Committee advances tighter caregiver background-check standards and appeals process

The committee advanced House Bill 131, a substitute that modifies caregiver background checks for individuals who provide services to people with developmental disabilities and older adults. The bill moves the primary administrative function from the Department of Health to the Health Care Authority (HCA), strengthens disqualifying criteria, and creates an expanded administrative reconsideration and judicial-review route for applicants disqualified under an “unreasonable risk” standard.

Sponsor Representative Hall said the substitute responds to prior hearings and removes specific rulemaking references at members’ request. The substitute permits HCA to disqualify applicants based on an unreasonable-risk finding and strengthens the appeals process by adding administrative reconsideration followed by judicial review.

Testimony in support came from a mix of providers and advocacy organizations. Mark Schinerer, CEO of CARC in Carlsbad, said the existing determination process is lengthy and could deter applicants; he expressed concern the expanded review steps might lengthen hiring timelines and exacerbate workforce shortages. Kathy Kunkel, former secretary of health, said additional disqualifying conditions would help protect vulnerable populations. Providers and provider associations including the Association of Developmental Disabilities Community Providers and several individual residential providers expressed support while noting workforce-supply challenges.

An on-site commenter, Jacob Smith of Sandoval, urged more oversight and raised concerns about a prior data breach of the caregiver credentialing system; he said impacted workers had not been adequately notified after a breach when the system was under a different agency. Agency witnesses said fingerprint-based national background checks are run at hiring and that the system issues monthly reports of new criminal activity but that the formal fingerprint check is a one-time process at hiring.

Sponsor Hall and agency staff said the new appeal path is intended to allow applicants with remote or old convictions, or those with mistaken identity, to seek reconsideration rather than be permanently excluded. Dan Lanari of the Division of Health Improvement confirmed background checks occur at hiring and that the program processes roughly 50,000–55,000 applications annually.

The committee adopted a do-pass recommendation on the judiciary committee substitute for HB131. The motion was moved and seconded and passed on a committee roll call. Committeework discussions noted the balance between protecting vulnerable recipients and maintaining an adequate caregiver workforce.