BILL ANALYSIS �
AB 1863
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Date of Hearing: May 21, 2014
ASSEMBLY COMMITTEE ON APPROPRIATIONS
Mike Gatto, Chair
AB 1863 (Jones) - As Amended: May 7, 2014
Policy Committee: Human
ServicesVote:5 - 0
Urgency: No State Mandated Local Program:
Yes Reimbursable: No
SUMMARY
This bill, effective January 1, 2016, extends the Home Care
Services Consumer Protection Act (Act) created pursuant to last
year's AB 1217 (Lowenthal) to ensure that home care referral
agencies meet appropriate standards. Specifically, this bill:
1)Requires referral agencies to be licensed by the Department of
Social Services (DSS) and requires licensees to undergo a
criminal background check and receive a background clearance
prior to operation of an agency.
2)Makes provisions of the Act applicable to referral agencies
regarding licensure, fees, enforcement and fines, and
regulation of registered home care aides having agreements
with those agencies.
3)Requires DSS to post proposed regulations on its public
Internet website within 90 calendar days prior to the
effective date of the proposed rule.
FISCAL EFFECT
On-going costs to DSS, likely less than $100,000 (GF), for
workload associated with adding 200 to 300 licensees to the
framework established by last year's AB 1217. These costs could
be partially offset by fees DSS would be authorized to charge
under the proposed framework.
COMMENTS
1)Purpose . Last year, AB 1217 (Lowenthal), Chapter 790, Statutes
AB 1863
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of 2013 enacted a series of consumer protections for persons
seeking home care services from agencies that employ workers.
The bill did not apply to referral agencies that refer
independent workers to clients that are seeking home care
services. According to the author, this bill seeks "to extend
similar protections enacted by AB 1217 to the referral home
care agency, consistent with model's statutory, Employment
Development Department (EDD) and Internal Revenue Service
(IRS) requirements which govern independent workers. It is
appropriate that consumers enjoy a consumer protection
standard applied to the whole industry."
2)Background . Home care providers provide basic daily
non-medical living assistance, such as cooking, cleaning,
dressing, feeding, and other regular daily needs. The home
care provider industry has existed for many years, but has
grown recently as the nation's elderly population expands and
the demand for in-home care increases. Unlike their In-Home
Supportive Services (IHSS) and Home Health Agency (HHA)
counterparts, until AB 1217, there were no requirements in law
for home care aides to have minimum levels of training,
undergo criminal background checks, or comply with basic
standards of service.
Last year, AB 127 (Lowenthal) established a consumer
protection framework for home care agencies that directly
employ workers, but not for referral agencies that screen
independent workers before referring them to clients who need
home care. Despite efforts by the network of the Domestic
Referral Agencies to be added to AB 2117, that bill could not
easily incorporate referral agencies, in part because of the
differing IRS and EDD guidelines governing independent
workers.
This bill extends and tailors the consumer protection
provisions of AB 1217 to the referral agency model, consistent
with IRS and EDD requirements governing independent workers.
3)Prior Legislation .
a) AB 1217 (Lowenthal) Chapter 790, Statutes of 2013,
enacts the Home Care Services Consumer Protection Act,
which requires, on and after January 1, 2015, the licensure
and regulation of specified home care organizations by
Department of Social Services (DSS), and the registration
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of home care aides.
b) SB 211 (Price) would have established the Home Care
Services Act of 2012 (HCSA) requiring the Department of
Social Services (DSS) to license private agencies that
provide non-medical home care services, and to certify home
care aides. This bill was vetoed.
c) AB 322 (Yamada) 2013, was a reintroduction of AB 899
(Yamada, 2011). This bill was held on this committee's
Suspense File.
d) AB 899 (Yamada) 2011, would have established the Home
Care Services Act to license and regulate home care
services for the elderly, frail, and persons with
disabilities. This bill was held on this committee's
suspense file.
Analysis Prepared by : Jennifer Swenson / APPR. / (916)
319-2081