Bill Text: CA AB101 | 2011-2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Child care: family child care providers: bargaining

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Vetoed) 2011-10-04 - Vetoed by Governor. [AB101 Detail]

Download: California-2011-AB101-Amended.html

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BILL NUMBER: AB 101	AMENDED
	BILL TEXT

	AMENDED IN SENATE  SEPTEMBER 2, 2011
	AMENDED IN SENATE  JUNE 28, 2011
	AMENDED IN SENATE  MARCH 15, 2011

INTRODUCED BY    Committee on Budget   (
  Blumenfield (Chair), Alejo, Allen, Brownley,
Buchanan, Butler, Cedillo, Chesbro, Dickinson, Feuer, Gordon,
Huffman, Mitchell, Monning, and Swanson   )
  Assembly Member   John A. Pérez 
    (  Principal coauthor:   Senator  
Steinberg   ) 

                        JANUARY 10, 2011

    An act to add Sections 4792, 12301.07, and 14105.09 to
the Welfare and Institutions Code, relating to health and human
services, and making an appropriation therefor, to take effect
immediately, bill related to the budget.   An act to add
Article 19.5 (commencing with Section 8430)   to Chapter 2
of Part 6 of Division 1 of Title 1 of the Education Code, relating to
child care. 



	LEGISLATIVE COUNSEL'S DIGEST


   AB 101, as amended,  Committee on Budget  
John A. Pérez  .  Health and human services. 
 Child care: family child care providers: bargaining
representative.  
   (1) Existing law authorizes employees of public schools to form,
join, and participate in the activities of an employee organization
for the purpose of representation on matters of employer-employee
relations, including terms and conditions of employment.  
   The Child Care and Development Services Act, administered by the
State Department of Education, requires the Superintendent of Public
Instruction to administer child care and development programs that
offer a full range of services for eligible children from infancy to
13 years of age.  
   This bill would authorize family child care providers, as defined,
to choose whether to be represented by a single provider
organization, as defined, that would be designated pursuant to a
specified petition and election process overseen by the Public
Employment Relations Board or a neutral 3rd party designated by the
board.  
   The bill would require the State Department of Social Services and
the State Department of Education, with assistance of specified
state departments and agencies, and their contractors and
subcontractors, to make specified information regarding individual
family child care providers available to provider organizations and
would require the provider organization requesting the information to
bear the costs of collecting the information.  
   The bill would authorize a certified provider organization to
perform various functions, including meeting with state regulatory
agencies and engaging in various types of negotiation on matters
within a specified scope of representation with the Department of
Personnel Administration, in consultation with the Superintendent of
Public Instruction and other state agencies that administer programs
of publicly funded child care. The bill would prohibit provider
organizations from calling strikes and from interfering with,
intimidating, restraining, coercing, or discriminating against a
family child care provider because the family child care provider
joins or refuses to join a provider organization. The state, as
defined, also would be subject to the latter prohibition.  
   (2) Existing law, the Budget Act of 2011, identifies AB 101 as a
bill providing for appropriations related to the Budget Bill, to take
effect immediately.  
   This bill would provide that, notwithstanding the Budget Act of
2011, this act is not a bill providing for appropriations related to
the Budget Bill, thereby declaring that this act not take effect
immediately.  
   (1) Existing law, the Lanterman Developmental Disabilities
Services Act, authorizes the State Department of Developmental
Services to contract with regional centers to provide services and
supports to individuals with developmental disabilities. 

   This bill would, if a specified provision of the Budget Act of
2011 is operative, state the intent of the Legislature for the
department to identify up to $100 million in General Fund savings
from the developmental services system, as prescribed. This bill
would authorize the department to utilize input from prescribed
workgroups. This bill would require, as prescribed, the department to
report to the Joint Legislative Budget Committee within 10 days of
the specified reduction as directed within the Budget Act of 2011.
 
