BILL NUMBER: AB 1111 CHAPTERED 07/22/99 CHAPTER 147 FILED WITH SECRETARY OF STATE JULY 22, 1999 APPROVED BY GOVERNOR JULY 22, 1999 PASSED THE ASSEMBLY JUNE 16, 1999 PASSED THE SENATE JUNE 15, 1999 AMENDED IN SENATE JUNE 15, 1999 INTRODUCED BY Assembly Member Aroner and Senators Chesbro and Speier FEBRUARY 25, 1999 An act to repeal Sections 14669.16 and 15817.5 of the Government Code, to amend Sections 1596.8713 and 11970 of, and to add and repeal Article 4 (commencing with Section 11970.1) of Chapter 2 of Part 3 of Division 10.5 of, the Health and Safety Code, to amend Sections 1252.3 and 1611.5 of the Unemployment Insurance Code, to amend Sections 9564, 11370, 11450, 11450.16, 11461, 11462, 11463, 11465, 14132.90, 15200.81, 15204.3, 16164, 18358.30, 18930, 18930.5, 18932, 18934, 18938, 18940, 18944, 19091, 19092, 19355.5, 19356.6, 19356.7, and 19806 of, to add Sections 10609.4, 11371, 11372, 11373, 15766, 16501.3, and 18935 to, to repeal Section 12200.018 of, and to repeal and add Sections 11364 and 11369 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 1111, Aroner. Social services. Existing law authorizes the Director of General Services to acquire facilities currently leased and occupied by the Health and Welfare Data Center at 3301 S Street and at 1651 Alhambra Boulevard in Sacramento through the use of specified debt instruments that may be issued by the State Public Works Board. This bill would repeal that authority of the director. Existing law, the Drug Court Partnership Act of 1998, administered by the State Department of Alcohol and Drug Programs, provides for the award of grants to counties that develop and implement drug court programs that meet eligibility requirements. Existing law provides that the grants shall be to provide funding for 4 years, subject to appropriations in the Budget Act. This bill would revise that provision to categorize grants awarded using funds appropriated in the Budget Act of 1998 and the Budget Act of 1999. Under existing law, the State Department of Alcohol and Drug Programs is responsible for administering a Drug Court Partnership program for the purpose of demonstrating the effectiveness of drug courts. This bill would establish the Comprehensive Drug Court Implementation Act of 1999 to be administered by the department to provide grants to counties in which the county alcohol and drug program administrator and the presiding judge in the county develop and submit a specified plan for local drug court systems, based on certain criteria. The bill would state the intent of the Legislature that it be funded by an appropriation in the annual Budget Act and would provide that 5 percent of any amount appropriated is available to the department and the Judicial Council to administer the program. Existing law permits the Department of Justice to charge a fee to cover the costs of services relating to the provision of criminal background information on operators, managers, and certain employees, of day care facilities. This bill would, commencing January 1, 2000, prohibit that department and the State Department of Social Services from charging a fee for the processing of fingerprints, with certain exceptions, when funds for those purposes are appropriated for that purpose in the annual Budget Act. Existing law establishes, until January 1, 2002, the Employment Training Fund, into which are deposited unemployment insurance contributions from employers, levied and collected at a specified rate, for the purpose of funding, subject to appropriation by the Legislature, employment training programs administered by the Employment Training Panel. Existing law authorizes the Legislature to appropriate from the fund $20,000,000 in the Budget Act of 1997 and $20,000,000 each year thereafter for training programs designed for workers who are current or recent recipients of benefits under the CalWORKs program pursuant to a specified provision of law. This bill would repeal the authority of the Legislature to appropriate from the fund $20,000,000 each year after the Budget Act of 1997 for those purposes, and would instead authorize the Legislature to appropriate $5,000,000 in the Budget Act of 1999 for those purposes. This bill would also authorize the Legislature to appropriate from the fund $30,000,000 in the Budget Act of 1999 to fund the local assistance portion of welfare-to-work activities under the CalWORKs program, as specified. Existing law, operative until August 7, 1999, provides that an eligible individual who has been laid off from work or who is unable to commence work as a direct result of the freezing weather conditions in December 1998, as specified, shall be considered "unemployed" for the purpose of eligibility for unemployment compensation benefits if for any week of less than full-time work, the wages payable to the individual for that week, when reduced by $200, do not equal or exceed the individual's unemployment weekly benefit amount, and the individual resides in a county that has an unemployment rate in excess of 13% and that is covered under the terms of Order 1267-DR of the federal Emergency Management Agency relative to the freezing weather of December, 1998. This bill would revise that limitation to eliminate the requirement that the county of residence has an unemployment rate in excess of 13%. Existing law provides that unemployment compensation benefits are paid from the Unemployment Fund, a continuously appropriated special fund. By expanding benefits payable from the fund, this bill would make an appropriation. Existing law specifies methods by which the Multipurpose Senior Services Program may be expanded. This bill would revise those methods. Existing federal law establishes the Independent Living Program for foster youth to be administered by counties with federal and state funds. This bill would require, on or before July 1, 2000, the State Department of Social Services, in consultation with county and state representatives, foster youth, and advocates, to develop statewide guidelines for the implementation of the federal Independent Living Program, and define the outcomes for the program and the characteristics of foster youth enrolled in the program for data collection purposes. The bill would also require each county department of social services to include in its annual Independent Living Program report certain information relating to federal and state funds allocated for implementation of the program and other information relating to characteristics of foster youth. The imposition of these new requirements on counties would create a state-mandated local program. Existing law provides for the California Work Opportunity and Responsibility to Kids (CalWORKs) program, under which each county provides cash assistance and other benefits to qualified low-income families. Each county is required to pay a share of the cost of both aid grant and administrative costs for the CalWORKs program. Existing law establishes a schedule for the payment of cash assistance benefits under the CalWORKs program, including the payment of a nonrecurring special need payment of $30 a day for the costs of temporary shelter, and certain other homeless assistance benefits. This bill would increase that special need payment to $40 per day. This bill would revise time limitations on receipt of certain homeless assistance benefits, and would authorize a county to require that a recipient of certain homeless assistance benefits who qualifies for benefits under specified circumstances a second time in a 24-month period shall participate in a homelessness avoidance case plan as a condition of eligibility for homeless assistance benefits. Existing law, the Kinship Guardianship Assistance Payment (Kin-GAP) Program, operative on July 1, 1999, provides for financial assistance to children who, after being adjudged dependent children of the juvenile court, are placed in legal guardianship with a relative, at specified rates, and requires the State Department of Social Services to adopt emergency regulations to establish and administer, and apply for any necessary federal waivers to implement and any available federal funds for, the program. Existing law allocates the costs of the program, less available federal funds, equally between the state and the counties and continuously appropriates money from the General Fund for allocation to counties for the state's share of the costs. This bill would delay the operative date of the Kin-GAP Program to January 1, 2000. The bill would exclude income to the child from the Kin-GAP program from consideration of income to the kinship guardian for purposes of determining the kinship guardian's eligibility for other aid programs, unless required by federal law. Existing law provides for the determination of eligibility for aid under the continuously appropriated CalWORKs program, on the basis of assistance units, and specifies that every assistance unit shall include an eligible child, the caretaker relative of an otherwise eligible child who is not otherwise receiving CalWORKs benefits because he or she is receiving benefits under the federal program for benefits for aged, blind, or disabled or foster care payments. This bill would specify that for children receiving Kin-GAP payments, there shall be paid, under the CalWORKs program, an amount of aid equal to the rate specified for children under the Kin-GAP program. This bill would include the caretaker of a child who is not receiving CalWORKs aid because the child is receiving Kin-GAP payments within the scope of those persons who are included in the CalWORKs assistance unit. Existing law continuously appropriates money for the CalWORKs program, and, by revising standards of eligibility for aid under the CalWORKs program, this bill would increase the amount continuously appropriated for the program and would result in an appropriation. The existing provisions of the Kin-GAP program limit the rate paid under that program to not more than 85% of the AFDC-FC rate. This bill would revise that rate to equal the rate for children placed in a licensed or approved home under the AFDC-FC program. By revising the rate of payment under the Kin-GAP program, this bill would, to the extent it increases the amount continuously appropriated for the program, therefor result in an appropriation. This bill would authorize the State Department of Social Services to exempt children in receipt of Kin-GAP benefits from any CalWORKs requirement so long as the exemption would not jeopardize federal financial participation in the payment. The bill would impose reporting requirements on the department regarding Kin-GAP Program outcomes. Because this bill would create new duties for county agencies in the administration of the Kin-GAP program, it would impose a state-mandated local program. Existing law under the Aid to Families with Dependent Children-Foster Care (AFDC-FC) program provides a schedule of reimbursement rates for group homes and foster family agencies, and for payments on behalf of a child living with a parent who receives foster care benefits. This bill would revise the schedule of reimbursement rates. Because state funds are continuously appropriated to pay for a portion of county costs under the AFDC-FC program, the bill would constitute an appropriation. Existing law provides for the State Supplementary Program for the Aged, Blind, and Disabled (SSP), which requires the State Department of Social Services to contract with the United States Secretary of Health and Human Services to make payments to SSP recipients to supplement supplemental security income (SSI) payments made available pursuant to the federal Social Security Act. Existing law requires that, to the extent permitted by federal law, the state SSP payment