BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1714
                                                                  Page  1

          Date of Hearing:   April 18, 2012

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                Felipe Fuentes, Chair

                  AB 1714 (Halderman) - As Amended:  March 27, 2012 

          Policy Committee:                              Human 
          ServicesVote:4 - 2 

          Urgency:     No                   State Mandated Local Program: 
          Yes    Reimbursable:              Yes

           SUMMARY  

          Current law prohibits individuals who have been convicted of 
          certain crimes from working as In-Home Supportive Services 
          (IHSS) providers, unless they submit a signed waiver from the 
          recipient who hires them.  This bill adds felony forgery, felony 
          embezzlement, felony extortion and felony identify theft to the 
          list of offenses which require a waiver. 

           FISCAL EFFECT  

          1)Currently, there are over 500,000 registered IHSS providers. 
            To date there have been 747 potential providers who are 
            ineligible due to being convicted of one of the 106 current 
            Tier 2 felonies.  In addition, there are 516 providers with 
            felony convictions who were provided with waivers.  Given the 
            small number of excluded providers, it is unlikely that adding 
            four additional crimes to the list of felonies would result in 
            significant workload costs or reduction in the pool of 
            providers. 

          2)Potential minor nonreimbursable costs to counties for 
            prosecution and incarceration related to violations of the 
            bill's provisions, offset to some extent by fine revenues. 
            (The bill expands provisions of current law, the violation of 
            which is a misdemeanor.)

           COMMENTS  

           1)Purpose  . The intent of this legislation is to add four felony 
            crimes (embezzlement, forgery, extortion and identify theft) 
            perpetrated against an individual who is neither elderly nor a 








                                                                  AB 1714
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            dependent adult to the list of Tier 2 felonies that bar an 
            individual from serving as an IHSS provider for 10 years, 
            unless the IHSS recipient signs a waiver. 

            The author contends, "The state should not allow those 
            convicted of identity theft to have easy access to the 
            financial documents of an elderly or disabled Californian.  AB 
            1714 provides necessary protection to IHSS recipients and 
            keeps them from being victimized by financial predators at 
            taxpayer expense."

           2)Background  . The 2009 IHSS budget trailer bill, ABX4 19 
            (Evans), Chapter 17, Statutes of 2009 4th Extraordinary 
            Session, included provisions intended to prevent fraud, and 
            enhance the integrity of the IHSS program.  As a condition of 
            being placed or maintained on a county's IHSS provider 
            registry, ABX4 19 required 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.  

           3)Tier 1 Crimes  . Under 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.)  Among these 
            specified crimes are offenses contained in this legislation.  
            However, they are only considered Tier 1 offenses if those 
            crimes were perpetrated against an elder or dependent adult.  

           4)Tier 2 Crimes  . The 2010 human services budget trailer bill, AB 
            1612 (Committee on Budget), Chapter 725, Statutes of 2010, 
            provided 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 
            provided that a recipient who wishes to employ a provider 
            applicant who has been convicted of such an offense may seek 








                                                                  AB 1714
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            from the county an individual waiver of the exclusion.  The 
            waiver form must be signed by the recipient or by the 
            recipient's authorized representative.  In signing a waiver, 
            the individual agrees that he or she accepts the 
            responsibility for this decision and the risk of any potential 
            actions that may occur as a result of this decision.  

           5)Opposition  . Opponents argue that it is currently difficult to 
            find a pool of qualified and willing IHSS providers given the 
            fact that home care work is difficult, has high injury rates, 
            and low rates of pay. Their concern is that adding additional 
            restrictions will further reduce the pool of available 
            workers.  


           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916) 
          319-2081