BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1041
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          Date of Hearing:   April 16, 2013

                        ASSEMBLY COMMITTEE ON HUMAN SERVICES
                                  Mark Stone, Chair
                AB 1041 (Chesbro) - As Introduced:  February 22, 2013
           
          SUBJECT  :  Developmental services:  Employment First Policy

           SUMMARY  :  Creates a statewide Employment First Policy and sets  
          forth requirements related to the inclusion of employment  
          opportunities and services in a regional center consumer's  
          individual program plan (IPP). 

          Specifically,  this bill  :  

          1)Requires a regional center planning team to consider the  
            Employment First Policy, as specified, when developing an IPP  
            for a transition age youth or a working age adult.

          2)Defines "competitive employment" as work in the competitive  
            labor market that is performed on a full-time or part-time  
            basis in an integrated setting and for which an individual is  
            compensated at or above the minimum wage, as specified.

          3)Defines "microenterprises" as small businesses, which may be  
            considered integrated competitive employment, that are owned  
            by individuals with developmental disabilities who have  
            control and responsibility for decision-making and overseeing  
            the business, as specified.

          4)Defines "self-employment" as an employment setting in which an  
            individual works in a chosen occupation, for profit or fee, in  
            his or her own small business, with control and responsibility  
            for decisions affecting the conduct of the business.

          5)Creates a statewide Employment First Policy, which establishes  
            that opportunities for integrated, competitive employment  
            shall be given the highest priority for working age  
            individuals with development disabilities, regardless of the  
            severity of their disabilities. 

          6)Requires implementation of the Employment First Policy to not  
            infringe upon the rights of people with developmental  
            disabilities to make informed choices with respect to the  
            services and supports they need through the IPP process.








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          7)Provides that integrated competitive employment shall be the  
            first option considered by planning teams for working  
            individuals, but individuals may choose goals other than  
            integrated competitive employment.

          8)Requires that the Employment First Policy not be construed to  
            expand the existing entitlement to services for persons with  
            developmental disabilities or alleviate schools of their  
            responsibility to provide transition services to individuals  
            with developmental disabilities.

          9)Requires regional centers to ensure  that consumers, beginning  
            at 16 years of age, as well as their parents, legal guardians,  
            or conservators, as appropriate, are provided information in a  
            language the consumer or appropriate representative  
            understands, pertaining to the following:

               a)     The Employment First Policy; 

               b)     Options for integrated competitive employment; and

               c)     Services and supports, including postsecondary  
                 education, available to enable the consumer to transition  
                 from school to work and to achieve the outcomes of  
                 obtaining and maintaining integrated competitive  
                 employment.

          10)Grants the Department of Developmental Services authority to  
            request information from regional centers pertaining to a  
            regional center's current and planned activities related to  
            the Employment First Policy.
           
          EXISTING LAW  

          1)Establishes an entitlement to services for individuals with  
            developmental disabilities under the Lanterman Developmental  
            Disabilities Services Act (Lanterman Act).

          2)Authorizes the Department of Developmental Services (DDS) to  
            contract with private non-profit regional centers to provide  
            case management services and arrange for, or purchase,  
            services that meet the needs of individuals with developmental  
            disabilities, as defined. 









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          3)Grants all individuals with developmental disabilities, among  
            all other rights and responsibilities established for any  
            individual by the United States Constitution and laws and the  
            California Constitution and laws, the right to treatment and  
            habilitation services and supports in the least restrictive  
            environment.

          4)Requires the development of an Individual Program Plan (IPP)  
            for each regional center consumer, which specifies services to  
            be provided to the consumer, based on his or her  
            individualized needs determination and preferences, and  
            defines that planning process as the vehicle to ensure that  
            services and supports are customized to meet the needs of  
            consumers who are served by regional centers.

          5)Requires that the planning processes to create an IPP include:

             a)   A statement of the individual's goals and objectives, a  
               schedule of the type and nature of services to be provided  
               and other information and considerations, as specified;
             b)   Review and modification, as necessary, by the regional  
               center's planning team no less frequently than every three  
               years; and
             c)   Statewide training and review of the IPP plan creation,  
               as specified.

