (5) Notwithstanding any other provision of law, any increase that takes effect after July 1, 1998, shall apply to every county, including any county to which paragraph (2) of subdivision (b) applies, and shall apply to foster care for every age group. (6) The increase in the basic foster family home rate shall apply only to children placed in a licensed foster family home receiving the basic rate or in an approved home of a relative or nonrelated legal guardian receiving the basic rate. The increased rate shall not be used to compute the monthly amount that may be paid to licensed foster family agencies for the placement of children in certified foster homes. (d) (1) (A) Beginning with the 1991-92 fiscal year, the schedule of basic rates in subdivision (a) shall be adjusted by the percentage changes in the California Necessities Index, computed pursuant to the methodology described in Section 11453, subject to the availability of funds. (B) In addition to the adjustment in subparagraph (A) effective January 1, 2000, the schedule of basic rates in subdivision (a) shall be increased by 2.36 percent rounded to the nearest dollar. (2) (A) Any county that, as of the 1991-92 fiscal year, receives state participation for a basic rate that exceeds the amount set forth in the schedule of basic rates in subdivision (a) shall receive an increase each year in state participation for that basic rate of one-half of the percentage adjustments specified in paragraph (1) until the difference between the county's adjusted state participation level for its basic rate and the adjusted schedule of basic rates is eliminated. (B) Notwithstanding subparagraph (A), all counties for the 1999-2000 fiscal year shall receive an increase in state participation for the basic rate of the entire percentage adjustment described in paragraph (1). (3) If a county has, after receiving the adjustments specified in paragraph (2), a state participation level for a basic rate that is below the amount set forth in the adjusted schedule of basic rates for that fiscal year, the state participation level for that rate shall be further increased to the amount specified in the adjusted schedule of basic rates. (e) (1) As used in this section, "specialized care increment" means an approved amount paid with state participation on behalf of an AFDC-FC child requiring specialized care to a home listed in subdivision (a) in addition to the basic rate. On the effective date of this section, the department shall continue and maintain the current ratesetting system for specialized care. (2) Any county that, as of the effective date of this section, has in effect specialized care increments that have been approved by the department, shall continue to receive state participation for those payments. (3) Any county that, as of the effective date of this section, has in effect specialized care increments that exceed the amounts that have been approved by the department, shall continue to receive the same level of state participation as it received on the effective date of this section. (4) (A) Except for subparagraph (B), beginning January 1, 1990, specialized care increments shall be adjusted in accordance with the methodology for the schedule of basic rates described in subdivision (c) and (d). No county shall receive state participation for any increases in a specialized care increment which exceeds the adjustments made in accordance with this methodology. (B) Notwithstanding subdivision (e) of Section 11460, for the 1993-94 fiscal year, an amount equal to 5 percent of the State Treasury appropriation for family homes shall be added to the total augmentation for the AFDC-FC program in order to provide incentives and assistance to counties in the area of specialized care. This appropriation shall be used, but not limited to, encouraging counties to implement or expand specialized care payment systems, to recruit and train foster parents for the placement of children with specialized care needs, and to develop county systems to encourage the placement of children in family homes. It is the intent of the Legislature that in the use of these funds, federal financial participation shall be claimed whenever possible. (f) (1) As used in this section, "clothing allowance" means the amount paid with state participation in addition to the basic rate for the provision of additional clothing for an AFDC-FC child, including, but not limited to, an initial supply of clothing and school or other uniforms. (2) Any county that, as of the effective date of this section, has in effect clothing allowances, shall continue to receive the same level as it received on the effective date of this section. (3) Beginning January 1, 1990, except as provided in paragraph (4), clothing allowances shall be adjusted annually in accordance with the methodology for the schedule of basic rates described in subdivision (c) and (d). No county shall be reimbursed for any increases in clothing allowances which exceed the adjustments made in accordance with this methodology. (4) For the 2000-01 fiscal year and each fiscal year thereafter, without a county share of cost, notwithstanding subdivision (c) of Section 15200, each child shall be entitled to receive a supplemental clothing allowance of one hundred dollars ($100) per year subject to the availability of funds. The clothing allowance shall be used to supplement, and not supplant, the clothing allowance specified in paragraph (1). SEC. 41. Section 11462 of the Welfare and Institutions Code is amended to read: 11462. (a) (1) Effective July 1, 1990, foster care providers licensed as group homes, as defined in departmental regulations, including public child care institutions, as defined in Section 11402.5, shall have rates established by classifying each group home program and applying the standardized schedule of rates. The department shall collect information from group providers beginning January 1, 1990, in order to classify each group home program. (2) Notwithstanding paragraph (1), foster care providers licensed as group homes shall have rates established only if the group home is organized and operated on a nonprofit basis as required under subdivision (h) of Section 11400. The department shall terminate the rate effective January 1, 1993, of any group home not organized and operated on a nonprofit basis as required under subdivision (h) of Section 11400. (b) A group home program shall be initially classified, for purposes of emergency regulations, according to the level of care and services to be provided using a point system developed by the department and described in the report, "The Classification of Group Home Programs under the Standardized Schedule of Rates System," prepared by the State Department of Social Services, August 30, 1989. (c) The rate for each rate classification level (RCL) has been determined by the department with data from the AFDC-FC Group Home Rate Classification Pilot Study. The rates effective July 1, 1990, were developed using 1985 calendar year costs and reflect adjustments to the costs for each fiscal year, starting with the 1986-87 fiscal year, by the amount of the California Necessities Index computed pursuant to the methodology described in Section 11453. The data obtained by the department using 1985 calendar year costs shall be updated and revised by January 1, 1993. (d) As used in this section, "standardized schedule of rates" means a listing of the 14 rate classification levels, and the single rate established for each RCL. (e) Except as specified in paragraph (1), the department shall determine the RCL for each group home program on a prospective basis, according to the level of care and services that the group home operator projects will be provided during the period of time for which the rate is being established. (1) (A) For new and existing providers requesting the establishment of an RCL, and for existing group home programs requesting an RCL increase, the department shall determine the RCL no later than 13 months after the effective date of the provisional rate. The determination of the RCL shall be based on a program audit of documentation and other information that verifies the level of care and supervision provided by the group home program during a period of the two full calendar months or 60 consecutive days, whichever is longer, preceding the date of the program audit, unless the group home program requests a lower RCL. The program audit shall not cover the first six months of operation under the provisional rate. Pending the department's issuance of the program audit report that determines the RCL for the group home program, the group home program shall be eligible to receive a provisional rate that shall be based on the level of care and service that the group home program proposes it will provide. The group home program shall be eligible to receive only the RCL determined by the department during the pendency of any appeal of the department's RCL determination. (B) A group home program may apply for an increase in its RCL no earlier than two years from the date the department has determined the group home program's rate, unless the host county, the primary placing county, or a regional consortium of counties submits to the department in writing that the program is needed in that county, that the provider is capable of effectively and efficiently operating the proposed program, and that the provider is willing and able to accept AFDC-FC children for placement who are determined by the placing agency to need the level of care and services that will be provided by the program. (C) To ensure efficient administration of the department's audit responsibilities, and to avoid the fraudulent creation of records, group home programs shall make records that are relevant to the RCL determination available to the department in a timely manner. Except as provided in this section, the department may refuse to consider, for purposes of determining the rate, any documents that are relevant to the determination of the RCL that are not made available by the group