BILL ANALYSIS                                                                                                                                                                                                    �






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                            Senator Carol Liu, Chair


          BILL NO:       SB 893                                      
          S
          AUTHOR:        Wolk                                        
          B
          VERSION:       May 11, 2011
          HEARING DATE:  June 14, 2011                               
          8
          FISCAL:        Governance and Finance; Appropriations; 
          2/3rds         9
                                                                     
          3
          CONSULTANT:                                                
          Hailey
                                        

                                     SUBJECT
                                         
                Health and Human Services System Improvement and 
                           Accountability Act of 2011


                                     SUMMARY  

          Directs the California Health and Human Services Agency to 
          establish a "review system" for programs administered by 
          state and local agencies, utilize a workgroup to draft an 
          implementing work plan, and establish an information 
          sharing plan in support of the review system.


                                     ABSTRACT  

           Current law
           1.  Establishes the California Health and Human Services 
          Agency, with 10 departments, the Office of Statewide Health 
          Planning and Development, the Office of Systems 
          Integration, and the State Council on Developmental 
          Disabilities.  (Government Code Section 12803) 

          2.  Provides for a secretary of the agency, who is an 
          appointee of the governor, approved by the Senate, and is 
                                                         Continued---



          STAFF ANALYSIS OF SENATE BILL 893   (Wolk)            Page 
          2


          

          responsible to the governor for the operations of each 
          department, office, and unit within the agency; the ten 
          departments are Health Care Services, Mental Health, 
          Developmental Services, Public Health, Social Services, 
          Alcohol and Drug Abuse, Aging, Rehabilitation, Community 
          Services and Development, and Child Support Services.  
          (Government Code Section 12850)

          3.  Assigns to the secretary responsibilities including 
                 advising the governor on major policy and program 
               matters, 
                 serving as the principal communication link between 
               the governor and each department within the agency,
                 ensuring sound fiscal management of each department 
               within the agency,
                 reviewing and evaluating systems within the agency 
               for the payment and computation of benefits (while 
               determining the adequacy and effectiveness of the 
               payment systems), and
                 reporting to the governor on legislative, 
               budgetary, and administrative programs to accomplish 
               comprehensive long-range, coordinated planning and 
               policy formulation.  (Government Code Sections 12850 
               through 12852)

           This bill
           1.  Makes findings and declarations including statements 
          that:
             a. publicly-funded programs are not systematically 
             evaluated, performance and outcomes are not routinely 
             documented, and successful programs are not consistently 
             replicated; and,
             b. this lack of information on performance, the 
             cost-effectiveness, and best practices undermines 
             opportunities to improve programs and ensure the best 
             use of limited resources.

          2.  Directs the agency to establish, by December 1, 2013, 
          the California Health and Human Services Review System in 
          order to review periodically the health and human service 
          programs administered by the state and local agencies.

          3.  Requires that these reviews include, but not be limited 
          to, mental health, substance abuse treatment, 
          rehabilitation, developmental programs, public health, 




          STAFF ANALYSIS OF SENATE BILL 893   (Wolk)            Page 
          3


          

          child support, programs for the aging, health care, and 
          children's programs, and that the review extend to programs 
          provided by local agencies, joint powers agencies, regional 
          agencies, or nonprofit entities under contract with local 
          agencies.

          4.  Directs the agency, by June 1, 2012, to convene a 
          workgroup to draft a work plan to implement the system.

          5.  Prescribes membership of the workgroup to include 
          representatives of departments within the agency, outside 
          departments and commissions, local governments and regional 
          entities, various state associations, tribal entities, 
          advocacy organizations, including those working on equity 
          in access, and researchers conversant with public sector 
          accountability.

          6.  Directs the workgroup, in drafting a work plan, to 
          consider various aspects of planning and evaluation: 
          outcomes, performance measures, thresholds, geographic and 
          demographic indicators, timelines, technical assistance, 
          transparency, and statutory changes needed to implement the 
          bill's requirements.

          7.  Prescribes some of the outcomes that must be included 
          in the work plan: measures of employment, education, 
          housing and homelessness, health, safety, and criminal 
          justice involvement.

          8.  Requires the agency to report its progress to the 
          Legislature annually from 2013-14 through 2016-17.

          9.  Directs the agency to establish mechanisms to identify 
          and promote the replication of best practices in the 
          delivery of health and human services under its 
          jurisdiction, including: goals and objectives of promoting 
          best practices, a strategy to identify and promote the use 
          of best practices, a staffing plan, and identification of 
          those factors beyond the agency's control that could 
          significantly affect the achievement of the goals and 
          objectives.

          10.  Directs the agency secretary to establish an 
          information-sharing plan that: enables the exchange of 
          information among state and local agencies, provides 




          STAFF ANALYSIS OF SENATE BILL 893   (Wolk)            Page 
          4


          

          information on the costs and effectiveness of publicly 
          supported health and human services programs in California, 
          permits the Legislature and the public to monitor outcomes, 
          establishes a memorandum of understanding to permit the 
          sharing of information among units of government, and 
          includes provisions to protect the privacy of individuals.

