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
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               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 









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          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 









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          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  









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          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
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          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 


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