home provider by the date the group home provider requests a hearing on the department's RCL determination. The department may refuse to consider for purposes of determining the rate, the following records, unless the group home provider makes the records available to the department during the field work portion of the department's program audit: (i) Records of each employee's full name, home address, occupation, and social security number. (ii) Time records showing when the employee begins and ends each work period, meal periods, split shift intervals, and total daily hours worked. (iii) Total wages paid each payroll period. (iv) Records required to be maintained by licensed group home providers under the provisions of Title 22 of the California Code of Regulations that are relevant to the RCL determination. (D) To minimize financial abuse in the startup of group home programs, when the department's RCL determination is more than three levels lower than the RCL level proposed by the group home provider, and the group home provider does not appeal the department's RCL determination, the department shall terminate the rate of a group home program 45 days after issuance of its program audit report. When the group home provider requests a hearing on the department's RCL determination, and the RCL determined by the director under subparagraph (E) is more than three levels lower than the RCL level proposed by the group home provider, the department shall terminate the rate of a group home program within 30 days of issuance of the director's decision. Notwithstanding the reapplication provisions in subparagraph (B), the department shall deny any request for a new or increased RCL from a group home provider whose RCL is terminated pursuant to this subparagraph, for a period of no greater than two years from the effective date of the RCL termination. (E) A group home provider may request a hearing of the department' s RCL determination under subparagraph (A) no later than 30 days after the date the department issues its RCL determination. The department's RCL determination shall be final if the group home provider does not request a hearing within the prescribed time. Within 60 days of receipt of the request for hearing, the department shall conduct a hearing on the RCL determination. The standard of proof shall be the preponderance of the evidence and the burden of proof shall be on the department. The hearing officer shall issue the proposed decision within 45 days of the close of the evidentiary record. The director shall adopt, reject, or modify the proposed decision, or refer the matter back to the hearing officer for additional evidence or findings within 100 days of issuance of the proposed decision. If the director takes no action on the proposed decision within the prescribed time, the proposed decision shall take effect by operation of law. (2) Group home programs that fail to maintain at least the level of care and services associated with the RCL upon which their rate was established shall inform the department. The department shall develop regulations specifying procedures to be applied when a group home fails to maintain the level of services projected, including, but not limited to, rate reduction and recovery of overpayments. (3) The department shall not reduce the rate, establish an overpayment, or take other actions pursuant to paragraph (2) for any period that a group home program maintains the level of care and services associated with the RCL for children actually residing in the facility. Determinations of levels of care and services shall be made in the same way as modifications of overpayments are made pursuant to paragraph (2) of subdivision (b) of Section 11466.2. (4) A group home program that substantially changes its staffing pattern from that reported in the group home program statement shall provide notification of this change to all counties that have placed children currently in care. This notification shall be provided whether or not the RCL for the program may change as a result of the change in staffing pattern. (f) The standardized schedule of rates for fiscal year 1998-99 is: Rate Point Ranges FY 1998-99 Classification Standard Level Rate 1 Under 60 $1,254 2 60- 89 1,567 3 90-119 1,879 4 120-149 2,191 5 150-179 2,502 6 180-209 2,815 7 210-239 3,127 8 240-269 3,440 9 270-299 3,751 10 300-329 4,064 11 330-359 4,375 12 360-389 4,688 13 390-419 5,003 14 420 & Up 5,314 (g) (1) (A) For the 1999-2000 fiscal year, the standardized rate for each RCL shall be adjusted by an amount equal to the California Necessities Index computed pursuant to the methodology described in Section 11453. The resultant amounts shall constitute the new standardized schedule of rates, subject to further adjustment pursuant to subparagraph (B). (B) In addition to the adjustment in subparagraph (A), commencing January 1, 2000, the standardized rate for each RCL shall be increased by 2.36 percent, rounded to the nearest dollar. The resultant amounts shall constitute the new standardized schedule of rates. (2) Beginning with the 2000-01 fiscal year, the standardized schedule of rates shall be adjusted annually by an amount equal to the CNI computed pursuant to Section 11453, subject to the availability of funds. The resultant amounts shall constitute the new standardized schedule of rates. (3) Effective January 1, 2001, the amount included in the standard rate for each Rate Classification Level for the salaries, wages, and benefits for staff providing child care and supervision or performing social work activities, or both, shall be increased by 10 percent. This additional funding shall be used by group home programs solely to supplement staffing, salaries, wages, and benefit levels of staff specified in this paragraph. The standard rate for each RCL shall be recomputed using this adjusted amount and the resultant rates shall constitute the new standardized schedule of rates. The department may require a group home receiving this additional funding to certify that the funding was utilized in accordance with the provisions of this section. (h) The standardized schedule of rates pursuant to subdivisions (f) and (g) shall be implemented as follows: (1) Any group home program which received an AFDC-FC rate in the prior fiscal year at or above the standard rate for the RCL in the current fiscal year shall continue to receive that rate. (2) Any group home program which received an AFDC-FC rate in the prior fiscal year below the standard rate for the RCL in the current fiscal year shall receive the RCL rate for the current year. (i) (1) The department shall not establish a rate for a new program of a new or existing provider unless the provider submits a recommendation from the host county, the primary placing county, or a regional consortium of counties that the program is needed in that county; that the provider is capable of effectively and efficiently operating the program; and that the provider is willing and able to accept AFDC-FC children for placement who are determined by the placing agency to need the level of care and services that will be provided by the program. (2) The department shall encourage the establishment of consortia of county placing agencies on a regional basis for the purpose of making decisions and recommendations about the need for, and use of, group home programs and other foster care providers within the regions. (3) The department shall annually conduct a county-by-county survey to determine the unmet placement needs of children placed pursuant to Section 300 and Section 601 or 602, and shall publish its findings by November 1 of each year. (j) The department shall develop regulations specifying ratesetting procedures for program expansions, reductions, or modifications, including increases or decreases in licensed capacity, or increases or decreases in level of care or services. (k) (1) For the purpose of this subdivision, "program change" means any alteration to an existing group home program planned by a provider that will increase the RCL or AFDC-FC rate. An increase in the licensed capacity or other alteration to an existing group home program that does not increase the RCL or AFDC-FC rate shall not constitute a program change. (2) For the 1998-99, 1999-2000, and 2000-01 fiscal years, the rate for a group home program shall not increase, as the result of a program change, from the rate established for the program effective July 1, 2000, and as adjusted pursuant to subparagraph (B) of paragraph (1) of subdivision (g), except as provided in paragraph (3). (3) (A) For the 1998-99, 1999-2000, and 2000-01 fiscal years, the department shall not establish a rate for a new program of a new or existing provider or approve a program change for an existing provider that either increases the program's RCL or AFDC-FC rate, or increases the licensed capacity of the program as a result of decreases in another program with a lower RCL or lower AFDC-FC rate that is operated by that provider, unless both of the conditions specified in this paragraph are met. (i) The licensee obtains a letter of recommendation from the host county, primary placing county, or regional consortium of counties regarding the proposed program change or new program. (ii) The county determines that there is no increased cost to the General Fund. (B) Notwithstanding subparagraph (A), the department may grant a request for a new program or program change, not to exceed 25 beds, statewide, if (i) the licensee obtains a letter of recommendation from the host county, primary placing county, or regional consortium of counties regarding the proposed program change or new program, and (ii) the new program or program change will result in a reduction of referrals to state hospitals during the 1998-99 fiscal year. (l) General unrestricted or undesignated private charitable donations and contributions made to charitable or nonprofit organizations shall not be deducted from the cost of providing services pursuant to this section. The donations and contributions shall not be considered in any determination