schedules in effect on June 30, 1995, as adjusted, shall be decreased for certain counties by 4.9% in order to reflect regional variations in housing costs. This bill would repeal that requirement. Because state funds are continuously appropriated to pay for SSP grant costs, the bill would constitute an appropriation. Existing law provides for the Medi-Cal program, administered by the State Department of Health Services, under which qualified low-income persons are provided with health care services. Existing law provides that, except to the extent required by federal law, if, as of May 15, 1999, the projected costs for the 1998-99 fiscal year for outpatient drug abuse services, as described, exceed $45,000,000 in General Fund moneys, outpatient drug free services, as defined in state regulations, shall not be a Medi-Cal benefit as of July 1, 1999. This bill would, instead, provide that if, as of May 15, 2000, the projected costs for outpatient drug abuse services exceed $45,000,000 for that fiscal year, outpatient drug free services shall not be a benefit as of July 1, 2000. This bill would enact provisions relating to funding for perinatal and other Medi-Cal services. Existing law requires the department, through September 1999, to make child support incentive payments to counties that meet specified requirements. This bill would specify the manner in which funds appropriated for that purpose may be allocated. Existing law specified the allocation of funds appropriated in the Budget Act for counties for the support of administrative activities undertaken by the counties to provide CalWORKs benefits. This bill would, commencing with the 2000-01 fiscal year, revise the method of allocating those funds, would require the State Department of Social Services and the County Welfare Directors Association to develop the specific components of the budget methodology, and would require the Welfare Reform Steering Committee to review the efficacy of the proposed methodology and make recommendations for modifications to the methodology. Existing law authorizes adult protective services to include investigations, needs assessment, the use of a multidisciplinary personnel team in order to obtain information and records necessary for adult protective services, a system in which reporting can occur on a 24-hour basis, emergency shelter, and adult respite care. Existing law also specifies the members of the multidisciplinary personnel team. Existing law also requires the provision of enhanced adult protective services provisions that, commencing with the 1999-2000 fiscal year, to be implemented only to the extent funds for this enhancement are provided in the annual Budget Act, and requires adult protective services to include the above protective actions, and requires each county to establish an emergency response adult protective services program. This bill would specify that the investigation of allegations of elder and dependent abuse under the enhanced adult protective services program and the case management of elder and dependent adult abuse cases shall be performed by county merit system civil service employees, and would authorize a county adult protective service agency to use contracted telephone answering service after normal working hours and on weekends and holidays. Because this bill would create new duties for county agencies in the administration of the enhanced adult protective services program, it would impose a state-mandated local program. Existing law requires the Office of the State Foster Care Ombudsperson to perform various functions and duties with respect to providing children who are placed in foster care with a means to resolve issues related to their care, placement, or services. This bill would authorize the office to establish, in consultation with a committee of interested individuals, regional or local foster care ombudsperson offices for the purposes of expediting investigations and resolving complaints. Existing law requires each county to provide child welfare services to children in foster care. This bill would require the State Department of Social Services to establish a program of public health nursing in the child welfare services program. Existing law, operative until July 1, 2000, requires the State Department of Social Services to establish a food assistance program for certain immigrants residing in this state. Existing law, operative until July 1, 2000, requires the department to establish and supervise a county-administered program to provide cash assistance to aged, blind, and disabled legal immigrants who are noncitizens. This bill would extend indefinitely, and revise eligibility and application requirements for, these programs. Because each county is required to administer this program, the bill would constitute a state-mandated local program. This bill would include a battered immigrant spouse, child, or parent or child of a battered immigrant or a Cuban or Haitian immigrant within the scope of those persons who are eligible for state food assistance benefits. Existing law provides a formula for the allocation of funding to independent living centers for individuals with disabilities. This bill would revise and recast the method of calculating and allocating that funding. Existing law provides for a State Independent Living Advisory Council. This bill would rename the council to be the State Independent Living Council. Existing law establishes the Habilitation Services Program administered by the Department of Rehabilitation, under which supported employment and other services are provided to persons with developmental disabilities. Under existing law, provisions relating to the submission and approval of proposals for funding of those services would be repealed on January 1, 2000. This bill would extend those provisions for one year. This bill would also revise the rate setting provisions of the program. 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 14669.16 of the Government Code is repealed. SEC. 2. Section 15817.5 of the Government Code is repealed. SEC. 4. 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) Effective January 1, 2000, no fee shall be charged by the Department of Justice or the State Department of Social Services for the processing of fingerprints, excluding the rolling fees; or for obtaining a California or Federal Bureau of Investigation criminal record, of an applicant or person specified in subdivision (b) of Section 1596.871 when funds for those purposes are appropriated in the annual Budget Act. SEC. 5. Section 11970 of the Health and Safety Code is amended to read: 11970. (a) This article shall be known and may be cited as the Drug Court Partnership Act of 1998. (b) The Drug Court Partnership shall be administered by the State Department of Alcohol and Drug Programs for the purpose of demonstrating the cost-effectiveness of drug courts operating pursuant to Sections 1000 to 1000.4, inclusive, of the Penal Code, and for any defendant who has entered a plea of guilty and is on active probation. The department shall design and implement the program with the concurrence of the Judicial Council. (1) This program shall award grants on a competitive basis for four years to counties that develop and implement drug court programs operating pursuant to Sections 1000 to 1000.4, inclusive, of the Penal Code, and for any defendant who has entered a plea of guilty and is on active probation which are likely to provide the greatest public safety benefit and be most effective in reducing state and local costs. (2) To be eligible for this grant, the county alcohol and drug program administrator and the presiding judge shall submit a multiagency plan that identifies the resources and strategies for providing an effective drug court program. The department, in collaboration with the Judicial Council, shall establish minimum criteria for evaluating the plans. (c) The plan shall include, but not be limited to, the following components: (1) Development of information-sharing systems to ensure that county actions are fully coordinated, and to provide data for measuring the success of the grantee in achieving its goals. (2) Identification of outcome measures, which shall include, but not be limited to, the following: (A) The annual number of misdemeanor and felony convictions of persons participating in the program for a minimum of two years after entry into the program. (B) The annual number of admissions to county jail and state prison of persons participating in the program for a minimum of two years after entry into the program. (C) Other outcome measures identified by the department and the Judicial Council that will assist in determining the cost-effectiveness of the program. (d) For the purposes of this section, the grants that are initially awarded using funds appropriated in the Budget Act of 1998 shall be known as "first-round grants" and the grants initially awarded using funds appropriated in the Budget Act of 1999 shall be known as "second-round grants." (e) The department, in collaboration with the Judicial Council, shall award both first-round and second-round grants that provide funding for four years, subject to appropriation in the Budget Act. Funding shall be used to supplement, rather than supplant, existing programs. (1) Grant funds shall be used for programs that are identified in the local plan. Acceptable uses may include, but are not limited to, the following: drug court coordinators, training, drug testing, treatment, transportation, and other costs related to the implementation of the plan. (2) No grant shall be awarded unless the applicant makes available resources in an amount equal to at least 10 percent of the amount of the grant in years one and two, and 20 percent of the amount of the grant in years three and four. (f) The department, with concurrence from the Judicial Council, shall establish minimum standards for use of funds in drug courts operating pursuant to Sections 1000 to 1000.4, inclusive, of the Penal Code, and for any defendant who has entered a plea of guilty and is on active probation, funding schedules, and procedures for awarding grants, which shall take into consideration, but not be limited to, all of the following: (1) The number of participants who will be served in the program. (2) Demonstrated commitment to exceed the minimum match requirement, such as in-kind contributions from participating agencies. (3) Demonstrated ability to provide treatment to clients who will be served through the program. (4) Demonstrated capacity to administer the program. (5) Demonstrated ability to report outcome measures for program participants and for participants in other comparable drug court programs administered in the county. (6) Demonstrated commitment to the program of participating local agencies and the court. (7) Demonstrated commitment by the drug court to meet the standard of judicial administration. (g) The department, in collaboration with the Judicial Council, shall create an evaluation design for the Drug Court Partnership 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, 2000, and a final analysis of the grant program in a report to be submitted to the Legislature on or before March 1, 2002. SEC. 6. Article 4 (commencing with Section 11970.1) is added to Chapter 2 of Part 3 of Division 10.5 of the Health and Safety Code, to read: Article 4. Comprehensive Drug Court Implementation Act of 1999 11970.1. (a) This article shall be known and may be cited as the Comprehensive Drug Court Implementation Act of 1999. (b) This article shall be administered by the State Department of Alcohol and Drug Programs. (c) The department and the Judicial Council shall design and implement this article through the Drug Court Partnership Executive Steering Committee established under the Drug Court Partnership Act of 1998 pursuant to Section 11970, for the purpose of funding cost-effective local drug court systems for adults, juveniles, and parents of children who are detained by, or are dependents of, the juvenile court. 