BILL ANALYSIS                                                                                                                                                                                                    




                   Senate Appropriations Committee Fiscal Summary
                           Senator Christine Kehoe, Chair

                                           2374 (Nestande)
          
          Hearing Date:  07/15/2010           Amended: 04/05/2010
          Consultant:  Jacqueline Wong-HernandezPolicy Vote: Human  
          Services 4-0
          _________________________________________________________________ 
          ____
          BILL SUMMARY: AB 2374 would extend the commencement date from  
          January 1, 2009, to January 1, 2011, for an In-Home Supportive  
          Services (IHSS) pilot project that allows severely impaired IHSS  
          recipients the choice of receiving services through a public  
          authority or a contracting non-profit or proprietary agency.  
          Additionally, this bill would allow the project to be  
          established with fewer than five consenting counties. 
          _________________________________________________________________ 
          ____
                            Fiscal Impact (in thousands)

           Major Provisions         2010-11      2011-12       2012-13     Fund
                                                                  
          IHSS pilot project                        $113                 
          $107                  $107           General
                                                              $113          
                 $107                  $107           Federal
          _________________________________________________________________ 
          ____
          STAFF COMMENTS: This bill meets the criteria for referral to the  
          Suspense File.
          
          AB 2374 would extend the commencement date of a  
          previously-approved pilot project that was never established,  
          because counties did not choose to participate in the optional  
          program. The authority to begin the pilot sunset on January 1,  
          2009, with the project having never begun. In the absence of  
          this bill, funding needed for the Department of Social Services  
          (DSS) to administer and report on the project would not be  
          spent; half of the funds would remain in the General Fund.

          AB 1674 (Jones), Chapter 319, Statutes of 2008, required 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 were to 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 of the legislation was to enable  
          recipients, particularly those with severe impairments who may  
          be less able to direct their services, to have an alternative in  
          which the contractor takes responsibility for hiring,  
          scheduling, and supplying back-up workers when needed.

          This bill 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. Reducing the  
          number of counties needed to begin the project would make it  
          more likely to be implemented, and the costs to DSS would still  
          be comparable, and likely the exact same in 2010-11 because they  
          are costs to establish the pilot. The provisions of this bill  
          require DSS to establish requirements and conditions for  
          operation of the pilot project, and to actually administer the  
          project.