          11.  Directs the California Research Bureau to conduct 
          research on data held by the agency or the departments that 
          make up the agency.

          12.  Directs the agency secretary, in developing the 
          information-sharing plan, to consult with state and local 
          officials, clients and consumers who receive government 
          services, service providers, researchers, privacy experts, 
          the public, and others.

          13.  Requires the agency to transmit the 
          information-sharing plan to the Legislature by January 30, 
          2013.

          14.  Includes an urgency clause.


                                  FISCAL IMPACT  

          Unknown.


                            BACKGROUND AND DISCUSSION  

          The author's purpose and intent
          Under the governor's realignment proposal, counties are 
          encouraged to improve the integration of services, reduce 
          the cost of service delivery, and report information on 
          outcomes.  However, county leaders report to the author 
          that state statutes prevent local agencies from sharing 
          information on clients receiving multiple services.  The 
          bill will require the state to assess barriers to 
          information sharing and to develop a plan to facilitate 
          information sharing consistent with goals for realignment 
          and the need to report outcomes.

          In addition, the bill requires an outcome-reporting system 
          for health and human services programs so that, after 




          STAFF ANALYSIS OF SENATE BILL 893   (Wolk)            Page 
          5


          

          realignment, the state and counties will have a shared 
          understanding of the goals of health and human service 
          programs and how performance and outcomes will be measured 
          and monitored. 

          In designing this system of evaluation and review, the bill 
          requires the Health and Human Services Agency to consult 
          with representatives from local governments, tribal 
          entities, researchers, experts on outcome measures, clients 
          and families, and others.  By requiring the agency to 
          design the system by December 1, 2013, the bill gives 
          enough time to develop a viable and robust strategy to 
          monitor the performance and outcomes achieved through 
          California's health and human service programs.

          The bill also requires the agency to develop a strategy to 
          identify and promote best practices in the delivery of 
          services and then to use an information-sharing plan so 
          that counties can collect, share, and report the 
          information needed to meet the goals of realignment.

          A new purpose for the agency
          Earlier this year, the Governance and Finance Committee 
          held a hearing on realignment.  Testimony from Daniel 
          Hancock, the chair of the Little Hoover Commission, 
          provided philosophical underpinnings to SB 893.

          Among his remarks, Mr. Hancock said:
                 It is easier to integrate operations at the local 
               level and coordinate or consolidate programs that 
               focus on the same individuals or families.
                 The state must help counties set clear but flexible 
               goals for program outcomes.
                 Once services are realigned to counties, the 
               state's main responsibilities become developing 
               performance measures, monitoring quality, collecting 
               and analyzing data, cataloging best practices, and 
               holding counties accountable.
                 These new responsibilities give increased 
               importance to the state's information technology 
               systems.

          Child welfare: an example of performance evaluations and 
          focus on outcomes
          The author points to attention to outcomes in the child 




          STAFF ANALYSIS OF SENATE BILL 893   (Wolk)            Page 
          6


          

          welfare system, the result of AB 636 (Steinberg, Chapter 
          678, Statutes of 2001), as a positive example of what SB 
          893 will lead to across all programs administered by 
          departments within the Health and Human Services Agency.  
          
          Analogy to the passage of the Mental Health Services Act
          In 2004, voters passed the Mental Health Services Act, 
          which, in essence, realigned mental health services to 
          counties and left the state's Department of Mental Health 
          with the responsibility to design standards, provide 
          technical assistance, and assist with evaluation.

          The experience of other states
          The author points out that other states are focusing on 
          outcomes.
                 Virginia documents outcomes in a range of areas 
               important to quality of life.
                 Washington uses targeted outcomes, outcome reviews 
               and performance information as part on an initiative, 
               "Improving the Security of Washington's Vulnerable 
               Children and Adults."
                 Utah has an effort under way similar to 
               Washington's.
                 Maryland focuses on outcomes and performances in 
               its "StateStat" program.



                              COMMENT AND QUESTIONS

           
           Significance
           This bill would significantly shift the purpose and 
          resources of the California Health and Human Services 
          Agency.  In concert with realignment, the agency and an 
          increasing number of its departments would shift from 
          program management to the provision of technical 
          assistance.

           Suggested set of amendments
           Given the extensive scope of SB 893, staff recommends that 
          the bill be amended to focus the agency and this new review 
          system on those programs and services that are realigned to 
          counties.  Membership on workgroups would also be tailored 
          to those services included in realignment statutes.




          STAFF ANALYSIS OF SENATE BILL 893   (Wolk)            Page 
          7


          


           Technical changes
           The Senate Office of Engrossing and Enrolling has 
          identified small changes and corrections to make the next 
          time the bill is amended.


                                    POSITIONS  

          Support:       None received

          Oppose:   None received






                                   -- END --