          1)Requires the State Council on Developmental Disabilities to  
            form a standing Employment First Committee to identify  
            strategies and recommend legislative, regulatory, and policy  
            changes to increase integrated employment, as defined,  
            self-employment, and microenterprises for persons with  
            developmental disabilities, as specified.

          2)Defines "habilitation services" as community-based services  
            purchased or provided for adults with developmental  
            disabilities, including services provided under the Work  
            Activity Program and the Supported Employment Program, to  
            prepare and maintain them at their highest level of vocational  
            functioning, or to prepare them for referral to vocational  
            rehabilitation services.

          3)States the Legislature's intent that habilitation services for  
            adults with developmental disabilities be planned and provided  
            in a manner that enables persons with developmental  
            disabilities to approximate the pattern of everyday living  








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            available to nondisabled people of the same age.

           FISCAL EFFECT  :  Unknown.

          BACKGROUND
           
          The Lanterman Act guides the provision of services and supports  
          for Californians with developmental disabilities, including  
          intellectual disabilities, cerebral palsy, epilepsy, and autism.  
           Each individual under the Act, typically referred to as a  
          "consumer," is legally entitled to treatment and habilitation  
          services and supports in the least restrictive environment.   
          Lanterman Act services are designed to enable all consumers to  
          live more independent and productive lives in the community.   
          The Department of Developmental Services (DDS) contracts with 21  
          regional centers, which are private nonprofit entities, to carry  
          out many of the state's responsibilities under the Act.  

          The regional center caseload includes over 250,000 consumers who  
          receive services such as residential placements, supported  
          living services, respite care, transportation, day treatment  
          programs, work support programs, and various social and  
          therapeutic activities.  Approximately 1,600 consumers reside at  
          one of California's four Developmental Centers-and one  
          state-operated, specialized community facility-which provide  
          24-hour habilitation and medical and social treatment services.   
          According to the State Council on Developmental Disabilities,  
          over 125,000 regional center consumers are of working age.

          Services provided to consumers with developmental disabilities  
          are determined through an individualized planning process.   
          Under this process, planning teams-which include, among others,  
          the consumer, his or her legally authorized representative, and  
          one or more regional center representatives-jointly prepare an  
          Individual Program Plan (IPP) based on the consumer's needs and  
          choices.  The Lanterman Act requires that the IPP promote  
          community integration and maximize opportunities for each  
          consumer to develop relationships, be part of community life,  
          increase control over his or her life, and acquire increasingly  
          positive roles in the community.  The IPP must give the highest  
          preference to those services and supports that allow minors to  
          live with their families and adults to live as independently as  
          possible in the community. 

           Employment opportunities for individuals with developmental  








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          disabilities
           Regional center consumers in California work in a variety of  
          settings. Some consumers participate in Work Activity Programs,  
          which provide work adjustment and supported habilitation  
          services in a sheltered workshop setting in which consumers are  
          paid at a daily per capita rate based on productivity.   
          Consumers may also participate in Supported Employment Programs,  
          in which they might work in the community with support services  
          and on-the-job training provided by job coaches, and are paid  
          directly by the employer.

          According to data from DDS and the California Employment  
          Development Department (EDD), only 14% of working age  
          Californians with developmental disabilities are employed,  
          compared to 74.3% of the general population.  Additionally, EDD  
          data related to Californians in the workforce with all  
          disability types show that disabled persons are nearly twice as  
          likely to be working part time for non-economic reasons as  
          persons without disabilities. Individuals with developmental  
          disabilities continue to experience higher unemployment and  
          underemployment rates than people in the workforce without  
          disabilities, and the number of opportunities they have for  
          gainful employment in integrated settings continues to be  
          woefully low.  
           
          Employment First
           The primary goal of Employment First is to ensure people with  
          significant disabilities are fully included in their communities  
          and in the workplace.  Rather than limiting opportunities for  
          individuals with disabilities to programs that don't include  
          employment, or even work placements that limit tasks and wages,  
          Employment First policies drive meaningful participation of  
          people with disabilities in typical, integrated workplace  
          settings where they are paid directly by an employer and earn at  
          least minimum wage.  Employment First recognizes that providing  
          services and supports that enable people with disabilities to  
          earn a living wage is a legitimate state priority and makes  
          integrated employment the first option for employment for  
          working-age youth and adults with disabilities.
           
