Bill Text: CA SB72 | 2011-2012 | Regular Session | Chaptered


Bill Title: Human services.

Spectrum: Unknown

Status: (Passed) 2011-03-24 - Chaptered by Secretary of State. Chapter 8, Statutes of 2011. [SB72 Detail]

Download: California-2011-SB72-Chaptered.html
BILL NUMBER: SB 72	CHAPTERED
	BILL TEXT

	CHAPTER  8
	FILED WITH SECRETARY OF STATE  MARCH 24, 2011
	APPROVED BY GOVERNOR  MARCH 24, 2011
	PASSED THE SENATE  MARCH 16, 2011
	PASSED THE ASSEMBLY  MARCH 16, 2011
	AMENDED IN ASSEMBLY  MARCH 14, 2011

INTRODUCED BY   Committee on Budget and Fiscal Review

                        JANUARY 10, 2011

   An act to amend Section 9205 of the Family Code, to amend Section
1417.2 of the Health and Safety Code, and to amend Sections 10533,
11253.5, 11265.2, 11266.5, 11320.15, 11320.3, 11320.32, 11322.63,
11325.71, 11329.5, 11450, 11450.02, 11454.5, 11487, 12301.3, 12301.4,
12302.25, 14132.97, 15525, and 17021 of, to amend and repeal
Sections 11327.5 and 11454 of, to add Sections 11323.25, 11450.025,
11454.2, 12200.03, 12309.1, 14132.956, and 14132.957 to, to add and
repeal Section 11334.8 of, to repeal Sections 11320.2 and 11322.64
of, to repeal Article 3.3 (commencing with Section 11330) of Chapter
2 of Part 3 of Division 9 of, to repeal and add Sections 12301.03 and
12301.05 of, and to repeal, amend, and add Section 11451.5 of, the
Welfare and Institutions Code, relating to human services, making an
appropriation therefor, and declaring the urgency thereof, to take
effect immediately, bill related to the budget.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 72, Committee on Budget and Fiscal Review. Human services.
   Existing law contains various provisions relating to the
disclosure of personal information between adoptees and their
biological siblings, the implementation of which is delayed until
July 1, 2011.
   This bill would delay implementation of these provisions, until
July 1, 2012.
   Existing law establishes the State Health Facilities Citation
Penalties Account into which moneys derived from civil penalties for
violations of state law are deposited. Moneys in this account may be
used, upon appropriation by the Legislature, for the protection of
health or property of residents of long-term health care facilities,
as specified.
   Existing law, the Mello-Granlund Older Californians Act,
establishes the Office of the State Long-Term Care Ombudsman in the
California Department of Aging. Existing law requires the department
to allocate all federal and state funds for local ombudsman programs
according to a specified schedule.
   This bill, upon appropriation by the Legislature, would include
the costs associated with the Long-Term Care Ombudsman Program among
the uses of the moneys in the State Health Facilities Citation
Penalties Account.
   Existing federal law provides for allocation of federal funds
through the federal Temporary Assistance for Needy Families (TANF)
block grant program to eligible states. Existing law provides for the
California Work Opportunity and Responsibility to Kids (CalWORKs)
program under which, through a combination of state and county funds
and federal funds received through the TANF program, each county
provides cash assistance and other benefits to qualified low-income
families.
   Existing law requires the State Department of Social Services,
commencing July 1, 2011, to establish a CalWORKs county peer review
process. Existing law requires the department to implement the
process statewide no later than July 1, 2012.
   This bill instead would require the department to establish the
peer review process commencing July 1, 2013, and to implement the
process statewide no later than July 1, 2014.
   Existing law provides that a parent or caretaker relative shall
not be eligible for CalWORKs aid when he or she has received aid for
a cumulative total of 60 months. Existing law excludes any month in
which certain conditions exist from being counted as a month of
receipt of aid for these purposes.
   This bill would revise the requirements for providing aid under
the CalWORKs program, including reducing the existing time limits on
receipt of aid with a 48-month limit for parents and caregiver
relatives, except as specified. The bill would make conforming
changes, including, but not limited to, eliminating self-sufficiency
reviews, and revising provisions relating to sanctions and general
assistance, to reflect the shortened CalWORKs time limits. The bill
would apply the revised time limits to all months of CalWORKs aid
received on and after January 1, 1998, except as specified. The bill
would make the time limit revisions operative on the first day of the
first calendar month following 90 days after the effective date of
the bill, or June 1, 2011, whichever is later.
   This bill would require county welfare departments to provide a
specified notice regarding the revised time limit requirements, thus
imposing a state-mandated local program.
   Existing law provides that when aid under the CalWORKs program is
repaid to a county or recovered by a county, the state is entitled to
a share of the amount received or recovered, proportionate to the
amount of state funds paid. If funds advanced by the federal
government were paid, existing law entitles the federal government to
a share of the amount received or recovered, proportionate to the
amount of federal funds paid. Existing law excepts from the above
requirement designated payments from noncustodial parents for child
or spousal support with respect to whom a specified assignment of
support rights has been made, and requires those payments to be paid
directly to the local child support agency and not to the family.
   This bill would delete the exception for child and spousal
support. It would entitle the state to the entire amount of any aid
repaid to the state, except where federal and county funds were paid,
in which case the federal government would remain entitled to a
proportionate share of the amount received or recovered and the
county would remain entitled to its proportionate share, except for
county funds received or recovered during the 2011-12 fiscal year,
which would be retained by the state.
   Existing law requires the State Department of Social Services to
administer a voluntary Temporary Assistance Program (TAP) to provide
cash assistance and other benefits to specified current and future
CalWORKs recipients who meet the exemption criteria for participation
in welfare-to-work activities and are not single parents who have a
child under one year of age. Existing law requires the TAP to
commence no later than October 1, 2012.
   This bill would delay the commencement date of the TAP until
October 1, 2014.
   Existing law makes specified findings and declarations with
respect to the effect of decreased funding for CalWORKs for the
2009-10 and 2010-11 fiscal years. In connection with this decreased
funding, existing law extends certain exemptions from months counted
as a month of receipt of aid, and allows counties to redirect funding
between specified employment assistance and substance abuse
treatment programs during the specified fiscal years.
   This bill would extend the above provisions to apply to specified
decreases in CalWORKs funding for the 2011-12 fiscal year. The bill
would authorize a county to revise a specified welfare-to-work
exemption in order to implement the county's portion of this funding
reduction.
   Existing law requires recipients of aid under the CalWORKs program
who are under 19 years of age who are pregnant or custodial parents
to participate in certain educational programs, which are referred to
as the Cal-Learn Program. Under existing law, a Cal-Learn Program
participant is entitled to monetary supplements or bonuses, as
specified, for maintaining satisfactory educational progress, and
successfully completing high school or a California high school
equivalency examination.
   This bill would make the Cal-Learn Program inoperative from July
1, 2011, to June 30, 2012, inclusive, with the exception of the
payment of supplements and bonuses to eligible participants. These
provisions making the Cal-Learn Program inoperative would be repealed
on July 1, 2012, as specified. The bill would repeal related
inoperative provisions. This bill would authorize implementation of
the Cal-Learn provisions by all-county letters or similar
instructions from the department, pending the adoption, by July 1,
2012, of emergency regulations.
   Existing law requires certain participants in the CalWORKs program
to participate in certain welfare-to-work activities, which may
include, but are not limited to, subsidized employment in either the
public or private sector. Existing law requires the department to pay
50% of the wage subsidy to counties that include these activities
within their welfare-to-work activities, subject to prescribed
limitations. Existing law also requires the department, no later than
January 10, 2011, to report to the Legislature on the outcomes of
implementing these provisions.
   This bill would revise the requirements relating to the state's
financial participation in subsidized employment programs, including
requiring the department to pay 50%, less $56, of the total wage
costs, as defined, of an employee for whom a wage subsidy is paid, as
opposed to a percentage of the wage subsidy alone. The bill would
establish maximum state contribution standards for subsidized wage
program participants receiving CalWORKs benefits, for participants
who have exceeded applicable time limits for receipt of aid, and for
those who are participating in subsidized employment as a part of
continuing welfare-to-work services provided by a county to former
CalWORKs participants who have become employed, as specified.
   This bill would specify applicable income exemption and work
requirements when an assistance unit applies for CalWORKs benefits
after a participant's subsidized employment ends.
   Existing law establishes maximum aid grant amounts to be provided
under the CalWORKs program, subject to specified adjustments.
Existing law reduces the maximum aid payments in effect on September
1, 2007, by 4%, commencing July 1, 2009.
   This bill would reduce the maximum aid payments in effect on July
1, 2009, by an additional 8%, and would authorize implementation of
this reduction by all-county letters or similar instructions from the
State Department of Social Services, pending the adoption of
regulations, as specified. The bill would require 3 subsequent 5%
reductions to the computed aid grants for assistance units that do
not include an aided adult, in the 61st, 73rd, and 85th cumulative
months of aid. The bill would exempt assistance units in which all
parents or caretaker relatives in the assistance unit are disabled
and receiving SSI/SSP benefits from these subsequent reductions.
   Existing law provides that certain amounts are exempt from the
calculation of income of the family for purposes of determining
eligibility for benefits under the CalWORKs program. These exempt
amounts include $225 of disability-based unearned income, and an
amount of otherwise exempt earned income that is determined based on
the amount of disability-based unearned income, as specified.
   This bill would revise the above earned income calculation when
the amount of disability-based unearned income is less than $225, to
exempt the total amount of the disability-based unearned income plus
the lesser of (1) $112 of earned income that is not otherwise exempt,
or (2) the amount of otherwise nonexempt earned income that
represents the difference between the amount of unearned
disability-based income and $225, and 50% of any additional earned
income.
   Existing law provides for the State Supplementary Program for the
Aged, Blind and Disabled (SSP), which requires the State Department
of Social Services to contract with the United States Secretary of
Health and Human Services to make payments to SSP recipients to
supplement Supplemental Security Income (SSI) payments made available
pursuant to the federal Social Security Act. State payment levels
for SSI/SSP recipients are established in accordance with prescribed
requirements. Existing law also establishes the Medi-Cal program,
which is partially governed and funded pursuant to the federal
Medicaid Program.
   This bill would require SSI/SSP rates for individuals to be
reduced to equal the minimum amount required by the federal Social
Security Act in order to maintain the state's eligibility for federal
Medicaid funding, subject to prescribed exceptions. The bill would
make this reduction effective on the first day of the first month
following 90 days after the effective date of the bill.
   Existing law provides for the In-Home Supportive Services (IHSS)
program, under which, either through employment by the recipient, or
by or through contract by the county, qualified aged, blind, and
disabled persons receive services enabling them to remain in their
own homes. Counties are responsible for the administration of the
IHSS program. Under the Medi-Cal program, similar services are
provided to eligible individuals, with these services known as
personal care option services.
   Existing law, with certain exceptions, requires each county to
appoint an IHSS advisory committee of 11 members, establishes the
qualifications of its members, and sets forth its duties. Existing
law makes counties eligible for state reimbursement of administrative
costs of the committee. Existing law requires each county to
consider the advice of the committee prior to making policy and IHSS
funding decisions.
   This bill would delete the provisions requiring establishment of
the committee, would instead authorize appointment of an IHSS
advisory committee, would delete provisions requiring state
reimbursement for the costs of the committee, and would make
conforming changes.
   This bill would require the State Department of Health Care
Services to establish a medication machine pilot project for certain
at-risk Medi-Cal recipients, as specified, and would designate the
duties of the department in this regard. The bill would require the
Department of Finance to perform specified functions and make related
notifications, in connection with determining and evaluating savings
to the General Fund as a result of the implementation of the pilot
project. The bill would authorize the State Department of Health Care
Services to terminate the pilot project under designated
circumstances.
   Existing law authorized an individual who was eligible for IHSS
services in the 1992-93 fiscal year, and who had his or her services
reduced pursuant to specified provisions, but who believed that he or
she was at serious risk of out-of-home placement unless all or part
of the reduced hours were restored, to apply for an IHSS Care
Supplement, as specified.
   This bill would recast and revise these provisions, to instead
require, if the medication machine pilot project established pursuant
to the bill does not result in specified General Fund savings, as
determined by the Department of Finance, a reduction in authorized
hours of service to all recipients of in-home supportive services, as
specified, which would be operative on October 1, 2012, or the first
day of the first month following 90 days after the effective date of
the bill, whichever is later. The bill would authorize an individual
whose services have been reduced, and who believes that he or she is
at serious risk of out-of-home placement, to submit an IHSS Care
Supplement application, in accordance with specified provisions, in
order to have all or part of the service hour reduction restored.
   This bill would revise the definition of "waiver personal care
services" received by certain recipients under the Medi-Cal program,
to distinguish those services from other categories of personal care
services provided under the Medi-Cal program, and would prohibit
waiver personal care services from replacing any hours of services
authorized or reduced pursuant to the other service categories.
   This bill would require an applicant or recipient of in-home
supportive services to obtain a certification from a licensed health
care professional, as specified, as a condition of receiving those
services. The bill would require the State Department of Social
Services, in consultation with the State Department of Health Care
Services, to develop a standard certification form for this purpose.
The bill would delay implementation of these certification provisions
until the receipt of specified federal approval, under prescribed
circumstances. To the extent that implementation of the certification
requirement would increase county duties in implementing the In-Home
Supportive Services program, this bill would impose a state-mandated
local program.
   Existing federal law authorizes states to exercise an option to
amend the state Medicaid plan to provide home- and community-based
attendant services and supports, as specified.
   This bill would require the department to assess and determine the
cost efficiency of exercising the federal option to provide home-
and community-based attendant services and supports. The bill would
require the department, if the department determines that exercise of
the federal option would be cost efficient, to establish a
development and implementation council, with specified membership,
and to consult and collaborate with the council in exercising the
federal option. This bill would authorize services and supports under
the option to be rendered under the administrative direction of
other state departments in accordance with the state plan amendment,
as specified. This bill would authorize implementation of these
provisions by all-county letters or similar instructions from the
director, pending the adoption of emergency regulations, as
specified.
   Existing law requires the State Department of Social Services to
establish a Work Incentive Nutritional Supplement (WINS) program,
under which each county is required to provide a $40 monthly
additional food assistance benefit for each eligible food stamp
household, as defined. The bill would require the state to pay the
counties 100% of the cost of WINS benefits, using funds that qualify
for the state's Temporary Assistance for Needy Families (TANF)
program maintenance of effort requirements, as specified. Existing
law prohibits WINS benefits from being paid before October 1, 2012,
and requires full implementation of the program on or before April 1,
2013.
   This bill would extend the time for payment of WINS benefits to
commence to October 1, 2013, and the time for full implementation of
the program to April 1, 2014.
   Existing law authorizes the director to implement the WINS program
by all-county letters by March 1, 2012, pending the adoption of
emergency regulations.
   This bill would extend the time for issuance of all-county letters
to March 1, 2013.
   Existing law requires the department to convene a workgroup on or
before December 1, 2011, comprised of designated representatives, to
consider the progress of the WINS automation effort in tandem with a
preassistance employment readiness system (PAERS) program and any
other program options that may provide offsetting benefits to the
caseload reduction credit in the CalWORKs program. Existing law
prohibits full implementation of the WINS program until the workgroup
is convened.
