2005 California Government Code Sections 16366.1-16367.8 Article 1.7. Federal Block Grant Funds

16366.1.  The Legislature hereby finds and declares all of the
following:
   (a) The federal government is proposing significant and
fundamental changes in the structure and funding of social services
by eliminating or greatly reducing many categorical grants and
consolidating them into block grants to be administered by the state.
   (b) There has been little public debate or discussion on the
proposed funding cuts which will result in significant cuts in
programs which currently provide jobs, income, food, and medical care
to poor people.
   (c) There currently exist no state statutes, consistent with
federal statutes, for establishing need or directing the allocation
of resources to categories of client populations to be affected by
block grant efforts, and the state must act to so provide
immediately.
   (d) The uncertainty surrounding the substance of the block grant
proposals and the proximity of the 1981-82 federal fiscal year does
not allow the state the time necessary to develop fair and effective
service alternatives without serious disruptions of vital services
currently being offered to our needy residents.
   (e) In order to serve the unique needs of California's poor
people, the state should continue, for the current year, to offer the
services presently provided under federal categorical program
grants.
   (f) The Legislature must thoroughly review the use of federal
funds affecting special population "categorical" groups in the State
of California because of its commitment to maintain the efficient
delivery of vital services to the most needy persons in the state.
   (g) It is the intent of the Legislature that any provision of this
article which is inconsistent with federal law shall not be
operative.
16366.2.  As used in this article:
   (a) "Service provider" means any public or private nonprofit
agency which provides service directly to categorical populations.
   (b) "Consolidated program" means any program which the state has
the option to fund with the block grant.
   (c) "Categorical populations" means those recipients of services
provided pursuant to a program listed in Section 16366.4.
   (d) "Block grant funds" shall have the same meaning as defined in
federal law in existence on January 1, 1982.
16366.3.  Federal block grant legislation provides that, for the
first fiscal year, states have the option to accept or reject
designated block grants.  Consistent with this federal policy, the
state shall, prior to July 1, 1982, accept only those block grants
which meet all of the following criteria:
   (a) The block grant includes programs and services which the state
has previous administered.
   (b) The block grant program, and funding, has been previously
integrated into state and local service systems.
   (c) The block grant program does not require increased state or
local matching funds.
   (d) There is a distinct advantage as a result of state assumption.
16366.35.  Counties shall be granted maximum flexibility in
administering federal categorical and block grant programs to the
extent permitted by state planning requirements.  It is the intent of
the Legislature in enacting this section to provide counties maximum
flexibility in setting priorities in these programs for any reduced
funding.
16366.4.  (a) Based on the criteria specified in Section 16366.3,
the Legislature directs the state to assume administrative
responsibility for the following federal block grants in the 1981-82
state fiscal year:
   (1) Low-income home energy assistance.
   (2) Social services (pursuant to Title XX of the Social Security
Act).
   (b) Block grant programs not meeting the criteria specified in
Section 16366.3, which shall not be assumed by the state until July
1, 1982, include all of the following:
   (1) Preventive health and health services.
   (2) Maternal and child health services.
   (3) Primary care.
   (4) Alcohol, drug abuse, and mental health services.
   (5) Community services.
   (6) Community development.
16366.5.  For the 1981-82 state fiscal year, block grants which the
state chooses to accept and administer shall be disbursed in grant
form and shall be governed by the provisions of this section.  The
provisions of this section, however, shall apply only to the amount
retained in the block and not to the amount transferred into another
block, as permitted by federal law.  The Governor may transfer funds
between block grants only in an amount authorized by the Legislature.
   (a) The Legislature, in cooperation with the appropriate state
departments and service providers, shall undertake a study to
evaluate the current levels of administrative costs incurred under
the Title XX block grant and designate methods for determining and
establishing acceptable ceilings for those costs.
   (b) For the Low-Income Energy Assistance Block Grant, the amount
spent during the 1981-82 state fiscal year by the state and by
service providers for program administration of all federal
categorical and block grant programs shall not exceed the percentage
levels of administrative costs incurred in the 1980-81 fiscal year
which were approved by the Legislature and reflected in each service
provider grant in effect on July 1, 1981.  In no event shall these
administrative costs exceed 5 percent.