of maximum expenditures made by the department. (m) The department shall, by October 1 each year, commencing October 1, 1992, provide the Joint Legislative Budget Committee with a list of any new departmental requirements established during the previous fiscal year concerning the operation of group homes, and of any unusual, industrywide increase in costs associated with the provision of group care which may have significant fiscal impact on providers of group homes care. The committee may, in fiscal year 1993-94 and beyond, use the list to determine whether an appropriation for rate adjustments is needed in the subsequent fiscal year. SEC. 42. Section 11463 of the Welfare and Institutions Code is amended to read: 11463. (a) The department, with the advice, assistance, and cooperation of the counties and foster care providers, shall develop, implement, and maintain a ratesetting system for foster family agencies. No county shall be reimbursed for any percentage increases in payments, made on behalf of AFDC-FC funded children who are placed with foster family agencies, which exceed the percentage cost-of-living increase provided in any fiscal year beginning on January 1, 1990, as specified in subdivision (c) of Section 11461. (b) The department shall develop regulations specifying the purposes, types, and services of foster family agencies, including the use of those agencies for the provision of emergency shelter care. Distinction for ratesetting purposes shall be drawn between foster family agencies which provide treatment of children in foster families and those which provide nontreatment services. (c) The department shall develop and maintain regulations specifying the procedure for the appeal of department decisions about the setting of an agency's rate. (d) On and after July 1, 1998, the schedule of rates, and the components used in the rate calculations specified in the department' s regulations, for foster family agencies shall be increased by 6 percent, rounded to the nearest dollar. The resultant amounts shall constitute the new schedule of rates for foster family agencies. (e) (1) On and after July 1, 1999, the schedule of rates and the components used in the rate calculations specified in the department' s regulations for foster family agencies shall be adjusted by an amount equal to the California Necessities Index computed pursuant to Section 11453, rounded to the nearest dollar, subject to the availability of funds. The resultant amounts shall constitute the new schedule of rates for foster family agencies, subject to further adjustment pursuant to paragraph (2). (2) In addition to the adjustment specified in paragraph (1), commencing January 1, 2000, the schedule of rates and the components used in the rate calculations specified in the department's regulations for foster family agencies shall be increased by 2.36 percent, rounded to the nearest dollar. The resultant amounts shall constitute the new schedule of rates for foster family agencies. (f) For the 1999-2000 fiscal year, foster family agency rates that are not determined by the schedule of rates set forth in the department's regulations, shall be increased by the same percentage as provided in subdivision (e). (g) For the 2000-01 fiscal year and each fiscal year thereafter, without a county share of cost, notwithstanding subdivision (c) of Section 15200, the foster family agency rate shall be supplemented by one hundred dollars ($100) for clothing per year per child in care, subject to the availability of funds. The supplemental payment shall be used to supplement, and shall not be used to supplant, any clothing allowance paid in addition to the foster family agency rate. (h) In addition to the adjustment made pursuant to subdivision (e), the component for social work activities in the rate calculation specified in the department's regulations for foster family agencies shall be increased by 10 percent, effective January 1, 2001. This additional funding shall be used by foster family agencies solely to supplement staffing, salaries, wages, and benefit levels of staff performing social work activities. The schedule of rates shall be recomputed using the adjusted amount for social work activities. The resultant amounts shall constitute the new schedule of rates for foster family agencies. The department may require a foster family agency receiving this additional funding to certify that the funding was utilized in accordance with the provisions of this section. SEC. 43. Section 11465.6 is added to the Welfare and Institutions Code, to read: 11465.6. (a) Up to five counties selected by the department, and at the discretion of the counties, may implement a countywide program for licensed family homes and relative caregivers receiving payments under this chapter under which they may receive reimbursement for the cost of licensed child care for each foster child under 13 years of age in the care of the licensed family home or the relative caregiver, during any period that any of the following apply: (1) The foster parent or relative caregiver is working outside the home. (2) The foster parent or relative caregiver is participating in foster care training. (3) The foster parent or relative caregiver is fulfilling necessary foster care-related administrative duties, such as conferences and judicial reviews that are not ordinarily parental duties. (b) A foster family home shall only receive a reimbursement for child care that is provided by a licensed provider and if an agreement has been documented in the child's case plan. (c) The cost for reimbursements authorized by this section shall be shared equally between the state and the county. Funds appropriated pursuant to Chapter 6 (commencing with Section 17600) of Part 5 shall not be used to meet the county match requirement under this section. (d) The department shall, in consultation with participating counties, establish rates of child care reimbursement under this section. (e) Of the five counties to be selected, the department shall select, at minimum, one large county, one medium county, and one small county, based on population size if a county from each category submits a written expression of its desire to participate. In addition, the department shall give priority to any county that meets both of the following criteria: (1) The county has experienced a net loss in the total number of licensed foster family homes. (2) The county has demonstrated a deficit in the number of licensed foster family beds for the county's population of foster children requiring out-of-home placement. (f) Each participating county shall report to the department on an annual basis. The information to be reported to the department shall be determined by the department in consultation with the County Welfare Director's Association. At a minimum, the annual report shall include the number of foster parents claiming a child care reimbursement, the number of children served under this section, and an analysis of the impact of the child care reimbursement on the recruitment and retention of licensed foster home providers. The department shall provide the appropriate policy and fiscal committees of the Legislature with a report of the use of child care pursuant to this section on or before June 30, 2003. (g) The department may issue emergency regulations for the purpose of implementing this section. SEC. 44. Section 11467.2 is added to the Welfare and Institutions Code, to read: 11467.2. (a) The department shall contract with an independent evaluator to conduct a study of alternative funding mechanisms for group home care in California and to formulate a proposed funding system for the care and supervision of children who are placed in group home care. The independent evaluator shall consider and evaluate alternative funding mechanisms, including, but not limited to, cost-based rates, individual client needs-based rates, managed care rates, program type rates, and negotiated rates, and shall propose a specific mechanism and procedure, for children subject to Sections 300 or 602 who are placed in group homes. The study shall consider empirical research, current foster care program service needs, other state funding systems, and any other relevant data, including information obtained from the final report regarding the Reexamination of the Role of Group Care Within a Family Based System of Care, as mandated by Chapter 311 of the Statutes of 1998. (b) The department shall convene a steering committee to provide direction for the study, which shall be comprised of appropriate state and county agencies, as well as group home providers, current or former foster youth, and other interested parties. (c) The department shall provide a copy of the final report submitted pursuant to subdivision (a) to the appropriate fiscal and policy committees of the Legislature on or before October 1, 2001. Any proposal or recommendations submitted pursuant to this section shall not become effective unless enacted pursuant to statute. (d) Pending completion of a new rate system, this section shall not be construed in any way to prohibit recognition through the budget process of the costs of operating under the current rate system or the consideration of rate adjustments. SEC. 44.2. Section 12301.6 of the Welfare and Institutions Code is amended to read: 12301.6. (a) Notwithstanding Sections 12302 and 12302.1, a county board of supervisors may, at its option, elect to do either of the following: (1) Contract with a nonprofit consortium to provide for the delivery of in-home supportive services. (2) Establish, by ordinance, a public authority to provide for the delivery of in-home supportive services. (b) (1) To the extent that a county elects to establish a public authority pursuant to paragraph (2) of subdivision (a), the enabling ordinance shall specify the membership of the governing body of the public authority, the qualifications for individual members, the manner of appointment, selection, or removal of members, how long they shall serve, and other matters as the board of supervisors deems