   This bill would extend the date by which the department is
required to establish the WINS/PAERS workgroup to December 1, 2012,
and would make conforming changes.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.
   The California Constitution authorizes the Governor to declare a
fiscal emergency and to call the Legislature into special session for
that purpose. Governor Schwarzenegger issued a proclamation
declaring a fiscal emergency, and calling a special session for this
purpose, on December 6, 2010. Governor Brown issued a proclamation on
January 20, 2011, declaring and reaffirming that a fiscal emergency
exists and stating that his proclamation supersedes the earlier
proclamation for purposes of that constitutional provision.
   This bill would state that it addresses the fiscal emergency
declared and reaffirmed by the Governor by proclamation issued on
January 20, 2011, pursuant to the California Constitution.
   This bill would declare that it is to take immediate effect as an
urgency statute and a bill providing for appropriations related to
the Budget Bill.
   Appropriation: yes.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 9205 of the Family Code is amended to read:
   9205.  (a) Notwithstanding any other law, the department or
adoption agency that joined in the adoption petition shall release
the names and addresses of siblings to one another if both of the
siblings have attained 18 years of age and have filed the following
with the department or agency:
   (1) A current address.
   (2) A written request for contact with any sibling whose existence
is known to the person making the request.
   (3) A written waiver of the person's rights with respect to the
disclosure of the person's name and address to the sibling, if the
person is an adoptee.
   (b) Upon inquiry and proof that a person is the sibling of an
adoptee who has filed a waiver pursuant to this section, the
department or agency may advise the sibling that a waiver has been
filed by the adoptee. The department or agency may charge a
reasonable fee, not to exceed fifty dollars ($50), for providing the
service required by this section.
   (c) An adoptee may revoke a waiver filed pursuant to this section
by giving written notice of revocation to the department or agency.
   (d) The department shall adopt a form for the request authorized
by this section. The form shall provide for an affidavit to be
executed by a person seeking to employ the procedure provided by this
section that, to the best of the person's knowledge, the person is
an adoptee or sibling of an adoptee. The form also shall contain a
notice of an adoptee's rights pursuant to subdivision (c) and a
statement that information will be disclosed only if there is a
currently valid waiver on file with the department or agency. The
department may adopt regulations requiring any additional means of
identification from a person making a request pursuant to this
section as it deems necessary.
   (e) The department or agency may not solicit the execution of a
waiver authorized by this section. However, the department shall
announce the availability of the procedure authorized by this
section, utilizing a means of communication appropriate to inform the
public effectively.
   (f) Notwithstanding the age requirement described in subdivision
(a), an adoptee or sibling who is under 18 years of age may file a
written waiver of confidentiality for the release of his or her name,
address, and telephone number pursuant to this section provided
that, if an adoptee, the adoptive parent consents, and, if a sibling,
the sibling's legal parent or guardian consents. If the sibling is
under the jurisdiction of the dependency court and has no legal
parent or guardian able or available to provide consent, the
dependency court may provide that consent.
   (g) Notwithstanding subdivisions (a) and (e), an adoptee or
sibling who seeks contact with the other for whom no waiver is on
file may petition the court to appoint a confidential intermediary.
If the sibling being sought is the adoptee, the intermediary shall be
the department or licensed adoption agency that provided adoption
services as described in Section 8521 or 8533. If the sibling being
sought was formerly under the jurisdiction of the juvenile court, but
is not an adoptee, the intermediary shall be the department, the
county child welfare agency that provided services to the dependent
child, or the licensed adoption agency that provided adoption
services to the sibling seeking contact, as appropriate. If the court
finds that the licensed adoption agency that conducted the adoptee's
adoption is unable, due to economic hardship, to serve as the
intermediary, then the agency shall provide all records related to
the adoptee or the sibling to the court and the court shall appoint
an alternate confidential intermediary. The court shall grant the
petition unless it finds that it would be detrimental to the adoptee
or sibling with whom contact is sought. The intermediary shall have
access to all records of the adoptee or the sibling and shall make
all reasonable efforts to locate and attempt to obtain the consent of
the adoptee, sibling, or adoptive or birth parent, as required to
make the disclosure authorized by this section. The confidential
intermediary shall notify any located adoptee, sibling, or adoptive
or birth parent that consent is optional, not required by law, and
does not affect the status of the adoption. If that individual denies
the request for consent, the confidential intermediary shall not
make any further attempts to obtain consent. The confidential
intermediary shall use information found in the records of the
adoptee or the sibling for authorized purposes only, and may not
disclose that information without authorization. If contact is sought
with an adoptee or sibling who is under 18 years of age, the
confidential intermediary shall contact and obtain the consent of
that child's legal parent before contacting the child. If the sibling
is under 18 years of age, under the jurisdiction of the dependency
court, and has no legal parent or guardian able or available to
provide consent, the intermediary shall obtain that consent from the
dependency court. If the adoptee is seeking information regarding a
sibling who is known to be a dependent child of the juvenile court,
the procedures set forth in subdivision (b) of Section 388 of the
Welfare and Institutions Code shall be utilized. If the adoptee is
foreign born and was the subject of an intercountry adoption as
defined in Section 8527, the adoption agency may fulfill the
reasonable efforts requirement by utilizing all information in the
agency's case file, and any information received upon request from
the foreign adoption agency that conducted the adoption, if any, to
locate and attempt to obtain the consent of the adoptee, sibling, or
adoptive or birth parent. If that information is neither in the
agency's case file, nor received from the foreign adoption agency, or
if the attempts to locate are unsuccessful, then the agency shall be
relieved of any further obligation to search for the adoptee or the
sibling.
   (h) For purposes of this section, "sibling" means a biological
sibling, half-sibling, or step-sibling of the adoptee.
   (i) Implementation of the amendments made to this section by
Chapter 386 of the Statutes of 2006 shall be delayed until July 1,
2012. It is the intent of the Legislature that implementation of some
or all of the changes made to Section 9205 of the Family Code by
Chapter 386 of the Statutes of 2006 shall continue, to the extent
possible.
  SEC. 2.  Section 1417.2 of the Health and Safety Code is amended to
read:
   1417.2.  (a) Notwithstanding Section 1428, moneys collected as a
result of state and federal civil penalties imposed under this
chapter or federal law shall be deposited into accounts that are
hereby established in the Special Deposit Fund created pursuant to
Section 16370 of the Government Code. These accounts are titled the
State Health Facilities Citation Penalties Account, into which moneys
derived from civil penalties for violations of state law shall be
deposited, and the Federal Health Facilities Citation Penalties
Account, into which moneys derived from civil penalties for
violations of federal law shall be deposited. Moneys from these
accounts shall be used, notwithstanding Section 16370 of the
Government Code, upon appropriation by the Legislature, in accordance
with state and federal law for the protection of health or property
of residents of long-term health care facilities, including, but not
limited to, the following:
   (1) Relocation expenses incurred by the department, in the event
of a facility closure.
   (2) Maintenance of facility operation pending correction of
deficiencies or closure, such as temporary management or
receivership, in the event that the revenues of the facility are
insufficient.
   (3) Reimbursing residents for personal funds lost. In the event
that the loss is a result of the actions of a long-term health care
facility or its employees, the revenues of the facility shall first
be used.
   (4) The costs associated with informational meetings required
under Section 1327.2.
   (5) Support for the Long-Term Care Ombudsman Program established
pursuant to Chapter 11 (commencing with Section 9700) of Division 8.5
of the Welfare and Institutions Code in an amount appropriated from
the State Health Facilities Citation Penalties Account for this
purpose in the annual Budget Act.
   (b) Notwithstanding subdivision (a), the balance in the State
Health Facilities Citation Penalties Account shall not, at any time,
exceed ten million dollars ($10,000,000).
   (c) Moneys from the Federal Health Facilities Citation Penalties
Account, in the amount not to exceed one hundred thirty thousand
dollars ($130,000), may also be used, notwithstanding Section 16370
of the Government Code, upon appropriation by the Legislature, in
accordance with state and federal law for the improvement of quality
of care and quality of life for long-term health care facilities
residents pursuant to Section 1417.3.
   (d) The department shall post on its Internet Web site, and shall
update on a quarterly basis, all of the following regarding the funds
in the State Health Facilities Citation Penalties Account and the
Federal Health Facilities Citation Penalties Account:
   (1) The specific sources of funds deposited into the account.
   (2) The amount of funds in the account that have not been
allocated.
   (3) A detailed description of how funds in the account have been
allocated and expended, including, but not limited to, the names of
persons or entities that received the funds, the amount of salaries
paid to temporary managers, and a description of equipment purchased
with the funds. However, the description shall not include the names
of residents.
  SEC. 3.  Section 10533 of the Welfare and Institutions Code is
amended to read:
   10533.  Commencing July 1, 2013, the department shall establish a
CalWORKs county peer review process, which shall be implemented on a
statewide basis no later than July 1, 2014. The peer review process
shall include individual CalWORKs data reviews of counties, based on
existing data. Counties shall receive programmatic technical
assistance from teams made up of state and peer-county administrators
to assist with implementing best practices to improve their
performance and make progress toward meeting established state
performance goals, as specified in Chapter 1.5 (commencing with
Section 10540) and Section 15204.6.
  SEC. 4.  Section 11253.5 of the Welfare and Institutions Code is
amended to read:
   11253.5.  (a) All children in an assistance unit for whom school
attendance is compulsory, except individuals who are eligible for the
Cal-Learn Program under Article 3.5 (commencing with Section 11331),
for any period during which that article is operative, and children
subject to a county school attendance project under Article 2
(commencing with Section 18236) of Chapter 3.3 of Part 6, shall be
required to attend school.
   (b) Applicants for and recipients of aid under this chapter shall
be informed of the attendance requirement and it shall be included in
the recipient's welfare-to-work plan under Section 11325.21.
   (c) A recipient shall cooperate in providing the county with
documentation routinely available from the school or school district
of regular attendance of all applicable children in the assistance
unit when the county determines it is appropriate.
   (d) If it is determined by the county that any eligible child
under the age of 16 years is not regularly attending school as
required, the needs of all adults in the assistance unit shall not be
considered in computing the grant of the family under Section 11450
unless it has been determined by the county that good cause exists.
   (e) If it is determined by the county that any child in the
assistance unit who is age 16 years or older is not regularly
attending school as required, or participating pursuant to a
welfare-to-work plan, the needs of the child shall not be considered
in computing the grant of the family under Section 11450 unless it
has been determined by the county that good cause exists.
  SEC. 5.  Section 11265.2 of the Welfare and Institutions Code is
amended to read:
   11265.2.  (a) The grant amount a recipient shall be entitled to
receive for each month of the quarterly reporting period shall be
prospectively determined as provided by this section. If a recipient
reports that he or she does not anticipate any changes in income
during the upcoming quarter, compared to the income the recipient
reported actually receiving on the quarterly report form, the grant
shall be calculated using the actual income received. If a recipient
reports that he or she anticipates a change in income in one or more
months of the upcoming quarter, the county shall determine whether
the recipient's income is reasonably anticipated. The grant shall be
calculated using the income that the county determines is reasonably
anticipated in each of the three months of the upcoming quarter.
   (b) For the purposes of the quarterly reporting, prospective
budgeting system, income shall be considered to be "reasonably
anticipated" if the county is reasonably certain of the amount of
income and that the income will be received during the quarterly
reporting period. The county shall determine what income is
"reasonably anticipated" based on information provided by the
recipient and any other available information.
   (c) If a recipient reports that their income in the upcoming
quarter will be different each month and the county needs additional
information to determine a recipient's reasonably anticipated income
for the following quarter, the county may require the recipient to
provide information about income for each month of the prior quarter.

   (d) Grant calculations pursuant to subdivision (a) may not be
revised to adjust the grant amount during the quarterly reporting
period, except as provided in Section 11265.3 and subdivisions (e),
(f), (g), and (h), and as otherwise established by the department.
   (e) Notwithstanding subdivision (d), statutes and regulations
relating to (1) the 48-month or 60-month time limit, (2) age
limitations for children under Section 11253, and (3) sanctions and
financial penalties affecting eligibility or grant amount shall be
applicable as provided in those statutes and regulations. Eligibility
and grant amount shall be adjusted during the quarterly reporting
period pursuant to those statutes and regulations effective with the
first monthly grant after timely and adequate notice is provided.
   (f) Notwithstanding Section 11056, if an applicant applies for
assistance for a child who is currently aided in another assistance
unit, and the county determines that the applicant has care and
control of the child, as specified by the department, and is
otherwise eligible, the county shall discontinue aid to the child in
the existing assistance unit and shall aid the child in the applicant'
s assistance unit effective as of the first of the month following
the discontinuance of the child from the existing assistance unit.
   (g) If the county is notified that a child for whom CalWORKs
assistance is currently being paid has been placed in a foster care
home, the county shall discontinue aid to the child at the end of the
month of placement. The county shall discontinue the case if the
remaining assistance unit members are not otherwise eligible.
   (h) If the county determines that a recipient is no longer a
California resident, pursuant to Section 11100, the recipient shall
be discontinued. The county shall discontinue the case if the
remaining assistance unit members are not otherwise eligible.
  SEC. 6.  Section 11266.5 of the Welfare and Institutions Code is
amended to read:
   11266.5.  (a) Every applicant for aid under this chapter shall be
informed of the availability of lump-sum diversion services to
resolve the circumstances that require the family to apply for
assistance prior to the family's approval for aid.
   (b) When an applicant is determined to be eligible for assistance
under this chapter, the county shall assess whether the applicant
would benefit from the lump-sum diversion program. The county shall
make this determination in its sole discretion. In making this
determination, the county shall consider whether the applicant is
likely to be able to avoid the need for extended assistance beyond
the diversion period if the family was provided one-time assistance.
In making this determination, the county may consider any of the
following:
   (1) The applicant's employment history.
   (2) The likelihood of the applicant obtaining immediate full-time
employment.
   (3) The applicant's general prospect for obtaining full-time
employment.
   (4) The applicant's need for cash assistance to pay for housing or
substantial and unforseen expenses or work-related expenses.
   (5) Housing stability.
   (6) The adequacy of the applicant's child care arrangements, if
applicable.
   (c) If the county determines, pursuant to subdivision (b), that an
applicant could benefit from a lump-sum diversion payment, the
county shall inform the applicant of its determination.
   (d) An applicant for aid under this chapter may either participate
in the lump-sum diversion program or decline participation in
diversion and, instead, receive aid as otherwise provided for in this
chapter.
   (e) Lump-sum diversion services provided under this section may
include any cash or noncash payment and shall be negotiated by the
county and the applicant in order to assist the applicant in avoiding
the need for aid under this chapter.
   (f) If, after accepting a diversion payment pursuant to this
section, the individual reapplies for aid under this chapter within
the amount of time that corresponds with the number of months of aid
that would have been received under this chapter that was received as
a diversion payment, excluding a partial month, and he or she is
determined to be eligible for aid, the county shall, at the option of
the recipient, either recoup from the recipient's grant, over a
period of time to be determined by the county, the amount of the
diversion payment that the recipient received, or count the period of
time that corresponds to the number of months of aid that would have
been received, excluding a partial month of aid, towards the time
limits on aid specified in subdivision (a) of Section 11454.