   (c) The state shall maintain its level of funding for categorical
programs consolidated into federal block grants.
16366.6.  (a) The funds shall be used to serve the populations
defined in the federal statutes and regulations which governed the
federal categorical programs as of January 30, 1981, and which are
consolidated into the block grants.
   (b) Federal funds shall be received by the Controller and held in
a separate account of the federal trust fund in accordance with state
law governing the administration of federal funds.
   (c) The funds shall be disbursed to 1980-81 fiscal year grantees
of categorical grant programs consolidated into the federal block
grants in an amount which reflects the overall change in federal
categorical funds which were available in the 1980-81 federal fiscal
year.
16366.7.  Since federal block grant funds were reduced by an average
of 26 percent during the 1981-82 fiscal year and are proposed for
further reductions during the 1982-83 fiscal year, the Legislature
declares that the state's administrative costs and processes must be
reduced in order to ensure that maximum funds are available to
continue essential direct human services.
   Therefore, notwithstanding any other provision of law, all of the
following state procedures shall be implemented within 60 days after
the effective date of this section:
   (a) All state agencies, offices, or departments administering
federal block grant funds shall have the authority, subject to the
approval of the Department of Finance, to grant advance payments of
federal funds to contractors or local governmental agencies in any
amounts as the administering state department deems necessary for
startup or continued provision of services or program operation.
   (b) Departmental service contracts utilizing federal block grant
funds shall be exempt from approval by the Department of Finance and
the State Department of General Services prior to their execution.
Instead, the proper state fiscal controls over federal block grant
funds shall be insured by all of the following provisions:
   (1) State departments that award block grant funds to local
agencies shall permit, as appropriate, to the extent that federal
funds are available for this purpose, local agencies to provide for
federally mandated financial and compliance audits of block grant
awards in accordance with the federal audit provisions and standards
promulgated by the Comptroller General of the United States, and
consistent with the department's approved audit plan.
   (2) The Department of Finance, in consultation with the
Controller, shall establish fiscal reporting requirements for the
departments to use on a quarterly basis with all providers.
   (3) In the event a contractor has not engaged in a contract for
these program purposes before with the state, state administering
departments shall have the authority to conduct a preaudit or fund a
preaudit by the Controller in order to certify the ability of the
contractor to administer the funds.
   (4) The State Auditor shall provide audit findings regarding each
block grant to the Legislature no later than May 1 of each year.
   (c) Each administering state department shall develop standard
definitions for units of service, costs per unit of service, citizen
participation processes, and due process notification for clients in
relation to diminishing federal funds within 60 days after the
effective date of this section and shall incorporate all of these
elements into each agreement or contract.
   (d) To the extent possible, compliance with this section shall be
consistent with federal policies and procedures.  Reports required
under this section shall be combined, where practical, with any other
similar reports required by the Legislature and by the federal
government.
16366.8.  For those programs for which the state does not assume
full administrative responsibility under the block grant
consolidations reflected in the federal Omnibus Budget Reconciliation
Act of 1981, but for which state agencies have continued
administrative and funding responsibility, as reflected in the Budget
Act of 1981, the following criteria shall be used in allocating any
reduced levels of federal funds:
   (a) The funds shall be utilized for the same purposes as
discontinued federal grants.
   (b) The funds shall serve the special populations which meet the
criteria of need required by federal categorical grant legislation
and regulation.
   (c) Funds shall be administered by those state agencies currently
administering the funds.
   (d) To the extent that federal funds are allocated to counties on
the basis of county plan submissions to appropriate state agencies,
the county plans shall be amended to reflect reduced federal funding.
  The county shall hold at least one public hearing regarding the
proposed changes to the county plans affected.  With respect to any
plans which are required to be approved by the state, the amended
plans shall be approved by the appropriate state agencies and shall
comply with the criteria set forth in this section.  The approval
shall be conducted and completed within 30 days to prevent
interruptions in services.
   (e) The amount expended in the 1981-82 state fiscal year by the
state and by service providers for program administration of all
federal categorical and block grant programs shall not exceed the
percentage levels of administrative costs approved by the Legislature
for departments and providers as of July 1, 1981, and reflected in
each service provider grant in effect on that date.