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) 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. 11970.3. (a) It is the intent of the Legislature that this chapter be funded by an appropriation in the annual Budget Act. (b) Up to 5 percent of the amount appropriated by the annual Budget Act is available to the department and the Judicial Council to administer the program, including technical assistance to counties and development of an evaluation component. 11970.4. This article shall remain operative only until January 1, 2005, and as of that date is repealed, unless a later enacted statute, that is enacted before January 1, 2005, deletes or extends that date. SEC. 7. Section 1252.3 of the Unemployment Insurance Code is amended to read: 1252.3. (a) Notwithstanding Section 1252, an individual is also "unemployed," as determined by the director, if (1) the individual has been laid off from work or is unable to commence work as a direct result of freezing weather conditions that occurred in this state from December 20, 1998, to December 28, 1998, inclusive, at the individual's most recent workplace or regular seasonal workplace, (2) the individual's continuing unemployment is a direct result of the freezing weather, (3) the wages payable to the individual for any week of less than full-time work, when reduced by two hundred dollars ($200), do not equal or exceed the individual's weekly benefit amount, (4) the individual resides in a county that is covered under the terms of Order 1267-DR of the Federal Emergency Management Agency relative to the freezing weather of December 1998, and (5) the individual is otherwise eligible to receive benefits under this part. (b) This section shall become inoperative and shall be repealed on August 7, 1999. SEC. 7.5. 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 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. 8. Section 9564 of the Welfare and Institutions Code is amended to read: 9564. Nothing in this chapter shall preclude expansion of Multipurpose Senior Services Program services if cost effectiveness is demonstrated. The expansion shall be accomplished by establishing new sites, increasing numbers of clients served in existing sites, or by expanding the number of sites to include additional geographic regions of the state. SEC. 9. Section 10609.4 is added to the Welfare and Institutions Code, to read: 10609.4. (a) On or before July 1, 2000, the State Department of Social Services, in consultation with county and state representatives, foster youth, and advocates, shall do both of the following: (1) Develop statewide standards for the implementation and administration of the Independent Living Program established pursuant to the federal Consolidated Omnibus Budget Reconciliation Act of 1985 (Public Law 99-272). (2) Define the outcomes for the Independent Living Program and the characteristics of foster youth enrolled in the program for data collection purposes. (b) Each county department of social services shall include in its annual Independent Living Program report both of the following: (1) An accounting of federal and state funds allocated for implementation of the program. Expenditures shall be related to the specific purposes of the program. Program purposes may include, but are not limited to, all of the following: (A) Enabling participants to seek a high school diploma or its equivalent or to take part in appropriate vocational training, and providing job readiness training and placement services, or building work experience and marketable skills, or both. (B) Providing training in daily living skills, budgeting, locating and maintaining housing, and career planning. (C) Providing for individual and group counseling. (D) Integrating and coordinating services otherwise available to participants. (E) Providing each participant with a written transitional independent living plan that will be based on an assessment of his or her needs and that will be incorporated into his or her case plan. (F) Providing participants with other services and assistance designed to improve independent living. (2) A detail of the characteristics of foster youth enrolled in their independent living programs and the outcomes achieved based on the information developed by the department pursuant to subdivision (a). (c) In consultation with the department, a county may use different methods and strategies to achieve the standards and outcomes of the Independent Living Program developed pursuant to subdivision (a). SEC. 10. Section 11364 of the Welfare and Institutions Code is repealed. SEC. 11. Section 11364 is added to the Welfare and Institutions Code, to read: 11364. Notwithstanding subdivision (a) of Section 11450, the rate paid on behalf of children eligible for a Kin-GAP payment shall equal 100 percent of the rate for children placed in a licensed or approved home as specified in subdivisions (a) to (d), inclusive, of Section 11461. SEC. 12. Section 11369 of the Welfare and Institutions Code is repealed. SEC. 13. Section 11369 is added to the Welfare and Institutions Code, to read: 11369. (a) 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, through June 30, 2000, the department may implement the applicable provisions of the Kin-GAP Program through all county letters or similar instructions from the director. (b) The director shall adopt regulations as otherwise necessary, to implement the applicable provisions of the Kin-GAP Program no later than July 1, 2000. Emergency regulations to implement the applicable provisions of this act may be adopted by the director in accordance with the Administrative Procedure Act. The initial adoption of the emergency regulations and one readoption of the initial regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health, safety or general welfare. Initial emergency regulations and the first readoption of those 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. SEC. 14. Section 11370 of the Welfare and Institutions Code is amended to read: 11370. The provisions of this article shall become operative on January 1, 2000. SEC. 15. Section 11371 is added to the Welfare and Institutions Code, to read: 11371. Income to the child, including the Kin-GAP payment, shall not be considered income to the kinship guardian for purposes of determining the kinship guardian's eligibility for any other aid program, unless required by federal law as a condition of the receipt of federal financial participation. SEC. 16. Section 11372 is added to the Welfare and Institutions Code, to read: 11372. Notwithstanding any other provision of state law, the department shall have the authority to exempt children in receipt of Kin-GAP benefits from any Cal-WORKs requirement that the department deems necessary so long as the exemption 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. 17. Section 11373 is added to the Welfare and Institutions Code, to read: 11373. Two years after the implementation date of this article, and again five years after the implementation date of this article, the department shall report to the Legislature information on the outcomes of the Kin-GAP Program, with the report to include all of the following: (a) The number and characteristics of the children who exited the child welfare system to the Kin-GAP Program. (2) The numbers and types of disruptions to the Kin-GAP Program, including subsequent substantiated child abuse reports, child welfare services, and cases where children return to foster care. (3) Rates of Kin-GAP exits from foster care compared to relative adoption and return to parents. SEC. 18. Section 11450 of the Welfare and Institutions Code is amended to read: 11450. (a) (1) Aid shall be paid for each needy family, which shall include all eligible brothers and sisters of each eligible applicant or recipient child and the parents of the children, but shall not include unborn children, or recipients of aid under Chapter 3 (commencing with Section 12000), qualified for aid under this chapter. In determining the amount of aid paid, and notwithstanding the minimum basic standards of adequate care specified in Section 11452, the family's income, exclusive of any amounts considered exempt as income or paid pursuant to subdivision (e) or Section 11453.1 shall be deducted from the sum specified in the following table, as adjusted for cost-of-living increases pursuant to Section 11453 and paragraph (2). In no case shall the amount of aid paid for each month exceed the sum specified in the following table, as adjusted for cost-of-living increases pursuant to Section 11453 and paragraph (2), plus any special needs, as specified in subdivisions (c), (e), and (f): Number of eligible needy persons in Maximum the same home aid 1 ............................... $ 326 2 ............................... 535 3 ............................... 663 4 ............................... 788 5 ............................... 899 6 ............................... 1,010 7 ............................... 1,109 8 ............................... 1,209 9 ............................... 1,306 10 or more ....................... 1,403 If, when, and during such times as the United States government increases or decreases its contributions in assistance of needy children in this state above or below the amount paid on July 1, 1972, the amounts specified in the above table shall be increased or decreased by an amount equal to that increase or decrease by the United States government, provided that no increase or decrease shall be subject to subsequent adjustment pursuant to Section 11453. (2) The sums specified in paragraph (1) shall not be adjusted for cost of living for the 1990-91, 1991-92, 1992-93, 1993-94, 1994-95, 1995-96, 1996-97, and 1997-98 fiscal years, and through October 31, 1998, nor shall that amount be included in the base for calculating any cost-of-living increases for any fiscal year thereafter. Elimination of the cost-of-living adjustment pursuant to this paragraph shall satisfy the requirements of Section 11453.05, and no further reduction shall be made pursuant to that section. (b) When the family does not include a needy child qualified for aid under this chapter, aid shall be paid to a pregnant mother for the month in which the birth is anticipated and for the three-month period immediately prior to the month in which the birth is anticipated in the amount which would otherwise be paid to one person, as specified in subdivision (a), if the mother, and child if born, would have qualified for aid under this chapter. Verification of pregnancy shall be required as a condition of eligibility for aid under this subdivision. Aid shall also be paid to a pregnant woman with no other children in the amount which would otherwise be paid to one person under subdivision (a) at any time after verification of pregnancy if the pregnant woman is also eligible for the Cal-Learn Program described in Article 3.5 (commencing with Section 11331) and if the mother and child, if born, would have qualified for aid under this chapter. (c) The amount of forty-seven dollars ($47) per month shall be paid to pregnant mothers qualified for aid under subdivision (a) or (b) to meet special needs resulting from pregnancy if the mother, and child, if born, would have qualified for aid under this chapter. County welfare departments shall refer all recipients of aid under this subdivision to a local provider of the Women, Infants and Children program. If that payment to