   (g) To the extent permitted by federal law, lump-sum diversion
payments shall not be considered income for the purpose of
determining eligibility for food stamps.
   (h) Any child support collected by the applicant or recovered by
the county shall not be used to offset the diversion payment.
   (i) During the period of the diversion, the applicant family shall
be eligible for Medi-Cal and child care assistance pursuant to
Article 15.5 (commencing with Section 8350) of Chapter 2 of Part 6 of
the Education Code, if otherwise eligible.
  SEC. 7.  Section 11320.15 of the Welfare and Institutions Code is
amended to read:
   11320.15.  After a participant has been removed from the
assistance unit under subdivision (a) of Section 11454, additional
welfare-to-work services may be provided to the recipient, at the
option of the county. If the county provides services to the
recipient after the 48-month or 60-month limit has been reached, the
recipient shall participate in community service.
  SEC. 8.  Section 11320.2 of the Welfare and Institutions Code is
repealed.
  SEC. 9.  Section 11320.3 of the Welfare and Institutions Code is
amended to read:
   11320.3.  (a) (1) Except as provided in subdivision (b) or if
otherwise exempt, every individual, as a condition of eligibility for
aid under this chapter, shall participate in welfare-to-work
activities under this article.
   (2) Individuals eligible under Section 11331.5 shall be required
to participate in the Cal-Learn Program under Article 3.5 (commencing
with Section 11331) during the time that article is operative, in
lieu of the welfare-to-work requirements, and subdivision (b) shall
not apply to that individual.
   (b) The following individuals shall not be required to participate
for so long as the condition continues to exist:
   (1) An individual under 16 years of age.
   (2) (A) A child attending an elementary, secondary, vocational, or
technical school on a full-time basis.
   (B) A person who is 16 or 17 years of age, or a person described
in subdivision (d) who loses this exemption, shall not requalify for
the exemption by attending school as a required activity under this
article.
   (C) Notwithstanding subparagraph (B), a person who is 16 or 17
years of age who has obtained a high school diploma or its equivalent
and is enrolled or is planning to enroll in a postsecondary
education, vocational, or technical school training program shall
also not be required to participate for so long as the condition
continues to exist.
   (D) For purposes of subparagraph (C), a person shall be deemed to
be planning to enroll in a postsecondary education, vocational, or
technical school training program if he or she, or his or her parent,
acting on his or her behalf, submits a written statement expressing
his or her intent to enroll in such a program for the following term.
The exemption from participation shall not continue beyond the
beginning of the term, unless verification of enrollment is provided
or obtained by the county.
   (3) An individual who meets either of the following conditions:
   (A) The individual is disabled as determined by a doctor's
verification that the disability is expected to last at least 30 days
and that it significantly impairs the recipient's ability to be
regularly employed or participate in welfare-to-work activities,
provided that the individual is actively seeking appropriate medical
treatment.
   (B) The individual is of advanced age.
   (4) A nonparent caretaker relative who has primary responsibility
for providing care for a child and is either caring for a child who
is a dependent or ward of the court or caring for a child in a case
in which a county determines the child is at risk of placement in
foster care, and the county determines that the caretaking
responsibilities are beyond those considered normal day-to-day
parenting responsibilities such that they impair the caretaker
relative's ability to be regularly employed or to participate in
welfare-to-work activities.
   (5) An individual whose presence in the home is required because
of illness or incapacity of another member of the household and whose
caretaking responsibilities impair the recipient's ability to be
regularly employed or to participate in welfare-to-work activities.
   (6) A parent or other relative who meets the criteria in
subparagraph (A) or (B).
   (A) (i) The parent or other relative has primary responsibility
for personally providing care to a child six months of age or under,
except that, on a case-by-case basis, and based on criteria developed
by the county, this period may be reduced to the first 12 weeks
after the birth or adoption of the child, or increased to the first
12 months after the birth or adoption of the child. An individual may
be exempt only once under this clause.
   (ii) An individual who received an exemption pursuant to clause
(i) shall be exempt for a period of 12 weeks, upon the birth or
adoption of any subsequent children, except that this period may be
extended on a case-by-case basis to six months, based on criteria
developed by the county.
   (iii) In making the determination to extend the period of
exception under clause (i) or (ii), the following may be considered:
   (I) The availability of child care.
   (II) Local labor market conditions.
   (III) Other factors determined by the county.
   (B) In a family eligible for aid under this chapter due to the
unemployment of the principal wage earner, the exemption criteria
contained in subparagraph (A) shall be applied to only one parent.
   (7) (A) A parent or other relative who has primary responsibility
for personally providing care to one child who is from 12 to 23
months of age, inclusive, or two or more children who are under six
years of age.
   (B) The exemption provided for in subparagraph (A) shall be
extended to include a parent or other relative who has primary
responsibility for personally providing care to one child who is from
24 to 35 months of age, inclusive, if the parent or caretaker
relative resides in a county that has made a finding that it is
necessary to extend the exemption in this manner in order to
implement its portion of the reduction to the CalWORKs program single
allocation, in accordance with Item No. 5180-101-0001 of Section 2
of the Budget Act of 2011. The county may rescind a finding made
pursuant to this subparagraph if it determines the extended age
exemption is no longer necessary.
   (8) A woman who is pregnant and for whom it has been medically
verified that the pregnancy impairs her ability to be regularly
employed or participate in welfare-to-work activities or the county
has determined that, at that time, participation will not readily
lead to employment or that a training activity is not appropriate.
   (c) Any individual not required to participate may choose to
participate voluntarily under this article, and end that
participation at any time without loss of eligibility for aid under
this chapter, if his or her status has not changed in a way that
would require participation.
   (d) (1) Notwithstanding subdivision (a), a custodial parent who is
under 20 years of age and who has not earned a high school diploma
or its equivalent, and who is not exempt or whose only basis for
exemption is paragraph (1), (5), (6), (7), or (8) of subdivision (b),
shall be required to participate solely for the purpose of earning a
high school diploma or its equivalent. During the time that Article
3.5 (commencing with Section 11331) is operative, this subdivision
shall only apply to a custodial parent who is 19 years of age.
   (2) Section 11325.25 shall apply to a custodial parent who is 18
or 19 years of age and who is required to participate under this
article.
   (e) Notwithstanding paragraph (1) of subdivision (d), the county
may determine that participation in education activities for the
purpose of earning a high school diploma or equivalent is
inappropriate for an 18 or 19 year old custodial parent only if that
parent is reassigned pursuant to an evaluation under Section
11325.25, or, at appraisal is already in an educational or vocational
training program that is approvable as a self-initiated program as
specified in Section 11325.23. If that determination is made, the
parent shall be allowed to continue participation in the
self-initiated program subject to Section
                      11325.23. During the time that Article 3.5
(commencing with Section 11331) is operative, this subdivision shall
only apply to a custodial parent who is 19 years of age.
   (f) A recipient shall be excused from participation for good cause
when the county has determined there is a condition or other
circumstance that temporarily prevents or significantly impairs the
recipient's ability to be regularly employed or to participate in
welfare-to-work activities. The county welfare department shall
review the good cause determination for its continuing
appropriateness in accordance with the projected length of the
condition, or circumstance, but not less than every three months. The
recipient shall cooperate with the county welfare department and
provide information, including written documentation, as required to
complete the review. Conditions that may be considered good cause
include, but are not limited to, the following:
   (1) Lack of necessary supportive services.
   (2) In accordance with Article 7.5 (commencing with Section
11495), the applicant or recipient is a victim of domestic violence,
but only if participation under this article is detrimental to or
unfairly penalizes that individual or his or her family.
   (3) Licensed or license-exempt child care for a child 10 years of
age or younger is not reasonably available during the individual's
hours of training or employment including commuting time, or
arrangements for child care have broken down or have been
interrupted, or child care is needed for a child who meets the
criteria of subparagraph (C) of paragraph (1) of subdivision (a) of
Section 11323.2, but who is not included in the assistance unit. For
purposes of this paragraph, "reasonable availability" means child
care that is commonly available in the recipient's community to a
person who is not receiving aid and that is in conformity with the
requirements of Public Law 104-193. The choices of child care shall
meet either licensing requirements or the requirements of Section
11324. This good cause criterion shall include the unavailability of
suitable special needs child care for children with identified
special needs, including, but not limited to, disabilities or chronic
illnesses.
   (g) (1) Paragraph (7) of subdivision (b) shall be implemented
notwithstanding Sections 11322.4, 11322.7, 11325.6, and 11327, and
shall become inoperative on July 1, 2012.
   (2) The State Department of Social Services, in consultation with
the County Welfare Directors Association of California, shall develop
a process prior to January 1, 2012, to assist clients with
reengagement in welfare-to-work activities by July 1, 2012.
Reengagement activities may include notifying clients of the
expiration of exemptions, potential reassessments, and identifying
necessary supportive services.
  SEC. 10.  Section 11320.32 of the Welfare and Institutions Code is
amended to read:
   11320.32.  (a) The department shall administer a voluntary
Temporary Assistance Program (TAP) for current and future CalWORKs
recipients who meet the exemption criteria for work participation
activities set forth in Section 11320.3, and are not single parents
who have a child under the age of one year. Temporary Assistance
Program recipients shall be entitled to the same assistance payments
and other benefits as recipients under the CalWORKs program. The
purpose of this program is to provide cash assistance and other
benefits to eligible families without any federal restrictions or
requirements and without any adverse impact on recipients. The
Temporary Assistance Program shall commence no later than October 1,
2014.
   (b) CalWORKs recipients who meet the exemption criteria for work
participation activities set forth in subdivision (b) of Section
11320.3, and are not single parents with a child under the age of one
year, shall have the option of receiving grant payments, child care,
and transportation services from the Temporary Assistance Program.
The department shall notify all CalWORKs recipients and applicants
meeting the exemption criteria specified in subdivision (b) of
Section 11320.3, except for single parents with a child under the age
of one year, of their option to receive benefits under the Temporary
Assistance Program. Absent written indication that these recipients
or applicants choose not to receive assistance from the Temporary
Assistance Program, the department shall enroll CalWORKs recipients
and applicants into the program. However, exempt volunteers shall
remain in the CalWORKs program unless they affirmatively indicate, in
writing, their interest in enrolling in the Temporary Assistance
Program. A Temporary Assistance Program recipient who no longer meets
the exemption criteria set forth in Section 11320.3 shall be
enrolled in the CalWORKs program.
   (c) Funding for grant payments, child care, transportation, and
eligibility determination activities for families receiving benefits
under the Temporary Assistance Program shall be funded with General
Fund resources that do not count toward the state's maintenance of
effort requirements under clause (i) of subparagraph (B) of paragraph
(7) of subdivision (a) of Section 609 of Title 42 of the United
States Code, up to the caseload level equivalent to the amount of
funding provided for this purpose in the annual Budget Act.
   (d) It is the intent of the Legislature that recipients shall have
and maintain access to the hardship exemption and the services
necessary to begin and increase participation in welfare-to-work
activities, regardless of their county of origin, and that the number
of recipients exempt under subdivision (b) of Section 11320.3 not
significantly increase due to factors other than changes in caseload
characteristics. All relevant state law applicable to CalWORKs
recipients shall also apply to families funded under this section.
Nothing in this section modifies the criteria for exemption in
Section 11320.3.
   (e) To the extent that this section is inconsistent with federal
regulations regarding implementation of the Deficit Reduction Act of
2005, the department may amend the funding structure for exempt
families to ensure consistency with these regulations, not later than
30 days after providing written notification to the chair of the
Joint Legislative Budget Committee and the chairs of the appropriate
policy and fiscal committees of the Legislature.
  SEC. 11.  Section 11322.63 of the Welfare and Institutions Code is
amended to read:
   11322.63.  (a) For counties that implement a welfare-to-work plan
that includes activities pursuant to subdivisions (b) and (c) of
Section 11322.6, the State Department of Social Services shall pay
the county 50 percent, less fifty-six dollars ($56), of the total
wage costs of an employee for whom a wage subsidy is paid, subject to
all of the following conditions:
   (1) (A) For participants receiving CalWORKs aid, the maximum state
contribution of the total wage cost shall not exceed 100 percent of
the computed grant for the assistance unit in the month prior to
participation in subsidized employment.
   (B) For participants who have received aid in excess of the time
limits provided in subdivision (a) of Section 11454, the maximum
state contribution of the total wage cost, shall not exceed 100
percent of the computed grant for the assistance unit in the month
prior to participation in subsidized employment, with any reduction
required by Section 11450.025.
   (C) In the case of an individual who participates in subsidized
employment as a service provided by a county pursuant to Section
11323.25, the maximum state contribution of the total wage cost shall
not exceed 100 percent of the computed grant that the assistance
unit received in the month prior to participation in the subsidized
employment. For participants who have received aid in excess of the
time limits provided in subdivision (a) of Section 11454, the maximum
state contribution under this subparagraph shall also be reduced as
described in Section 11450.025.
   (D) The maximum state contribution, as defined in this paragraph,
shall remain in effect until the end of the subsidy period as
specified in paragraph (2), including with respect to subsidized
employment participants whose wage results in the assistance unit no
longer receiving a CalWORKs grant.
   (E) State funding provided for total wage costs shall only be used
to fund wage and nonwage costs of the county's subsidized employment
program.
   (2) State participation in the total wage costs pursuant to this
section shall be limited to a maximum of six months of wage subsidies
for each participant. If the county finds that a longer subsidy
period is necessary in order to mutually benefit the employer and the
participant, state participation in a subsidized wage may be offered
for up to 12 months.
   (3) Eligibility for entry into subsidized employment funded under
this section shall be limited to individuals who are not otherwise
employed at the time of entry into the subsidized job, and who are
current CalWORKs recipients, sanctioned individuals, or individuals
described in Section 11320.15 who have exceeded the time limits
specified in subdivision (a) of Section 11454. A county may continue
to provide subsidized employment funded under this section to
individuals who become ineligible for CalWORKs benefits in accordance
with Section 11323.25.
   (b) Upon application for CalWORKs after a participant's subsidized
employment ends, if an assistance unit is otherwise eligible within
three calendar months of the date that subsidized employment ended,
the income exemption requirements contained in Section 11451.5 and
the work requirements contained in subdivision (c) of Section 11201
shall apply. If aid is restored after the expiration of that
three-month period, the income exemption requirements contained in
Section 11450.12 and the work requirements contained in subdivision
(b) of Section 11201 shall apply.
   (c) The department, in conjunction with representatives of county
welfare offices and their directors and the Legislative Analyst's
Office, shall assess the cost neutrality of the subsidized employment
program pursuant to this section and make recommendations to the
Legislature, if necessary, to ensure cost neutrality. The department
shall testify regarding the cost neutrality of the subsidized
employment program during the 2012-13 fiscal year legislative budget
hearings.
   (d) No later than January 10, 2013, the State Department of Social
Services shall submit a report to the Legislature on the outcomes of
implementing this section that shall include, but need not be
limited to, all of the following:
   (1) The number of CalWORKs recipients that entered subsidized
employment.
   (2) The number of CalWORKs recipients who found nonsubsidized
employment after the subsidy ends.
   (3) The earnings of the program participants before and after the
subsidy.
   (4) The impact of this program on the state's work participation
rate.