necessary for the operation of the public authority. (2) A public authority established pursuant to paragraph (2) of subdivision (a) shall be both of the following: (A) An entity separate from the county, and shall be required to file the statement required by Section 53051 of the Government Code. (B) A corporate public body, exercising public and essential governmental functions and that has all powers necessary or convenient to carry out the delivery of in-home supportive services, including the power to contract for services pursuant to Sections 12302 and 12302.1 and that makes or provides for direct payment to a provider chosen by the recipient for the purchase of services pursuant to Sections 12302 and 12302.2. Employees of the public authority shall not be employees of the county for any purpose. (3) (A) As an alternative, the enabling ordinance may designate the board of supervisors as the governing body of the public authority. (B) Any enabling ordinance that designates the board of supervisors as the governing body of the public authority shall also specify that no fewer than 50 percent of the membership of the advisory committee shall be individuals who are current or past users of personal assistance services paid for through public or private funds or recipients of services under this article. (C) If the enabling ordinance designates the board of supervisors as the governing body of the public authority, it shall also require the appointment of an advisory committee of not more than 11 individuals who shall be designated in accordance with subparagraph (B). (D) Prior to making designations of committee members pursuant to subparagraph (C), or governing body members in accordance with paragraph (4), the board of supervisors shall solicit recommendations of qualified members of either the governing body of the public authority or of any advisory committee through a fair and open process that includes the provision of reasonable, written notice to, and a reasonable response time by, members of the general public and interested persons and organizations. (4) If the enabling ordinance does not designate the board of supervisors as the governing body of the public authority, the enabling ordinance shall require the membership of the governing body to meet the requirements of subparagraph (B) of paragraph (3). (c) (1) Any public authority created pursuant to this section shall be deemed to be the employer of in-home supportive services personnel referred to recipients under paragraph (3) of subdivision (d) within the meaning of Chapter 10 (commencing with Section 3500) of Division 4 of Title 1 of the Government Code. Recipients shall retain the right to hire, fire, and supervise the work of any in-home supportive services personnel providing services to them. (2) (A) Any nonprofit consortium contracting with a county pursuant to this section shall be deemed to be the employer of in-home supportive services personnel referred to recipients pursuant to paragraph (3) of subdivision (d) for the purposes of collective bargaining over wages, hours, and other terms and conditions of employment. (B) Recipients shall retain the right to hire, fire, and supervise the work of any in-home supportive services personnel providing services for them. (d) A public authority established pursuant to this section or a nonprofit consortium contracting with a county pursuant to this section, when providing for the delivery of services under this article by contract in accordance with Sections 12302 and 12302.1 or by direct payment to a provider chosen by a recipient in accordance with Sections 12302 and 12302.2, shall comply with and be subject to, all statutory and regulatory provisions applicable to the respective delivery mode. (e) Any nonprofit consortium contracting with a county pursuant to this section or any public authority established pursuant to this section shall provide for all of the following functions under this article, but shall not be limited to those functions: (1) The provision of assistance to recipients in finding in-home supportive services personnel through the establishment of a registry. (2) Investigation of the qualifications and background of potential personnel. (3) Establishment of a referral system under which in-home supportive services personnel shall be referred to recipients. (4) Providing for training for providers and recipients. (5) Performing any other functions related to the delivery of in-home supportive services. (6) Ensuring that the requirements of the personal care option pursuant to Subchapter 19 (commencing with Section 1396) of Chapter 7 of Title 42 of the United States Code are met. (f) (1) Any nonprofit consortium contracting with a county pursuant to this section or any public authority created pursuant to this section shall be deemed not to be the employer of in-home supportive services personnel referred to recipients under this section for purposes of liability due to the negligence or intentional torts of the in-home supportive services personnel. (2) In no case shall a nonprofit consortium contracting with a county pursuant to this section or any public authority created pursuant to this section be held liable for action or omission of any in-home supportive services personnel whom the nonprofit consortium or public authority did not list on its registry or otherwise refer to a recipient. (3) Counties and the state shall be immune from any liability resulting from their implementation of this section in the administration of the In-Home Supportive Services Program. Any obligation of the public authority or consortium pursuant to this section, whether statutory, contractual, or otherwise, shall be the obligation solely of the public authority or nonprofit consortium, and shall not be the obligation of the county or state. (g) Any nonprofit consortium contracting with a county pursuant to this section shall ensure that it has a governing body that complies with the requirements of subparagraph (B) of paragraph (3) of subdivision (b) or an advisory committee that complies with subparagraphs (B) and (C) of paragraph (3) of subdivision (b). (h) Recipients of services under this section may elect to receive services from in-home supportive services personnel who are not referred to them by the public authority or nonprofit consortium. Those personnel shall be referred to the public authority or nonprofit consortium for the purposes of wages, benefits, and other terms and conditions of employment. (i) Nothing in this section shall be construed to affect the state' s responsibility with respect to the state payroll system, unemployment insurance, or workers' compensation and other provisions of Section 12302.2 for providers of in-home supportive services. Any county that elects to provide in-home supportive services pursuant to this section shall be responsible for any increased costs to the in-home supportive services case management, information, and payrolling system attributable to that election. The department shall collaborate with any county that elects to provide in-home supportive services pursuant to this section prior to implementing the amount of financial obligation for which the county shall be responsible. (j) To the extent permitted by federal law, personal care option funds, obtained pursuant to Subchapter 19 (commencing with Section 1396) of Chapter 7 of Title 42 of the United States Code, along with matching funds using the state and county sharing ratio established in subdivision (c) of Section 12306, or any other funds that are obtained pursuant to Subchapter 19 (commencing with Section 1396) of Chapter 7 of Title 42 of the United States Code, may be used to establish and operate an entity authorized by this section. (k) Notwithstanding any other provision of law, the county, in exercising its option to establish a public authority, shall not be subject to competitive bidding requirements. However, contracts entered into by either the county, a public authority, or a nonprofit consortium pursuant to this section shall be subject to competitive bidding as otherwise required by law. (l) (1) The department may adopt regulations implementing this section as emergency regulations in accordance with Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code. For the purposes of the Administrative Procedure Act, the adoption of the regulations shall be deemed an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare. Notwithstanding Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code, these emergency regulations shall not be subject to the review and approval of the Office of Administrative Law. (2) Notwithstanding subdivision (h) of Section 11364.1 and Section 11349.6 of the Government Code, the department shall transmit these regulations directly to the Secretary of State for filing. The regulations shall become effective immediately upon filing by the Secretary of State. (3) Except as otherwise provided for by Section 10554, the Office of Administrative Law shall provide for the printing and publication of these regulations in the California Code of Regulations. Emergency regulations adopted pursuant to this subdivision shall remain in effect for no more than 180 days. (m) (1) In the event that a county elects to form a nonprofit consortium or public authority pursuant to subdivision (a) before the State Department of Health Services has obtained all necessary federal approvals pursuant to paragraph (3) of subdivision (j) of Section 14132.95, all of the following shall apply: (A) Subdivision (c) shall apply only to those matters that do not require federal approval. (B) The second sentence of subdivision (g) shall not be operative. (C) The nonprofit consortium or public authority shall not provide services other than those specified in paragraphs (1), (2), (3), (4), and (5) of subdivision (d). (2) Paragraph (1) shall become inoperative when the State Department of Health Services has obtained all necessary federal approvals pursuant to paragraph (3) of subdivision (j) of Section 14132.95. (n) (1) One year after