   If a state department finds that compliance with the provisions of
this section disproportionately burdens certain programs or
categories of clients, the department may withhold up to 5 percent of
the total amount awarded to the department for each such categorical
grant in order to equalize service levels.
16366.81.  It shall be the policy of this state to provide
mechanisms for allocating federal employment and training block grant
funds which maximize local control and coordination among local
public and private agencies, as well as local business, labor and
educational representatives.
16366.9.  (a) The 1981-82 state fiscal year shall be a transition
year during which the Legislature shall require certain critical
reviews and reports as it deems necessary to assist in developing the
policies to govern the state's assumption of both federal
categorical and block grants as contained in the federal Omnibus
Budget Reconciliation Act of 1981.  The Governor shall instruct state
agencies to cooperate fully with the Legislature in complying with
this article.
   (b) All departments affected shall prepare a separate summary of
programs, funding levels, contracting progress, and clients affected
by funding reductions during the 1981-82 state fiscal year and
separately identify the transition programs for which they would have
any policy or administrative responsibilities no later than October
15, 1981.  The summary of the 1981-82 state fiscal year funding
reductions shall be submitted to the Joint Legislative Budget
Committee and to the fiscal committee of each house.
   (c) The Governor shall submit all relevant information, including,
but not limited to, program identification, estimates of the types,
levels, and distribution of clients affected, and estimates of
federal funding levels as part of the proposed budget for the 1982-83
state fiscal year, and shall separately highlight and summarize this
information in the proposed budget, incorporating any policy
recommendations for the review of the Legislature.
   (d) The Governor shall submit for the review of the Legislature at
the same time a proposal for the structural and administrative
organization of all federal programs to be administered by the state
as of July 1, 1982.
16367.5.  The Department of Community Services and Development shall
receive and administer the federal Low-Income Home Energy Assistance
Program Block Grant, provided for pursuant to the Low-Income Home
Energy Assistance Act of 1981, as amended (42 U.S.C. Sec. 8621 et
seq.).  The department shall afford local service providers maximum
flexibility and control, within the parameters of federal and state
law, in the planning, administration, and delivery of Low-Income Home
Energy Assistance Program Block Grant services.  Local service
providers shall be defined as private, nonprofit, and public agencies
designated in accordance with Public Law 97-35, as amended.  The
formation of service regions beyond those that were in place in 1995,
or those that were in place in Los Angeles County in January 1997,
shall occur only with the concurrence of service providers within the
proposed regions.  The department shall allocate funds received as
follows:
   (a) For federal fiscal year 1998, up to 7.3 percent of the state's
total federal allocation for the Low-Income Home Energy Assistance
Program shall be retained by the Department of Community Services and
Development for purposes of overall planning and administration.
The department shall spend at least 2.3 percent of this 7.3 percent
on activities to improve the administrative efficiency of the
program.  At least 2.7 percent of the state's total federal
allocation of the Low-Income Home Energy Assistance Program shall be
allocated to local service providers for purposes of planning and
administration.
   For federal fiscal year 1999, up to 6 percent of the state's total
federal allocation of the Low-Income Home Energy Assistance Program
shall be retained by the Department of Community Services and
Development for purposes of overall planning and administration.  The
department shall spend at least 1 percent of this 6 percent on
activities to improve the administrative efficiency of the program.
At least 4 percent of the state's total federal allocation for the
Low-Income Home Energy Assistance Program shall be allocated to local
service providers for purposes of planning and administration.
   Beginning in federal fiscal year 2000, up to 5 percent of the
state's total federal allocation for the Low-Income Home Energy
Assistance Program shall be retained by the Department of Community
Services and Development for purposes of overall planning and
administration.  At least 5 percent of the state's total federal
allocation for the Low-Income Home Energy Assistance Program shall be
allocated to local service providers for purposes of planning and
administration.
   Upon achievement of administrative efficiencies, or no later than
June 30, 2001, the department and the local service providers
committee established pursuant to subdivision (j) shall examine the
appropriate split of administrative funding between the state and
local services providers necessary to achieve the intent of federal
law regarding the Low-Income Home Energy Assistance Program.  The
department shall not retain more than 5 percent of the state's total
federal allocation for the Low-Income Home Energy Assistance Program.
