BILL ANALYSIS                                                                                                                                                                                                    �




                                                                  AB 876
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          ASSEMBLY THIRD READING
          AB 876 (Valadao)
          As Amended  May 16, 2011
          Majority vote 

           HUMAN SERVICES      5-0                                         
           
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          |Ayes:|Beall, Jones, Ammiano,    |     |                          |
          |     |Grove, Hall               |     |                          |
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          |     |                          |     |                          |
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           SUMMARY  :  Prohibits an In-Home Supportive Services (IHSS) 
          program provider applicant who has been convicted of specified 
          disqualifying offenses from signing a waiver on behalf of a 
          service recipient as the recipient's authorized representative, 
          enabling the recipient to employ that applicant, except in the 
          case of an authorized representative who is a parent, guardian 
          or person having legal custody of a minor, the conservator of an 
          adult, or the spouse or registered domestic partner of the 
          recipient.

           EXISTING LAW  : 

          1)Establishes the IHSS program to provide personal services and 
            home care for approximately 435,000 eligible poor, aged, blind 
            and disabled individuals by approximately 360,000 providers 
            throughout the state to enable recipients to remain in their 
            own homes and avoid institutionalization.

          2)Prohibits, under Welfare & Institutions (W&I) Code Section 
            12305.81, a person from providing supportive services under 
            the IHSS program for 10 years following a conviction for 
            crimes involving:

             a)   Fraud against a government health care or supportive 
               services program; or,

             b)   Child endangerment, pursuant to Penal Code (PC) Section 
               273(a), elder or dependent adult abuse, pursuant to PC 
               Section 368, or similar violations in another jurisdiction.

          3)Prohibits new provider applicants from providing supportive 









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            services under the IHSS program for 10 years following a 
            conviction for any of the following:

             a)   A violent or serious felony as defined in PC Sections 
               667.5 and 1192.7;

             b)   A felony for which registration is required under the 
               Sex Offender Registration Act, pursuant to PC Section 290; 
               or,

             c)   Obtaining public benefits or services by fraud when the 
               amount of aid exceeds $950, pursuant to W&I Code Section 
               10980(c)(2), or fraud in the use of food stamp (CalFresh) 
               benefits in excess of $950, pursuant to W&I Code Section 
               10980(g)(2).

          4)Provides that the prohibitions described in paragraph 3), 
            above, do not apply if the applicant has obtained a 
            certificate of rehabilitation as provided in PC Section 
            4852.01 et seq., or if the conviction has been expunged, 
            pursuant to PC Section 1203.4.

          5)Permits a recipient of IHSS services who wishes to hire a 
            provider applicant who has been convicted of an offense 
            described in paragraph 3), above, to submit an individual 
            waiver of the exclusion, signed by the recipient or the 
            recipient's authorized representative, if applicable.

          6)Authorizes an applicant convicted of an offense described in 
            paragraph 3), above, to seek from the Department of Social 
            Services (DSS) a general exception to the exclusions and sets 
            out the procedures to be followed and factors to be considered 
            by DSS in responding to a request for a general exception.

          7)Requires the county to notify a recipient who wishes to hire a 
            provider who has been convicted of an offense described in 
            paragraph 3), above, of the criminal convictions and requires 
            the notice to include an explanation of the exclusions 
            described in paragraph 3), above, as well as the waiver 
            process and the process for an applicant to seek a general 
            exception; and, a waiver form.

           FISCAL EFFECT  :  None










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           COMMENTS  :  The 2009 IHSS budget trailer bill, AB19 X4 (Evans), 
          Chapter 17, Statutes of 2009 Fourth Extraordinary Session, 
          includes provisions intended to prevent fraud in, and enhance 
          the integrity of the IHSS program.  As a condition of being 
          placed or maintained on a county's IHSS provider registry, AB19 
          X4 (Evans) requires criminal background checks to be completed 
          for all prospective IHSS providers as of October 1, 2009, and to 
          be completed by July 2, 2010 for anyone already a provider on 
          October 1, 2009.  

          Under existing California law, consistent with federal Medicaid 
          law, an individual may not serve as a provider of services under 
          the IHSS program for 10 years following a conviction for 
          specified crimes involving fraud against a government health 
          care or supportive services program, child endangerment, or 
          elder or dependent adult abuse.  (These are commonly referred to 
          as "Tier 1" offenses.)  The 2010 human services budget trailer 
          bill, AB 1612 (Budget Committee), Chapter 725, Statutes of 2010, 
          provides for the additional exclusion, with certain exceptions, 
          of provider applicants for 10 years following a conviction for a 
          violent or serious felony, as defined in the Penal Code, and 
          other specified felony offenses.  These exclusions, referred to 
          as "Tier 2" offenses, apply prospectively, to new provider 
          applicants, beginning 90 days following the effective date of 
          that bill.