   (2) 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 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 prescribed.  
   Existing law established a similar reduction in authorized IHSS
service hours, which becomes operative only if a specified medication
machine pilot project does not achieve a designated amount of
savings to the General Fund, as determined by the Department of
Finance, and also authorizes 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.  
   Existing law also requires the department to implement a 3.6%
reduction in service hours to each IHSS recipient, until July 1,
2012.  
   This bill, effective January 1, 2012, would impose an additional
20% service hour reduction on IHSS recipients, which would be
operative only if a designated provision of the Budget Act of 2011
becomes operative, and would establish an IHSS Care Supplement
process for any individual who is notified of a reduction in service
hours under the bill, but who believes he or she is at serious risk
of out-of-home placement unless all or part of the reduction is
restored.  
   (3) Existing law establishes the Medi-Cal program, administered by
the State Department of Health Care Services, under which health
care services are provided to qualified low-income persons. The
Medi-Cal program is, in part, governed and funded by federal Medicaid
Program provisions.  
   This bill would, effective on or after January 1, 2012, if a
specified provision of the Budget Act of 2011 is operative, apply
specified payment reductions to managed care health plans that
contract with the department and to other specified contracts.
 
   (4) This bill would appropriate $1,000 to the State Department of
Health Care Services for administration.  
   (5) This bill would declare that it is to take effect immediately
as a bill providing for appropriations related to the Budget Bill.

   Vote: majority. Appropriation:  yes   no
. Fiscal committee: yes. State-mandated local program: no.


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

   SECTION 1.    The Legislature finds and declares all
of the following:  
   (a) Quality, affordable child care is essential to prepare
California's children to succeed in school and in life and to allow
families to work and contribute to the state's economy with the
assurance that their children are safe and well cared for.  

   (b) There is a need to improve the quality of child care and to
reduce turnover in the industry that is charged with providing safe
and quality care for children in California. Limited or no employment
benefits and low wages can drive dedicated child care providers from
the profession. The resulting turnover negatively impacts the
quality of child care provided and prevents children from receiving
the type of care they require in order to be prepared for, and adapt
successfully to, school settings.  
   (c) Turnover among family child care providers is estimated at 30
to 40 percent per year, five times higher than among teachers in the
public school system. Experienced providers are leaving the
profession simply because they cannot afford to provide for their own
families. Losing a caregiver means children's cognitive and social
development is disrupted and parents are left scrambling to find
other arrangements.  
   (d) The supply of quality child care in the market is inadequate
to meet the demand in California. In 2010, the state lost nearly
5,700 licensed providers, representing a 13 percent decline in the
supply of licensed child care and an elimination of 11 percent or
44,000 licensed slots in these homes. In 2009, there was only
licensed capacity to care for 27 percent of children with working
parents.  
   (e) Family child care is affordable and convenient; it is
particularly vital to parents of infants and the one in five
California workers who work nontraditional schedules.  
   (f) Family child care providers are a vital part of the child care
system. Their role gives them unique insight into how quality,
access, and stability could be improved for children and families.
But family child care providers lack any formal voice in
decisionmaking on issues that shape the child care system and the way
they carry out their profession.  
   (g) To promote higher quality and greater access and stability in
the child care system, it is necessary to enact legislation to grant
family child care providers the right to choose a representative to
negotiate collectively with the state over the operation of the child
care system. Permitting family child care providers a formal voice
will allow the state to get input from providers and to maximize its
return on its investment in child care and will allow providers to
advocate to improve the quality, access, and stability of care
available to California's children and families. 
   SEC. 2.    Article 19.5 (commencing with Section
8430) is added to Chapter 2 of Part 6 of Division 1 of Title 1 of the
  Education Code   , to read:  

