BILL ANALYSIS Ó AB 2338 Page A ASSEMBLY THIRD READING AB 2338 (Chesbro and Beall) As Introduced February 24, 2012 Majority vote HUMAN SERVICES 4-2 APPROPRIATIONS 12-4 ----------------------------------------------------------------- |Ayes:|Beall, Ammiano, Hall, |Ayes:|Fuentes, Blumenfield, | | |Portantino | |Bradford, Charles | | | | |Calderon, Campos, Davis, | | | | |Gatto, Hall, Hill, Lara, | | | | |Mitchell, Solorio | | | | | | |-----+--------------------------+-----+--------------------------| |Nays:|Jones, Wagner |Nays:|Donnelly, Nielsen, Norby, | | | | |Wagner | ----------------------------------------------------------------- SUMMARY : Establishes a state Employment First Policy. Specifically, this bill : 1)Declares that it is the policy of the state that integrated competitive employment is the priority outcome for working age individuals with developmental disabilities and refers to this policy as the Employment First Policy. 2)States the following with respect to the Employment First Policy: a) The policy is in furtherance of the intent of the Lanterman Developmental Disabilities Services Act (Lanterman Act) that services and supports be available to enable people with developmental disabilities to approximate the pattern of everyday living available to people without disabilities of the same age and that support their integration into the mainstream life of the community, and that such services and supports result in more independent, productive, and normal lives for the persons served; b) Implementation of the policy shall be consistent with and shall not infringe upon rights under the Lanterman Act, including the right of people with developmental disabilities to make informed choices with respect to AB 2338 Page B services and supports through the individual program planning (IPP) process; and, c) Integrated competitive employment is intended to be the first option considered for working age individuals; however, individuals may choose goals other than integrated competitive employment. 3)Declares that nothing in the provisions related to the Employment First Policy shall be construed to expand the existing entitlement to services for people with developmental disabilities under the Lanterman Act. 4)Provides that, when developing an IPP for a transition age youth or working age adult, the planning team shall consider the Employment First Policy. 5)Requires regional centers to ensure that, beginning at age 16, consumers and, where appropriate, their parents, legal guardians, or conservators, be provided with information, in a language they understand, about: a) The Employment First Policy; b) Options for integrated competitive employment; and, c) Services and supports, including post-secondary education, available to enable the consumer to transition from school to work and to achieve the outcomes of obtaining and maintaining integrated competitive employment. 6)Authorizes the Department of Developmental Services (DDS) to request information from regional centers on current and planned activities related to the Employment First Policy. FISCAL EFFECT : According to the Assembly Appropriations Committee, costs associated with this legislation should be minor and absorbable within existing resources. COMMENTS : Reducing unemployment and creating jobs to enable people to earn a living wage is a state and a national priority. This bill, according to the authors, would establish these goals as state priorities for people with developmental AB 2338 Page C disabilities as well. California and national employment rates for people with disabilities, generally, and for people with intellectual and developmental disabilities, particularly, are far worse than for the general public. The most recent report on state-by-state employment data from the Institute for Community Inclusion notes that "there remains a significant gap in employment rates between people with and without disabilities." Nationally, the report indicates that, in 2009, 68.2% of working-age people (ages 16-64) were employed, compared to 34.9% of people with any disability and 23.9% of people with a cognitive disability. Comparable figures for California were: 66% of all people employed, compared to 33% of people with any disability and 21.3% of people with a cognitive disability. Nationally, moreover, the percentage of people served by state intellectual/developmental disabilities agencies (DDS in California), who are in integrated employment has gone down, from a high of 25% in 2001 to only 20% in 2009. In California, the percentage decreased from 24% in 2001 to only 15% in 2009. Employment First : In response to this state of affairs, a growing number of states are adopting "Employment First" policies-either through statute or administrative policies and practices. There are currently over 25 states that are focused at some level on the concept of Employment First-in some cases with a focus specifically on people with intellectual and/or developmental disabilities, and in others a cross-disability focus. Approximately 10 states have clear public policies in place. Employment First recognizes that providing services and supports to enable people with disabilities to earn a living wage is a legitimate state priority. Employment First embodies the notion that employment should be the first option offered to working-age adults with disabilities, including developmental disabilities. AB 287 : AB 287 (Beall), Chapter 231, Statutes of 2009, put in place a process for examining issues concerning employment of people with developmental disabilities, centered on the concept of employment first. AB 287 required that the State Council on Developmental Disabilities (SCDD) establish a standing Employment First Committee. The Employment First Committee's AB 2338 Page D responsibilities include