the effective date of the first approval by the department granted to the first public authority, the Bureau of State Audits shall commission a study to review the performance of that public authority. (2) The study shall be submitted to the Legislature and the Governor not later than two years after the effective date of the approval specified in subdivision (a). The study shall give special attention to the health and welfare of the recipients under the public authority, including the degree to which all required services have been delivered, out-of-home placement rates, prompt response to recipient complaints, and any other issue the director deems relevant. (3) The report shall make recommendations to the Legislature and the Governor for any changes to this section that will further ensure the well-being of recipients and the most efficient delivery of required services. (o) Commencing July 1, 1997, the department shall provide annual reports to the appropriate fiscal and policy committees of the Legislature on the efficacy of the implementation of this section, and shall include an assessment of the quality of care provided pursuant to this section. SEC. 44.4. Section 12306.1 of the Welfare and Institutions Code is repealed. SEC. 44.6. Section 12306.1 is added to the Welfare and Institutions Code, to read: 12306.1. (a) When any increase in provider wages or benefits is negotiated or agreed to by a public authority or nonprofit consortium under Section 12301.6, then the county shall use county-only funds to fund both the county share and the state share, including employment taxes, of any increase in the cost of the program, unless otherwise provided for in the annual Budget Act or appropriated by statute. No increase in wages or benefits negotiated or agreed to pursuant to this section shall take effect unless and until, prior to its implementation, the department has obtained the approval of the State Department of Health Services for the increase pursuant to a determination that it is consistent with federal law and to ensure federal financial participation for the services under Title XIX of the federal Social Security Act, and unless and until all of the following conditions have been met: (1) Each county has provided the department with documentation of the approval of the county board of supervisors of the proposed public authority of nonprofit consortium rate, including wages and related expenditures. The documentation shall be received by the department before the department and the State Department of Health Services may approve the increase. (2) Each county has met department guidelines and regulatory requirements as a condition of receiving state participation in the rate. (b) Any rate approved pursuant to subdivision (a) shall take effect commencing on the first day of the month subsequent to the month in which final approval is received from the department. The department may grant approval on a conditional basis, subject to the availability of funding. (c) The state shall pay 65 percent, and each county shall pay 35 percent, of the nonfederal share of wage and benefit increases negotiated by a public authority or nonprofit consortium pursuant to Section 12301.6 and associated employment taxes, only in accordance with subdivisions (d) to (f), inclusive. (d) (1) The state shall participate as provided in subdivision (c) in wages up to seven dollars and fifty cents ($7.50) per hour and individual health benefits up to sixty cents ($0.60) per hour for all public authority or nonprofit consortium providers. This paragraph shall be operative for the 2000-01 fiscal year and each year thereafter unless otherwise provided in paragraphs (2), (3), (4), and (5). (2) The state shall participate as provided in subdivision (c) in a total of wages and individual health benefits up to nine dollars and ten cents ($9.10) per hour, if wages have reached at least seven dollars and fifty cents ($7.50) per hour. Counties shall determine, pursuant to the collective bargaining process provided for in subdivision (c) of Section 12301.6, what portion of the nine dollars and ten cents ($9.10) per hour shall be used to fund wage increases above seven dollars and fifty cents ($7.50) per hour or individual health benefit increases, or both. This paragraph shall be operative commencing with the next state fiscal year for which the May Revision forecast of General Fund revenue, excluding transfers, exceeds by at least 5 percent, the most current estimate of revenues, excluding transfers, for the year in which paragraph (1) became operative. (3) The state shall participate as provided in subdivision (c) in a total of wages and individual health benefits up to ten dollars and ten cents ($10.10) per hour, if wages have reached at least seven dollars and fifty cents ($7.50) per hour. Counties shall determine, pursuant to the collective bargaining process provided for in subdivision (c) of Section 12301.6, what portion of the ten dollars and ten cents ($10.10) per hour shall be used to fund wage increases above seven dollars and fifty cents ($7.50) per hour or individual health benefit increases, or both. This paragraph shall be operative commencing with the next state fiscal year for which the May Revision forecast of General Fund revenue, excluding transfers, exceeds by at least 5 percent, the most current estimate of revenue, excluding transfers, for the year in which paragraph (2) became operative. (4) The state shall participate as provided in subdivision (c) in a total of wages and individual health benefits up to eleven dollars and ten cents ($11.10) per hour, if wages have reached at least seven dollars and fifty cents ($7.50) per hour. Counties shall determine, pursuant to the collective bargaining process provided for in subdivision (c) of Section 12301.6, what portion of the eleven dollars and ten cents ($11.10) per hour shall be used to fund wage increases or individual health benefits, or both. This paragraph shall be operative commencing with the next state fiscal year for which the May Revision forecast of General Fund revenue, excluding transfers, exceeds by at least 5 percent, the most current estimate of revenues, excluding transfers, for the year in which paragraph (3) became operative. (5) The state shall participate as provided in subdivision (c) in a total cost of wages and individual health benefits up to twelve dollars and ten cents ($12.10) per hour, if wages have reached at least seven dollars and fifty cents ($7.50) per hour. Counties shall determine, pursuant to the collective bargaining process provided for in subdivision (c) of Section 12301.6, what portion of the twelve dollars and ten cents ($12.10) per hour shall be used to fund wage increases above seven dollars and fifty cents ($7.50) per hour or individual health benefit increases, or both. This paragraph shall be operative commencing with the next state fiscal year for which the May Revision forecast of General Fund revenue, excluding transfers, exceeds by at least 5 percent, the most current estimate of revenues, excluding transfers, for the year in which paragraph (4) became operative. (e) (1) On or before May 14 immediately prior to the fiscal year for which state participation is provided under paragraphs (2) to (5), inclusive, of subdivision (d), the Director of Finance shall certify to the Governor, the appropriate committees of the Legislature, and the department that the condition for each subdivision to become operative has been met. (2) For purposes of certifications under paragraph (1), the General Fund revenue forecast, excluding transfers, that is used for the relevant fiscal year shall be calculated in a manner that is consistent with the definition of General Fund revenues, excluding transfers, that was used by the Department of Finance in the 2000-01 Governor's Budget revenue forecast as reflected on Schedule 8 of the Governor's Budget. (f) Any increase in state participation in wage and benefit increases under paragraphs (2) to (5), inclusive, of subdivision (d), shall be limited to an increase of one dollar ($1) per hour with respect to any fiscal year. SEC. 44.8. Section 12306.2 is added to the Welfare and Institutions Code, to read: 12306.2. (a) Notwithstanding any other provision of law, for the 2000-01 fiscal year, the state shall pay 65 percent and each county shall pay 35 percent of the nonfederal share of any increase to individual provider wages a county chooses to grant, up to 3 percent above the statewide minimum wage. (b) This section shall not apply to providers who are employees of a public authority or nonprofit consortium pursuant to Section 12301.6. (c) This section shall be operative on January 1, 2001. SEC. 45. Section 12306.3 is added to the Welfare and Institutions Code, to read: 12306.3. In consultation with stakeholder organizations, including, but not limited to, the California State Association of Counties and employee organizations representing in-home supportive service workers, the department shall develop and evaluate various options for providing health care benefits for uninsured individual in-home supportive services providers who are not employees of a public authority or nonprofit consortium under Section 12301.6. The department shall report its findings and recommendations to the Legislature by January 15, 2001. SEC. 46. Section 13002 of the Welfare and Institutions Code is amended to read: 13002. From the funds described in Section 13001 each county shall receive three allocations. The first allocation shall be for support of Child Welfare Services as defined in Chapter 5 (commencing with Section 16500 of Part 4). This allocation shall be known as the Child Welfare Services Grant. The second allocation shall be for support of protective services and foster care services for adults, information and referral services, transportation to and from health care facilities, and other services directed at the five national goals specified in Section 13003. This allocation shall be known as the County Services Block Grant. The third allocation shall be