   (e) Payment of the state's share in total wage costs required by
this section shall be made in addition to, and independent of, the
county allocations made pursuant to Section 15204.2.
   (f) For purposes of this section, "total wage costs" include the
actual wage paid directly to the participant that is allowable under
the Temporary Assistance for Needy Families program.
  SEC. 12.  Section 11322.64 of the Welfare and Institutions Code is
repealed.
  SEC. 13.  Section 11323.25 is added to the Welfare and Institutions
Code, to read:
   11323.25.  In addition to its authority under subdivision (b) of
Section 11323.2, if provided in a county plan, the county may
continue to provide welfare-to-work services to former participants
who became ineligible for CalWORKs benefits because they became
employed under Section 11322.63. The county may provide these
services for up to the first 12 months of employment, to the extent
they are not available from other sources and are needed for the
individual to retain the subsidized employment.
  SEC. 14.  Section 11325.71 of the Welfare and Institutions Code is
amended to read:
   11325.71.  (a) Notwithstanding subdivision (a) of Section 11325.7
and subdivision (e) of Section 11325.8, counties shall have the
option to redirect funding, both from and to, the amounts
appropriated for CalWORKs mental health employment assistance
services and CalWORKs substance abuse treatment services, from and to
other CalWORKs employment services that are necessary for
individuals to participate in welfare-to-work activities. This
section shall not be construed to limit a welfare-to-work participant'
s access to mental health or substance abuse treatment services that
would otherwise be available under Section 11325.7 or 11325.8, to the
extent the participant is not provided good cause or determined to
be exempt from welfare-to-work requirements.
   (b) This section shall become inoperative on July 1, 2012, and, as
of January 1, 2013, is repealed, unless a later enacted statute,
which becomes effective on or before January 1, 2013, deletes or
extends that date on which it becomes inoperative and is repealed.
  SEC. 15.  Section 11327.5 of the Welfare and Institutions Code, as
amended by Section 2 of Chapter 8 of the Fourth Extraordinary Session
of the Statutes of 2009, is amended to read:
   11327.5.  (a) Sanctions shall be imposed in accordance with
subdivision (b) or (c), as appropriate, if an individual has failed
or refused to comply with program requirements without good cause and
conciliation efforts, as described in Section 11327.4, have failed.
   (b) The sanctions provided for in subdivisions (c) and (d) shall
not apply to an individual who is exempt from the requirements of
this article but is voluntarily participating in the program. If that
individual engages in conduct that would bring about the actions
provided for in subdivisions (c) and (d), except for his or her
status as a voluntary program participant, the individual shall not
be given priority so long as other individuals are actively seeking
to participate.
   (c) Financial sanctions for failing or refusing to comply with
program requirements without good cause shall cause a reduction in
the family's grant by removing the noncomplying family member from
the assistance unit for a period of time specified in subdivision
(d).
   (1) For families that qualify for aid due to unemployment of the
family's primary wage earner, the sanctioned parent shall be removed
from the assistance unit. Unless the spouse or the family's second
parent meets the provisions of subparagraph (A) of paragraph (2), if
the sanctioned parent's spouse or the family's second parent is not
participating in the program, both the sanctioned parent and the
spouse or second parent shall be removed from the assistance unit.
The county shall notify the spouse of the noncomplying participant or
second parent in writing at the commencement of conciliation of his
or her own opportunity to participate and the impact on sanctions of
that participation.
   (2) (A) Except as provided in subparagraph (B), exemption criteria
specified in Section 11320.3, conciliation specified in Section
11327.4, and good cause criteria specified in Section 11320.31 and
subdivision (f) of Section 11320.3 shall apply to the sanctioned
parent's spouse or the family's second parent.
   (B) Exemption criteria specified in paragraphs (5) and (6) of
subdivision (b) of Section 11320.3 do not apply to a spouse or second
parent who is participating to avoid the sanction of the
noncomplying parent.
   (C) If the sanctioned parent's spouse or the family's second
parent chooses to participate to avoid the noncomplying parent's
sanction, subsequently fails or refuses to participate without good
cause, and does not conciliate, he or she shall be removed from the
assistance unit for a period of time specified in subdivision (d).
   (D) If the sanctioned parent's spouse or the family's second
parent is under his or her own sanction at the time of the first
parent's sanction, the spouse or second parent shall not be provided
the opportunity to avoid the first parent's sanction until the spouse
or second parent's sanction is completed.
   (3) For families that qualify due to the absence or incapacity of
a parent, only the noncomplying parent shall be removed from the
assistance unit.
   (4) If the noncomplying individual is the only dependent child in
the family, his or her needs shall not be taken into account in
determining the family's need for assistance and the amount of the
assistance payment.
   (5) If the noncomplying individual is one of several dependent
children in the family, his or her needs shall not be taken into
account in determining the family's need for assistance and the
amount of the assistance payment.
   (d) An instance of noncompliance without good cause shall result
in a financial sanction. This sanction shall terminate at any point
if the noncomplying participant performs the activity or activities
he or she previously refused to perform.
   (e) Sanctions shall become effective on the first day of the first
payment-month that the sanctioned individual's needs are removed
from aid under this chapter.
   (f) In the event this section conflicts with federal law, the
department shall adopt regulations to conform to federal law.
  SEC. 16.  Section 11327.5 of the Welfare and Institutions Code, as
added by Section 3 of Chapter 8 of the Fourth Extraordinary Session
of the Statutes of 2009, is repealed.
  SEC. 17.  Section 11329.5 of the Welfare and Institutions Code is
amended to read:
   11329.5.  With respect to paragraph (7) of subdivision (b) of
Section 11320.3 and Section 11325.71, the Legislature finds and
declares all of the following, but only for the operative period of
these added provisions:
   (a) Due to the significant General Fund revenue decline for the
2009-10 fiscal year, funding has been reduced for the CalWORKs
program.
   (b) Due to the federal funding available under the American
Recovery and Reinvestment Act of 2009 (Public Law 111-5) (ARRA) for
CalWORKs grants, reductions in 2009-10 are being achieved in the
county single allocation.
   (c) Reduced funding, including a
three-hundred-seventy-five-million-dollar ($375,000,000) reduction to
the county single allocation in the 2009-10 and 2010-11 Budget Acts,
and increased caseload for CalWORKs will result in insufficient
resources to provide the full range of welfare-to-work services in
the 2009-10 and 2010-11 fiscal years.
   (d) Reduced funding, including a
four-hundred-twenty-seven-million-dollar ($427,000,000) reduction to
the county single allocation in the 2011-12 Budget Act, will result
in insufficient resources to provide the full range of
welfare-to-work services in the 2011-12 fiscal year.
   (e) It is the intent of the Legislature that the limited resources
for CalWORKs services be effectively utilized, as established in
paragraph (7) of subdivision (b) of Section 11320.3.
   (f) It is the further intent of the Legislature to provide
additional flexibility to address funding constraints, as established
in Section 11325.71, in addition to the existing flexibility
provided under subdivision (f) of Section 11320.3.
   (g) It is the further intent of the Legislature to minimize
disruption of welfare-to-work services for individuals already
participating, and prioritize exemptions and good cause for
applicants.
   (h) Funding and caseload factors will result in circumstances
beyond the control of the counties in the 2009-10, 2010-11, and
2011-12 fiscal years, and relief should be provided for federal
penalties that may result.
  SEC. 18.  Article 3.3 (commencing with Section 11330) of Chapter 2
of Part 3 of Division 9 of the Welfare and Institutions Code is
repealed.
  SEC. 19.  Section 11334.8 is added to the Welfare and Institutions
Code, to read:
   11334.8.  (a) Except as provided in subdivision (b), this article
shall be inoperative from July 1, 2011, to June 30, 2012, inclusive.
   (b) Notwithstanding subdivision (a), bonuses and supplements shall
continue to be paid to eligible participants pursuant to
subdivisions (a), (c), and (e) of Section 11333.7, and related
requirements pursuant to Sections 11334.2 and 11334.5 shall also be
operative, during the period that the remainder of this article is
inoperative pursuant to subdivision (a).
   (c) This section shall remain in effect only until July 1, 2012,
and as of that date is repealed, unless a later enacted statute, that
is enacted before July 1, 2012, deletes or extends that date.
  SEC. 20.  Section 11450 of the Welfare and Institutions Code is
amended to read:
   11450.  (a) (1) Aid shall be paid for each needy family, which
shall include all eligible brothers and sisters of each eligible
applicant or recipient child and the parents of the children, but
shall not include unborn children, or recipients of aid under Chapter
3 (commencing with Section 12000), qualified for aid under this
chapter. In determining the amount of aid paid, and notwithstanding
the minimum basic standards of adequate care specified in Section
11452, the family's income, exclusive of any amounts considered
exempt as income or paid pursuant to subdivision (e) or Section
11453.1, averaged for the prospective quarter pursuant to Sections
11265.2 and 11265.3, and then calculated pursuant to Section 11451.5,
shall be deducted from the sum specified in the following table, as
adjusted for cost-of-living increases pursuant to Section 11453 and
paragraph (2). In no case shall the amount of aid paid for each month
exceed the sum specified in the following table, as adjusted for
cost-of-living increases pursuant to Section 11453 and paragraph (2),
plus any special needs, as specified in subdivisions (c), (e), and
(f):
  Number
of
eligible
needy
persons
in                                     Maximum
the same home                            aid
    1..............................      $ 326
    2..............................        535
    3..............................        663
    4..............................        788
    5..............................        899
    6..............................       1,010
    7..............................       1,109
    8..............................       1,209
    9..............................       1,306
   10 or more......................       1,403


   If, when, and during those times that the United States government
increases or decreases its contributions in assistance of needy
children in this state above or below the amount paid on July 1,
1972, the amounts specified in the above table shall be increased or
decreased by an amount equal to that increase or decrease by the
United States government, provided that no increase or decrease shall
be subject to subsequent adjustment pursuant to Section 11453.
   (2) The sums specified in paragraph (1) shall not be adjusted for
cost of living for the 1990-91, 1991-92, 1992-93, 1993-94, 1994-95,
1995-96, 1996-97, and 1997-98 fiscal years, and through October 31,
1998, nor shall that amount be included in the base for calculating
any cost-of-living increases for any fiscal year thereafter.
Elimination of the cost-of-living adjustment pursuant to this
paragraph shall satisfy the requirements of Section 11453.05, and no
further reduction shall be made pursuant to that section.
   (b) When the family does not include a needy child qualified for
aid under this chapter, aid shall be paid to a pregnant mother for
the month in which the birth is anticipated and for the three-month
period immediately prior to the month in which the birth is
anticipated in the amount that would otherwise be paid to one person,
as specified in subdivision (a), if the mother, and child, if born,
would have qualified for aid under this chapter. Verification of
pregnancy shall be required as a condition of eligibility for aid
under this subdivision.
   (1) Aid shall also be paid to a pregnant woman with no other
children in the amount which would otherwise be paid to one person
under subdivision (a) at any time after verification of pregnancy if
the pregnant woman is also eligible for the Cal-Learn Program
described in Article 3.5 (commencing with Section 11331) and if the
mother, and child, if born, would have qualified for aid under this
chapter.
   (2) Paragraph (1) shall apply only when the Cal-Learn Program is
operative.
   (c) The amount of forty-seven dollars ($47) per month shall be
paid to pregnant mothers qualified for aid under subdivision (a) or
(b) to meet special needs resulting from pregnancy if the mother, and
child, if born, would have qualified for aid under this chapter.
County welfare departments shall refer all recipients of aid under
this subdivision to a local provider of the Women, Infants and
Children program. If that payment to pregnant mothers qualified for
aid under subdivision (a) is considered income under federal law in
the first five months of pregnancy, payments under this subdivision
shall not apply to persons eligible under subdivision (a), except for
the month in which birth is anticipated and for the three-month
period immediately prior to the month in which delivery is
anticipated, if the mother, and the child, if born, would have
qualified for aid under this chapter.
   (d) For children receiving AFDC-FC under this chapter, there shall
be paid, exclusive of any amount considered exempt as income, an
amount of aid each month which, when added to the child's income, is
equal to the rate specified in Section 11460, 11461, 11462, 11462.1,
or 11463. In addition, the child shall be eligible for special needs,
as specified in departmental regulations.
   (e) In addition to the amounts payable under subdivision (a) and
Section 11453.1, a family shall be entitled to receive an allowance
for recurring special needs not common to a majority of recipients.
These recurring special needs shall include, but not be limited to,
special diets upon the recommendation of a physician for
circumstances other than pregnancy, and unusual costs of
transportation, laundry, housekeeping services, telephone, and
utilities. The recurring special needs allowance for each family per
month shall not exceed that amount resulting from multiplying the sum
of ten dollars ($10) by the number of recipients in the family who
are eligible for assistance.
   (f) After a family has used all available liquid resources, both
exempt and nonexempt, in excess of one hundred dollars ($100), with
the exception of funds deposited in a restricted account described in
subdivision (a) of Section 11155.2, the family shall also be
entitled to receive an allowance for nonrecurring special needs.
                                                        (1) An
allowance for nonrecurring special needs shall be granted for
replacement of clothing and household equipment and for emergency
housing needs other than those needs addressed by paragraph (2).
These needs shall be caused by sudden and unusual circumstances
beyond the control of the needy family. The department shall
establish the allowance for each of the nonrecurring special need
items. The sum of all nonrecurring special needs provided by this
subdivision shall not exceed six hundred dollars ($600) per event.
   (2) Homeless assistance is available to a homeless family seeking
shelter when the family is eligible for aid under this chapter.
Homeless assistance for temporary shelter is also available to
homeless families which are apparently eligible for aid under this
chapter. Apparent eligibility exists when evidence presented by the
applicant, or which is otherwise available to the county welfare
department, and the information provided on the application documents
indicate that there would be eligibility for aid under this chapter
if the evidence and information were verified. However, an alien
applicant who does not provide verification of his or her eligible
alien status, or a woman with no eligible children who does not
provide medical verification of pregnancy, is not apparently eligible
for purposes of this section.
   A family is considered homeless, for the purpose of this section,
when the family lacks a fixed and regular nighttime residence; or the
family has a primary nighttime residence that is a supervised
publicly or privately operated shelter designed to provide temporary
living accommodations; or the family is residing in a public or
private place not designed for, or ordinarily used as, a regular
sleeping accommodation for human beings. A family is also considered
homeless for the purpose of this section if the family has received a
notice to pay rent or quit. The family shall demonstrate that the
eviction is the result of a verified financial hardship as a result
of extraordinary circumstances beyond their control, and not other
lease or rental violations, and that the family is experiencing a
financial crisis that could result in homelessness if preventative
assistance is not provided.
   (A) (i) A nonrecurring special need of sixty-five dollars ($65) a
day shall be available to families of up to four members for the
costs of temporary shelter, subject to the requirements of this
paragraph. The fifth and additional members of the family shall each
receive fifteen dollars ($15) per day, up to a daily maximum of one
hundred twenty-five dollars ($125). County welfare departments may
increase the daily amount available for temporary shelter as
necessary to secure the additional bedspace needed by the family.