      Article 19.5.  Quality Family Child Care


   8430.  (a) The purpose of this article is to promote quality,
access, and stability in the child care system by authorizing an
appropriate unit of family child care providers to choose a provider
organization to act as their exclusive representative on all matters
specified in this article. It is also the purpose of this article to
promote full communication between family child care providers and
the state by permitting a provider organization certified as the
representative of family child care providers to meet and confer with
the state regarding the state's child care system.
   (b) This article does not change family child care providers'
status as independent business owners or classify family child care
providers as public employees.
   8430.5.  This article shall be known and may be cited as the
Quality Family Child Care Act.
   8431.  As used in this article:
   (a) "Certified provider organization" means a provider
organization or provider organizations that jointly are certified by
the board as the exclusive representative of family child care
providers in an appropriate unit after a proceeding under Section
8434.
   (b) "Child care subsidy program" means a program established
pursuant to this chapter and administered by the department or the
State Department of Social Services, or both, to subsidize families
in purchasing child care.
   (c) "Family child care provider" or "provider" means either of the
following:
   (1) A family day care home provider, as defined in Section 1596.78
of the Health and Safety Code, who is licensed pursuant to the
requirement in Section 1596.80 of the Health and Safety Code.
   (2) An individual who meets all of the following criteria:
   (A) Provides child care in his or her own home or in the home of
the child receiving care.
   (B) Is exempt from licensing requirements pursuant to Section
1596.792 of the Health and Safety Code.
   (C) Participates in a child care subsidy program.
   (d) "Provider organization" means an organization that has all of
the following characteristics:
   (1) Includes family child care providers.
   (2) Has as one of its main purposes the representation of family
child care providers in their relations with public and private
entities in California.
   (3) Is not an entity that contracts with the state or a county to
administer or process payments for a child care subsidy program.
   (e) "Public Employment Relations Board" or "board" means the
Public Employment Relations Board established pursuant to Section
3541 of the Government Code. The powers and duties of the board
described in Sections 3514.5, 3520.5, and 3541.3 of the Government
Code, and the respective implementing regulations, shall apply, as
appropriate, to this article to the extent those procedures are not
inconsistent with the procedures specified in this article. If any
provision of this article is the same or substantially the same as
that contained in Chapter 10 (commencing with Section 3500), Chapter
10.3 (commencing with Section 3512), or Chapter 10.7 (commencing with
Section 3540) of Division 4 of Title 1 of the Government Code, it
shall be interpreted and applied in accordance with the judicial
interpretations of the provision in those statutes.
   8431.5.  The state action antitrust exemption to the application
of federal and state antitrust laws is applicable to the activities
of family child care providers and their representatives authorized
under this article.
   8432.  Family child care providers have the right to form, join,
and participate in the activities of provider organizations of their
own choosing for the purpose of being represented in all matters
specified in this article. Family child care providers have the right
to refuse to join or participate in the activities of provider
organizations, except that a certified provider organization may
charge family child care providers who receive payment from a child
care subsidy program a fair share fee pursuant to Section 8436.
   8432.5.  Family child care providers are not public employees, and
this article does not create an employer-employee relationship
between family child care providers and the state or any public or
private nonprofit entity for any purpose, including, but not limited
to, eligibility for health or retirement benefits or vicarious
liability in tort. This article does not alter the status of a family
child care provider as a business owner, an employee of a family, or
a contractor.
   8433.  This article does not alter the rights of families to