   (b) Services under this section shall be available to households
in which one or more individuals are receiving:
   (1) Temporary Assistance for Needy Families under the state's plan
approved under Public Law 104-193, the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996, and Chapter 2
(commencing with Section 11200) of Part 3 of Division 9 of the
Welfare and Institutions Code.
   (2) Supplemental Security Income payments under Title XVI of the
federal Social Security Act (42 U.S.C. Sec. 1381 et seq.) and Chapter
3 (commencing with Section 12000) of Part 3 of Division 9 of the
Welfare and Institutions Code.
   (3) County general assistance under Part 5 (commencing with
Section 17000) of Division 9 of the Welfare and Institutions Code.
   (4) Food stamps received under the Food Stamp Act of 1977 and
pursuant to Chapter 10 (commencing with Section 18900) of Part 6 of
Division 9 of the Welfare and Institutions Code.
   (5) Payments under Section 415, 521, 541, or 542 of Title 38 of
the United States Code, or under Section 306 of the Veterans' and
Survivors' Pension Improvement Act of 1978.
   (6) Households with incomes that do not exceed the greater of:
   (A) An amount equal to 150 percent of the poverty level for this
state.
   (B) An amount equal to 60 percent of the state median income,
except that no household may be excluded from eligibility solely on
the basis of household income if that income is less than 110 percent
of the poverty level for this state, but priority may be given to
those households with the highest home energy costs or needs in
relation to household income.
   (c) An amount of not less than 15 percent and up to the maximum
allowed by federal law of the total federal allocation shall be
allocated for weatherization services for eligible individuals.  For
each program year, to the extent that the state is eligible, the
Department of Community Services and Development shall apply to the
appropriate federal agencies for any waivers that may be necessary to
ensure that the amount available for the purposes of this
subdivision will be the maximum amount allowable under federal law.
For the purposes of this subdivision, weatherization shall include
all energy conservation measures and energy efficient appliances that
are cost-effective and improve energy efficiency.  The department
shall allocate 5 percent of the weatherization program allocation to
local service providers for outreach and related activities.
   (d) At the discretion of local service providers, the state shall
allocate the maximum amount allowable under federal law to local
service providers to provide services that encourage and enable
households to reduce their home energy needs, thus reducing the need
for energy assistance, including needs assessments, counseling, and
assistance with energy vendors, in accordance with Section 2605(b)
(16) of Public Law 97-35, as amended.
   (e) Based on data from prior years, a reasonable amount of
available funds, as determined jointly by the department and the
local service providers, shall be reserved until March 15 of each
program year for the Energy Crisis Intervention Program.  Local
service providers shall submit proposed funding levels with
supporting data to the department in a timely manner for inclusion in
the state plan.  The department shall approve local funding requests
that are determined to be in compliance with federal law.  These
funds shall only be used for emergency assistance to eligible
individuals for programs specified in this subdivision, who give
evidence of one or more of the following conditions:
   (1) Proof of utility shutoff notice.
   (2) Proof of energy termination.
   (3) Insufficient funds to establish a new energy account.
   (4) Insufficient funds to pay a delinquent utility bill.
   (5) Insufficient funds to pay the cost of space heating devices
where no alternative source of space heating is reasonably available.
   (6) Insufficient funds to pay for essential firewood, oil, or
propane.
   (7) Insufficient funds to pay for the cost of emergency repairs to
heating and cooling units, the emergency replacement of heating and
cooling units, or both.
   (8) Insufficient funds to pay energy costs for a household where a
household member's medical condition requires use of life support or
climate and temperature control systems.
   (9) Other conditions that may be included in the state plan.
   The energy crisis intervention program shall not include advocacy,
community mobilization, or community planning.  After March 15 of
each program year, local administrative agencies shall have the
option of continuing to offer energy crisis intervention services or
of reallocating a portion of or all unspent energy crisis
intervention funds into direct assistance payment services.
   The department shall allocate 5 percent of the energy crisis
intervention program allocation to the local service providers for
outreach and related services.
