BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1041
                                                                  Page  1

          Date of Hearing:   May 1, 2013

                        ASSEMBLY COMMITTEE ON APPROPRIATIONS
                                  Mike Gatto, Chair

                AB 1041 (Chesbro) - As Introduced:  February 22, 2013 

          Policy Committee:                              Human  
          ServicesVote:7 - 0 

          Urgency:     No                   State Mandated Local Program:  
          No     Reimbursable:              

           SUMMARY  

          This bill requires Department of Developmental Services (DDS)  
          Regional Centers (RCs), to use an employment-first policy  
          defined in the bill for Individual Program Planning (IPP) for  
          consumers 16 years and older. Specifically, this bill: 

          1)States it is the policy of the state that integrated,  
            competitive employment is the priority outcome for working-age  
            individuals with developmental disabilities. 

          2)Requires RCs consider the employment-first policy when  
            developing individual program plans for transition-age youth  
            and working-age adults. 

          3)Requires RCs to ensure that, beginning at age 16, consumers  
            and their parents or legal guardians be provided with the  
            employment-first policy, options for integrated employment,  
            and services and supports that enable consumers to transition  
            from school to work. 

           FISCAL EFFECT  

          Unknown, potentially significant costs, to the extent this bill  
          creates pressure to broaden the entitlement contained in the  
          Lanterman Developmental Disabilities Services Act (Lanterman  
          Act) to include an entitlement that all working-age consumers  
          receive a prevailing wage job.  This could cause significant  
          increases in supportive and supplemental employment programs and  
          job training programs, particularly during periods of high  
          unemployment. These costs could be partially offset by shifting  
          consumers from other day programs to employment-related programs  








                                                                  AB 1041
                                                                  Page  2

          and if more consumers become employed in non-subsidized jobs.

           COMMENTS  

           1)Rationale  . The purpose of this bill is to further the goals of  
            the Lanterman Act, which requires that services and support be  
            available for people with developmental disabilities that  
            allows them to approximate a pattern of everyday life that is  
            available to people without disabilities. The author argues  
            competitive employment for working-age adults is a key  
            component of everyday life.

           2)California's Developmental Services System  annually assists  
            approximately 260,000 individuals with developmental  
            disabilities and their families through a statewide system of  
            21 regional centers. Of the $4.9 billion ($2.8 billion GF)  
            proposed for the 2013-14 budget year, approximately $4 billion  
            is for services provided through the regional centers. The  
            system employs 90,000 workers. Almost 99% of consumers receive  
            community-based services and live with their parents or other  
            relatives, in their own homes or apartments, or in group homes  
            designed to meet their medical and behavioral needs. 

            In addition, the state's four Developmental Centers (Fairview,  
            Lanterman, Porterville, and Sonoma) and one smaller, community  
            facility (Canyon Springs) provide 24-hour care to about 1,700  
            individuals with developmental disabilities. The DCs provide a  
            full range of care, including medical and recreational  
            services.

            DDS consumers work in a variety of settings. Those requiring  
            supported employment settings may participate in the  
            Habilitation Services Program, which consists of the Work  
            Activity Program (WAP) and  Supported Employment Program  
            (SEP). The WAP services are reimbursed at a daily per capita  
            rate and provide a sheltered work environment. Consumers  
            participating in SEP work in the community with support  
            services provided by community rehabilitation programs. 

           3)Related Legislation  . 

             a)   AB 2338 (Chesbro), 2012, was virtually identical to this  
               bill. That bill was held on the Senate Appropriations  
               Committee's Suspense File.









                                                                  AB 1041
                                                                  Page  3

             b)   AB 254 (Beall), 2011, was substantially similar to this  
               bill but raised cost issues and was held on this  
               committee's Suspense File.  AB 1041 addresses the cost  
               issues by removing the authorization for increased data  
               collection, changing the age of the consumer from 14 to 16,  
               and clarifying that this legislation is not intended to  
               expand the current entitlement contained in the Lanterman  
               Act.

             c)   AB 287 (Beall), Statutes of 2009, established the  
               Employment First Committee as a standing committee of the  
               State Council on Developmental Disabilities 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.

             d)   AB 2424 (Beall), 2008, would have established an  
               employment-first policy.  Unlike     AB 1041 , AB 2424 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 by the Senate Appropriations Committee.

           Analysis Prepared by  :    Julie Salley-Gray / APPR. / (916)  
          319-2081