BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 2374
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          ASSEMBLY THIRD READING
          AB 2374 (Nestande)
          As Amended  April 5, 2010
          Majority vote 

           HUMAN SERVICES      5-0         APPROPRIATIONS      17-0        
           
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          |Ayes:|Beall, Tom Berryhill,     |Ayes:|Fuentes, Conway, Ammiano, |
          |     |Hall, Logue, Swanson      |     |Bradford, Charles         |
          |     |                          |     |Calderon, Coto, Davis,    |
          |     |                          |     |Monning, Ruskin, Harkey,  |
          |     |                          |     |Miller, Nielsen, Norby,   |
          |     |                          |     |Skinner, Solorio,         |
          |     |                          |     |Torlakson, Torrico        |
          |     |                          |     |                          |
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           SUMMARY  :  Changes from January 1, 2009 to January 1, 2011, the  
          start date for up to five consenting counties to establish pilot  
          projects offering In-Home Supportive Services (IHSS) recipients  
          a choice of having services provided by a contracting agency or  
          a public authority.  
           
          EXISTING LAW  :

          1)Establishes the IHSS program to provide personal services and  
            home care for eligible poor, aged, blind and disabled  
            individuals to enable recipients to remain in their own homes  
            and avoid institutionalization.

          2)Requires each county to ensure that IHSS services are provided  
            to all eligible recipients in accordance with the county plan.

          3)Provides that a county board of supervisors may provide for  
            the delivery of IHSS services by contracting with a nonprofit  
            consortium or establish by ordinance a public authority.

          4)Allows a county to hire homemakers and other in-home  
            supportive personnel, or contract with a voluntary nonprofit  
            agency, a proprietary agency or an individual, or make direct  
            payment to a recipient for the purchase of services.

          5)Requires that, commencing January 1, 2009, a pilot project be  
            established in five consenting counties that provides severely  








                                                                  AB 2374
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            impaired recipients of IHSS who receive services through the  
            public authority with a choice of receiving services through  
            the public authority or receiving services through a voluntary  
            nonprofit or proprietary agency.

          6)Defines "non-severely impaired" recipient to mean a person who  
            is assessed to need fewer than 20 hours of IHSS services per  
            week.

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee, the original pilot project is estimated to cost  
          approximately $350,000 General Fund (GF) per year.  Absent this  
          extension, it is likely that those funds would remain in the GF.
          
           COMMENTS  :   IHSS delivery modes  :  Counties deliver IHSS services  
          in one of three service delivery modes, or by a combination of  
          different modes.  The vast majority of IHSS clients receive care  
          services from an  individual provider  .  The client interviews,  
          hires, and fires a caregiver, who is not an employee of the  
          client, but serves as an independent contractor.  This mode  
          offers maximum autonomy to the consumer, and relieves him or her  
          from employer tasks such as withholding taxes and providing  
          worker's compensation insurance.  The employer of record is a  
          county-operated public authority or a non-profit consortium.   
          About six counties provide IHSS services through a  contract  with  
          a home care agency.  The agency employs and supervises  
          caregivers who provide care to the clients in their home.   
          Clients have less autonomy in the selection of a caregiver in  
          this mode of services delivery.  Finally, in the  county  
          homemaker  mode, counties employ their own care providers to  
          deliver services to clients.  Since they are county employees,  
          the county is responsible for their work.

          Prior legislation:  AB 1674 (Jones), Chapter 319, Statutes of  
          2008, requires, starting January 1, 2009, the establishment of  
          pilot projects in five consenting counties to offer severely  
          impaired IHSS recipients a choice of having services provided by  
          a contracting nonprofit or proprietary agency or by an  
          individual provider through a public authority.  The pilots  
          would expand consumer choices by allowing recipients to choose  
          whether to use a nonprofit or for-profit contractor, or the  
          existing system administered by public authorities.  The purpose  
          is to enable recipients, particularly those with severe  
          impairments who are the least able to self-direct their  








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          services, to have an alternative in which the contractor takes  
          responsibility for hiring, scheduling, and supplying back-up  
          workers when needed.

          As introduced, this bill would have expanded participation in  
          the pilot program to all IHSS recipients, rather than only  
          severely impaired recipients (i.e., those requiring 20 or more  
          hours of IHSS services per week).  As amended, however, this  
          bill merely extends the start date of the pilot projects to  
          January 1, 2011, and requires the establishment of pilot  
          projects in "up to" five consenting counties, rather than in  
          five consenting counties, as stated in current law.

           
          Analysis Prepared by  :    Eric Gelber / HUM. S. / (916) 319-2089 



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