pregnant mothers qualified for aid under subdivision (a) is considered income under federal law in the first five months of pregnancy, payments under this subdivision shall not apply to persons eligible under subdivision (a), except for the month in which birth is anticipated and for the three-month period immediately prior to the month in which delivery is anticipated, if the mother, and the child if born, would have qualified for aid under this chapter. (d) For children receiving AFDC-FC under this chapter, there shall be paid, exclusive of any amount considered exempt as income, an amount of aid each month which, when added to the child's income, is equal to the rate specified in Section 11460, 11461, 11462, 11462.1, or 11463. In addition, the child shall be eligible for special needs, as specified in departmental regulations. (e) In addition to the amounts payable under subdivision (a) and Section 11453.1, a family shall be entitled to receive an allowance for recurring special needs not common to a majority of recipients. These recurring special needs shall include, but not be limited to, special diets upon the recommendation of a physician for circumstances other than pregnancy, and unusual costs of transportation, laundry, housekeeping service, telephone, and utilities. The recurring special needs allowance for each family per month shall not exceed that amount resulting from multiplying the sum of ten dollars ($10) by the number of recipients in the family who are eligible for assistance. (f) After a family has used all available liquid resources, both exempt and nonexempt, in excess of one hundred dollars ($100), the family shall also be entitled to receive an allowance for nonrecurring special needs. (1) An allowance for nonrecurring special needs shall be granted for replacement of clothing and household equipment and for emergency housing needs other than those needs addressed by paragraph (2). These needs shall be caused by sudden and unusual circumstances beyond the control of the needy family. The department shall establish the allowance for each of the nonrecurring special need items. The sum of all nonrecurring special needs provided by this subdivision shall not exceed six hundred dollars ($600) per event. (2) Homeless assistance is available to a homeless family seeking shelter when the family is eligible for aid under this chapter. Homeless assistance for temporary shelter is also available to homeless families which are apparently eligible for aid under this chapter. Apparent eligibility exists when evidence presented by the applicant or which is otherwise available to the county welfare department and the information provided on the application documents indicate that there would be eligibility for aid under this chapter if the evidence and information were verified. However, an alien applicant who does not provide verification of his or her eligible alien status, or a woman with no eligible children who does not provide medical verification of pregnancy, is not apparently eligible for purposes of this section. A family is considered homeless, for the purpose of this section, when the family lacks a fixed and regular nighttime residence; or the family has a primary nighttime residence that is a supervised publicly or privately operated shelter designed to provide temporary living accommodations; or the family is residing in a public or private place not designed for, or ordinarily used as, a regular sleeping accommodation for human beings. (A) (i) A nonrecurring special need of forty dollars ($40) a day shall be available to families for the costs of temporary shelter, subject to the requirements of this paragraph. County welfare departments may increase the daily amount available for temporary shelter to large families as necessary to secure the additional bed space needed by the family. (ii) This special need shall be granted or denied immediately upon the family's application for homeless assistance, and benefits shall be available for up to three working days. The county welfare department shall verify the family's homelessness within the first three working days and if the family meets the criteria of questionable homelessness established by the department, the county welfare department shall refer the family to its early fraud prevention and detection unit, if the county has such a unit, for assistance in the verification of homelessness within this period. (iii) After homelessness has been verified, the three-day limit shall be extended for a period of time which, when added to the initial benefits provided, does not exceed a total of 16 calendar days. This extension of benefits shall be done in increments of one week and shall be based upon searching for permanent housing which shall be documented on a housing search form; good cause; or other circumstances defined by the department. Documentation of housing search shall be required for the initial extension of benefits beyond the three-day limit and on a weekly basis thereafter as long as the family is receiving temporary shelter benefits. Good cause shall include, but is not limited to, situations in which the county welfare department has determined that the family, to the extent it is capable, has made a good faith but unsuccessful effort to secure permanent housing while receiving temporary shelter benefits. (B) A nonrecurring special need for permanent housing assistance is available to pay for last month's rent and security deposits when these payments are reasonable conditions of securing a residence. The last month's rent portion of the payment (1) shall not exceed 80 percent of the family's maximum aid payment without special needs for a family of that size and (2) shall only be made to families that have found permanent housing costing no more than 80 percent of the family's maximum aid payment without special needs for a family of that size, in accordance with the maximum aid schedule specified in subdivision (a). However, if the county welfare department determines that a family intends to reside with individuals who will be sharing housing costs, the county welfare department shall, in appropriate circumstances, set aside the condition specified in clause (2) of the preceding paragraph. (C) The nonrecurring special need for permanent housing assistance is also available to cover the standard costs of deposits for utilities which are necessary for the health and safety of the family. (D) A payment for or denial of permanent housing assistance shall be issued no later than one working day from the time that a family presents evidence of the availability of permanent housing. If an applicant family provides evidence of the availability of permanent housing before the county welfare department has established eligibility for aid under this chapter, the county welfare department shall complete the eligibility determination so that the denial of or payment for permanent housing assistance is issued within one working day from the submission of evidence of the availability of permanent housing, unless the family has failed to provide all of the verification necessary to establish eligibility for aid under this chapter. (E) (i) Except as provided in clauses (ii) and (iii), eligibility for the temporary shelter assistance and the permanent housing assistance pursuant to this paragraph shall be limited to one period of up to 16 consecutive calendar days of temporary assistance and one payment of permanent assistance. Any family that includes a parent or nonparent caretaker relative living in the home who has previously received temporary or permanent homeless assistance at any time on behalf of an eligible child shall not be eligible for further homeless assistance. Any person who applies for homeless assistance benefits shall be informed that the temporary shelter benefit of up to 16 consecutive days is available only once in a lifetime, with certain exceptions, and that a break in the consecutive use of the benefit constitutes permanent exhaustion of the temporary benefit. (ii) A family that becomes homeless as a direct and primary result of a state or federally declared natural disaster shall be eligible for temporary and permanent homeless assistance. (iii) A family shall be eligible for temporary and permanent homeless assistance when homelessness is a direct result of domestic violence by a spouse, partner, or roommate; physical or mental illness that is medically verified that shall not include a diagnosis of alcoholism, drug addiction, or psychological stress; or, the uninhabitability of the former residence caused by sudden and unusual circumstances beyond the control of the family including natural catastrophe, fire, or condemnation. These circumstances shall be verified by a third-party governmental or private health and human services agency and homeless assistance payments based on these specific circumstances may not be received more often than once in any 12-month period. A county may require that a recipient of homeless assistance benefits who qualifies under this paragraph for a second time in a 24-month period participate in a homelessness avoidance case plan as a condition of eligibility for homeless assistance benefits. (iv) The county welfare department shall report to the department through a statewide homeless assistance payment indicator system, necessary data, as requested by the department, regarding all recipients of aid under this paragraph. (F) The county welfare departments, and all other entities participating in the costs of the AFDC program, have the right in their share to any refunds resulting from payment of the permanent housing. However, if an emergency requires the family to move within the 12-month period specified in subparagraph (E), the family shall be allowed to use any refunds received from its deposits to meet the costs of moving to another residence. (G) Payments to providers for temporary shelter and permanent housing and utilities shall be made on behalf of families requesting these payments. (H) The daily amount for the temporary shelter special need for homeless assistance may be increased if authorized by the current year's Budget Act by specifying a different daily allowance and appropriating the funds therefor. (I) No payment shall be made pursuant to this paragraph unless the provider of housing is a commercial establishment, shelter, or person in the business of renting properties who has a history of renting properties. (g) The department shall establish rules and regulations assuring the uniform application statewide of this subdivision. (h) The department shall notify all applicants and recipients of aid through the standardized application form that these benefits are available and shall provide an opportunity for recipients to apply for the funds quickly and efficiently. (i) Except for the purposes of Section 15200, the amounts payable to recipients pursuant to Section 11453.1 shall not constitute part of the payment schedule set forth in subdivision (a). The amounts payable to recipients pursuant to Section 11453.1 shall not constitute income to recipients of aid under this section. (j) For children receiving Kin-GAP pursuant to Article 4.5 (commencing with Section 11360) of Chapter 2, there shall be paid, exclusive of any amount considered exempt as income, an amount of aid each month, which, when added to the child's income, is equal to the rate specified in Section 11364. SEC. 19. Section 11450.16 of the Welfare and Institutions Code is amended to read: 11450.16. (a) For purposes of determining eligibility under this chapter, and for computing the amount of aid payment under Section 11450, families shall be grouped into assistance units. (b) Every assistance unit shall include