BILL ANALYSIS �
AB 533
Page 1
Date of Hearing: April 26, 2011
ASSEMBLY COMMITTEE ON HUMAN SERVICES
Jim Beall Jr., Chair
AB 533 (Yamada) - As Introduced: February 15, 2011
SUBJECT : Area agencies on aging: independent living centers:
funding
SUMMARY : 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 (ILCs) and area agencies on aging (AAAs). 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 ILCs and AAAs. 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 AAAs and ILCs 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 AAAs
and ILCs may avoid interruptions and disruptions of service if
the Budget Act of 2011 is not enacted in a timely manner.
EXISTING LAW
1)Establishes the federal Rehabilitation Act, which, among other
things, empowers individuals with disabilities to maximize
employment, economic self-sufficiency, independence, inclusion
and integration into society through statewide workforce
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investment systems, independent living centers and services,
research, training, demonstration projects and the guarantee
of equal opportunity.
2)Establishes DOR as the overseer of the 29 ILCs and independent
living services.
3)Establishes the federal Older American's Act, which, among
other things, establishes a nation-wide network of state units
on aging and AAAs 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 Code Section 16531.1.)
FISCAL EFFECT : Unknown
COMMENTS : California has 33 AAAs, 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. AAAs 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.
California also has 29 ILCs, which provide services to people
with disabilities enabling them to remain in their own homes and
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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, ILCs 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 ILCs
is from federal sources.
The stream of funds to both AAAs and ILCs 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 AAAs and ILCs 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 AAAs 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. This bill 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
AAAs and to the DOR for the ILCs.
Prior Legislation :
In recent years, a number of bills creating a continuous
appropriation for DOR or CDA have been introduced. Each bill
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was held on the Suspense File of the Appropriations Committee of
its house of origin. These include:
SB 657 (Ortiz) of 1999, AB 2552 (Daucher) of 2002, and
AB 1 (Berg) of 2003, all allowed for the continuous
appropriation of federal funds for AAAs in the event of a
state budget delay. SB 657 was held in the Senate
Appropriations Committee and both AB 2552 and AB 1 were
held in the Assembly Appropriation Committee.
AB 1928 (Berg) of 2006, AB 322 (Anderson) of 2007, and
AB 885 (Nestande) of 2009 all allowed for the continuous
appropriation of federal funds for both AAAs and ILCs.
Each bill was held in the Assembly Appropriations
Committee.
AB 2608 (Davis) of 2008 allowed for a continuous
appropriation for DOR. AB 2608 was held in the Assembly
Appropriations Committee.
AB 561 (Scott), Chapter 993, Statutes of 1998, enacted a funding
mechanism to protect Medi-Cal providers, developmental
disabilities service providers, and the AIDS drug assistance
program in the event of a budget delay. This measure provided
for a loan of up to $1 billion in state General Funds and up to
$1 billion in federal funds to the Medical Providers Interim
Payment Fund to continue making payments to specified providers
until the state budget is passed. In 2003, AB 41 (Daucher) was
introduced to establish a similar mechanism, the Senior Citizens
Interim Payment Fund. AB 41 was held in the Assembly
Appropriations Committee.
SECOND COMMITTEE OF REFERENCE . This bill was previously heard
in the Assembly Aging and Long Term Care Committee on March 29,
2011, and was approved on a 6-0 vote.
REGISTERED SUPPORT / OPPOSITION :
Support
AARP
Alzheimer's Association
California Commission on Aging (CCoA)
Congress of California Seniors
National Association of Social Workers, California Chapter
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The California Long-Term Care Ombudsman Association (CLTCOA)
Opposition
None on file.
Analysis Prepared by : Eric Gelber / HUM. S. / (916) 319-2089