select, direct, and terminate the services of family child care
providers.
   8433.5.  (a) Within 10 days of receipt of a request from a
provider organization, the State Department of Social Services shall
make available to that provider organization information regarding
family child care providers described in paragraph (1) of subdivision
(c) of Section 8431, including each provider's name, home address,
mailing address, telephone number, electronic mail (e-mail) address,
and license number.
   (b) Within 30 days of receipt of a request from a provider
organization, the department, with the assistance of the State
Department of Social Services and any state department or agency, or
its contractor or subcontractor, in possession of the relevant
information, shall collect information regarding family child care
providers, including each provider's name, home address, mailing
address, telephone number, electronic mail (e-mail) address, unique
provider identification number, including license number, if
applicable, and whether or not the provider has participated in a
child care subsidy program in the previous six months and shall make
that information available to the provider organization. The provider
organization shall bear the reasonable costs of collecting the
information described in this subdivision if that information has not
been previously collected.
   (c) A provider organization under this article shall be considered
a day care organization for purposes of subdivisions (b) and (c) of
Section 1596.86 of the Health and Safety Code. All confidentiality
requirements applicable to recipients of information pursuant to
Section 1596.86 of the Health and Safety Code apply to provider
organizations and shall apply also to protect the personal
information of family child care providers as defined in paragraph
(2) of subdivision (c) of Section 8431. Information provided pursuant
to this section shall be used only for the purpose of organizing and
representing family child care providers.
   8434.  (a) An appropriate unit of family child care providers, as
defined in subdivision (g), may designate, in accordance with the
provisions of this article, the provider organization, if any, that
shall be its exclusive representative. The board shall certify a
provider organization designated by an appropriate unit of family
child care providers as the exclusive representative of those
providers.
   (b) Requests for elections, challenges, competing claims, requests
for intervention, petitions for elections for unit modifications,
and requests for decertification shall be filed with, received, and
acted upon by the board.
   (c) At any point after the provider organization is certified as
an exclusive representative and without complying with the
requirement of a one-year waiting period, a certified provider
organization may file with the board a petition to expand an existing
unit of providers based on a showing of interest by 30 percent of
the providers to be added to the existing unit.
   (d) The board may designate a neutral third party to act on any of
the requests filed with the board under subdivision (b) or (c).
   (e) The provider organization that presents a petition requesting
certification shall pay the reasonable costs of verifying the number
of family child care providers that have designated a provider
organization to act as their exclusive representative.
   (f) All provider organizations placed on the ballot shall share
equally the cost of an election.
   (g) A unit of providers will be considered an appropriate unit if
it is a statewide unit and it includes either of the following:
   (1) All family child care providers who are licensed pursuant to
the requirement in Section 1596.80 of the Health and Safety Code.
   (2) All or a reasonable subset of family child care providers who
participate in a child care subsidy program.
   (h) There shall be no more than one bargaining unit at any time.
That unit shall be represented by no more than one certified provider
organization.
   (i) A certified provider organization shall represent each
provider in the represented unit fairly, without discrimination and
without regard to whether the provider is a member of the provider
organization.
   8434.5.  The scope of representation shall include all of the
following:
   (a) The administration of laws and regulations governing licensing
for providers.
   (b) Joint labor-management committees.
   (c) Contract grievance arbitration.
   (d) Expanded access to professional development and training