          With respect to these added, Tier 2, exclusions, AB 1612 (Budget 
          Committee) provides that a recipient who wishes to employ a 
          provider applicant who has been convicted of such an offense 
          "may submit to the county an individual waiver of the 
          exclusion."  The waiver form must be signed "by the recipient  or 
          by the recipient's authorized representative  , if applicable ?."  
          In signing a waiver, the individual agrees that he or she is 
          "accepting the responsibility for this decision and the risk of 
          any potential actions that may occur as a result of this 
          decision."  

          The AB 1612 exclusion for prior convictions of Tier 2 offenses 
          was enacted as part of a larger budget compromise, and was not 
          vetted through legislative policy committees.  The provision of 
          AB 1612 permitting an authorized representative to sign a waiver 
          on behalf of a recipient to enable them to personally provide 
          IHSS services does give the appearance of a conflict of 
          interest.  In effect, however, what this provision does is to 









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          simply create a de facto exception to the Tier 2 exclusions for 
          parents of minors and other authorized representatives.  This 
          bill, with specified exceptions, would eliminate that exception.

           Effect of this bill  :  Existing law permits a provider applicant 
          to sign the waiver form if the applicant is also the recipient's 
          authorized representative.  As most recently amended, this bill 
          would add the proviso that "Except for a parent, guardian, or 
          person having legal custody of a minor recipient, a conservator 
          of an adult recipient, or a spouse or registered domestic 
          partner of a recipient, a provider applicant shall not sign his 
          or her own individual waiver form as the recipient's authorized 
          representative."  To understand the effect of this bill it is 
          necessary to understand who can be an "authorized 
          representative."  The term is not defined in the statutes or 
          regulations governing the IHSS program.

          By common usage, an authorized representative is an individual 
          authorized by law (e.g., the parent or guardian of a minor), or 
          designated either by the individual (e.g., through a power of 
          attorney, advance health care directive, contract) or by an 
          entity with authority to appoint someone to act on behalf of the 
          individual (e.g., a court-appointed conservator).  In the health 
          care context, legally recognized surrogate decision-makers 
          include spouses and registered domestic partners, and may also 
          include immediate family members, relatives, significant others, 
          and close friends.

          Under this bill, authorized representatives of recipients who 
          lack capacity to sign a waiver, and who do not meet one of the 
          specified exceptions, would be unable to sign the waiver to 
          provide IHSS services themselves based on a Tier 2 felony 
          conviction within the prior 10 years.  As authorized 
          representatives, however, they could still sign a waiver 
          authorizing someone else who has a Tier 2 felony conviction to 
          be a provider for their own child, relative, etc.  Thus, this 
          bill would narrow the waiver exception to the Tier 2 felony 
          exclusion by disqualifying some authorized representatives.  
          Because "authorized representative" is not defined in applicable 
          statutes or regulations, however, this provision is vague; 
          although, this is true of the current statute, which permits 
          waivers to be signed by any authorized representative.

          However it is defined, excluding people who are authorized 









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          representatives will exclude those who would, in most instances, 
          be the most appropriate providers:  E.g., parents or guardians 
          of minor children; parents of adults, siblings, spouses, 
          registered domestic partners, or adult children-including those 
          who have been court-appointed as conservators; and trusted 
          friends or relatives selected by an IHSS recipient prior to 
          becoming incapacitated to act as his or her health care agent.  
          Under this bill, non-exempted authorized representatives would 
          have the greatest obstacles to becoming an IHSS provider and 
          would have to go through the far more cumbersome and lengthy 
          state-level general exception process, where the outcome is far 
          less certain.  As a result of the recent amendment exempting 
          parents of minors and other delineated authorized 
          representatives from the prohibition on submitting a waiver on 
          their own behalf, however, these concerns with this bill have 
          been significantly mitigated.

           Is this bill necessary?  :  According to DSS data, as of early May 
          2011, only 162 new provider applicants statewide (out of, 
          perhaps, 30,000 applicants<1>) had been deemed ineligible based 
          on Tier 2 offenses, and only 68 waivers had been submitted in 
          the approximately three months since the effective date of AB 
          1612.  This data dispels the myth that the IHSS program is 
          rampant with dangerous felons working as providers for seniors 
          and people with disabilities.  The data also shows that the 
          issue addressed by this bill is insignificant in terms of the 
          number of people affected, since only a small (albeit unknown) 
          fraction of the 68 waivers submitted were likely signed by an 
          authorized representative seeking to be a provider.
           

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


                                                                FN: 0000627


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          <1> The California Association of Public Authorities for IHSS 
          reports that there is a turnover of roughly one-third of the 
          IHSS provider pool each year.  Assuming a turnover of 120,000 
          providers a year, or 10,000 per month, there would have been 
          approximately 30,000 new provider applicants subject to the Tier 
          2 exclusions from February 1, 2011, the effective date of AB 
          1612, through the beginning of May 2011. 








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