for in-home supportive services administration. The notice of such action must be provided at least seven days prior to the meeting at which such action is to be taken. Such notice shall be provided in the same manner as the county provides notice for its regularly scheduled meetings. Funds from the Child Welfare Services Grant and the County Services Block Grant and the in-home supportive services administration allocations shall be available only when matched by county funds pursuant to the provisions of Part 1.5 (commencing with Section 10100). SEC. 47. Section 14021.35 is added to the Welfare and Institutions Code, to read: 14021.35. (a) The State Department of Alcohol and Drug Programs shall prepare amendments to the medicaid state plan in order to obtain federal financial participation for Drug-Medi-Cal Program provisions contained in subdivision (b) of Section 11758.46 of the Health and Safety Code. The department shall review the recommended state plan amendments prepared by the State Department of Alcohol and Drug Programs. If the department determines that the recommended state plan amendments satisfy federal requirements for federal financial participation, the department shall submit an amendment to the medicaid state plan for medical assistance under Section 1915(g) of the federal Social Security Act (Title 42 U.S.C. Sec. 1396n(g)), to implement Drug-Medi-Cal Program provisions contained in subdivision (b) of Section 11758.46 of the Health and Safety Code. (b) Upon federal approval for federal financial assistance, the department, in consultation with the State Department of Alcohol and Drug Programs, shall define the new services, as needed, shall establish the standards under which those services qualify as Drug-Medi-Cal reimbursable services, and shall develop appropriate rates of reimbursement for those services, subject to utilization controls. SEC. 48. Section 15200.05 of the Welfare and Institutions Code is amended to read: 15200.05. (a) Federal block grant funds received for the Temporary Assistance for Needy Families program pursuant to subtitle A (commencing with Section 401) of Title IV of the federal Social Security Act (42 U.S.C. Sec. 601 et seq.) may be deposited in, and shall be administered through, the Temporary Assistance for Needy Families Fund, which is hereby created in the State Treasury. Upon authorization by the Director of Finance, special accounts may be established within this fund, and the fund may be used in accounting for any federal Temporary Assistance for Needy Families block grant funds received from the federal government after August 22, 1996. (b) A fund condition statement for the federal block grant received for the Temporary Assistance for Needy Families program shall be provided to the Department of Finance with the estimates submitted pursuant to subdivision (d) of Section 10614 whether or not the Temporary Assistance for Needy Families Fund created by this section is used for the deposit and administration of those moneys. SEC. 49. Section 15204.3 of the Welfare and Institutions Code is amended to read: 15204.3. (a) Beginning in the 2000-01 fiscal year, allocation of funds provided under Section 15204.2 shall be made, in the case of funds for benefits administration and employment services, based on projected county costs and subject to funds appropriated in the annual Budget Act for operating the CalWORKs program under Chapter 2 (commencing with Section 11200). By November 1, 1999, the department and the County Welfare Directors Association shall jointly develop the specific components of this budgeting methodology, including a process for ensuring that costs funded under the methodology are reasonable and consistent with the requirements of this chapter. It is the intent of the Legislature that limited-term housing assistance be considered as part of the cost-based allocation methodology, where appropriate. (b) No later than November 1, 2002, the Welfare Reform Steering Committee shall review the efficacy of the methodology in subdivision (a) and make recommendations, if any, for modification to the methodology. (c) In the 1997-98 fiscal year, additional funds for welfare-to-work administration above GAIN allocation in the 1996-97 fiscal year shall be distributed among the counties with two-thirds allocated to all counties based on each county's share of adults aided under Chapter 2 (commencing with Section 11200). The remaining one-third shall be allocated among only those counties that in the prior year received an allocation per average aided adult at a level less than the statewide average, and shall be distributed among those counties so that they each receive the same overall allocation per average aided adult for welfare-to-work administration. (d) For purposes of this section, and subject to funds appropriated in the annual Budget Act, no county shall receive less for employment services than what was received in the 1997-98 fiscal year allocation for welfare-to-work administration unless a county projects that its cost will be less than its 1997-98 fiscal year allocation for employment services. SEC. 50. Section 16001.7 is added to the Welfare and Institutions Code, to read: 16001.7. (a) The department shall promote the participation of current and former foster youth in the development of state foster care and child welfare policy. Subject to the availability of funds, the department shall contract with the California Youth Connection to provide technical assistance and outreach to current and former foster youth. In executing this contract, the responsibilities of the California Youth Connection shall include, but are not limited to, all of the following: (1) Providing leadership training to current and former foster youth between the ages of 14 and 21 years. (2) Providing outreach and technical assistance to current and former foster youth to form and maintain California Youth Connection chapters, including recruiting and training adult volunteer supporters. (3) Enabling foster youth to be represented in policy discussions pertinent to foster care and child welfare issues. (4) Enhancing the well-being of foster youth and increasing public understanding of foster care and child welfare issues. (5) Developing educational materials and forums related to foster care. (b) Funds provided to the California Youth Connection pursuant to the contract shall not be used for activities not allowed under federal law relating to the receipt of federal financial participation for independent living services, including, but not limited to, lobbying and litigation. SEC. 52. Section 18918 is added to the Welfare and Institutions Code, to read: 18918. Not later than January 15, 2001, the State Department of Social Services, in conjunction with the State Department of Health Services and appropriate stakeholders, shall develop and submit to the Legislature a community outreach and education campaign to help families learn about, and apply for, the federal Food Stamp Program and the California Food Assistance Program. At a minimum, the plan shall include the following: (a) Specific milestones and objectives proposed to be completed for the upcoming year and their anticipated cost. (b) A general description of each strategy or method to be used for outreach. (c) Geographic areas and special populations to be targeted, if any, and why the special targeting is needed. (d) Coordination with other state or county education and outreach efforts. (e) The results of previous years' outreach efforts. (1) If necessary to obtain federal financial participation the food stamp outreach plan shall be submitted to the United States Department of Agriculture not later than January 15, 2001. The state share of the funding shall be subject to appropriation in the annual Budget Act and may be funded through the General Fund or other state or local funding sources, as appropriate. (2) After submission of the initial plan, it shall be updated annually and submitted to the Legislature by April 1 for the following year. SEC. 53. Section 18930 of the Welfare and Institutions Code is amended to read: 18930. (a) The State Department of Social Services shall establish a Food Assistance Program to provide assistance for those persons described in subdivision (b). The department shall enter into an agreement with the United States Department of Agriculture to use the existing federal Food Stamp Program coupons for the purposes of administering this program. Persons who are members of a household receiving food stamp benefits under this chapter or under Chapter 10 (commencing with Section 18900), and are receiving CalWORKs benefits under Chapter 2 (commencing with Section 11200) of Part 3 on September 1, 1998, shall have eligibility determined under this chapter without need for a new application no later than November 1, 1998, and the beginning date of assistance under this chapter for those persons shall be September 1, 1998. (b) (1) Except as provided in paragraphs (2), (3), and (4) and Section 18930.5, noncitizens of the United States shall be eligible for the program established pursuant to subdivision (a) if the person' s immigration status meets the eligibility criteria of the federal Food Stamp Program in effect on August 21, 1996, but he or she is not eligible for federal food stamp benefits solely due to his or her immigration status under Public Law 104-193 and any subsequent amendments thereto. (2) Noncitizens of the United States shall be eligible for the program established pursuant to subdivision (a) if the person is a battered immigrant spouse or child or the parent or child of the battered immigrant, as described in Section 1641(c) of Title 8 of the United States Code, as amended by Section 5571 of Public Law 105-33, or if the person is a Cuban or Haitian entrant as described in Section 501(e) of the federal Refugee Education Assistance Act of 1980 (Public Law 96-122). (3) An applicant who is otherwise eligible for the program but who entered the United States on or after August 22, 1996, shall be eligible for aid under this chapter