opportunities for providers.
   (e) Benefits for providers.
   (f) Payment procedures for child care subsidy programs.
   (g) Reimbursement rates for providers participating in a child
care subsidy program. At the Governor's option, the scope of
representation may exclude this issue from the scope of
representation until July 1, 2014.
   (h) Expanded access to food and nutrition programs.
   (i) The deduction of membership dues and fair share fees.
   (j) Any changes to current practice other than those listed in
subdivisions (a) to (h), inclusive, that would do any of the
following:
   (1) Improve recruitment and retention of qualified providers.
   (2)  Improve the quality of the programs.
   (3) Encourage qualified providers to seek additional education and
training.
   (4) Promote the health and safety of providers and the children in
their care.
   8435.  (a) The Governor, through the Department of Personnel
Administration, in consultation with the Superintendent, other state
agencies that administer programs of publicly funded child care, and
their contractors, as needed, shall meet and confer in good faith
regarding all matters within the scope of representation with
representatives of a certified provider organization and, before
arriving at a determination of policy or course of action, shall
consider fully the presentations made by the certified provider
organization on behalf of the providers it represents.
   (b) As used in this section, "meet and confer in good faith" means
that the Governor, through the Department of Personnel
Administration, and representatives of the certified provider
organization shall have the mutual obligation to meet and confer
promptly upon request by either party and continue for a reasonable
period of time in order to exchange freely information, opinions, and
proposals. The duty to meet and confer in good faith also requires
the parties to begin negotiations sufficiently in advance of the
adoption of the state's final budget for the ensuing fiscal year so
that there is adequate time for agreement to be reached before the
adoption of the final budget and for the resolution of an impasse.
   8435.5.  (a) If agreement is reached between the Governor, through
the Department of Personnel Administration, and the certified
provider organization, they jointly shall prepare a written
memorandum of understanding. Any portions of the memorandum of
understanding requiring appropriation by the Legislature or statutory
or regulatory revisions shall be subject to legislative approval of
those appropriations or statutory or regulatory revisions.
   (b) A memorandum of understanding between the Governor, through
the Department of Personnel Administration, and the certified
provider organization is binding on all state departments and
agencies that are involved in the administration of child care
subsidy programs, and the relevant contractors or subcontractors of
those departments and agencies.
   (c) An agreement pursuant to this section may provide for binding
arbitration of grievances concerning the interpretation, application,
or violation of the agreement.
   (d) This article does not alter the requirements governing the
child care reimbursement system that are set forth in Section 8222.
   8436.  (a) A certified provider organization shall have the same
right to enter into an agreement with the state regarding deduction
of membership dues and fair share fees from subsidy payments made to
providers, including payments made through state agencies,
departments, contractors, or subcontractors, as recognized employee
organizations have under Sections 3515.7 and 3515.8 of the Government
Code. An agreement to deduct membership dues or fair share fees
shall apply only to those providers who receive payment from a child
care subsidy program.
   (b) The amount of any fair share fee shall not exceed the amount
of the dues payable by the members of the certified provider
organization. The costs covered by the fair share fee may include all
of the following:
   (1) The certified provider organization's costs for meeting and
conferring with the state.
   (2) Contract administration.
   (3) Securing for the represented providers improvements in subsidy
rates, benefits, payment systems, training opportunities, and other
matters related to the family child care system in addition to those
secured through meeting and conferring with the state.
   (4) Other activities germane to the certified provider
organization's function as the exclusive representative of providers.

