BILL ANALYSIS �
AB 533
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Date of Hearing: March 29, 2011
ASSEMBLY COMMITTEE ON AGING AND LONG-TERM CARE
Mariko Yamada, Chair
AB 533 (Yamada) - As Introduced: February 15, 2011
SUBJECT : Area agencies on aging: independent living centers:
funding.
SUMMARY : AB 533 creates a pass-through mechanism enabling a
continuous appropriation of federal funds appropriated to the
State of California for the purposes of supporting independent
living centers (ILC's) and area agencies on aging (AAA's).
Specifically, this bill :
1)Creates a continuous appropriation of federal funds that have
already been appropriated to the State of California from the
United States Treasury, and have been deposited in the state's
Federal Trust Fund for support of ILC's and AAA's. This
continuous appropriation would provide the California
Department of Aging, (CDA) and the California Department of
Rehabilitation (DOR) the funds necessary to administer
programs operated by AAA's and ILC's during fiscal years in
which the state Budget Act is not enacted by July 1.
2)Allows the Department of Finance to reduce the applicable
Budget Act appropriations by the amount of any payment made by
the Federal Trust Fund to CDA and DOR under this statute.
3)Provides that if the state Budget Act is not enacted by July 1
and the continuous appropriation is triggered, that the first
payment will be made to CDA and DOR by July 15. Subsequent
payments are to be made by the 15th of each month, until the
state Budget Act is enacted.
4) Declares this act to be an urgency statute in order that
AAA's and ILC's may avoid interruptions and disruptions of
service if the Budget Act of 2011 is not enacted in a timely
manner.
EXISTING LAW
1)Existing federal law establishes the Rehabilitation Act,
which, among other things, empowers individuals with
disabilities to maximize employment, economic
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self-sufficiency, independence, inclusion and integration into
society through statewide workforce investment systems,
independent living centers and services, research, training,
demonstration projects and the guarantee of equal opportunity.
2)Establishes the DOR as the overseer of the 29 Independent
Living Centers and independent living services.
3)Existing federal law establishes the Older American's Act,
which, among other things, establishes a nation-wide network
of state units on aging and AAA's to deliver home and
community-based programs for older adults and their
caregivers. Programs include nutrition, information and
assistance, elder abuse prevention and caregiver support.
4)Establishes the Mello-Grandlund Older Californians Act which
provides state-funded programs and services for older adults
and people with disabilities.
5)Establishes CDA as the state unit on aging, and overseer of
California's 33 area agencies on aging.
6)Establishes continuous appropriations via the Medical
Providers Interim Payment Fund to Medi-Cal providers, the AIDS
drug assistance programs, and developmental services programs
in the event the state budget is not passed by July 1.
(Government Codes Section 16531.1)
7)OLMSTEAD V. L. C. (98-536) 527 U.S. 581. 1999
FISCAL EFFECT : Unknown.
COMMENTS : California has 33 AAA's which provide services that
are essential to the health and well-being of older adults, such
as basic nutrition, transportation, in-home assistance, and
caregiver support. AAA's in communities across the state are
charged to plan, coordinate and offer services that help older
adults remain in their home.
Funds for these programs come from the federal Older Americans
Act, the state's Older Californians Act, and county, city, and
grant sources. Approximately 80% of the money for AAA programs
is appropriated to the state from the federal government.
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California also has 29 ILC's which provide services to people
with disabilities enabling them to remain in their own homes and
communities by supporting projects and activities carried out in
a manner consistent with the principles of respect for
individual dignity, personal responsibility, and
self-determination. Additionally, ILC's support the pursuit of
meaningful careers, based upon informed choice of individuals
with disabilities. An ILC is a consumer-centered,
community-based, non-residential, private non-profit entity that
is designed and operated within a local community by individuals
with disabilities. One hundred percent of the funding for ILC's
is from federal sources.
The stream of funds to both AAA's and ILC's is dependent upon
the passage of the state budget. When the state budget is late,
all funds - even those already received from the federal
government for the express purposes of supporting AAA's and
ILC's are frozen. The author contends that the health,
well-being, and survival of Californians living with
disabilities of any age should not be held hostage during a
budget stalemate and that federal funds are available, but
cannot be accessed unless a continuous appropriation mechanism
is adopted.
Proponents argue that many of these programs operate on very
tight budgets and cannot continue unless bills are paid in a
timely manner. In some cases, local service providers must
secure lines of credit from banks in order to avoid shutting
down vital services. Although AAA's receive the funding from
the state after the budget is passed, they are not reimbursed
for the interest accrued on the lines of credit, nor can they
use the federal or state dollars to pay for the interest
accrued.
According to the author, this bill ensures that vital services
to people living with disabilities and striving for independence
through personal responsibility and self-determination, along
with the vast population of frail, elderly persons are not
forced into temporary segregation and isolation when the budget
is delayed. AB 533 would avoid this by continuing to
appropriate federal funds for these services if the annual state
budget is not enacted by July 1 of the fiscal year.
Specifically, federal funds will continue to go to CDA for the
AAA's and to the DOR for the ILC's.
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REGISTERED SUPPORT / OPPOSITION :
Support
AARP
Congress of California Seniors (CCS)
National Association of Social Workers, California Chapter
(NASW-CA)
Opposition
None on file.
Analysis Prepared by : Robert MacLaughlin / AGING & L.T.C. /
(916) 319-3990