identifying strategies and best practices, and making recommendations for legislative, regulatory, and policy changes, the intended outcome of which is "a significant increase in the number of people with developmental disabilities who engage in integrated employment, self-employment, and microenterprises, and the number of individuals who earn wages at or above minimum wage." The Employment First Committee is required by AB 287 to provide an annual report to the appropriate policy committees of the Legislature and the Governor describing its work and recommendations. The 2011 Employment First Report (Report)<1> notes that "Employment First is about focusing on real jobs, real wages, and real business settings for individuals with developmental disabilities to have the ability to increase their income and benefits, accrue assets and build wealth" (p. 4). The Report delineates goals and objectives for improving integrated employment outcomes. Recommendations address such issues as interagency collaboration and coordination; transition planning for students in secondary education; obtaining and maintaining employment; and the impact of employment on public benefits. As directed by AB 287, among its recommendations, the Report proposes an Employment First Policy (Report, pp. 4, 45-46). That proposed policy is the subject of this bill. For people with developmental disabilities, the authors say, "a job provides a structure to the day, a paycheck that can be used for purchasing goods and services, an identity as a contributing member of the community, and an increase in personal self-esteem." The Legislature's adoption of the policy proposed by the Employment First Committee will demonstrate the state's commitment to increasing the number of Californians with developmental disabilities who are productive, pay taxes, and are more self-sufficient and involved in their communities. The authors further state that the Employment First Policy "establishes a high priority on providing supported employment and other integrated employment opportunities for people with --------------------------- <1> Employment First: A vision of Californians with developmental disabilities working in competitive integrated employment. (2011), State Council on Developmental Disabilities; available at http://www.scdd.ca.gov/HQ-%20Employment%20First%20Report%208-9-11 .pdf AB 2338 Page E developmental disabilities." Competitive integrated employment is also cost-effective. Supported employment services are less costly on average than alternative day and work programs. Moreover, people in integrated competitive employment pay taxes and are less reliant on public services. The authors intend that the Employment First Policy will establish a goal to guide future efforts, and will provide the impetus and set the groundwork for activities and initiatives to expand opportunities for people with developmental disabilities to engage in integrated gainful employment and postsecondary education. In support of this bill, SCDD says that focusing the state on integrated competitive employment for people with developmental disabilities "is critical to enhancing the productivity, independence and inclusion of these individuals into society." It will reduce their dependence on segregated services and thereby reduce costs to the state. SCDD notes that this bill "recognizes and retains an individual's right to make informed choices about their future and that there are a variety of paths to employment including post-secondary education and other vocational training options." However, "the outcome is real work side-by-side Ýwith] others with and without disabilities." SCDD concludes that this bill "is good for the economy, good for business and good for individuals with disabilities as they become productive members of society and give back as contributing/taxpaying members of the community." Prior bills : AB 254 (Beall) of 2011 was substantially similar to this bill but raised cost issues and was held in the Assembly Appropriations Committee. As noted in the Assembly Appropriations Committee analysis of this bill, this bill addresses the cost issues with AB 254. AB 287 (Beall), Chapter 231, Statutes of 2009, established the Employment First Committee as a standing committee of SCDD to identify strategies and best practices for significantly increasing the numbers of people with developmental disabilities in competitive integrated employment and the number who earn wages at or above minimum wage. AB 2424 (Beall) of 2008 would have established an employment AB 2338 Page F first policy. Unlike this bill, AB 2424 also made significant changes to the IPP process and imposed responsibilities on regional centers and DDS related to the development of materials, the provision of information, and the conduct of IPP meetings. AB 2424 also addressed non-employment-related integrated activities. AB 2424 was held in the Senate Appropriations Committee. SB 1270 (Chesbro), Chapter 397, Statutes of 2006, established a process to receive public input on ways to expand opportunities for people with developmental disabilities in the areas of employment and community participation. A resulting May 2007 Report to the Legislature and the Governor, prepared by SCDD, included recommendations for improvements to the transition services planning process for students and recommended policies and initiatives to expand employment opportunities for people with developmental disabilities ("SB 1270 Report on expanding opportunities and choice in California's day program services for individuals with developmental disabilities," (May 2007), SCDD). Please see policy committee analysis for more comprehensive comments and additional details on the provisions of this bill. Analysis Prepared by : Eric Gelber / HUM. S. / (916) 319-2089 FN: 0003415