at least one of the following persons: (1) One of each of the following: (A) An eligible child. (B) The caretaker relative of an otherwise eligible child who is not receiving aid under Section 11250 because that child is receiving benefits under Title XVI of the Social Security Act (Subchapter 16 (commencing with Section 1381), of Chapter 7 of Title 42 of the United States Code), or Kin-GAP payments under Section 11364, or foster care payments under Section 11461. (2) A pregnant woman who is eligible for payments under subdivision (c) of Section 11450. (c) Every assistance unit shall, in addition to the requirements of subdivision (b), include the eligible parents of the eligible child and the eligible siblings, including half-siblings, of the eligible child when those persons reside in the same home as the eligible child. This subdivision shall not apply to any convicted offender who is permitted to reside at the home of the eligible child as part of a court-imposed sentence and who is considered an absent parent under Section 11250. (d) An assistance unit may, at the option of the family comprising the assistance unit, also include the nonparent caretaker relative of the eligible child, the spouse of the parent of the eligible child, otherwise eligible nonsibling children in the care of the caretaker relative of the eligible child, and the alternatively sentenced offender parent exempted under subdivision (c). (e) If two or more assistance units reside in the same home, they shall be combined into one assistance unit when any of the following circumstances occur: (1) There is a common caretaker relative for the eligible children. (2) One caretaker relative marries another caretaker relative. (3) Two caretaker relatives are the parents of an eligible child. (f) For purposes of this section, "caretaker relative" means the parent or other relative, as defined by regulations adopted by the department, who exercises responsibility and control of a child. SEC. 20. 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). 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, clothing allowances shall be adjusted annually in accordance with the methodology for the schedule of basic rates described in subdivision (c). No county shall be reimbursed for any increases in clothing allowances which exceed the adjustments made in accordance with this methodology. SEC. 21. 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. (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 and 1999-2000 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, 1999, 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 and 1999-2000 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. 22. 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. 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). SEC. 23. Section 11465 of the Welfare and Institutions Code is amended to read: 11465. (a) When a child is living with a parent who receives AFDC-FC or Kin-GAP benefits, the rate paid to the provider on behalf of the parent shall include an amount for care and supervision of the child. (b) For each category of eligible licensed community care facility, as defined in Section 1502 of the Health and Safety Code, the department shall adopt regulations setting forth a uniform rate to cover the cost of care and supervision of the child in each category of eligible licensed community care facility. (c) (1) On and after July 1, 1998, the uniform rate to cover the cost of care and supervision of a child pursuant to this section shall be increased by 6 percent, rounded to the nearest dollar. The resultant amounts shall constitute the new uniform rate. (2) (A) On and after July 1, 1999, the uniform rate to cover the cost of care and supervision of a child pursuant to this section shall be adjusted by an amount equal to the California Necessities Index computed pursuant to Section 11453, rounded to the nearest dollar. The resultant amounts shall constitute the new uniform rate, subject to further adjustment pursuant to paragraph (B). (B) In addition to the adjustment specified in subparagraph (A), on and after January 1, 2000, the uniform rate to cover the cost of care and supervision of a child pursuant to this section shall be increased by 2.36 percent, rounded to the nearest dollar. The resultant amounts shall constitute the new uniform rate. (3) Subject to the availability of funds, for the 2000-01 fiscal year and annually thereafter, these rates shall be adjusted for cost of living pursuant to procedures in Section 11453. SEC. 24. Section 12200.018 of the Welfare and Institutions Code is repealed. SEC. 32. Section 14132.90 of the Welfare and Institutions Code is amended to read: 14132.90. (a) As of September 15, 1995, day care habilitative services, pursuant to subdivision (c) of Section 14021 shall be provided only to alcohol and drug exposed pregnant women and women in the postpartum period, or as required by federal law. (b) (1) Notwithstanding any other provision of law, except to the extent required by federal law, if, as of May 15, 2000, the projected costs for the 1999-2000 fiscal year for outpatient drug abuse services, as described in Section 14021, exceed forty-five million dollars ($45,000,000) in state General Fund moneys, then the outpatient drug free services, as defined in Section 51341.1 of Title 22 of the California Code of Regulations, shall not be a benefit under this chapter as of July 1, 2000. The Department of Alcohol and Drug Programs shall report to the Legislature, no later than January 1, 2000, on the impact of the provisions specified in this paragraph on client access to outpatient drug abuse services. (2) Notwithstanding paragraph (1), narcotic replacement therapy and Naltrexone shall remain benefits under this chapter. (3) Notwithstanding paragraph (1), residential care, outpatient drug free services, and day care habilitative services, for alcohol and drug exposed pregnant women and women in the postpartum period shall remain benefits under this chapter. (c) Expenditures for services purchased at the direction of county welfare departments on behalf of CalWORKs recipients shall not be included in the computation of costs for subdivision (b). (d) For the 1999-2000 fiscal year and each fiscal year thereafter, there shall be separate annual fiscal year General Fund appropriations for drug Medi-Cal perinatal services (Item 4200-104-0001 of the Budget Act), drug Medi-Cal nonperinatal services (Item 4200-103-0001 of the Budget Act), nondrug Medi-Cal perinatal services (Item 4200-102-0001 of the Budget Act), and nondrug Medi-Cal nonperinatal services (Item 4200-101-0001 of the Budget Act). (e) Notwithstanding any other provision of law, the State Department of Alcohol and Drug Programs shall maintain a contingency reserve of the reappropriated General Fund moneys for the purpose of drug Medi-Cal program expenditures. (f) Unexpended General Fund moneys appropriated for the drug Medi-Cal program may be transferred for use as nondrug Medi-Cal county expenditures in the current or budget years. Unexpended General Fund moneys shall not be transferred from nondrug Medi-Cal to the drug Medi-Cal program for purposes of providing matching funds for federal financial participation. SEC. 34. Section 15200.81 of the Welfare and Institutions Code is amended to read: 15200.81. (a) For the 1998-99 fiscal year the department shall pay to each county a child support incentive payment. Every county shall receive the federal child support incentive. A county shall receive the state child support incentive if it elects to do both of the following: (1) Comply with the reporting requirements of Section 11475.8 while federal financial participation is available for collecting and reporting data. (2) Comply with federal and state child support laws and regulations, or has a corrective action plan certified by the department pursuant to Section 15200.75. The combined federal and state incentive payment shall be 13.6 percent of distributed collections. If the amount appropriated by the Legislature for the state incentives is less than the amount necessary to satisfy each county's actual incentives pursuant to this section, each county shall receive its proportional share of incentives. (b) (1) Beginning July 1, 1999, the department shall pay to each county a child support incentive for child support collections. Every county shall receive the federal child support incentive. The combined federal and state incentive payments shall be 13.6 percent of distributed collections. In addition to the federal child support incentive, each county may also receive a state child support incentive. Subject to subdivision (c), a county shall receive the state child support incentive if it elects to do both of the following: (A) Comply with the reporting requirements of Section 11475.8 while federal financial participation is available for collecting and reporting data. (B) Be in compliance with federal and state child support laws and regulations, or have a corrective action plan certified by the department pursuant to Section 15200.75. If the amount appropriated by the Legislature for the state incentives is less than the amount necessary to satisfy each county's actual incentives pursuant to this section, each county shall receive its proportional share of the incentives. (2) (A) For purposes of paragraph (1), the federal incentive component shall be each county's share of the child support incentive payments that the state receives from the federal government, based on the county's collections. (B) (i) Effective July 1, 1999, and annually thereafter, state funds appropriated for child support incentives shall first be used to fund the administrative costs incurred by local child support agencies in administering the child support program, after subtracting all federal financial participation for administrative costs and all federal child support incentives received by the state and passed on to the local child support agencies. The department shall allocate sufficient resources to each local child support agency to fully fund the remaining administrative costs, subject to approval by the department and the appropriation of funding in the annual Budget Act. No later than January 1, 2000, the department shall identify allowable administrative costs that may be claimed for reimbursement from the state, which shall be limited to reasonable amounts in relation to the scope of services and the total funds available. If the total amount of administrative costs claimed in any year exceeds the amount appropriated in the Budget Act, the amount provided to local child support agencies shall be reduced by the percentage necessary to ensure that projected General Fund expenditures do not exceed the amount authorized in the Budget Act. (ii) Effective July 1, 2000, and annually thereafter, after allowable administrative costs are funded under clause (i), the department shall use any remaining incentive funds appropriated from the prior fiscal year which are hereby reappropriated to implement an incentive program that rewards up to 10 local child support agencies in each year, based on their proportional level of collections and their increase in performance over the prior year. The proportional collections standard shall be based on each local child support agency's collections relative to the total amount owed in the following categories: (A) collections on behalf of previously aided families that received CalWORKs benefits after December 31, 1997, and are no longer receiving benefits; and (B) collections that are used to reduce or repay aid that is paid pursuant to this division. The performance improvement standard shall measure the percent improvement for each local child support agency