only if he or she is sponsored and one of the following apply: (A) The sponsor has died. (B) The sponsor is disabled as defined in subparagraph (A) of paragraph (3) of subdivision (b) of Section 11320.3. (C) The applicant, after entry into the United States, is a victim of abuse by the sponsor or the spouse of the sponsor if the spouse is living with the sponsor. (4) An applicant who is otherwise eligible for the program but who entered the United States on or after August 22, 1996, who does not meet one of the conditions of paragraph (3), shall be eligible for aid under this chapter for the period beginning on October 1, 1999, and ending September 30, 2001. (5) The applicant shall be required to provide verification that one of the conditions of subparagraph (A), (B), or (C) have been met. (6) For purposes of subparagraph (C) of paragraph (2), abuse shall be defined in the same manner as provided in Section 11495.1 and Section 11495.12. A sworn statement of abuse by a victim, or the representative of the victim if the victim is not able to competently swear, shall be sufficient to establish abuse if one or more additional items of evidence of abuse is also provided. Additional evidence may include, but is not limited to, the following: (A) Police, government agency, or court records or files. (B) Documentation from a domestic violence program, legal, clinical, medical, or other professional from whom the applicant or recipient has sought assistance in dealing with abuse. (C) A statement from any other individual with knowledge of the circumstances that provided the basis for the claim. (D) Physical evidence of abuse. (7) If the victim cannot provide additional evidence of abuse, then the sworn statement shall be sufficient if the county makes a determination documented in writing in the case file that the applicant is credible. (c) In counties approved for alternate benefit issuance systems, that same alternate benefit issuance system shall be approved for the program established by this chapter. (d) (1) To the extent allowed by federal law, the income, resources, and deductible expenses of those persons described in subdivision (b) shall be excluded when calculating food stamp benefits under Chapter 10 (commencing with Section 18900). (2) No household shall receive more food stamp benefits under this section than it would if no household member was rendered ineligible pursuant to Title IV of Public Law 104-193 and any subsequent amendments thereto. (e) This section shall become operative on September 1, 1998. SEC. 54. Section 18938 of the Welfare and Institutions Code is amended to read: 18938. (a) (1) Subject to paragraphs (2) and (3), an individual, upon application, shall be eligible for the program established pursuant to Section 18937 if his or her immigration status meets the eligibility criteria of the Supplemental Security Income/State Supplementary Program for the Aged, Blind, and Disabled (SSI/SSP) in effect on August 21, 1996, but he or she is not eligible for SSI/SSP benefits solely due to his or her immigration status under Title IV of Public Law 104-193 and any subsequent amendments thereto. (2) An applicant who is otherwise eligible for the program, but who entered the United States on or after August 22, 1996, shall be eligible for aid under this chapter only if he or she is sponsored and one of the following conditions is met: (A) The sponsor has died. (B) The sponsor is disabled, as defined in subparagraph (A) of paragraph (3) of subdivision (b) of Section 11320.3. (C) The applicant, after entry into the United States, is a victim of abuse by the sponsor or the spouse of the sponsor if the spouse is living with the sponsor. (3) An applicant who is otherwise eligible for the program but who entered the United States on or after August 22, 1996, and who does not meet one of the conditions of paragraph (2) shall be eligible for aid under this chapter for the period beginning on October 1, 1999, and ending on September 30, 2001. (4) The applicant shall be required to provide verification that one of the conditions of subparagraphs (A), (B), or (C) of paragraph (2) has been met. (5) (A) For purposes of subparagraph (C) of paragraph (2), abuse shall be defined in the same manner as provided in Section 11495.1 and Section 11495.12. A sworn statement of abuse by a victim, or the representative of the victim if the victim is not able to competently swear, shall be sufficient to establish abuse if one or more additional items of evidence of abuse is also provided. Additional evidence may include, but is not limited to, the following: (i) Police, government agency, or court records or files. (ii) Documentation from a domestic violence program, legal, clinical, medical, or other professional from whom the applicant or recipient has sought assistance in dealing with abuse. (iii) A statement from any other individual with knowledge of the circumstances that provided the basis for the claim. (iv) Physical evidence of abuse. (B) If the victim cannot provide additional evidence of abuse, then the sworn statement shall be sufficient if the county makes a determination documented in the case file that the applicant is credible. (b) The department shall periodically redetermine the eligibility of each individual. (c) The department shall take all steps necessary to qualify any benefits paid under this section to be eligible for reimbursement as federal Interim Assistance including requiring a repayment agreement. SEC. 55. Article 3.5 (commencing with Section 18959) is added to Chapter 11 of Part 6 of Division 9 of the Welfare and Institutions Code, to read: Article 3.5. Juvenile Crime Prevention 18959. There is hereby established, under the direction of the Office of Child Abuse Prevention, a Juvenile Crime Prevention Program. The program shall consist of up to 16 sites throughout the state, which shall provide juvenile crime prevention services. 18959.1. (a) Sites funded pursuant to this article shall be selected through a competitive process established by the Office of Child Abuse Prevention. Criteria to be considered in this competitive process shall include, but not be limited to, a demonstrated ability to provide services that are related to juvenile crime. (b) For the 2000-01 fiscal year, the Office of Child Abuse Prevention shall continue to fund the 12 sites that are currently providing juvenile crime prevention services until new contracts are entered into pursuant to the completion of the competitive process required by subdivision (a). (c) Funding for this program is subject to appropriation in the annual Budget Act. 18959.2. This article shall become inoperative on September 1, 2003, and as of January 1, 2004, is repealed, unless a later enacted statute that becomes operative on or before January 1, 2004, deletes or extends the dates on which it becomes inoperative and is repealed. SEC. 56. Section 19352 of the Welfare and Institutions Code is amended to read: 19352. As used in this chapter: (a) "Habilitation services" means those community-based services purchased or provided for adults with developmental disabilities including work activity and supported employment, to prepare and maintain them at their highest level of vocational functioning, or to prepare them for referral to vocational rehabilitation services. (b) "Individual program plan" means the overall plan developed by a regional center pursuant to Section 4646. (c) "Individual habilitation component" means the plan developed for each eligible individual for whom services are purchased under this chapter. (d) "Department" means the Department of Rehabilitation. (e) "Work-activity program" includes, but is not limited to, sheltered workshops or work-activity centers, or community-based work activity programs accredited under departmental regulations. (f) "Habilitation team" means a group, which shall be established for each work-activity program or supported employment services, which shall be composed of the following members: (1) The regional center case manager. (2) The work-activity or supported employment program case-responsible individual. (3) A habilitation specialist designated by the department. (4) The work-activity or supported employment program consumer, and where appropriate, his or her parent, legal guardian, or conservator and any other individual named by the consumer. (5) In cases where the work-activity or supported employment consumer is also a vocational rehabilitation consumer, the vocational rehabilitation counselor. (g) "Work-activity program day" means the period of time during which a work-activity program provides services to clients. (h) "Full day of service" means, for purposes of billing, a day in which the consumer attends a minimum of the declared and approved work-activity program day, less 30 minutes, excluding the lunch period. (i) "Half day of service" means, for purposes of billing, (1) all days of attendance in which the consumer's attendance does not meet the criteria for billing for a full day of service as defined in subdivision (h), and (2) the consumer attends the work activity program not less than two hours excluding the lunch period. (j) "Supported employment program" means a program which meets the requirements of Sections 19356.6 and 19356.7. (k) "Consumer" means any individual who receives services purchased under this chapter. (l) "Consumer with special needs" means any individual who needs an enriched program of services due to multiple disabling conditions or other unique needs of the consumer which include, but shall not be limited to, mobility impairments, blindness, deafness, or psychiatric impairment. (m) "Accreditation" means a determination of compliance with the set of standards appropriate to the delivery of services by a work-activity program or supported employment program, developed by the CARF--The Rehabilitation Accreditation Commission, and applied by the commission or the department. (n) "Direct service professional" means a staff member within a work activity program who deals directly with the client, including activities