BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           963 (Ammiano)
          
          Hearing Date:  8/12/2010        Amended: 6/30/2010
          Consultant: Katie Johnson       Policy Vote: Health 5-0 Hum.  
          Serv. 3-2
          _________________________________________________________________ 
          ____
          BILL SUMMARY:  AB 963 would require the Department of Health  
          Care Services, in consultation with counties, the Department of  
          Social Services, and other stakeholders, to conduct a  
          stakeholder planning workgroup to develop a single renewal and  
          recertification form for the Medi-Cal, Food Stamp, and CalWORKs  
          programs.
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
                                                                  
          DSS workgroup staff      $90        $90      $0   Federal/**
                                                                 Private

          DHCS workgroup staff     $100       $100     $0        Federal/*
                                                                 Private

          DHCS cost pressure to    potentially in the hundreds   General/*
          implement policy changes thousands of dollars, likely  
          one-timeFederal

          Cost pressures due to    unknown, potentially  
          significantGeneral/
          increased continuity in  cost pressures           Federal
          Medi-Cal, CalWORKs, 
          and Food Stamps benefits

          *DHCS costs would be shared 50 - 75 percent federal funds, 50  
          percent private funds
          **DSS CalWORKS staff costs would come entirely from federal TANF  
          funds. Food Stamps staff would be shared 50 percent federal  
          funds, 50 percent private funds.
          _________________________________________________________________ 
          ____











          STAFF COMMENTS: SUSPENSE FILE.

          This bill would require the Department of Health Care Services  
          (DHCS), in consultation with counties, the Department of Social  
          Services (DSS), representatives of the Statewide Automated  
          Welfare System (SAWS) consortia, consumers, and other  
          stakeholders, to conduct a stakeholder planning workgroup to  
          develop a single renewal and recertification form and related  
          policies and procedures for the Medi-Cal, Food Stamp, and  
          CalWORKs programs to be considered for adoption by the  
          department.

          Stakeholder workgroup tasks would include: 1) determining which  
          questions and documentation requests are necessary; 2)  
          developing forms, policies, and procedures to be used for both  
          paper and electronic renewal; 3) aligning renewal and  
          recertification dates for recipients without requiring the  
          recipients to lose any benefits earlier than they otherwise  
          would have; 4) giving priority to the program changes necessary  
          to enable 
          Page 2
          AB 963 (Ammiano)

          SAWS consortia to automate the renewal and recertification  
          procedure, maximize the use of available information, and  
          minimize manual workload; 5) considering any additional  
          modifications that could be made to minimize burdens on  
          recipients that would include electronic and telephonic renewal  
          methods, prepopulated forms, elimination of interview  
          requirements, and electronic verification of information to  
          determine eligibility, and encouraging retention of Medi-Cal,  
          Food Stamp, and CalWORKs benefits.

          Funding for the stakeholder workgroup would come from private  
          and public sources, excluding the state General Fund. Costs to  
          the DSS would be approximately $90,000 in both FY 2010-2011 and  
          FY 2011-2012 and would be shared as follows: CalWORKS staff  
          costs would come entirely from federal TANF funds and Food  
          Stamps staff costs would be shared 50 percent federal funds, 50  
          percent private funds. DHCS staff costs would be approximately  
          $100,000 in both FY 2010-2011 and FY 2011-2012. To the extent  
          that private funds are unavailable, there would be cost pressure  
          on the General Fund to provide the moneys necessary to cover the  
          private share.

          There would be cost pressures in the hundreds of thousands of  










          dollars in one-time expenditures to DHCS to promulgate  
          regulations and to make technologic, policy, and process changes  
          related to the recommendations produced by this stakeholder  
          workgroup. There would be additional cost pressures of unknown,  
          but likely significant amounts, to provide increased continuity  
          of Medi-Cal, CalWORKs, and Food Stamp benefits to the extent the  
          stakeholder recommendations are implemented. To the extent that  
          this bill's recommendations result in administrative  
          efficiencies, there could be unknown local administration  
          savings.

          AB X4 7 (Committee on Budget), Chapter 7, Statutes of 2008,  
          authorized DHCS and DSS to implement a centralized statewide  
          eligibility and enrollment process for the Medi-Cal, CalWORKS,  
          and Food Stamps programs. The California Health and Human  
          Services Agency (CHHS) procured private funding from several  
          foundations and began a stakeholder process; it is currently on  
          hold due to the passage of the federal Affordable Care Act,  
          which requires similar efficiencies.