   The Department of Community Services and Development shall retain
all funds associated with Energy Crisis Intervention Program payments
for gas and electric utility service, and shall make payments for
eligible households' gas or electric service accounts directly to the
utilities.  The department may use alternative payment methods when
direct payments to the utilities have not been arranged.
   (f) The remainder of the total federal allocation shall be
utilized for aid for home energy costs for direct assistance
payments.  The department shall retain all funds associated with Home
Energy Assistance Program direct assistance payments for gas and
electric utility service, and shall make payments for eligible
households' gas or electric service accounts directly to the
utilities.  The department may use alternative payment methods when
direct payments to the utilities have not been arranged.
   (g) The Department of Community Services and Development shall
contract with local public or private nonprofit agencies, or both, to
provide outreach, intake, and other activities to enroll eligible
individuals in the program components prescribed by this section.
   (h) The program components provided for in this section shall
include activities to enroll households that have the highest home
energy needs as determined by taking into account both the energy
burden of these households, and the unique situation of these
households that results from having members of vulnerable
populations, including very young children, individuals with
disabilities, and frail older individuals, as provided for by Section
2603(3) of Public Law 97-35, as amended, and to educate recipients
about general energy conservation practices and about the
availability of state and utility programs for free weatherization of
low-income homes.
   (i) The department shall allocate 5 percent of the direct
assistance payment funds to the local service providers for outreach
and related services in operating the direct home energy assistance
payment program.
   (j) The department shall establish a local service providers
committee to act in an advisory capacity in the development of the
annual Low-Income Home Energy Assistance Program state plan.  The
membership of the committee shall include one voting representative
chosen by each local service provider that has a Low-Income Home
Energy Assistance Program contract with the state and one
representative of each interested utility company.  Each local
service provider may, at its option, assign its vote in writing to
another entity, such as a provider association, to represent its
interests.
   (k) By June 30, 1998, the Department of Community Services and
Development shall submit a plan to the Health and Welfare Agency to
reduce state administrative costs by January 1, 2000, to no more than
5 percent of the total federal allocation for the Low-Income Home
Energy Assistance Program.  This plan shall be developed in
consultation with the local service providers committee and shall
include measurable objectives, milestones, and timelines.
   It shall also include, among other strategies, a plan to automate
a substantial portion of the Low-Income Home Energy Assistance
Program by no later than January 1, 2001.  The department shall
consult with the Department of Finance and the Health and Welfare
Data Center in developing this automation technology.
   The Department of Community Services and Development shall provide
quarterly status updates to the Health and Welfare Agency and the
local service providers committee established pursuant to subdivision
(j) on progress made in implementing the plans and achieving the
objectives and milestones specified in this subdivision.  On an
annual basis, from the year 1999 to the year 2001, the department
shall appear before the Legislature and provide a status report on
its efforts to achieve increased administrative efficiency.
16367.55.  (a) In determining the maximum allowable annual payment
of Energy Crisis Intervention Program benefits for eligible
households under Section 16367.5, the Department of Economic
Opportunity may take into consideration the energy cost variations
between baseline territories as established by the Public Utilities
Commission or between counties within the state.
   (b) Persons applying for benefits under this subdivision shall be
entitled to submit an application for benefits at the designated
community agencies during regular business hours.  Applications shall
be accepted and eligibility shall be determined immediately after
the applicant has provided the evidence required under this
subdivision.  If the application is denied, the applicant shall be
given a written statement of the reason for denial, availability of a
fair hearing to contest denial, and procedure for exercising hearing
rights.
   (c) Service providers of energy crisis benefits shall accept
applications for  energy crisis benefits at sites that are
geographically accessible to all households in the areas served by
the providers.  Service providers shall provide to low-income persons
who are physically infirm, the means to do either of the following:
   (1) Submit applications for energy crisis benefits without leaving
their residence.
   (2) Travel to the sites at which applications for energy crisis
benefits are accepted.
   (d) Persons eligible for energy crisis benefits shall receive some
form of assistance to resolve the energy crisis not later than 48
hours after applying for the benefits.  If, however, the person
eligible for energy crisis benefits faces a life threatening
situation, that person shall receive some form of assistance
immediately and in no case later than 18 hours after applying for the
benefits.
