BILL ANALYSIS                                                                                                                                                                                                    �




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de Le�n, Chair


          AB 1703 (Hall) - IHSS: reading services.
          
          Amended: May 23, 2014           Policy Vote: Human Services 4-0
          Urgency: No                     Mandate: No
          Hearing Date: August 4, 2014                            
          Consultant: Jolie Onodera       
          
          This bill meets the criteria for referral to the Suspense File.


          Bill Summary: AB 1703 would include assistance in reading and  
          completing financial and other documents which are essential to  
          activities of daily living (ADL) for a recipient of the In-Home  
          Supportive Services (IHSS) Program who is blind or visually  
          impaired, or who has another disability that significantly  
          impairs his or her ability to read.

          Fiscal Impact: 
              Potentially major ongoing costs of about $18 million  
              (General Fund/Federal) to fund additional authorized IHSS  
              provider hours for reading assistance services to legally  
              blind, visually impaired, or other qualified individuals  
              eligible for the service. This cost assumes approximately  
              two percent of the IHSS caseload, or 10,000 individuals, who  
              are legally blind, as well as 30,000 additional IHSS  
              recipients who may qualify for the service are authorized  
              for an additional 3 hours per month. 
              Near-term potentially significant county administrative  
              costs (Federal/General Fund) to assess all current IHSS  
              recipients who are visually impaired, blind, or otherwise  
              disabled for eligibility for this new service. Future  
              ongoing costs are estimated to decline once the existing  
              caseload is assessed.
              Unknown but potentially significant one-time costs for  
              automation changes.
              Minor one-time costs to DHCS to submit the request for  
              federal approval of this service. To the extent federal  
              approval is not received, all costs would be borne by the  
              General Fund.

          Background: Existing law provides for the In-Home Supportive  
          Services (IHSS) program through which qualified aged, blind, or  








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          disabled individuals receive supportive services enabling them  
          to remain in their own homes. Existing law defines the scope of  
          supportive services under the IHSS program to include heavy  
          cleaning, personal care services, accompaniment by a provider  
          when needed during necessary travel to health-related  
          appointments or to alternative resource sites, yard hazard  
          abatement, protective supervision, teaching and demonstration  
          directed at reducing the need for other supportive services, and  
          paramedical services which make it possible for the recipient to  
          establish and maintain an independent living arrangement.

          Under existing law, county welfare departments are required to  
          provide visually impaired applicants and recipients with  
          information on, and referral services to, entities that provide  
          reading services to visually impaired persons. 

          Proposed Law: This bill would include assistance in reading and  
          completing financial and other documents which are essential to  
          ADL for a recipient of the IHSS Program who is blind or visually  
          impaired, or who has another disability that significantly  
          impairs his or her ability to read.

          This bill requires the Director of Health Care Services (DHCS)  
          to seek any federal approvals necessary to ensure that Medicaid  
          funds may be used in implementing the provisions of this  
          measure.

          Prior Legislation: AB 238 (Beall) 2007 was substantially similar  
          to this bill and was vetoed by the Governor with the following  
          message:

          I strongly support the In-Home Supportive Services program which  
          provides services to low-income aged, blind or disabled persons  
          so they can remain safely in homes. My Administration has worked  
          hard to secure more than 1.7 billion in federal funds to protect  
          these important services. However, I cannot support expanding  
          the program's scope to include reading services. This expansion  
          would add more than one million dollars in new costs at a time  
          of ongoing budget challenges. We must balance our need for  
          important program services with our fiscal reality. For these  
          reasons, I am returning AB 238 without my signature.
          
          Staff Comments: By expanding the scope of authorized IHSS  
          program services to include assistance in reading and completing  








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          financial and other documents which are essential to ADL for a  
          recipient who is blind, visually impaired, or who has another  
          disability that significantly impairs his or her ability to  
          read, this bill will result in an increase in authorized IHSS  
          hours and costs for IHSS provider wages, including the provision  
          of overtime pay, if necessary.

          The DSS has indicated two percent of the IHSS caseload is  
          legally blind, or about 10,000 individuals. This bill also  
          extends eligibility for assistance in reading and completing  
          financial and other documents to recipients who have "another  
          disability" that significantly impairs his or her ability to  
          read. It is estimated an additional 30,000 IHSS recipients could  
          qualify for this service under an assessment meeting this  
          standard. Assuming the 40,000 IHSS recipients are authorized for  
          the new reading service at three hours per month would result in  
          annual costs of nearly $18 million (General Fund/Federal Fund)  
          to fund additional IHSS provider hours for reading assistance  
          services. To the extent federal approval is not received for  
          this service under the IHSS program, all costs would be borne by  
          the General Fund.

          To the extent a portion of the existing IHSS caseload would  
          request reassessment for potential eligibility for this service  
          upon enactment of this bill would result in a short-term  
          increase in county social worker costs to reassess IHSS  
          recipients for this new service.

          The addition of this new supportive service will also likely  
          require automation changes to existing systems which could  
          result in potentially significant one-time costs.