BILL ANALYSIS
AB 16
Page 1
ASSEMBLY THIRD READING
AB 16 (Honda)
As Amended May 28, 1999
Majority vote
HUMAN SERVICES 6-2 APPROPRIATIONS 13-7
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|Ayes:|Aroner, Ducheny, Dutra, |Ayes:|Migden, Cedillo, |
| |Floyd, Shelley, | |Longville, Hertzberg, |
| |Strom-Martin | |Kuehl, Papan, Romero, |
| | | |Jackson, Steinberg, |
| | | |Thomson, Wiggins, Wright, |
| | | |Aroner |
| | | | |
|-----+--------------------------+-----+--------------------------|
|Nays:|Ashburn, Kaloogian |Nays:|Brewer, Ashburn, Battin, |
| | | |Ackerman, Maldonado, |
| | | |Runner, Zettel |
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SUMMARY : Changes the state's share of cost for In Home
Supportive Services (IHSS). Specifically, this bill :
1)Requires the state to share in the cost of services provided
by a public authority or nonprofit consortium at the same rate
it pays for other forms of IHSS delivery.
2)Requires the state, for the 1999-2000 fiscal year and all
future fiscal years, to reimburse counties that have public
authorities, nonprofit consortia, or contracts for the cost of
increased wages and benefits for IHSS workers, provided the
county spends at least the amount it accrues in savings during
that fiscal year due to the receipt of federal funding for
IHSS share-of-cost recipients.
EXISTING LAW :
1)Establishes the IHSS program within the Department of Social
Services (DSS) to provide personal care services and domestic
assistance to eligible aged, blind, and disabled individuals
who would otherwise be unable to remain safely in their homes.
Provides services with no cost to SSI/SSP recipients.
Requires those with higher incomes to pay a share of the cost.
AB 16
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2)Authorizes counties to deliver IHSS through any of the
following modes of delivery:
a) individual providers (IPs) hired by the recipient;
b) private agencies under contract with the county; or
c) county social service staff.
3)Authorizes counties that use the IP mode to establish a public
authority or nonprofit consortium to administer the program
and requires them to:
a) operate a registry of IPs;
b) screen potential IPs;
c) provide for training of IPs and recipients; and
d) perform any other necessary functions.
4)Establishes the public authority or nonprofit consortium as
the employer of record for the purpose of collective
bargaining by individual providers.
5)Funds approximately 60 percent of the IHSS caseload through
the personal care option of the federal Medicaid program and
requires non-federal costs to be shared by the state and
county at a ratio of 65/35.
6)Specifies that any cost due to increased provider wages or
benefits negotiated by a public authority or nonprofit
consortium shall be paid by the county, without any state
share, unless otherwise provided for in the annual Budget Act.
FISCAL EFFECT : According to the Assembly Appropriations
Committee, the General Fund cost could be up to $94 million, but
could be less depending on the extent of wage and benefit
increases granted by counties.
COMMENTS : This bill is sponsored by IHSS Agenda '99, a
coalition of 38 organizations representing seniors, disabled
persons, and labor organizations. The Coalition has met
annually for the last three years in order to identify common
goals for improving the IHSS program.
AB 16
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Public authorities have been established in San Mateo, Alameda,
San Francisco, Contra Costa, and Los Angeles counties. A public
authority is under consideration by Sacramento County, pending
further information regarding how it will be funded. The
Service Employees International Union (SEIU) represents IHSS
individual providers in all the public authority counties.
Federal funds pay for only a portion of the IHSS program because
federal law prohibits the use of Medicaid funds to pay providers
who are family members. Prior to last year the state also chose
not to use Medicaid funds to pay for "share-of-cost" recipients
- those whose income is above the SSI/SSP level and pay
out-of-pocket for a portion of their services. Last year, in
the annual Budget Act, the Legislature and Governor agreed to
begin paying for share-of-cost recipients with Medicaid funds.
This moved approximately 15,600 IHSS cases from state and
county-only funding to 50 percent federal funding, resulting in
savings for both the state and counties. This bill targets the
county savings to partially fund wage and benefit increases in
public authority counties.
Analysis Prepared by : Sherry Novick / HUM. S. / (916) 319-2247
FN: 0001546