16367.6.  (a) The Department of Economic Opportunity shall receive
and administer all state and federal funds which are allocated for
programs to provide energy assistance to qualified low-income
individuals only, except for those funds which are allocated to, and
distributed by, the California Energy Extension Service.
   (b) No later than November 1, 1984, the Department of Economic
Opportunity shall promulgate a comprehensive procedure to assure that
those energy assistance funds are utilized in the most productive
and efficient manner, including a distribution system whereby all
funds allocated for direct assistance payments are distributed by
state and local agencies directly to the electrical or gas
corporations or other suppliers of energy on behalf of the qualified
low-income individuals or by two-party checks made payable to both
the energy supplier and the individual.  In establishing this system,
the Department of Economic Opportunity shall consult with
representatives of electrical or gas corporations or other suppliers
of energy and with local agencies that participate in distributing
assistance funds.
   The Department of Economic Opportunity shall have the discretion
to adjust payments to the energy supplier or the individual or to
make direct payments to the individual for payment to an energy
supplier in special or unique circumstances not otherwise provided
for in this section.
16367.61.  In order to make administrative improvements in the
Low-Income Home Energy Assistance Program components provided for in
subdivisions (c), (d), and (e) of Section 16367.5, the Department of
Economic Opportunity shall contract, during the 1986 program year,
with nonprofit organizations to implement pilot programs and
demonstration projects including, but not limited to, all of the
following:
   (a) Decentralization of the Low-Income Home Energy Assistance
Program providing benefits to eligible individuals.
   (b) A trust account system for the payment of utility companies by
contractors on behalf of eligible individuals.
   (c) An electronic transfer payment system between the Department
of Economic Opportunity, commercial banks, local administering
agencies, and participating energy suppliers.
   (d) Analyze the Department of Economic Opportunity operated
weatherization programs provided for under subdivision (c) of Section
16367.5, using utility-funded programs as models, and recommend
techniques to increase efficiency and provide maximum energy savings
for dollars spent.
16367.65.  The Department of Economic Opportunity may enter into an
agreement with the California Energy Extension Service to provide
technical assistance and outreach programs to low-income individuals
and the Department of Economic  Opportunity energy agencies which
shall include, but not be limited to, all of the following:
   (a) Energy education programs for recipients of low-income energy
assistance.
   (b) Energy education to senior citizens, disabled individuals,
Native Americans, seasonal migrant workers, and rural communities.
   (c) Training programs and technical assistance for community
action agencies and community-based organizations and other groups
which administer the low-income home energy assistance programs at
the local level.
16367.7.  Whenever the Department of Economic Opportunity does not
allocate Energy Crisis Intervention Program funds on schedule to a
community-based organization or community action agency and the
organization or agency finds it necessary to obtain a loan in order
to cover its program costs, the department shall pay any interest
charges on the loan out of the funds budgeted for the administration
of the department, unless the failure to allocate is due to an
incomplete application or report and the department promptly gives
notice of this fact to the organization or agency.
   Any interest payable by the department pursuant to this section
shall be paid by the Controller to the organization or agency from
available funds in the department's budget.  If any interest charge
is paid by the department pursuant to this section, the department
shall report this fact to the Legislature and describe what actions
are being taken to prevent additional payments of interest charges.
16367.71.  Notwithstanding any other provision of law, whenever a
warrant distributed pursuant to Section 16367.5 or 16367.6 remains
unclaimed, or the claimant cannot be found, for a period of six
months following its disbursement, the face amount of the unclaimed
warrant shall revert and be credited to the fund against which the
warrant was drawn.
16367.8.  Any advisory agency, commission, or other entity
established by any city, county, or special district relative to the
application for or use of federal block grant funds shall include in
its membership older persons, as defined by Section 9103 of the
Welfare and Institutions Code, in such numbers as to proportionately
reflect in the membership of the agency, commission, or other entity,
as nearly as possible, the population of persons 60 years of age or
older residing within the jurisdiction of the city, county, or
special district as indicated in the most recent national decennial
census.  The older persons appointed pursuant to this section shall
be drawn, where possible, from the membership of existing agencies,
commissions, or other entities established by the city, county, or
special district relative to the subject of aging.