   (ii) This special need shall be granted or denied immediately upon
the family's application for homeless assistance, and benefits shall
be available for up to three working days. The county welfare
department shall verify the family's homelessness within the first
three working days and if the family meets the criteria of
questionable homelessness established by the department, the county
welfare department shall refer the family to its early fraud
prevention and detection unit, if the county has such a unit, for
assistance in the verification of homelessness within this period.
   (iii) After homelessness has been verified, the three-day limit
shall be extended for a period of time which, when added to the
initial benefits provided, does not exceed a total of 16 calendar
days. This extension of benefits shall be done in increments of one
week and shall be based upon searching for permanent housing which
shall be documented on a housing search form; good cause; or other
circumstances defined by the department. Documentation of a housing
search shall be required for the initial extension of benefits beyond
the three-day limit and on a weekly basis thereafter as long as the
family is receiving temporary shelter benefits. Good cause shall
include, but is not limited to, situations in which the county
welfare department has determined that the family, to the extent it
is capable, has made a good faith but unsuccessful effort to secure
permanent housing while receiving temporary shelter benefits.
   (B) A nonrecurring special need for permanent housing assistance
is available to pay for last month's rent and security deposits when
these payments are reasonable conditions of securing a residence, or
to pay for up to two months of rent arrearages, when these payments
are a reasonable condition of preventing eviction.
   The last month's rent or monthly arrearage portion of the payment
(i) shall not exceed 80 percent of the family's total monthly
household income without the value of food stamps or special needs
for a family of that size and (ii) shall only be made to families
that have found permanent housing costing no more than 80 percent of
the family's total monthly household income without the value of food
stamps or special needs for a family of that size.
   However, if the county welfare department determines that a family
intends to reside with individuals who will be sharing housing
costs, the county welfare department shall, in appropriate
circumstances, set aside the condition specified in clause (ii) of
the preceding paragraph.
   (C) The nonrecurring special need for permanent housing assistance
is also available to cover the standard costs of deposits for
utilities which are necessary for the health and safety of the
family.
   (D) A payment for or denial of permanent housing assistance shall
be issued no later than one working day from the time that a family
presents evidence of the availability of permanent housing. If an
applicant family provides evidence of the availability of permanent
housing before the county welfare department has established
eligibility for aid under this chapter, the county welfare department
shall complete the eligibility determination so that the denial of
or payment for permanent housing assistance is issued within one
working day from the submission of evidence of the availability of
permanent housing, unless the family has failed to provide all of the
verification necessary to establish eligibility for aid under this
chapter.
   (E) (i) Except as provided in clauses (ii) and (iii), eligibility
for the temporary shelter assistance and the permanent housing
assistance pursuant to this paragraph shall be limited to one period
of up to 16 consecutive calendar days of temporary assistance and one
payment of permanent assistance. Any family that includes a parent
or nonparent caretaker relative living in the home who has previously
received temporary or permanent homeless assistance at any time on
behalf of an eligible child shall not be eligible for further
homeless assistance. Any person who applies for homeless assistance
benefits shall be informed that the temporary shelter benefit of up
to 16 consecutive days is available only once in a lifetime, with
certain exceptions, and that a break in the consecutive use of the
benefit constitutes permanent exhaustion of the temporary benefit.
   (ii) A family that becomes homeless as a direct and primary result
of a state or federally declared natural disaster shall be eligible
for temporary and permanent homeless assistance.
   (iii) A family shall be eligible for temporary and permanent
homeless assistance when homelessness is a direct result of domestic
violence by a spouse, partner, or roommate; physical or mental
illness that is medically verified that shall not include a diagnosis
of alcoholism, drug addiction, or psychological stress; or, the
uninhabitability of the former residence caused by sudden and unusual
circumstances beyond the control of the family including natural
catastrophe, fire, or condemnation. These circumstances shall be
verified by a third-party governmental or private health and human
services agency, except that domestic violence may also be verified
by a sworn statement by the victim, as provided under Section
11495.25. Homeless assistance payments based on these specific
circumstances may not be received more often than once in any
12-month period. In addition, if the domestic violence is verified by
a sworn statement by the victim, the homeless assistance payments
shall be limited to two periods of not more than 16 consecutive
calendar days of temporary assistance and two payments of permanent
assistance. A county may require that a recipient of homeless
assistance benefits who qualifies under this paragraph for a second
time in a 24-month period participate in a homelessness avoidance
case plan as a condition of eligibility for homeless assistance
benefits. The county welfare department shall immediately inform
recipients who verify domestic violence by a sworn statement pursuant
to clause (iii) of the availability of domestic violence counseling
and services, and refer those recipients to services upon request.
   (iv) If a county requires a recipient who verifies domestic
violence by a sworn statement to participate in a homelessness
avoidance case plan pursuant to clause (iii), the plan shall include
the provision of domestic violence services, if appropriate.
   (v) If a recipient seeking homeless assistance based on domestic
violence pursuant to clause (iii) has previously received homeless
avoidance services based on domestic violence, the county shall
review whether services were offered to the recipient and consider
what additional services would assist the recipient in leaving the
domestic violence situation.
   (vi) The county welfare department shall report to the department
through a statewide homeless assistance payment indicator system,
necessary data, as requested by the department, regarding all
recipients of aid under this paragraph.
   (F) The county welfare departments, and all other entities
participating in the costs of the AFDC program, have the right in
their share to any refunds resulting from payment of the permanent
housing. However, if an emergency requires the family to move within
the 12-month period specified in subparagraph (E), the family shall
be allowed to use any refunds received from its deposits to meet the
costs of moving to another residence.
   (G) Payments to providers for temporary shelter and permanent
housing and utilities shall be made on behalf of families requesting
these payments.
   (H) The daily amount for the temporary shelter special need for
homeless assistance may be increased if authorized by the current
year's Budget Act by specifying a different daily allowance and
appropriating the funds therefor.
   (I) No payment shall be made pursuant to this paragraph unless the
provider of housing is a commercial establishment, shelter, or
person in the business of renting properties who has a history of
renting properties.
   (g) The department shall establish rules and regulations ensuring
the uniform application statewide of this subdivision.
   (h) The department shall notify all applicants and recipients of
aid through the standardized application form that these benefits are
available and shall provide an opportunity for recipients to apply
for the funds quickly and efficiently.
   (i) Except for the purposes of Section 15200, the amounts payable
to recipients pursuant to Section 11453.1 shall not constitute part
of the payment schedule set forth in subdivision (a).
   The amounts payable to recipients pursuant to Section 11453.1
shall not constitute income to recipients of aid under this section.
   (j) For children receiving Kin-GAP pursuant to Article 4.5
(commencing with Section 11360) or Article 4.7 (commencing with
Section 11385) there shall be paid, exclusive of any amount
considered exempt as income, an amount of aid each month, which, when
added to the child's income, is equal to the rate specified in
Sections 11364 and 11387.
  SEC. 21.  Section 11450.02 of the Welfare and Institutions Code is
amended to read:
   11450.02.  (a) Notwithstanding any other provision of law,
commencing July 1, 2009, the maximum aid payments in effect September
1, 2007, as specified in paragraph (1) of subdivision (a) of Section
11450, shall be reduced by 4 percent.
   (b) Notwithstanding any other law, the maximum aid payments in
effect on July 1, 2009, as specified in subdivision (a), shall be
reduced by 8 percent, effective on June 1, 2011, or on the first day
of the first month following 90 days after the effective date of the
act that added this subdivision, whichever is later.
  SEC. 22.  Section 11450.025 is added to the Welfare and
Institutions Code, to read:
   11450.025.  (a) Notwithstanding any other law, effective on June
1, 2011, or on the first day of the first month following 90 days
after the effective date of the act that added this section,
whichever is later, for all assistance units that do not include an
aided adult, the computed aid grant of the assistance unit, as
reduced by subdivision (b) of Section 11450.02, shall be further
reduced pursuant to this section as follows:
   (1) Commencing with the 61st cumulative month on aid, 5 percent.
   (2) Commencing with the 73rd cumulative month on aid, 5 percent,
for a total reduction of 10 percent of the computed aid grant.
   (3) Commencing with the 85th cumulative month on aid, 5 percent,
for a total reduction of 15 percent of the computed aid grant.
   (b) Notwithstanding subdivision (a), the reductions provided for
in this section shall not be applied when all of the parents or
caretaker relatives of the aided child living in the home of the
aided child are disabled and receiving benefits under Section 12200.
   (c) All months of aid received on and after January 1, 1998, shall
be counted for purposes of this section and shall be computed based
on the cumulative time on aid of the member of the assistance unit
who has received aid for the longest period.
  SEC. 23.  Section 11451.5 of the Welfare and Institutions Code, as
amended by Section 4 of Chapter 933 of the Statutes of 2000, is
repealed.
  SEC. 24.  Section 11451.5 of the Welfare and Institutions Code, as
amended by Section 329 of Chapter 62 of the Statutes of 2003, is
amended to read:
   11451.5.  (a) Except as provided by subdivision (f) of Section
11322.6, the following income, averaged over the quarter pursuant to
Sections 11265.2 and 11265.3, shall be exempt from the calculation of
the income of the family for purposes of subdivision (a) of Section
11450:
   (1) If disability-based unearned income does not exceed two
hundred twenty-five dollars ($225), both of the following amounts:
   (A) All disability-based unearned income plus any amount of not
otherwise exempt earned income equal to the amount of the difference
between the amount of disability-based unearned income and two
hundred twenty-five dollars ($225).
   (B) Fifty percent of all not otherwise exempt earned income in
excess of the amount applied to meet the differential applied in
subparagraph (A).
   (2) If disability-based unearned income exceeds two hundred
twenty-five dollars ($225), both of the following amounts:
   (A) All of the first two hundred twenty-five dollars ($225) in
disability-based unearned income.
   (B) Fifty percent of all earned income.
   (b) For purposes of this section:
   (1) Earned income means gross income received as wages, salary,
employer provided sick leave benefits, commissions, or profits from
activities such as a business enterprise or farming in which the
recipient is engaged as a self-employed individual or as an employee.

   (2) Disability-based unearned income means state disability
insurance benefits, private disability insurance benefits, temporary
workers' compensation benefits, and social security disability
benefits.
   (3) Unearned income means any income not described in paragraph
(1) or (2).
   (c) This section shall become inoperative on the first day of the
first month following 90 days after the effective date of the act
that added this subdivision, or June 1, 2011, whichever is later, and
as of the inoperative date is repealed.
  SEC. 25.  Section 11451.5 is added to the Welfare and Institutions
Code, to read:
   11451.5.  (a) Except as provided by subdivision (f) of Section
11322.6, the following income, averaged over the quarter pursuant to
Sections 11265.2 and 11265.3, shall be exempt from the calculation of
the income of the family for purposes of subdivision (a) of Section
11450:
   (1) If disability-based unearned income does not exceed two
hundred twenty-five dollars ($225), both of the following amounts:
   (A) All disability-based unearned income, plus any amount of not
otherwise exempt earned income not in excess of the lesser of the
following:
   (i) One hundred twelve dollars ($112).
   (ii) The amount of the difference between the amount of
disability-based unearned income and two hundred twenty-five dollars
($225).
   (B) Fifty percent of all not otherwise exempt earned income in
excess of the amount applied to meet the differential applied in
subparagraph (A).
   (2) If disability-based unearned income exceeds two hundred
twenty-five dollars ($225), both of the following amounts:
   (A) All of the first two hundred twenty-five dollars ($225) in
disability-based unearned income.
   (B) Fifty percent of all earned income.
   (b) For purposes of this section:
   (1) Earned income means gross income received as wages, salary,
employer provided sick leave benefits, commissions, or profits from
activities such as a business enterprise or farming in which the
recipient is engaged as a self-employed individual or as an employee.

   (2) Disability-based unearned income means state disability
insurance benefits, private disability insurance benefits, temporary
workers' compensation benefits, and social security disability
benefits.
   (3) Unearned income means any income not described in paragraph
(1) or (2).
   (c) This section shall become operative on the first day of the
first month following 90 days after the effective date of the act
that added this section, or June 1, 2011, whichever is later.
  SEC. 26.  Section 11454 of the Welfare and Institutions Code, as
amended by Section 5 of Chapter 8 of the Fourth Extraordinary Session
of the Statutes of 2009, is amended to read:
   11454.  (a) A parent or caretaker relative shall not be eligible
for aid under this chapter when he or she has received aid under this
chapter for a cumulative total of 48 months, or when he or she has
received aid from any state under the Temporary Assistance for Needy
Families program (Part A (commencing with Section 401) of Title IV of
the federal Social Security Act (42 U.S.C. Sec. 601 et seq.)) for a
cumulative total of 60 months.
   (b) (1) Except as otherwise specified in subdivision (c), Section
11454.5, or other provisions of law, all months of aid received under
this chapter from January 1, 1998, to the operative date of this
section, inclusive, shall be applied to the 48-month time limit
described in subdivision (a).
   (2) All months of aid received from September 1, 1996, to the
operative date of this section, inclusive, in any state pursuant to
the Temporary Assistance for Needy Families program (Part A
(commencing with Section 401) of Title IV of the federal Social
Security Act (42 U.S.C. Sec. 601 et seq.)), shall be applied to the
60-month time limit described in subdivision (a).
   (c) Subdivision (a) and paragraph (1) of subdivision (b) shall not
be applicable when all parents or caretaker relatives of the aided
child who are living in the home of the child meet any of the
following requirements:
   (1) They are 60 years of age or older.
   (2) They meet one of the conditions specified in paragraph (4) or
(5) of subdivision (b) of Section 11320.3.
   (3) They are not included in the assistance unit.
   (4) They are receiving benefits under Section 12200 or Section
12300, State Disability Insurance benefits or Workers' Compensation
Temporary Disability Insurance, if the disability significantly
impairs the recipient's ability to be regularly employed or
participate in welfare-to-work activities.
   (5) They are incapable of maintaining employment or participating
in welfare-to-work activities, as determined by the county, based on
the assessment of the individual and the individual has a history of
participation and full cooperation in welfare-to-work activities.
  SEC. 27.  Section 11454 of the Welfare and Institutions Code, as
added by Section 6 of Chapter 8 of the Fourth Extraordinary Session
of the Statutes of 2009, is repealed.
  SEC. 28.  Section 11454.2 is added to the Welfare and Institutions
Code, to read:
   11454.2.  For purposes of making the transition to the
requirements of the act that added this section, county welfare
departments shall provide any assistance unit that includes a member
who will reach the 48-month time limit described in subdivision (a)
of Section 11454 before January 1, 2012, and any assistance unit that
will receive a grant reduction pursuant to Section 11450.025 before
January 1, 2012, a notice of action 30 days prior to the date upon
which the grant of the assistance unit will be reduced. This notice
shall include a statement of the rights granted pursuant to Chapter 7
(commencing with Section 10950) of Part 2.
  SEC. 29.  Section 11454.5 of the Welfare and Institutions Code is
amended to read:
   11454.5.  (a) Any month in which the following conditions exist
shall not be counted as a month of receipt of aid for the purposes of
subdivision (a) of, and paragraph (1) of subdivision (b) of, Section
11454:
   (1) The recipient is exempt from participation under Article 3.2
(commencing with Section 11320) due to disability, or advanced age in
accordance with paragraph (3) of subdivision (b) of Section 11320.3,
or due to caretaking responsibilities that impair the recipient's
ability to be regularly employed, in accordance with paragraph (4) or
(5) of subdivision (b) of Section 11320.3.