in the two categories of collections over the prior year. The department shall determine the number of local agencies that receive state incentive funds under this program, subject to a maximum of five agencies under each standard, and shall determine the amount received by each local agency based on the availability of funds and each local child support agency's proportional share of distributed collections. (iii) State funds received by any local child support agency pursuant to clauses (i) and (ii) shall be limited to no more than 13 percent of that agency's total distributed collections. Any funds received pursuant to this subdivision shall be used only for child support enforcement activities. (c) (1) Beginning October 1, 1999, any county whose performance score is in the bottom quartile of all counties and whose rate of improvement over the prior year is less than the statewide average shall receive its state incentive only upon accepting technical assistance from the department, as set forth in paragraph (3). (2) The welfare performance score for each county is calculated by dividing the county's collections on behalf of children receiving CalWORKs benefits pursuant to Article 6 (commencing with Section 11450) of Chapter 2 in the previous fiscal year by the county's average CalWORKs caseload in the previous fiscal year. (3) The department, in consultation with experts from other counties, as appropriate, shall conduct a program review of the county's child support program, which shall include a review of the county's management practices, and provide technical assistance. If the county chooses to receive its state incentives under this section, the county shall comply with the recommendations of this review. (d) Each county shall continue to receive its federal child support incentive funding whether or not it elects to participate in the state child support incentive funding program. (e) The department shall provide incentive funds pursuant to this section only during any fiscal year in which funding is provided for that purpose in the Budget Act. SEC. 35. 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. (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. 36. Section 15766 is added to the Welfare and Institutions Code, to read: 15766. The investigation of allegations of elder and dependent adult abuse pursuant to this chapter, and the case management of elder and dependent adult abuse cases shall be performed by county merit systems civil service employees. A county adult protective service agency may utilize a contracted private or nonprofit telephone answering service after normal working hours and on weekends and holidays. Such a contracted telephone service shall immediately forward to a county merit systems civil service employee any report of abuse or neglect of an elder or dependent adult, unless the caller is: (a) requesting routine information only; (b) reporting an incident of abuse which occurred prior to the date of the call, which does not at the time of the call put the victim at risk; or (c) requesting information not related to the adult protective service program, and the person answering the telephone meets the standards established by the department. SEC. 37. Section 16164 of the Welfare and Institutions Code is amended to read: 16164. (a) The Office of the State Foster Care Ombudsperson shall do all of the following: (1) Disseminate information on the rights of children and youth in foster care and the services provided by the office. The information shall include notification that conversations with the office may not be confidential. (2) Investigate and attempt to resolve complaints made by or on behalf of children placed in foster care, related to their care, placement, or services. (3) Decide, in its discretion, whether to investigate a complaint, or refer complaints to another agency for investigation. (4) Upon rendering a decision to investigate a complaint from a complainant, notify the complainant of the intention to investigate. If the office declines to investigate a complaint or continue an investigation, the office shall notify the complainant of the reason for the action of the office. (5) Update the complainant on the progress of the investigation and notify the complainant of the final outcome. (6) Document the number, source, origin, location, and nature of complaints. (7) Compile and make available to the Legislature all data collected over the course of the year including, but not limited to, the number of contacts to the toll-free telephone number, the number of complaints made, the number of investigations performed by the office, the number of referrals made, and the number of unresolved complaints. (8) Have access to any record of a state or local agency that is necessary to carry out his or her responsibilities, and may meet or communicate with any foster child in his or her placement or elsewhere. (b) The office may establish, in consultation with a committee of interested individuals, regional or local foster care ombudsperson offices for the purposes of expediting investigations and resolving complaints, subject to appropriations in the annual Budget Act. SEC. 38. Section 16501.3 is added to the Welfare and Institutions Code, to read: 16501.3. (a) The Department of Social Services shall establish a program of public health nursing in the child welfare services program. The purpose of the public health nursing program shall be to enhance the physical, mental, dental, and developmental well-being of children in the child welfare system. (b) As a condition of receiving funds under this section, counties shall use the services of a foster care public health nurse. The foster care public health nurse shall work with the appropriate child welfare services workers to coordinate health care services and serve as a liaison with health care professionals and other providers of health-related services. This shall include coordination with county mental health plans and local health jurisdictions, as appropriate. (c) The duties of a foster care public health nurse may include, but need not be limited to, the following: (1) Collecting health information and other relevant data on each foster child as available, receiving all collected information to determine appropriate referral and services, and expediting referrals to providers in the community for early intervention services, specialty services, dental care, mental health services, and other health-related services required by the child. (2) Participating in medical care planning and coordinating for the child. This may include, but is not limited to, assisting case workers in arranging for comprehensive health and mental health assessments, interpreting the results of health assessments or evaluations for the purpose of case planning and coordination, facilitating the acquisition of any necessary court authorizations for procedures or medications, advocating for the health care needs of the child and ensuring the creation of linkage among various providers of care. (3) Providing follow-up contact to assess the child's progress in meeting treatment goals. (d) The services provided by foster care public health nurses under this section shall be limited to those for which reimbursement may be claimed under Title XIX at an enhanced rate for services delivered by skilled professional medical personnel. Notwithstanding any other provision of law, this section shall be implemented only if, and to the extent that, the department determines that federal financial participation, as provided under Title XIX of the federal Social Security Act (42 U.S.C. Sec. 1396 et seq.), is available. (e) Notwithstanding Section 10101 of the Welfare and Institutions Code, there shall be no required county match of the nonfederal cost of this program. SEC. 41. Section 18358.30 of the Welfare and Institutions Code is amended to read: 18358.30. (a) Rates for foster family agency programs participating under this chapter shall be exempt from the current AFDC-FC foster family agency ratesetting system. (b) Rates for foster family agency programs participating under this chapter shall be set according to the appropriate service and rate level based on the level of services provided to the eligible child and the certified foster family. For an eligible child placed from a group home program, the service and rate level shall not exceed the rate paid for group home placement. For an eligible child assessed by the county interagency review team as at imminent risk of group home placement or psychiatric hospitalization, the appropriate service and rate level for the child shall be determined by the interagency review team at time of placement. In all of the service and rate levels, the foster family agency programs shall: (1) Provide social work services with average caseloads not to exceed eight children per worker, except that social worker average caseloads for children in Service and Rate Level E shall not exceed 12 children per worker. (2) Pay an amount of one thousand two hundred dollars ($1,200) per child per month to the certified foster parent or parents. (3) Perform activities necessary for the administration of the programs, including, but not limited to, training, recruitment, certification, and monitoring of the certified foster parents. (4) (A) (i) Provide a minimum average range of service per month for children in each service and rate level in a participating foster family agency, represented by paid employee hours incurred by the participating foster family agency, by the in-home support counselor to the eligible child and the certified foster parents depending on the needs of the child and according to the following schedule: Service In-Home Support and Counselor Hours Rate Level Per Month A 98-114 hours B 81- 97 hours C 64- 80 hours D 47- 63 hours (ii) Children placed at Service and Rate Level E shall receive crisis intervention and other support services on a flexible, as needed, basis from an in-home support counselor. The foster family agency shall provide one full-time in-home support counselor for every 20 children placed at this level. (B) When the interagency review team and the foster family agency agree that alternative services are in the best interests of the child, the foster family agency may provide the following types of services in lieu of in-home support services required by subparagraph (A): (i) Therapy. (ii) Behavior modification services. (iii) Support counselor services. (iv) Psychotropic medication and monitoring. (v) Respite services. (vi) Family therapy to aid in family reunification. (vii) Education liaison services to maintain the child in the classroom. (c) The department or placing county, or both, may review the level of services provided by the foster family agency program. If the level of services actually provided are less than those required by subdivision (b) for the child's service and rate level, the rate shall be adjusted to reflect the level of service actually provided, and an overpayment may be established and recovered by the department. (d) (1) On and after July 1, 1998, the standard rate schedule of service and rate levels shall be: Service Fiscal Year and 1998-99 Rate Level Standard Rate A $3,957 B $3,628 C $3,290 D $2,970 E $2,639 (2) (A) On and after July 1, 1999, the standardized schedule of rates shall be adjusted by an amount equal to the California Necessities Index computed pursuant to Section 11453, rounded to the nearest dollar. The resultant amounts shall constitute the new standardized rate schedule, subject to further adjustment pursuant to subparagraph (B), for foster family agency programs participating under this chapter. (B) In addition to the adjustment in subparagraph (A), commencing January 1, 2000, the standardized schedule of rates shall be increased by 2.36 percent, rounded to the nearest dollar. The resultant amounts shall constitute the new standardized rate schedule for foster family agency programs participating under this chapter. (3) Beginning with the 2000-01 fiscal year, the standardized schedule of rates shall be adjusted annually by an amount equal to the California Necessities Index computed pursuant to Section 11453, subject to the availability of funds. The resultant amounts, rounded to the nearest dollar, shall constitute the new standard rate schedule for foster family agency programs participating under this chapter. (e) Rates for foster family agency programs participating under this chapter shall not exceed Service and Rate Level A at any time during an eligible child's placement. An eligible child may be initially placed in a participating intensive foster care program at any one of the five Service and Rate Levels A to E, inclusive, and thereafter placed at any level, either higher or lower, not to exceed a total of six months at any level other than Service and Rate Level E, unless it is determined to be in the best interests of the child by the child's county interagency review team and the child's certified foster parents. The child's interagency county interagency placement review team may, through a formal review of the child's placement, extend the placement of an eligible child in a service and rate level higher than Service and Rate Level E for additional periods of up to six months each. (f) It is the intent of the Legislature that the rate paid to participating foster family agency programs shall decrease as the child's need for services from the foster family agency decreases. The foster family agency shall notify the placing county and the department of the reduced services and the pilot classification model, and the rate shall be reduced accordingly. (g) It is the intent of the Legislature to prohibit any duplication of public funding. Therefore, social worker services, payments to certified foster parents, administrative activities, and the services of in-home support counselors that are funded by another public source shall not be counted in determining whether the foster family agency program has met its obligations to provide the items listed in paragraphs (1), (2), (3), and (4) of subdivision (b). The department shall work with other potentially affected state departments to ensure that duplication of payment or services does not occur. SEC. 41.5. Section 18930 of the Welfare and Institutions Code, as added by Section 34 of Chapter 329 of the Statutes of 1998, 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, 2000. (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. 41.6. Section 18930.5 of the Welfare and Institutions Code is amended to read: 18930.5. (a) As a condition of eligibility for assistance under this chapter: (1) A recipient who is also receiving aid under Chapter 2 (commencing with Section 11200) of Part 3 shall be required to satisfactorily participate in welfare-to-work activities in accordance with the recipient's welfare-to-work plan developed pursuant to Section 11325.21. (2) A recipient who is not receiving aid under Chapter 2 shall be required to meet the federal Food Stamp Program work requirement specified in Section 6(o) of the Food Stamp Act of 1977 and any subsequent amendments thereto. (b) This section shall become operative on September 1, 1998. SEC. 42. Section 18932 of the Welfare and Institutions Code is amended to read: 18932. (a) Except as otherwise provided in this chapter, the federal and state laws and regulations governing the federal Food Stamp Program shall also govern the program provided for under this chapter. (b) Federal deeming rules and exemptions governing the federal Food Stamp Program shall also govern the program provided for under this chapter, except that for immigrants with affidavits of support under Section 1183a of Title 8 of the United States Code who do not meet exemptions from deeming, the period for deeming of a sponsor's income and resources shall be three years from the date of the sponsor's execution of the affidavit of support pursuant to Section 1183a of Title 8 of the United States Code. (c) Notwithstanding any other provision in this chapter, immigrants who are victims of abuse by their sponsor or sponsor's spouse shall be exempt from deeming. 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: (1) Police, government agency, or court records or files. (2) Documentation from a domestic violence program, or from a legal, clinical, medical, or other professional from whom the applicant or recipient has sought assistance in dealing with abuse. (3) A statement from any other individual with knowledge of the circumstances that provided the basis for the claim. (4) Physical evidence of abuse. (5) 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. SEC. 42.5. Section 18934 of the Welfare and Institutions Code is amended to read: 18934. (a) It is the intent of the Legislature to appropriate funds in the Budget Act for the purpose of providing services under this chapter. SEC. 42.6. Section 18935 is added to the Welfare and Institutions Code, to read: 18935. This chapter shall be implemented only during any period that federal benefits are provided under Section 1612(a) of Title 8 of the United States Code. SEC. 42.7. 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, 2000. (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. 43. Section 18940 of the Welfare and Institutions Code is amended to read: 18940. (a) Except as otherwise provided in this chapter, the federal and state laws and regulations governing the SSI/SSP program shall also govern the program provided for under this chapter. (b) Federal deeming rules and exemptions governing the SSI/SSP program, including all federal and state laws and regulations designed to protect SSI/SSP recipients and their resources, shall also govern the program provided for under this chapter, except that for immigrants with affidavits of support under Section 1183a of Title 8 of the United States Code who do not meet exemptions from deeming, the period for deeming of a sponsor's income and resources shall be five years from the date of the sponsor's execution of the affidavit of support pursuant to Section 1183a of Title 8 of the United States Code. (c) Notwithstanding any other provision in this chapter, immigrants who are victims of abuse by their sponsor or sponsor's spouse shall be exempt from deeming. 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: (1) Police, government agency, or court records or files. (2) Documentation from a domestic violence program, or from a legal, clinical, medical, or other professional from whom the applicant or recipient has sought assistance in dealing with abuse. (3) A statement from any other individual with knowledge of the circumstances that provided the basis for the claim. (4) Physical evidence of abuse. (5) 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. SEC. 43.5. Section 18944 of the Welfare and Institutions Code is amended to read: 18944. (a) It is the intent of the Legislature to appropriate funds in the Budget Act for the purpose of providing services under this chapter. (b) This chapter shall become operative on: (1) October 1, 1998, for those individuals who are eligible for aid under this chapter and are discontinued from the SSI/SSP program effective with their September 1998 benefits as a result of their immigration status under Title IV of Public Law 104-193 and any subsequent amendments thereto. Until the counties begin full operation the department shall cause a payment to each individual or couple to be issued through the Controller so that there is no interruption in these individual's receipt of aid to which they are eligible under this chapter. (2) November 1, 1998, for applicants for this program to have their applications accepted by county welfare departments, and establish a beginning date of aid. Counties shall have the ability to make eligibility determinations and cause the issuance of payments no later than December 1, 1998, unless the federal government has agreed to provide the services under this chapter at an earlier date. (c) This chapter shall be implemented only during any period that federal benefits are provided under Section 1612(a) of Title 8 of the United States Code. SEC. 44. Section 19091 of the Welfare and Institutions Code is amended to read: 19091. (a) Pursuant to federal law, there is a State Independent Living Council, that shall advise and assist the director in carrying out the independent living provisions of this division and federal law. (b) The membership of the council shall be appointed by the Governor and shall be composed of the representatives specified in Section 796d of Title 29 of the United States Code. SEC. 45. Section 19092 of the Welfare and Institutions Code is amended to read: 19092. (a) The functions of the State Rehabilitation Advisory Council and the State Independent Living Council and terms of appointment of the members thereof shall be governed by Chapter 16 (commencing with Section 701) of Title 29 of the United States Code. (b) Members of the councils described in subdivision (a) shall be reimbursed for the actual costs of reasonable and necessary expenses, including child care and personal assistance services, incurred when attending council meetings and or performing council duties. In addition, any member who is unemployed or who is required to forfeit wages from other employment shall be compensated one hundred dollars ($100) per day for each day the member is engaged in attending council meetings and or performing duties of the council. (c) The director, in consultation with the councils, shall provide necessary staff support and assistance for the respective councils to carry out their functions. SEC. 46. Section 19355.5 of the Welfare and Institutions Code is amended to read: 19355.5. Notwithstanding any other provision of law, effective July 1, 1999, the twenty-seven dollar and fifty cent ($27.50) hourly rate for supported employment services established for the 1999-2000 fiscal year pursuant to paragraph (2) of subdivision (b) of Section 19356.6 shall 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, including services pursuant to paragraph (2) of, and clauses (i) to (iii), inclusive, of subparagraph (B) of paragraph (2) of, subdivision (b) of Section 19356.6, and, for the habilitation services program only, ancillary services, based on Budget Act caseload projections, do not exceed the General Fund and reimbursement appropriations for these services in the Budget Act of 1999. SEC. 47. Section 19356.6 of the Welfare and Institutions Code is amended to read: 19356.6. (a) The definitions contained in this subdivision shall govern the construction of this section, with respect to services provided through the Habilitation Services Program, and unless the context requires otherwise, the following terms shall have the following meanings: (1) "Supported employment" means paid work that is integrated in the community for individuals with developmental disabilities whose vocational disability is so severe that they would be unable to achieve this employment without specialized services and would not be able to retain this employment without an appropriate level of ongoing postemployment support services. (2) "Integrated work" means the engagement of an employee with a disability in work in a setting typically found in the community in which individuals interact with nondisabled individuals other than those who are providing services to those individuals, to the same extent that nondisabled individuals