   (c) If the deduction of membership dues or fair share fees for a
provider requires action by more than one agency, department,
contractor, or subcontractor, the certified provider organization
shall establish procedures to ensure both of the following:
   (1) The amount of the dues or fees does not exceed the total
membership or fair share fee owed by that provider.
   (2) The administrative procedures for deducting dues or fees are
reasonable.
   (d) The state, its agencies and departments, and their contractors
and subcontractors shall not be liable in any action by a provider
seeking recovery of, or damage for, improper calculation or use of
fair share fees.
   8436.5.  (a) It is unlawful for the state, including its agencies,
boards, commissions, departments, public benefit corporations,
political subdivisions, contractors, subcontractors, or employees, to
do to providers or provider organizations any of the things made
unlawful under Section 3519 of the Government Code.
   (b) It shall be unlawful for a provider organization to do to the
state or to providers any of the things made unlawful under Section
3519.5 of the Government Code.
   (c) For purposes of subdivisions (a) and (b), the references in
subdivision (e) of Section 3519 of, and subdivision (d) of Section
3519.5 of, the Government Code to "the mediation procedure set forth
in Section 3518" shall be deemed to refer to the impasse procedures
set forth in Section 8437.5.
   (d) The initial determination as to whether charges of unfair
practices are justified and, if so, what remedy is necessary to
effectuate the purposes of this article shall be a matter within the
exclusive jurisdiction of the board.
   8437.  A provider organization may not direct or call a strike.
   8437.5.  If after a reasonable period of time the parties fail to
reach agreement, the parties may agree to submit unresolved issues to
the California State Mediation and Conciliation Service established
by the Department of Industrial Relations for mediation, or either
party may declare that an impasse has been reached and request the
board to appoint a mediator from the California State Mediation and
Conciliation Service. A memorandum of understanding reached by means
of mediation is subject to appropriation by the Legislature and
necessary statutory and regulatory revisions. 
   SEC. 3.    Notwithstanding Section 39.00 of the
Budget Act of 2011, this act is not 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 and shall not take effect immediately.  
  SECTION 1.    Section 4792 is added to the Welfare
and Institutions Code, to read:
   4792.  (a) This section of law shall only be operative if
subdivision (b) of Section 3.94 of the Budget Act of 2011 is
operative. It is the intent of the Legislature for the department to
identify up to one hundred million dollars ($100,000,000) in General
Fund savings from within the overall developmental services system,
including any savings or reductions within state administrative
support, operation of the developmental centers, and operation of the
regional centers, including administration and the purchase of
services where applicable if subdivision (b) of Section 3.94 of the
Budget Act of 2011 is operative. A variety of strategies, including,
but not limited to, savings attributable to caseload adjustments,
changes in expenditure trends, unexpended contract funds, or other
administrative savings or restructuring can be applied to this
reduction with the intent of keeping reductions as far away as
feasible from consumer's direct needs, services, and supports,
including health, safety, and quality of life.
   (b) The department may utilize input from workgroups comprised of
consumers and family members, consumer-focused advocacy groups,
service provider representatives, regional center representatives,
developmental center representatives, other stakeholders, and staff
of the Legislature, to develop General Fund savings proposals as
necessary.
   (c) If subdivision (b) of Section 3.94 of the Budget Act of 2011
is operative, and the department is directed to identify up to one
hundred million dollars ($100,000,000) in General Fund savings from
within the developmental services system, any savings or reductions
identified shall be reported to the Joint Legislative Budget
Committee within 10 days of the reduction as directed within Section
3.94 of the Budget Act of 2011.  
  SEC. 2.    Section 12301.07 is added to the
Welfare and Institutions Code, to read:
   12301.07.  (a) (1) Notwithstanding any other provision of law, if
Section 3.94 of the Budget Act of 2011 becomes operative, the
department shall implement a 20 percent reduction in authorized hours
of service to each in-home supportive services recipient as
specified in this section, effective January 1, 2012, 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 subdivision (f).
   (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.
   (5) The reduction in service hours made pursuant to paragraph (2)
shall not apply to in-home supportive services recipients who also
receive services under Section 9560, subdivision (t) of Section
14132, and Section 14132.99.
   (b) The department shall work with the counties to develop a
process to allow for counties to preapprove IHSS Care Supplements
described in subdivision (f), 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
subdivision (f).
                                                                 (2)
Preapproval shall be granted only to individuals who would otherwise
be granted a full restoration of their hours pursuant to subdivision
(f).
   (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 paragraph (1) of 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 subdivision (f), 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
subdivision (f) 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) 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) 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.
   (1) 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 this
section. 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.
   (2) Counties shall give a high priority to prompt screening of
persons specified in this section to determine their need for an IHSS
Care Supplement.
   (g) (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 March 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.
   (h) If the Director of Health Care Services determines that
federal approval is necessary to implement this section, this section
shall be implemented only after any state plan amendments required
pursuant to Section 14132.95 are approved.  
  SEC. 3.    Section 14105.09 is added to the
Welfare and Institutions Code, to read:
   14105.09.  Notwithstanding any other provision of law, if
subdivision (b) of Section 3.94 of the Budget Act of 2011 is
operative, effective on or after January 1, 2012, the payment
reductions in Sections 14105.07, 14105.192, 14126.033, 14131.05, and
14131.07 shall apply to managed care health plans that contract with
the department pursuant to Chapter 8.75 (commencing with Section
14590) and to contracts with the Senior Care Action Network and AIDS
Healthcare Foundation, to the extent that the services are provided
through any of these contracts, payments shall be reduced by the
actuarial equivalent amount of the payment reductions pursuant to
contract amendments or change orders effective on July 1, 2011, or
thereafter.  
  SEC. 4.    The sum of one thousand dollars
($1,000) is hereby appropriated from the General Fund to the State
Department of Health Care Services for administration. 

  SEC. 5.    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.