   (2) The recipient is eligible for, participating in, or exempt
from, the Cal-Learn Program provided for pursuant to Article 3.5
(commencing with Section 11331), for any period during which the
Cal-Learn Program is operative, is participating in another teen
parent program approved by the department, or, on or after January 1,
2012, is a nonminor dependent under the supervision of the county
welfare or probation department who is placed in an approved relative'
s home and is eligible for aid under this section because he or she
satisfies the conditions described in Section 11403.
   (3) The cost of the cash aid provided to the recipient for the
month is fully reimbursed by child support, whether collected in that
month or any subsequent month.
   (4) The family is a former recipient of cash aid under this
chapter and currently receives only child care, case management, or
supportive services pursuant to Section 11323.2 or Article 15.5
(commencing with Section 8350) of Chapter 2 of Part 6 of the
Education Code.
   (5) To the extent provided by federal law, the recipient lived in
Indian country, as defined by federal law, or an Alaskan native
village in which at least 50 percent of the adults living in the
Indian country or in the village are not employed.
   (6) The recipient has been excused from participation for good
cause pursuant to paragraph (1) of subdivision (f) of Section
11320.3. This paragraph shall become inoperative on July 1, 2012.
   (7) The recipient is exempt from participation due to caretaking
responsibilities that impair the recipient's ability to be regularly
employed, or is otherwise exempt, in accordance with paragraph (7) of
subdivision (b) of Section 11320.3. This paragraph shall become
inoperative on July 1, 2012.
   (b) In cases where a lump-sum diversion payment is provided in
lieu of cash aid under Section 11266.5, the month in which the
payment is made or the months calculated pursuant to subdivision (f)
of Section 11266.5 shall count against the limits specified in
Section 11454.
  SEC. 30.  Section 11487 of the Welfare and Institutions Code is
amended to read:
   11487.  (a) Whenever any aid under this chapter is repaid to the
state, the state shall be entitled to the amount received or
recovered, except to the extent that county and federal funds were
expended. If funds advanced by the federal government were paid, the
federal government shall be entitled to a share of the amount
received or recovered, proportionate to the amount of federal funds
paid. Except as provided in subdivision (b), if funds were paid by a
county, the county shall be entitled to a share of the amount
received or recovered, proportionate to the amount of county funds
paid.
   (b) For the 2011-12 fiscal year, the county share of funds
received or recovered pursuant to subdivision (a) shall instead be
suspended and these funds shall be retained by the state.
  SEC. 31.  Section 12200.03 is added to the Welfare and Institutions
Code, to read:
   12200.03.  (a) Notwithstanding any other law, and subject to
subdivision (b), on the first day of the first month following 90
days after the effective date of the act that adds this section, the
maximum aid payment for an individual, as specified in Section 12200,
except subdivisions (e), (g), and (h) of that section, shall be
reduced to equal the minimum amount required by the federal Social
Security Act in order to maintain eligibility for federal funding
under Title XIX of the federal Social Security Act, contained in
Subchapter 19 (commencing with Section 1396) of Chapter 7 of Title 42
of the United States Code.
   (b) Notwithstanding subdivision (a), in no event shall the payment
schedules be reduced below the level of the state's March 1983
payment standards, as adjusted by the federal Social Security
Administration pursuant to Section 416.2096(b) of Title 20 of the
Code of Federal Regulations.
  SEC. 31.1.  Section 12301.03 of the Welfare and Institutions Code
is repealed.
  SEC. 31.2.  Section 12301.03 is added to the Welfare and
Institutions Code, to read:
   12301.03.  (a) (1) Notwithstanding any other provision of law, if
the Department of Finance determines that a reduction in authorized
hours of service is necessary, pursuant to subdivision (d) of Section
14132.957, the department shall implement a reduction in authorized
hours of service to each in-home supportive services recipient as
specified in this section, which shall be applied to the recipient's
hours as authorized pursuant to his or her most recent assessment.
   (2) The reduction required by this section shall not preclude any
reassessment to which a recipient would otherwise be entitled.
However, hours authorized pursuant to a reassessment shall be subject
to the reduction required by this section.
                                                                  (3)
For those recipients who have a documented unmet need, excluding
protective supervision, because of the limitations contained in
Section 12303.4, this reduction shall be applied first to the unmet
need before being applied to the authorized hours. If the recipient
believes he or she will be at serious risk of out-of-home placement
as a consequence of the reduction, the recipient may apply for a
restoration of the reduction of authorized service hours, pursuant to
Section 12301.05.
   (4) A recipient of services under this article may direct the
manner in which the reduction of hours is applied to the recipient's
previously authorized services.
   (b) The department shall work with the counties to develop a
process to allow for counties to preapprove IHSS Care Supplements
described in Section 12301.05, to the extent that the process is
permissible under federal law. The preapproval process shall be
subject to the following conditions:
   (1) The preapproval process shall rely on the criteria for
assessing IHSS Supplemental Care applications, developed pursuant to
Section 12301.05.
   (2) Preapproval shall be granted only to individuals who would
otherwise be granted a full restoration of their hours pursuant to
Section 12301.05.
   (3) With respect to existing recipients as of the effective date
of this section, all efforts shall be made to ensure that counties
complete the process on or before a specific date, as determined by
the department, in consultation with counties in order to allow for
the production, printing, and mailing of notices to be issued to
remaining recipients who are not granted preapproval and who thereby
are subject to the reduction pursuant to this section.
   (4) The department shall work with counties to determine how to
apply a preapproval process with respect to new applicants to the
IHSS program who apply after the effective date of this section.
   (c) The notice of action informing each recipient who is not
preapproved for an IHSS Care Supplement pursuant to subdivision (b)
shall be mailed at least 15 days prior to the reduction going into
effect. The notice of action shall be understandable to the recipient
and translated into all languages spoken by a substantial number of
the public served by the In-Home Supportive Services program, in
accordance with Section 7295.2 of the Government Code. The notice
shall not contain any recipient financial or confidential identifying
information other than the recipient's name, address, and Case
Management Information and Payroll System (CMIPS) client
identification number, and shall include, but not be limited to, all
of the following information:
   (1) The aggregate number of authorized hours before the reduction
pursuant to subdivision (a) and the aggregate number of authorized
hours after the reduction.
   (2) That the recipient may direct the manner in which the
reduction of authorized hours is applied to the recipient's
previously authorized services.
   (3) How all or part of the reduction may be restored, as set forth
in Section 12301.05, if the recipient believes he or she will be at
serious risk of out-of-home placement as a consequence of the
reduction.
   (d) The department shall inform providers of any reduction to
recipient hours through a statement on provider timesheets, after
consultation with counties.
   (e) The IHSS Care Supplement application process described in
Section 12301.05 shall be completed before a request for a state
hearing is submitted. If the IHSS Care Supplement application is
filed within 15 days of the notice of action required by subdivision
(c), or before the effective date of the reduction, the recipient
shall be eligible for aid paid pending. A revised notice of action
shall be issued by the county following evaluation of the IHSS Care
Supplement application.
   (f) (1)  Notwithstanding the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code),
the department may implement and administer this section through
all-county letters or similar instruction from the department until
regulations are adopted. The department shall adopt emergency
regulations implementing this section no later than October 1, 2013.
The department may readopt any emergency regulation authorized by
this section that is the same as or substantially equivalent to an
emergency regulation previously adopted under this section.
   (2) The initial adoption of emergency regulations implementing
this section and the one readoption of emergency regulations
authorized by this subdivision shall be deemed an emergency and
necessary for the immediate preservation of the public peace, health,
safety, or general welfare. Initial emergency regulations and the
one readoption of emergency regulations authorized by this section
shall be exempt from review by the Office of Administrative Law. The
initial emergency regulations and the one readoption of emergency
regulations authorized by this section shall be submitted to the
Office of Administrative Law for filing with the Secretary of State
and each shall remain in effect for no more than 180 days, by which
time final regulations may be adopted.
   (g)  This section shall become operative on the first day of the
first month following 90 days after the effective date of the act
that added this section, or October 1, 2012, whichever is later.
  SEC. 31.3.  Section 12301.05 of the Welfare and Institutions Code
is repealed.
  SEC. 31.4.  Section 12301.05 is added to the Welfare and
Institutions Code, to read:
   12301.05.  (a) Any aged, blind, or disabled individual who is
eligible for services under this chapter who receives a notice of
action indicating that his or her services will be reduced under
subdivision (a) of Section 12301.03 but who believes he or she is at
serious risk of out-of-home placement unless all or part of the
reduction is restored may submit an IHSS Care Supplement application.
When a recipient submits an IHSS Care Supplement application within
15 days of receiving the reduction notice or prior to the
implementation of the reduction, the recipient's in-home supportive
services shall continue at the level authorized by the most recent
assessment, prior to any reduction, until the county finds that the
recipient does or does not require restoration of any hours through
the IHSS Care Supplement. If the recipient disagrees with the county'
s determination concerning the need for the IHSS Care Supplement, the
recipient may request a hearing on that determination.
   (b) The department shall develop an assessment tool, in
consultation with stakeholders, to be used by the counties to
determine if a recipient is at serious risk of out-of-home placement
as a consequence of the reduction of services pursuant to section
12301.03. The assessment tool shall be developed utilizing standard
of care criteria for relevant out-of-home placements that serve
individuals who are aged, blind, or who have disabilities and who
would qualify for IHSS if living at home, including, but not limited
to, criteria set forth in Chapter 7.0 of the Manual of Criteria for
Medi-Cal Authorization published by the State Department of Health
Care Services, as amended April 15, 2004, and the IHSS uniform
assessment guidelines.
   (c) Counties shall give a high priority to prompt screening of
persons specified in this section to determine their need for an IHSS
Care Supplement.
   (d) (1) Notwithstanding the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code),
the department may implement and administer this section through
all-county letters or similar instruction from the department until
regulations are adopted. The department shall adopt emergency
regulations implementing this section no later than October 1, 2013.
The department may readopt any emergency regulation authorized by
this section that is the same as or substantially equivalent to an
emergency regulation previously adopted under this section.
   (2) The initial adoption of emergency regulations implementing
this section and the one readoption of emergency regulations
authorized by this subdivision shall be deemed an emergency and
necessary for the immediate preservation of the public peace, health,
safety, or general welfare. Initial emergency regulations and the
one readoption of emergency regulations authorized by this section
shall be exempt from review by the Office of Administrative Law. The
initial emergency regulations and the one readoption of emergency
regulations authorized by this section shall be submitted to the
Office of Administrative Law for filing with the Secretary of State,
and each shall remain in effect for no more than 180 days, by which
time final regulations may be adopted.
   (e) If the Director of Health Care Services determines that
federal approval is needed to implement this section, this section
shall not be implemented until after any state plan amendments,
pursuant to Section 14132.95, are received.
   (f) This section shall become operative on the first day of the
first month following 90 days after the effective date of the act
that added this section, or October 1, 2012, whichever is later.
  SEC. 32.  Section 12301.3 of the Welfare and Institutions Code is
amended to read:
   12301.3.  (a) Each county may appoint an in-home supportive
services advisory committee that shall be comprised of not more than
11 individuals. No less than 50 percent of the membership of the
advisory committee shall be individuals who are current or past users
of personal assistance services paid for through public or private
funds or as recipients of services under this article.
   (1) (A) In counties with fewer than 500 recipients of services
provided pursuant to this article or Section 14132.95, at least one
member of the advisory committee shall be a current or former
provider of in-home supportive services.
   (B) In counties with 500 or more recipients of services provided
pursuant to this article or Section 14132.95, at least two members of
the advisory committee shall be a current or former provider of
in-home supportive services.
   (2) Individuals who represent organizations that advocate for
people with disabilities or seniors may be appointed to committees
under this section.
   (3) Individuals from community-based organizations that advocate
on behalf of home care employees may be appointed to committees under
this section.
   (4) A county board of supervisors shall not appoint more than one
county employee as a member of the advisory committee, but may
designate any county employee to provide ongoing advice and support
to the advisory committee.
   (b) Prior to the appointment of members to a committee authorized
by subdivision (a), the county board of supervisors shall solicit
recommendations for qualified members through a fair and open process
that includes the provision of reasonable written notice to, and
reasonable response time by, members of the general public and
interested persons and organizations.
   (c) The advisory committee shall submit recommendations to the
county board of supervisors on the preferred mode or modes of service
to be utilized in the county for in-home supportive services.
   (d) Any county that has established a governing body, as provided
in subdivision (b) of Section 12301.6, prior to July 1, 2000, shall
not be required to comply with the composition requirements of
subdivision (a) and shall be deemed to be in compliance with this
section.
  SEC. 33.  Section 12301.4 of the Welfare and Institutions Code is
amended to read:
   12301.4.  Each advisory committee established pursuant to Section
12301.3 or 12301.6 shall provide ongoing advice and recommendations
regarding in-home supportive services to the county board of
supervisors, any administrative body in the county that is related to
the delivery and administration of in-home supportive services, and
the governing body and administrative agency of the public authority,
nonprofit consortium, contractor, and public employees.
  SEC. 34.  Section 12302.25 of the Welfare and Institutions Code is
amended to read:
   12302.25.  (a) On or before January 1, 2003, each county shall act
as, or establish, an employer for in-home supportive service
providers under Section 12302.2 for the purposes of Chapter 10
(commencing with Section 3500) of Division 4 of Title 1 of the
Government Code and other applicable state or federal laws. Each
county may utilize a public authority or nonprofit consortium as
authorized under Section 12301.6, the contract mode as authorized
under Sections 12302 and 12302.1, county administration of the
individual provider mode as authorized under Sections 12302 and
12302.2 for purposes of acting as, or providing, an employer under
Chapter 10 (commencing with Section 3500) of Division 4 of Title 1 of
the Government Code, county civil service personnel as authorized
under Section 12302, or mixed modes of service authorized pursuant to
this article and may establish regional agreements in establishing
an employer for purposes of this subdivision for providers of in-home
supportive services. Within 30 days of the effective date of this
section, the department shall develop a timetable for implementation
of this subdivision to ensure orderly compliance by counties.
Recipients of in-home supportive services shall retain the right to
choose the individuals that provide their care and to recruit,
select, train, reject, or change any provider under the contract mode
or to hire, fire, train, and supervise any provider under any other
mode of service. Upon request of a recipient, and in addition to a
county's selected method of establishing an employer for in-home
supportive service providers pursuant to this subdivision, counties
with an IHSS caseload of more than 500 shall be required to offer an
individual provider employer option.
   (b) Nothing in this section shall prohibit any negotiations or
agreement regarding collective bargaining or any wage and benefit
enhancements.
   (c) Nothing in this section shall be construed to affect the state'
s responsibility with respect to the state payroll system,
unemployment insurance, or workers' compensation and other provisions
of Section 12302.2 for providers of in-home supportive services.
   (d) Prior to implementing subdivision (a), a county may establish
an advisory committee as authorized by Section 12301.3 and solicit
recommendations from the advisory committee on the preferred mode or
modes of service to be utilized in the county for in-home supportive
services.
   (e) If a county establishes an in-home supportive services
advisory committee pursuant to Section 12301.3, the county shall take
into account the advice and recommendations of the committee prior
to making policy and funding decisions about the program on an
ongoing basis.