in comparable positions interact with other persons. (3) "Supported employment placement" means the employment of an individual with a developmental disability by an employer in the community, directly or through contract with a supported employment program, and the provision of supported employment services and, the provision of ongoing postemployment services necessary for the individual to retain employment. Services for those individuals receiving one-to-one training and support services from a supported employment program shall decrease as the individual adjusts to his or her employment and the employer assumes many of those functions. (4) For individuals receiving postemployment support services at a job coach-to-client ratio of one-to-one or one-to-two, postemployment services may be provided on or off the jobsite, except that no ancillary services may be provided pursuant to subparagraph (A) of paragraph (2) of subdivision (b). (5) For individuals receiving postemployment support services at a job coach-to-client ratio of other than one-to-one or one-to-two, ancillary services may be provided, except that all postemployment and ancillary services shall be provided at the worksite. (6) "Allowable supported employment services" means the services approved in the individual habilitation component and provided, to the extent allowed by the Habilitation Services Program for the purpose of achieving supported employment as an outcome for individuals with developmental disabilities, which may include any of the following: (A) Program staff time spent conducting job analysis of supported employment opportunities for a specific consumer. (B) Program staff time spent in the direct supervision or training of a consumer or consumers while they engage in integrated work unless other arrangements for consumer supervision, such as employer supervision reimbursed by the supported employment program, are approved by the Habilitation Services Program. (C) Training occurring in the community, in adaptive functional and social skills necessary to ensure job adjustment and retention such as social skills, money management, and independent travel. (D) Counseling with a consumer's significant others to ensure support of a consumer in job adjustment. (E) Advocacy or intervention on behalf of a consumer to resolve problems affecting the consumer's work adjustment or retention. (F) Job development to the extent authorized by the Habilitation Services Program. (G) Ongoing postemployment support services needed to ensure the consumer's retention of the job. (b) (1) The Habilitation Services Program shall set rates for supported employment services provided in accordance with this section. The Habilitation Services Program shall apply those rates to those work-activity programs or program components of work-activity programs approved by the department to provide supported employment and to new programs or components approved by the Habilitation Services Program to provide supported employment services. Both of these categories of programs or components shall be required to comply with the criteria set forth in subdivision (b) of Section 19356.7 to receive approval from the Habilitation Services Program. (2) The hourly rate for supported employment services shall be twenty-seven dollars and fifty cents ($27.50). If more than one consumer is receiving supported employment services simultaneously from the same job coach, the following shall apply: (A) The total amount reimbursed for that service shall not exceed the authorized rate for supported employment services. In addition, the Habilitation Services Program may set a higher hourly rate for supported employment services provided to an individual in this configuration, based upon the additional cost to provide ancillary services, when there is a documented and demonstrated need for a higher rate because of the nature and severity of the disabilities of the consumer, as determined by the Habilitation Services Program. (B) In addition, fees shall be authorized for the following: (i) A two hundred dollar ($200) fee shall be paid upon intake of a consumer into an agency's supported employment program, unless that individual has completed a supported employment intake process with that same agency within the past 12 months, in which case no fee shall be paid. (ii) A four hundred dollar ($400) fee shall be paid upon placement of an individual in an integrated job, unless that individual is placed with another consumer or consumers assigned to the same job coach during the same hours of employment, in which case no fee shall be paid. (iii) A four hundred dollar ($400) fee shall be paid after a 90-day retention of a consumer in a job, unless that individual has been placed with another consumer or consumers, assigned to the same job coach during the same hours of employment, in which case no fee shall be paid. (3) These rates shall take effect July 1, 1998. (4) It is the intent of the Legislature that, commencing July 1, 1996, the department establish rates for both habilitation services and vocational rehabilitation supported employment services pursuant to this section. (c) If a consumer has been placed on a waiting list for vocational rehabilitation as a result of the department's order of selection regulations, the Habilitation Services Program may pay for those supported employment services leading to job development set forth in subparagraph (B) of paragraph (2) of subdivision (b). (d) This section shall become inoperative on July 1, 2000, and, as of January 1, 2001, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2001, deletes or extends the dates on which it becomes inoperative and is repealed. SEC. 48. Section 19356.7 of the Welfare and Institutions Code is amended to read: 19356.7. (a) Proposals for funding of new, and modifications to existing, supported employment programs and components by the Habilitation Services Program shall be submitted to the Habilitation Services Program and shall contain sufficient information to enable the Habilitation Services Program to act on the proposal under this section. (b) Provided that sufficient funding is available to finance services by supported employment programs and components, the Habilitation Services Program may approve or disapprove proposals based on all of the following criteria: (1) The need for a supported employment program or component. (2) The capacity of the program to deliver supported employment services effectively. (3) The ability of the program to comply with accreditation requirements of the Habilitation Services Program. The accreditation standards adopted by the department shall be the standards developed by the Commission of Rehabilitation Facilities and published in the most current edition of the Standards Manual for Organizations Serving People with Disabilities, as well as any subsequent amendments to the manual. (4) A profile of an average consumer in the program or component, showing the planned progress toward self-reliance as an employee, measured, as appropriate, in terms of decreasing support services. (5) The ability of the program to achieve integrated paid work on the average for consumers served. (c) The Habilitation Services Program may purchase supported employment services at the rates authorized in Section 19356.6 only from supported employment programs or components approved under this section. (d) For purposes of evaluating the effectiveness of the entire program, and individual supported employment programs or components, the Habilitation Services Program may monitor supported employment programs or components to determine whether the performance agreed upon in the approved proposal is being achieved. When the performance of a supported employment program or component does not comply with the criteria according to which it was approved for funding pursuant to subdivision (b), the Habilitation Services Program may establish prospective performance criteria for the program or component, with which the program or component shall comply as a condition of continued funding. (e) The department shall adopt regulations to implement the requirements of Sections 19352, 19356.6, and this section, in consultation with the California Rehabilitation Association, the United Cerebral Palsy Association, and the Association of Retarded Citizens of California. (f) This section shall become inoperative on July 1, 2000, and, as of January 1, 2001, is repealed, unless a later enacted statute, that becomes operative on or before January 1, 2001, deletes or extends the dates on which it becomes inoperative and is repealed. SEC. 49. 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, after allocation of base grant and incentive 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. 50. It is the intent of the Legislature that a portion of the funds available for the competitive bid allocations to local entities under the welfare-to-work program shall be used to remove barriers to local program implementation. Specifically, these funds shall be used for state-approved local training to build staff capacity to work effectively with the very hard to serve welfare-to-work population eligible for welfare-to-work activities authorized under Section 603(a)(5) of Title 5 of the United States Code that face multiple barriers to employment, as described in Section 2864(d)(4)(G)(iv) of Title 29 of the United States Code, and to expand the employment training network which provides technical assistance and capacity building resources to state and local welfare-to-work partners. SEC. 52. (a) The California Department of Aging shall utilize funds appropriated through the Budget Act of 1999 for expansion of the Multipurpose Senior Services Program (MSSP) to fund additional slots in underserved planning and service areas (PSAs) in which the ratio of existing MSSP slots to estimated clients' needs is below the statewide average before funding slots in any PSA in which the ratio of existing MSSP slots to clients' needs is above the statewide average. (b) Area agencies on aging shall maintain contracts funded from appropriations made by the Budget Act of 1999 for community-based service program expansion until July 1, 2003. SEC. 53. Nothing shall preclude appropriations from the General Fund to support the Health Insurance Counseling and Advocacy Program in the Department of Aging (Section 9541 of the Welfare and Institutions Code). SEC. 54. Notwithstanding the provisions of the Administrative Procedure Act (Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code), through June 30, 2000, the State Department of Social Services may implement Sections 41.5 to 43.5, inclusive, of this act through all county letters or similar instructions from the director. (b) The director shall adopt regulations, as otherwise necessary, to implement the applicable provisions of Chapter 10.1 (commencing with Section 18930) and Chapter 10.3 (commencing with Section 18937) of Part 6 of Division 9 of the Welfare and Institutions Code no later than July 1, 2000. The director may adopt emergency regulations to implement those provisions of law in accordance with the Administrative Procedure Act. The adoption of emergency regulations shall be deemed to be an emergency and necessary for the immediate preservation of the public peace, health and safety, or general welfare. (c) Emergency regulations adopted pursuant to this section 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. SEC. 55. 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. 55. 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 make timely adjustments in the process of implementation of the State Budget for the 1999-2000 fiscal year, it is necessary that this act take effect immediately.