BILL ANALYSIS                                                                                                                                                                                                    �



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          ASSEMBLY THIRD READING
          AB 1714 (Halderman)
          As Amended  March 27, 2012
          Majority vote 

           HUMAN SERVICES      4-2         APPROPRIATIONS      9-6         
           
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          |Ayes:|Beall, Jones, Grove,      |Ayes:|Fuentes, Harkey,          |
          |     |Portantino                |     |Blumenfield, Charles      |
          |     |                          |     |Calderon, Donnelly,       |
          |     |                          |     |Nielsen, Norby, Solorio,  |
          |     |                          |     |Wagner                    |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Ammiano, Hall             |Nays:|Bradford, Gatto, Hall,    |
          |     |                          |     |Hill, Lara, Mitchell      |
           ----------------------------------------------------------------- 

           SUMMARY  :  Adds forgery, embezzlement, extortion, and identity 
          theft to the list of felony offenses for which a conviction 
          precludes a new applicant from being an In-Home Supportive 
          Services (IHSS) provider for a period of 10 years.

           EXISTING LAW  : 

          1)Establishes the IHSS program to provide personal services and 
            home care for approximately 445,000 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 and 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.









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          3)Prohibits, under W&I Code Section 12305.87, a new provider 
            applicant from providing supportive 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)Permits a recipient of IHSS services who wishes to hire a 
            provider applicant who has been convicted of an offense 
            described in 3) above, to submit an individual waiver of the 
            exclusion, signed by the recipient or the recipient's 
            authorized representative, if applicable.

          5)Prohibits a provider applicant from signing his or her own 
            individual waiver form as the recipient's authorized 
            representative unless the individual is the 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 the recipient.

          6)Authorizes an applicant convicted of an offense described in 
            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 3) 
            above, of the criminal convictions and requires the notice to 
            include the following:

             a)   An explanation of the exclusions described in 3) above, 
               as well as the waiver process and the process for an 








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               applicant to seek a general exception; and,

             b)   A waiver form.

           FISCAL EFFECT  :  According to the Assembly Appropriations 
          Committee:

          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  :  The 2009 IHSS budget trailer bill, AB 19 X4 (Evans), 
          Chapter 17, Statutes of 2009-10 Fourth Extraordinary Session, 
          included 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, AB 19 
          X4 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.  

          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.)  The 2010 human services budget trailer bill, AB 
          1612 (Budget Committee), 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 








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          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.  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.  

          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 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."  AB 876 (Valadao), Chapter 73, Statutes of 2011, 
          added the provision that, except in the case of 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 the recipient, a provider applicant shall 
          not sign his or her own individual waiver form as the 
          recipient's authorized representative.  Persons convicted of 
          Tier 2 offenses also have the option of seeking a general 
          exception to the exclusions, under prescribed procedures and 
          criteria.

          Consistent with federal law, state law already disqualifies an 
          individual from being an IHSS provider for a period of 10 years 
          if the person has been convicted of fraud theft, embezzlement, 
          forgery fraud, or identify theft with respect to the property or 
          personal identifying information of an elder or dependent adult. 
           These are Tier 1 offenses, meaning, for example, they apply to 
          all providers, not only new applicants, the exclusion cannot be 
          waived by the IHSS recipient, and DSS may not grant general 
          exceptions.

          This bill would classify forgery, embezzlement, extortion, and 
          identity theft as Tier 2 offenses when the victim of the prior 
          offense was not a dependent adult or 65 years of age or older.  
          The presumption is that individuals who have committed such 
          crimes-even against non-dependent adults or non-elders-would be 
          more likely to victimize recipients of IHSS services by similar 
          means.








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


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