   (f) In implementing and administering this section, no county,
public authority, nonprofit consortium, contractor, or a combination
thereof, that delivers in-home supportive services shall reduce the
hours of service for any recipient below the amount determined to be
necessary under the uniform assessment guidelines established by the
department.
   (g) Any agreement between a county and an entity acting as an
employer under subdivision (a) shall include a provision that
requires that funds appropriated by the state for wage increases for
in-home supportive services providers be used exclusively for that
purpose. Counties or the state may undertake audits of the entities
acting as employers under the terms of subdivision (a) to verify
compliance with this subdivision.
   (h) On or before January 15, 2003, each county shall provide the
department with documentation that demonstrates compliance with the
January 1, 2003, deadline specified in subdivision (a). The
documentation shall include, but is not limited to, any of the
following:
   (1) The public authority ordinance and employee relations
procedures.
   (2) The invitations to bid and requests for proposal for contract
services for the contract mode.
   (3) An invitation to bid and request for proposal for the
operation of a nonprofit consortium.
   (4) A county board of supervisors' resolution resolving that the
county has chosen to act as the employer required by subdivision (a)
either by utilizing county employees, as authorized by Section 12302,
to provide in-home supportive services or through county
administration of individual providers.
   (5) Any combination of the documentation required under paragraphs
(1) to (4), inclusive, that reflects the decision of a county to
provide mixed modes of service as authorized under subdivision (a).
   (i) Any county that is unable to provide the documentation
required by subdivision (h) by January 15, 2003, may provide, on or
before that date, a written notice to the department that does all of
the following:
   (1) Explains the county's failure to provide the required
documentation.
   (2) Describes the county's plan for coming into compliance with
the requirements of this section.
   (3) Includes a timetable for the county to come into compliance
with this section, but in no case shall the timetable extend beyond
March 31, 2003.
   (j) Any county that fails to provide the documentation required by
subdivision (h) and also fails to provide the written notice as
allowed under subdivision (i), shall be deemed by operation of law to
be the employer of IHSS individual providers for purposes of Chapter
10 (commencing with Section 3500) of Division 4 of Title 1 of the
Government Code as of January 15, 2003.
   (k) Any county that provides a written notice as allowed under
subdivision (i), but fails to provide the documentation required
under subdivision (h) by March 31, 2003, shall be deemed by operation
of law to be the employer of IHSS individual providers for purposes
of Chapter 10 (commencing with Section 3500) of Division 4 of Title 1
of the Government Code as of April 1, 2003.
   (l) Any county deemed by operation of law, pursuant to subdivision
(j) or (k), to be the employer of IHSS individual providers for
purposes of Chapter 10 (commencing with Section 3500) of Division 4
of Title 1 of the Government Code shall continue to act in that
capacity until the county notifies the department that it has
established another employer as permitted by this section, and has
provided the department with the documentation required under
subdivision (h) demonstrating the change.
  SEC. 35.  Section 12309.1 is added to the Welfare and Institutions
Code, to read:
   12309.1.  (a) As a condition of receiving services under this
article, or Section 14132.95 or 14132.952, an applicant for or
recipient of services shall obtain a certification from a licensed
health care professional, including, but not limited to, a physician,
physician assistant, regional center clinician or clinician
supervisor, occupational therapist, physical therapist, psychiatrist,
psychologist, optometrist, opthamologist, or public health nurse,
declaring that the applicant or recipient is unable to perform some
activities of daily living independently, and that without services
to assist him or her with activities of daily living, the applicant
or recipient is at risk of placement in out-of-home care.
   (1) For purposes of this section, a licensed health care
professional means an individual licensed in California by the
appropriate California regulatory agency, acting within the scope of
his or her license or certificate as defined in the Business and
Professions Code.
   (2) Except as provided in subparagraph (A) or (B) or subdivision
(c), the certification shall be received prior to service
authorization, and services shall not be authorized in the absence of
the certification.
   (A) Services may be authorized prior to receipt of the
certification when the services have been requested on behalf of an
individual being discharged from a hospital or nursing home and
services are needed to enable the individual to return safely to
their home or into the community.
   (B) Services may be authorized prior to receipt of the
certification when the deterioration of the recipient's health or
mental health is likely to result in eviction from home,
homelessness, or a hazardous living environment.
   (3) The county shall consider the certification as one indicator
of the need for in-home supportive services, but the certification
shall not be the sole determining factor.
   (4) The health care professional's certification shall include, at
a minimum, both of the following:
   (A) A statement by the professional, as defined in subdivision
(a), that the individual is unable to independently perform one or
more activities of daily living, and that one or more of the services
available under the IHSS program is recommended for the applicant or
recipient, in order to prevent the need for out-of-home care.
   (B) A description of any condition or functional limitation that
has resulted in, or contributed to, the applicant's or recipient's
need for assistance.
   (b) The department, in consultation with the State Department of
Health Care Services and with stakeholders, including, but not
limited to, representatives of program recipients, providers, and
counties, shall develop a standard certification form for use in all
counties that includes, but is not limited to, all of the conditions
in paragraph (4) of subdivision (a). The form shall include a
description of the In-Home Supportive Services program and the
services the program can provide when authorized after a social
worker's assessment of eligibility. The form shall not, however,
require health care professionals to certify the applicant's or
recipient's need for each individual service.
   (c) The department, in consultation with the State Department of
Health Care Services and stakeholders, as defined in subdivision (b),
shall identify alternative documentation that shall be accepted by
counties to meet the requirements of this section, including, but not
limited to, hospital or nursing facility discharge plans, minimum
data set forms, individual program plans, or other documentation that
contains the necessary information, consistent with the requirements
specified in subdivision (a).
   (d) The department shall develop a letter for use by counties to
inform recipients of the requirements of subdivision (a). The letter
shall be understandable to the recipient, and shall be translated
into all languages spoken by a substantial number of the public
served by the In-Home Supportive Services program, in accordance with
Section 7295.2 of the Government Code.
   (e) This section shall not apply to a recipient who is receiving
services in accordance with this article or Section 14132.95 or
14132.952 on the operative date of this section until the date of the
recipient's first reassessment following the operative date of this
section, as provided in subdivision (f).
   (1) The recipient shall be notified of the certification
requirement before or at the time of the reassessment, and shall
submit the certification within 45 days following the reassessment in
order to continue to be authorized for receipt of services.
   (2) A county may extend the 45-day period for a recipient to
submit the medical certification on a case-by-case basis, if the
county determines that good cause for the delay exists.
   (f) This section shall become operative on the first day of the
first month following 90 days after the effective date of the act
that added this section, or July 1, 2011, whichever is later.
   (g) The State Department of Health Care Services shall provide
notice to all Medi-Cal managed care plans, directing the plans to
assess all Medi-Cal recipients applying for or receiving in-home
supportive services, in order to make the certifications required by
this section.
   (h) If the Director of Health Care Services determines that a
Medicaid State Plan amendment is necessary to implement subdivision
(b) of Section 14132.95, this section shall not be implemented until
federal approval is received.
  SEC. 36.  Section 14132.956 is added to the Welfare and
Institutions Code, to read:
   14132.956.  (a) The department shall assess and determine whether
it would be cost efficient for the state to exercise the option made
available under Section 1915(k) of the federal Social Security Act
(42 U.S.C. Sec. 1396n(k)). When performing this assessment, the
department shall collaborate and consult with the State Department of
Social Services, the State Department of Developmental Services, the
California Department of Aging, and any other state agency that the
department believes can assist in its determination whether it would
be cost efficient for the state to exercise this option. If the
department determines that it would be cost efficient for the state
to exercise the federal option, it shall seek a Medi-Cal State Plan
amendment to provide home- and community-based attendant services and
supports that include assistance with activities of daily living
(ADLs), instrumental activities of daily living (IADLs), and
health-related tasks pursuant to Section 1915(k) of the federal
Social Security Act (42 U.S.C. Sec. 1396n(k)).
   (b) If the department determines that it would be cost efficient
to exercise the option made available under Section 1915(k) of the
federal Social Security Act (42 U.S.C. Sec. 1396n(k)), the department
shall establish a development and implementation council that shall
include, as a majority of its members, persons with disabilities and
elderly individuals, and their representatives. The department shall
consult and collaborate with the council when developing and
implementing a Medi-Cal State Plan amendment to exercise this option.

   (c) Services and supports pursuant to this section may be rendered
under the administrative direction of other state departments in
accordance with the Medi-Cal State Plan amendment and subject to the
department's authority as the designated single state agency for the
administration or supervision of the administration of the Medi-Cal
program.
   (d) (1) Notwithstanding the Administrative Procedure Act (Chapter
3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title
2 of the Government Code) the department, and any other state
department pursuant to subdivision (c), may implement this section
through all-county letters or similar instructions from the director,
until regulations are adopted.
   (2) The department, and any other state department rendering
services and supports pursuant to subdivision (c), shall adopt
emergency regulations implementing this section within 24 months
                                       from the date federal approval
pursuant to this section is received. The adoption of regulations
implementing this section shall be deemed an emergency and necessary
for the immediate preservation of the public peace, health, safety,
or general welfare. The emergency regulations authorized by this
section shall be exempt from review and approval by the Office of
Administrative Law. Any emergency regulations authorized by this
section shall be submitted to the Office of Administrative Law for
filing with the Secretary of State and shall remain in effect for no
more than 18 months by which time final regulations shall be adopted.

  SEC. 37.  Section 14132.957 is added to the Welfare and
Institutions Code, to read:
   14132.957.  (a) (1) It is the intent of the Legislature to adopt
measures that will assist individuals who are living in the community
to remain within their home environment and avoid unnecessary
emergency room usage and hospital and nursing facility admissions due
to those individuals not taking medications as prescribed.
   (2) The Legislature finds and declares that certain seniors,
persons with disabilities, and other Medi-Cal recipients are at high
risk of not taking medications as prescribed and that measures to
assist them in taking prescribed medications will advance the state's
objectives to save lives, reduce health care costs, and assist
individuals to continue living independently in their homes.
   (3) The Legislature has determined that the achievement of these
objectives will result in a net annual savings of one hundred forty
million dollars ($140,000,000) to the General Fund, after fully
offsetting costs for implementing and administrating the pilot
project.
   (4) The Legislature therefore authorizes the establishment of the
Home and Community Based Medication Dispensing Machine Pilot Project
for utilization of an automated medication dispensing machine with
associated monitoring and telephonic reporting services to assist
Medi-Cal recipients with taking prescribed medications. All Medi-Cal
recipients who participate in the pilot project shall do so
voluntarily and shall be selected using criteria that demonstrates
their susceptibility to not taking their medications as prescribed
without monitoring or assistance.
   (b) On and after the effective date of this section, the
department, in consultation with the State Department of Social
Services, shall begin implementation of the pilot project described
in subdivision (a) and shall do all of the following:
   (1) Establish criteria to identify at-risk Medi-Cal recipients who
demonstrate susceptibility to not taking medications as prescribed.
These criteria shall be based on Medi-Cal, In-Home Supportive
Services program and Medicare data and may include factors such as
age, disability, multiple prescribed medications, and experience with
or a high risk of experience with, numerous emergency department
visits or hospital or nursing facility admissions within a specified
time period as a result of not taking medications as prescribed.
   (2) Identify an at-risk portion of Medi-Cal recipients of a
sufficient number to achieve the intended savings. Recipients
identified for this pilot project shall be limited to individuals who
obtain Medi-Cal benefits through fee for service, who are not
required to be enrolled on a mandatory basis in a Medi-Cal managed
care health plan, and who are able to manage the medication
dispensing machine independently or with the assistance of a family
member or care provider and have a home environment capable of
supporting the machine and associated telephonic reporting service
that includes an active telephone line.
   (3) To the extent necessary, the department shall do all of the
following:
   (A) Select and procure the automated medication dispensing
machines, including costs for installation in a participant's home,
as well as monitoring and repair services associated with operation
of the machines.
   (B) Provide an in-home, automated medication dispensing machine
with telephonic reporting service for monitoring and assisting with
taking medication, including installation, maintenance, alerts,
training, and supplies at no cost to the recipient.
   (4) Seek federal funding from the Centers for Medicare and
Medicaid Services Innovation Center for the cost of the demonstration
and other expenses, and to receive Medicare shared savings realized
from the pilot project.
   (5) Assess the potential for federal financial participation for
these machines and any other expenses associated with this pilot
project as well as receipt of federal reimbursement for savings
accrued to the Medicare program. If the department determines that
federal financial participation is available under Title XI or XIX of
the federal Social Security Act, the department shall seek a waiver
or other federal approval, or submit a Medicaid State Plan amendment
to implement the pilot project.
   (c) (1) The department shall provide quarterly reports, beginning
October 1, 2011, to the Department of Finance and the appropriate
fiscal and policy committees of the Legislature, describing the
number of recipients participating in the pilot project, the number
of medication dispensing machines in use, costs of implementing and
administering the pilot project, and any available data regarding
medical and pharmacy utilization.
   (2) The department shall also conduct an evaluation of the pilot
project, including effects on service utilization, spending,
outcomes, projected savings to the Medi-Cal program and the federal
Medicare program, recommendations for improving the pilot project and
maximizing savings to the state, and identification of other means
of General Fund savings related to improving quality and
cost-effectiveness of care, and shall report the evaluation to the
appropriate policy and fiscal committees of the Legislature by
December 31, 2013.
   (3) (A) If the Department of Finance determines that the quarterly
reports do not demonstrate the ability of the pilot project to
achieve at least the estimated net annual savings of one hundred
forty million dollars ($140,000,000) to the General Fund, after fully
offsetting implementation and administrative costs, the Director of
Finance shall notify the Chair of the Senate Committee on Budget and
Fiscal Review and the Chair of the Assembly Committee on Budget of
this determination, in writing, by April 10, 2012. Within 10 days
following this notification, the Department of Finance shall convene
a meeting with legislative staff to review the estimates related to
its determination.
   (B) Subsequent to the meeting pursuant to subparagraph (A), the
Department of Finance shall request that the Legislature enact
legislation on or before July 1, 2012, to either modify the pilot
project, if necessary, or provide alternative options to achieve the
balance of the net annual savings of one hundred forty million
dollars ($140,000,000) to the General Fund, after fully offsetting
implementation and administrative costs, or both.
   (d) (1) Notwithstanding any other provision of law, if the
Department of Finance determines after July 1, 2012, that the actions
pursuant to subdivisions (b) and (c) will fail to achieve the net
annual savings of one hundred forty million dollars ($140,000,000) to
the General Fund, after fully offsetting implementation and
administrative costs, the Department of Finance shall notify the
State Department of Social Services and the department, and the State
Department of Social Services, in consultation with the department,
shall implement a reduction in authorized hours for in-home
supportive services recipients beginning October 1, 2012, in
accordance with Section 12301.03, to achieve a net annual savings of
one hundred forty million dollars ($140,000,000) to the General Fund,
after fully offsetting implementation and administrative costs of
the pilot project and after taking into account any savings achieved
pursuant to subdivisions (b) and (c).