such as supervision, training, counseling, and teaching. SEC. 57. Section 19356 of the Welfare and Institutions Code is amended to read: 19356. (a) The department shall adopt regulations to establish rates for work-activity program services subject to the approval of the Department of Finance. The regulations shall provide for an equitable ratesetting procedure in which each specific allowable service, activity, and provider administrative cost comprising an overall habilitation service, as determined by the department, reflects the reasonable cost of service. Reasonable costs shall be determined biennially by the department, subject to audit at the discretion of the department. (b) It is the intent of the Legislature that, commencing July 1, 1996, the department establish rates for both habilitation services and vocational rehabilitation work-activity programs pursuant to subdivision (a). Nothing in this subdivision shall preclude the subsequent amendment or adoption of regulations pursuant to subdivision (a). (c) The department shall, for each work activity program, calculate the value of wages, benefits, and wage related costs for all direct service professionals correctly reported on the 1998-99 Habilitation Services Ratesetting Manual Form D, lines 11-15, excluding fundraising, administration, all nonwork activity program, and transportation columns. (d) Subject to the appropriation of funds in the 2000-01 Budget Act for this purpose, the department shall increase the rates for each work activity program for services provided on and after September 1, 2000, by multiplying the calculation made pursuant to subdivision (c) by the appropriate percentage and dividing it by the total days correctly reported on the 1998-99 Habilitation Services Ratesetting Manual Form H, line 12. (e) The maximum daily rate for a work activity program established pursuant to the Habilitation Services Ratesetting Manual shall be adjusted to the degree necessary to accommodate the full value of the wage passthrough rate increase calculated pursuant to subdivision (d). (f) Each work activity program receiving a rate increase pursuant to subdivision (d) shall certify to the department that these funds shall be used only to increase wages, benefits, and wage related costs for direct service professionals, and not to fund other staff or for any other purpose. (g) The department shall, in the course of its normal audit process, verify that the funds allocated for this purpose have been used only to adjust wages, benefits, and wage related costs for direct service professionals, and not to fund other staff or for any other purpose. SEC. 58. Section 19356.65 is added to the Welfare and Institutions Code, to read: 19356.65. Notwithstanding any other provision of law and except as provided in Section 19533.5, the hourly rate for supported employment services shall be twenty-eight dollars and thirty-three cents ($28.33) effective July 1, 2000. SEC. 59. Section 19806 of the Welfare and Institutions Code is amended to read: 19806. (a) An independent living center shall not be required to provide any matching funds through private contributions as a condition of receiving state funds except to acquire state incentive funds. (b) Each independent living center, except those centers which have been both established and maintained using federal funding under Title VII(c) of the federal Rehabilitation Act of 1973 as amended as their primary base grant, as determined by the department, shall receive to the extent funds are appropriated by the Legislature, at least two hundred thirty-five thousand dollars ($235,000) in base grant funds allocated by the department. The department shall allocate to those centers with Title VII(c) base grant funds of less than two hundred thirty-five thousand dollars ($235,000) an amount that, when combined with the Title VII(c) grant, equals two hundred thirty-five thousand dollars ($235,000). (c) State funds may be replaced by reimbursements under the Supplemental Security Disability Insurance and the Supplemental Security Income programs provided for under Titles II and XVII of the Federal Social Security Act, Subchapter II (commencing with Section 401) and Subchapter XVII (commencing with Section 1381) of Chapter 7 of Title 42 of the United States Code to the extent appropriated by the Legislature and allocated by the department to independent living centers under this chapter. Beginning with the 1998-99 fiscal year, and each year thereafter, to the extent these funds from the Social Security Act are not appropriated by the Legislature as were appropriated in the 1997-98 fiscal year, an amount equal to the combined state and federal fund allocation to independent living centers in the Budget Act of 1997 shall be appropriated to, and allocated by, the department to independent living centers under this chapter. (d) (1) Available state incentive funds shall be allocated at the beginning of each fiscal year based upon the average amount of private contributions received by the independent living center in the second and third preceding fiscal years. (2) The maximum amount of incentive funds that may be allocated to any independent living center in any single fiscal year shall be computed as follows: (A) "Pool One" is defined as 60 percent of all state incentive funds. "Pool Two" is defined as 40 percent of all state incentive funds. Each independent living center shall be entitled to an equal portion of Pool One, not to exceed the amounts raised pursuant to paragraph (1). (B) Incentive funds from Pool One not used after the initial allocation pursuant to subparagraph (A) shall be added to Pool Two for allocation among all centers that had unmatched private contributions after distribution of Pool One funds. Pool Two funds shall be awarded in direct proportion to each center's percentage of the total remaining unmatched private contributions raised by those independent living centers. (3) For the purpose of determining eligibility for state incentive funds, any independent living center that uses a fiscal year other than the state fiscal year may elect to use a different fiscal year so long as the closing date of the fiscal year so elected does not precede the closing date of the equivalent state fiscal year by more than 11 months. (4) The amount of private contributions claimed by an independent living center for each fiscal year shall be verified by the department by utilizing appropriate financial records including, but not limited to, independent audits. Audits may be performed by the department up to three years from the close of the fiscal year during which state incentive funds were received by the independent living center being audited. (5) State incentive funds that are not distributed to independent living centers shall not be allocated or retained by the department for distribution as state incentive funds in later fiscal years. (e) For purposes of this section: (1) "Private funds" does not include any funds originating from any entity of the federal, state, city, or county government or any political subdivision thereof. Notwithstanding the provisions of this section, fees from any source for services provided may be included as private contributions by an independent living center for purposes of determining its allocation of incentive funds. (2) "State incentive funds" means state funds appropriated by the Legislature for purposes of this chapter, except those funds allocated by the department pursuant to subdivisions (b) and (g) of this section. (f) Any funds allocated under this chapter to any independent living center, other than as part of the initial allocation for each fiscal year, shall be made by contract amendment. Any contract amendment shall require the provision of services in addition to those required by the contract being amended. All those services required by contract amendment shall not be performed prior to the date the contract amendment is approved by the state. (g) To the extent funds are appropriated by the Legislature for the purpose of providing assistive technology services described in subdivision (d) of Section 19801, those funds shall be allocated equally among independent living centers, with an equal amount to be granted to the nonprofit contractor selected by the Department of Rehabilitation to implement the federal Assistive Technology Act of 1998 (P.L. 105-394). The nonprofit contractor shall provide statewide assistive technology information and referral and serve as a resource to the independent living centers' assistive technology service programs. (h) To the extent funds are appropriated by the Legislature, after allocation of base grant and incentive funds and assistive technology funds, remaining funds shall be allocated by the department among independent living centers on the basis of the ratio of the total of the general population in an independent living center's geographic service areas as compared to the total of the general population in all independent living centers geographic services area statewide. The department shall adopt regulations for the distribution of population funds by June 30, 1999. SEC. 59.5. Notwithstanding Section 9112 of the Welfare and Institutions Code, the California Department of Aging shall allocate funds through the Budget Act of 2000 for expansion of information and assistance programs proportionately among area agencies on aging based upon their project senior populations 60 years of age and older as of July 1, 2000. SEC. 61. Notwithstanding Section 17610 of the Government Code, if the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code. If the statewide cost of the claim for reimbursement does not exceed one million dollars ($1,000,000), reimbursement shall be made from the State Mandates Claims Fund. SEC. 62. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the Constitution and shall go into immediate effect. The facts constituting the necessity are: In order to timely implement this act for the entire 2000-01 fiscal year, it is necessary that this act take effect immediately.