           In August 2011, the State Council on Developmental Disabilities  
          released an Employment First Report outlining goals and  
          objectives to improve integrated employment outcomes.  This bill  
          adopts the language in that report which proposes to define the  
          state's Employment First Policy as "integrated, competitive  








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          employment is the priority outcome for working age individuals  
          with developmental disabilities." It defines certain key terms  
          and requires regional center planning teams to consider  
          employment first as they create IPPs with consumers of working  
          age.  The report also includes the objectives of interagency  
          collaboration, transition planning for students in secondary  
          education, obtaining and maintaining employment, and the impact  
          of employment on public benefits.  The report 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."  Recommendations in  
          the report are the subject of this bill and prior identical  
          legislation.  
           
          COMMENTS  
             
          As employment opportunities increase for individuals with  
          developmental disabilities, the state should be mindful of the  
          types of jobs and support services that also increase in  
          availability.  On March 27, 2013, the United States filed a  
          Motion to Intervene in a pending class action lawsuit against  
          the State of Oregon (  Lane v. Kitzhaber)  , which challenged  
          segregated workshop placements under the Olmstead decision,  
          which requires the placement of people with disabilities in  
          community settings, rather than institutions, whenever  
          appropriate.  The United States also alleged violations of the  
          ADA and Section 504 of the Rehabilitation Act for unnecessarily  
          segregating individuals with intellectual and developmental  
          disabilities in sheltered workshops when they could be served in  
          integrated employment settings.  The details and requirements of  
          the Employment First policy in this bill reflect a process for  
          community integration and fair wages that is consistent with the  
          spirit of this lawsuit and many other efforts that emphasize  
          equality and choice, and increase opportunities for community  
          integration for consumers.
           
          Need for the bill:

           According to the author:
               "For the last 40 years it has been the policy of the State  
               of California, through the Lanterman Developmental Services  
               Act, that people with developmental disabilities be  
               supported 'to approximate the pattern of everyday living  
               available to people without disabilities of the same age,?  








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               to be integrated into the mainstream of life in their home  
               communities' and receive services and supports that enable  
               them to live 'more independent, productive, and normal  
               lives.' (WIC Section 4501)  However, the state has failed  
               to adequately support people with developmental  
               disabilities to achieve one of the central elements of  
               leading a normal, productive life - employment? This  
               legislation seeks to re-orient the provision of  
               developmental services by making employment opportunities  
               the priority of the state."


          The State Council on Developmental Disabilities states:
               "?based on EDD data, only about 14% of working age people  
               with developmental disabiliti8es are employed.   
               Unfortunately, this includes many people working very few  
               hours a week, making sub-minimum wage, and working in  
               segregated facilities.  These appalling employment  
               statistics represent wasted talents, deferred dreams, and  
               hundreds of millions in unnecessary costs to the state  
               supporting people in non-work day services?The policy  
               embodied in AB 1041 represents a shift in emphasis, and a  
               change of direction for regional center services."
           
          RELATED LEGISLATION  :
          
          AB 954 (Maienschein) restores the hourly job coach rate and  
          employment service fees that are paid for by regional centers to  
          2006 levels, which were decreased by 10% in 2008-09.
          
          AB 1112 (Ammiano) removes the statutorily indicated rates and  
          fees that apply to job coaching and supported employment  
          services, and instead replaces them with a cross-reference to  
          rates set by the Department of Rehabilitation.

          SB 577 (Pavley) requires DDS to establish a pilot program for  
          young adults with ASD to help them find pathways to financial  
          independence through work.
           
          PRIOR LEGISLATION  :

          AB 2338 (Chesbro, 2012) was identical to this bill. Died in  
          Senate Appropriations Committee.

          AB 287 (Beall) Chapter 231, Statutes of 2009, required the State  








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          Council on Developmental Disabilities to form a standing  
          Employment First Committee and required the Committee to  
          implement an Employment First Policy to identify best practices  
          for increasing integrated, gainful employment opportunities for  
          people with developmental disabilities.

          AB 2424 (Beall 2008) would have established an employment 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. 

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          California Association of Psychiatric Technicians
          California State Council on Developmental Disabilities (SCDD)
          The Arc and United Cerebral Palsy in CA - (Sponsor)

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Myesha Jackson / HUM. S. / (916)  
          319-2089