   (2) No earlier than 30 days after submission of the evaluation
required by paragraph (2) of subdivision (c), the Department of
Finance may adjust the amount of the reduction to meet net annual
savings of one hundred forty million dollars ($140,000,000) to the
General Fund after fully offsetting implementation and administrative
costs and after taking into account any savings achieved pursuant to
subdivisions (b) and (c). The calculations shall be based on updated
data contained in the evaluation.
   (e) For the purpose of implementing this section, the director may
enter into exclusive or nonexclusive contracts on a bid or
negotiated basis, or utilize existing provider enrollment or payment
mechanisms. Any contract, contract amendment, or change order entered
into for the purpose of implementing this section shall be exempt
from Chapter 5.6 (commencing with Section 11545) of Part 1 of
Division 3 of Title 2 of the Government Code, the Public Contract
Code, and any associated policies, procedures, or regulations under
these provisions, and shall be exempt from review or approval by any
division of the Department of General Services and the California
Technology Agency.
   (f) Notwithstanding Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code, the
department may implement this section through all-county letters,
provider bulletins, or similar instructions, without taking
regulatory action.
   (g) (1) Notwithstanding paragraph (2) of subdivision (c), the
department may terminate operation of the pilot project if and to the
extent that any of the following events occurs:
   (A) Funding to implement and administer the pilot project is not
appropriated in the 2012-13 fiscal year or annually thereafter.
   (B) The Director of Finance notifies the Legislature that the
pilot project is not projected to achieve a net annual savings or
results in an overall increased cost.
   (C) The pilot project conflicts with one or more provisions of
state or federal law necessary to implement the pilot project.
   (D) The department is unable to obtain from the Medicare program
the data necessary to implement this pilot project, and the high-risk
Medi-Cal only population is insufficient to conduct the pilot
project.
   (E) The department receives substantiated reports of adverse
clinical outcomes indicating that continuing the pilot project poses
unacceptable health risks to participants.
   (2) Termination of the pilot project pursuant to paragraph (1)
does not provide the department or the State Department of Social
Services with authority to implement a reduction in authorized hours
pursuant to Section 12301.03. Any reduction in authorized hours
pursuant to Section 12301.03 shall comply with the requirements of
subdivision (d).
   (3) The department shall notify the appropriate fiscal and policy
committees of the Legislature 30 days prior to terminating the pilot
project.
  SEC. 38.  Section 14132.97 of the Welfare and Institutions Code is
amended to read:
   14132.97.  (a) (1) For purposes of this section, "waiver personal
care services" means personal care services authorized by the
department for persons who are eligible for either nursing or model
nursing facility waiver services.
   (2) Waiver personal care services shall satisfy all of the
following criteria:
   (A) The services shall be defined in the nursing and model nursing
facility waivers.
   (B) The services shall differ in scope from services that may be
authorized under Section 14132.95 or 14132.952.
   (C) The services shall not replace any hours of services
authorized or that may be authorized under Section 14132.95 or
14132.952.
   (D) The services shall not replace any hours of service reduced
under Sections 12301.03 and 12301.06, or any other state law that
reduces hours of service under Section 14132.95 or 14132.952.
   (b) An individual may receive waiver personal care services if all
of the following conditions are met:
   (1) The individual has been approved by the department to receive
services in accordance with a waiver approved under Section 1915(c)
of the federal Social Security Act (42 U.S.C. Sec. 1396n(c)) for
persons who would otherwise require care in a nursing facility.
   (2) The individual has doctor's orders that specify that he or she
requires waiver personal care services in order to remain in his or
her own home.
   (3) The individual chooses, either personally or through a
substitute decisionmaker who is recognized under state law for
purposes of giving consent for medical treatment, to receive waiver
personal care services, as well as medically necessary skilled
nursing services, in order to remain in his or her own home.
   (4) The waiver personal care services and all other waiver
services for the individual do not result in costs that exceed the
fiscal limit established under the waiver.
   (c) The department shall notify the administrator of the in-home
supportive services program in the county of residence of any
individual who meets all requirements of subdivision (b) and has been
authorized by the department to receive waiver personal care
services. The county of residence shall then do the following:
   (1) Inform the department of the services that the individual is
authorized to receive under Section 14132.95 or 14132.952 at the time
he or she becomes eligible for waiver personal care services.
   (2) Determine the individual's eligibility for services under
Section 14132.95 or 14132.952 if he or she is not currently
authorized to receive those services and if he or she has not been
previously determined eligible for those services.
   (3) Implement the department's authorization for waiver personal
care services for the individual at the quantity and scope authorized
by the department.
   (d) (1) Waiver personal care services approved by the department
for individuals who meet the requirements of subdivision (b) may be
provided in either of the following ways, or a combination of both:
   (A) By a licensed and certified home health agency participating
in the Medi-Cal program.
   (B) By one or more providers of personal care services under
Article 7 (commencing with Section 12300) of Chapter 3 and
subdivision (d) of Section 14132.95, when the individual elects, in
writing, to utilize these service providers.
   (2) The department shall approve waiver personal care services for
individuals who meet the requirements of subdivision (b) only when
the department finds that the individual's receipt of waiver personal
care services is necessary in order to enable the individual to be
maintained safely in his or her own home and community.
   (3) When waiver personal care services are provided by a licensed
and certified home health agency, the home health agency shall
receive payment in the manner by which it would receive payment for
any other service approved by the department.
   (4) When waiver personal care services are provided by one or more
providers of personal care services under Article 7 (commencing with
Section 12300) of Chapter 3 and subdivision (d) of Section 14132.95,
the providers shall receive payment on a schedule and in a manner by
which providers of personal care services receive payment. The State
Department of Social Services shall commence making payments for
waiver personal care services when its payment system has been
modified to accommodate those payments. No county shall be obligated
to administer waiver personal care services until the State
Department of Social Services payment system has been modified to
accommodate those payments. However, any county or public authority
or nonprofit consortium that administers the in-home supportive
services program and personal care services program may pay providers
for the delivery of waiver personal care services if it chooses to
do so. In such a case, the county, public authority, or nonprofit
consortium shall be reimbursed by the department for the waiver
personal care services authorized by the department and provided to
an individual upon submittal of documentation as required by the
waiver, and in accordance with the requirements of the department.
   (e) Waiver personal care services shall not count as alternative
resources in a county's determination of the amount of services an
individual may receive under Section 14132.95 or 14132.952.
   (f) Any administrative costs to the State Department of Social
Services, a county, or a public authority or nonprofit consortium
associated with implementing this section shall be considered
administrative costs under the waiver and shall be reimbursed by the
department.
   (g) Two hundred fifty thousand dollars ($250,000) is appropriated
from the General Fund to the State Department of Social Services for
the 1998-99 fiscal year for the purpose of making changes to the case
management, information, and payrolling system that are necessary
for the implementation of this section.
   (h) This section shall not be implemented until the department has
obtained federal approval of any necessary amendments to the
existing nursing facility and model nursing facility waivers and the
state plan under Title 19 of the federal Social Security Act (42
U.S.C. Sec. 1396 et seq.). Any amendments to the existing nursing
facility and model nursing facility waivers and the state plan which
are deemed to be necessary by the director shall be submitted to the
federal Health Care Financing Administration by April 1, 1999.
   (i) The department shall implement this section only to the extent
that its implementation results in fiscal neutrality, as required
under the terms of the waivers.
  SEC. 39.  Section 15525 of the Welfare and Institutions Code is
amended to read:
   15525.  (a) The State Department of Social Services shall
establish a Work Incentive Nutritional Supplement (WINS) program
pursuant to this section.
   (b) Under the WINS program established pursuant to subdivision
(a), each county shall provide a forty dollar ($40) per month
additional food assistance benefit for each eligible food stamp
household, as defined in subdivision (d).
   (c) The state shall pay to the counties 100 percent of the cost of
WINS benefits, using funds that qualify for the state's maintenance
of effort requirements under Section 609(a)(7)(B)(i) of Title 42 of
the United States Code.
   (d) For purposes of this section, an "eligible food stamp
household" is a household that meets all of the following criteria:
   (1) Receives benefits pursuant to Chapter 10 (commencing with
Section 18900) of Part 6.
   (2) Has no household member receiving CalWORKs benefits pursuant
to Chapter 2 (commencing with Section 11200).
   (3) Contains at least one child under 18 years of age, unless the
household contains a child who meets the requirements of Section
11253.
   (4) Has at least one parent or caretaker relative determined to be
"work eligible" as defined in Section 261.2(n) of Title 45 of the
Code of Federal Regulations and Section 607 of Title 42 of the United
States Code.
   (5) Meets the federal work participation hours requirement set
forth in Section 607 of Title 42 of the United States Code for
subsidized or unsubsidized employment, and provides documentation
that the household has met the federal work requirements.
   (e) (1) In accordance with federal law, federal food stamp
benefits (Chapter 10 (commencing with Section 18900) of Part 6),
federal supplemental security income benefits, state supplemental
security program benefits, public social services, as defined in
Section 10051, and county aid benefits (Part 5 (commencing with
Section 17000)), shall not be reduced as a consequence of the receipt
of the WINS benefit paid under this chapter.
   (2) Benefits paid under this chapter shall not count toward the
federal 60-month time limit on aid as set forth in Section 608(a)(7)
(A) of Title 42 of the United States Code. Payment of WINS benefits
shall not commence before October 1, 2013, and full implementation of
the program shall be achieved on or before April 1, 2014.
   (f) (1) Notwithstanding the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code and
Section 10554), until emergency regulations are filed with the
Secretary of State pursuant to paragraph (2), the State Department of
Social Services may implement this section through all-county
letters or similar instructions from the director. The director may
provide for individual county phase-in of this section to allow for
the orderly implementation based upon standards established by the
director, including the operational needs and requirements of the
counties. Implementation of the automation process changes shall
include issuance of an all-county letter or similar instructions to
counties by March 1, 2013.
   (2) The department may adopt regulations to implement this
chapter. The initial adoption, amendment, or repeal of a regulation
authorized by this section is deemed to address an emergency, for
purposes of Sections 11346.1 and 11349.6 of the Government Code, and
the department is hereby exempted for that purpose from the
requirements of subdivision (b) of Section 11346.1 of the Government
Code. After the initial adoption, amendment, or repeal of an
emergency regulation pursuant to this paragraph, the department may
request approval from the Office of Administrative Law to readopt the
regulation as an emergency regulation pursuant to Section 11346.1 of
the Government Code.
   (g) (1) The department shall not fully implement this section
until the department convenes a workgroup of advocates, legislative
staff, county representatives, and other stakeholders to consider the
progress of the WINS automation effort in tandem with a
pre-assistance employment readiness system (PAERS) program and any
other program options that may provide offsetting benefits to the
caseload reduction credit in the CalWORKs program. The department
shall convene this workgroup on or before December 1, 2012.
   (2) A PAERS program shall be considered in light of current and
potential federal Temporary Assistance for Needy Families (TANF)
statutes and regulations and how other states with pre-assistance or
other caseload offset options are responding to federal changes.
   (3) The consideration of program options shall include, but not
necessarily be limited to, the potential impacts on helping clients
to obtain self-sufficiency, increasing the federal work participation
rate, increasing the caseload reduction credit, requirements and
efficiency of county administration, and the well-being of CalWORKs
recipients.
   (4) If the workgroup concludes that adopting a PAERS program or
other program option pursuant to this section would, on balance, be
favorable for California and its CalWORKs recipients, the department,
in consultation with the workgroup, shall prepare a proposal by
March 31, 2013, for consideration during the regular legislative
budget subcommittee process in 2013.
   (5) To meet the requirements of this subdivision, the department
may use its TANF reauthorization workgroups.
  SEC. 40.  Section 17021 of the Welfare and Institutions Code is
amended to read:
   17021.  (a) Any individual who is not eligible for aid under
Chapter 2 (commencing with Section 11200) of Part 3 as a result of
the 48- or 60-month limitation specified in subdivision (a) of
Section 11454 shall not be eligible for aid or assistance under this
part until all of the children of the individual on whose behalf aid
was received, whether or not currently living in the home with the
individual, are 18 years of age or older.
   (b) Any individual who is receiving aid under Chapter 2
(commencing with Section 11200) of Part 3 on behalf of an eligible
child, but who is either ineligible for aid or whose needs are not
otherwise taken into account in determining the amount of aid to the
family pursuant to Section 11450 due to the imposition of a sanction
or penalty, shall not be eligible for aid or assistance under this
part.
   (c) This section shall not apply to health care benefits provided
under this part.
  SEC. 41.  Notwithstanding any other law, and except as otherwise
specified in this act, Sections 5 to 7, inclusive, and 9, 15, 26, 29,
and 40, shall become operative on the first day of the first
calendar month following 90 days after the effective date of this act
or June 1, 2011, whichever is later, unless the amended or added
section specifies a date on which the section becomes operative.
  SEC. 42.  (a) Notwithstanding the rulemaking provisions of the
Administrative Procedure Act (Chapter 3.5 (commencing with Section
11340) of Part 1 of Division 3 of Title 2 of the Government Code),
the department may implement and administer the changes to Sections
11265.2, 11266.5, 11320.15, 11320.3, 11322.63, 11323.25, 11450,
11450.02, 11450.025, 11451.5, 11454, 11454.5, 12309.1, and 17021 of
the Welfare and Institutions Code, as contained in this act, through
all-county letters or similar instructions from the department until
regulations are adopted. The department shall adopt emergency
regulations implementing these provisions no later than July 1, 2012.
The department may readopt any emergency regulation authorized by
this section that is the same as or substantially equivalent to an
emergency regulation previously adopted under this section.
   (b) The initial adoption of emergency regulations pursuant to this
section and one readoption of emergency regulations shall be deemed
an emergency and necessary for the immediate preservation of the
public peace, health, safety, or general welfare. Initial emergency
regulations and the one readoption of emergency regulations
authorized by this section shall be exempt from review by the Office
of Administrative Law. The initial emergency regulations and the one
readoption of emergency regulations authorized by this section shall
be submitted to the Office of Administrative Law for filing with the
Secretary of State and each shall remain in effect for no more than
180 days, by which time final regulations may be adopted.
  SEC. 43.  If any portion of this act is held unconstitutional or
unenforceable by a court of law, that decision shall not affect the
validity of any other portion of this act. The Legislature hereby
declares that it would have passed this act, and each portion
thereof, irrespective of the fact that any other portion be declared
unconstitutional or unenforceable.
  SEC. 44.  If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the                                           Government Code.
  SEC. 45.  The sum of one thousand dollars ($1,000) is hereby
appropriated from the General Fund to the State Department of Social
Services for administration.
  SEC. 46.  This act addresses the fiscal emergency declared and
reaffirmed by the Governor by proclamation on January 20, 2011,
pursuant to subdivision (f) of Section 10 of Article IV of the
California Constitution.
  SEC. 47.  This act is a bill providing for appropriations related
to the Budget Bill within the meaning of subdivision (e) of Section
12 of Article IV of the California Constitution, has been identified
as related to the budget in the Budget Bill, and shall take effect
immediately.
  SEC. 48.  This act is an urgency statute necessary for the
immediate preservation of the public peace, health, or safety within
the meaning of Article IV of the Constitution and shall go into
immediate effect. The facts constituting the necessity are:
   In order to make changes necessary for implementation of the
Budget Act of 2011, it is necessary for this act to take effect
immediately.                                        
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