BILL ANALYSIS                                                                                                                                                                                                    Ó






                                  SENATE HUMAN
                               SERVICES COMMITTEE
                          Senator Leland Y. Yee, Chair


          BILL NO:       AB 1041                                      
          A
          AUTHOR:        Chesbro                                      
          B
          VERSION:       February 22, 2013
          HEARING DATE:  June 25, 2013                                
          1
          FISCAL:        Yes                                          
          0
                                                                      
          4
          CONSULTANT:    Mareva Brown                                 
          1

                                        

                                     SUBJECT
                                         
                Developmental services: Employment First Policy

                                     SUMMARY  

          This bill establishes an Employment First Policy and  
          requires each regional center to consider the policy when  
          developing an individual program plan (IPP) for a  
          transition age youth or working age adult. The bill also  
          would require regional centers to ensure that consumers  
          aged 16 and older are provided with information about the  
          Employment First Policy, options for integrated competitive  
          employment, and services and supports, including  
          postsecondary education, that are available to enable the  
          consumer to transition from school to work, and to get and  
          keep an integrated competitive job. 

                                     ABSTRACT  

           Existing law:
           
             1)   Establishes the Lanterman Developmental  
               Disabilities Services Act, which states  
                that California is responsible for providing an array  
                                                         Continued---



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               of services and supports sufficiently complete to meet  
               the needs and choices of each person with  
               developmental disabilities, regardless of age or  
               degree of disability, and at each stage of life and to  
               support their integration into the mainstream life of  
               the community. (WIC 4500, et seq.)  

              2)   Establishes a system of nonprofit Regional Centers  
               to provide fixed points of contact in the community  
               for all persons with developmental disabilities and  
               their families, to coordinate services and supports  
               best suited to them throughout their lifetime. (WIC  
               4620)  

              3)   Declares legislative intent that agencies serving  
               persons with developmental disabilities shall produce  
               evidence that their services have resulted in consumer  
               or family empowerment and in more independent,  
               productive, and normal lives for the persons served.  
               (WIC 4501)

             4)   Establishes the IPP process as the central planning  
               process for services and supports of an individual,  
               defines steps that the process must include, states  
               that the plan is developed through individualized  
               needs determination, requires that an individual and,  
               when appropriate, parents or legal guardian,  
               participate in the IPP process. (WIC 4646)  

              5)   Requires that within the IPP planning process, a  
               regional center must create statement of goals, based  
               on the needs, preferences, and life choices of the  
               individual with developmental disabilities, and a  
               statement of specific, time-limited objectives for  
               implementing the person's goals and addressing his or  
               her needs. (WIC 4646.5)  
           
             6)   States that these goals and objectives should  
               maximize opportunities for the consumer to develop  
               relationships, be part of community life in the areas  
               of community participation, housing, work, school, and  
               leisure, increase control over his or her life,  
               acquires increasingly positive roles in community  
               life, and develop competencies to help accomplish  
               these goals. (WIC 4646.5) 




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              7)   Establishes within the State Council on  
               Developmental Disabilities (SCDD) a standing committee  
               entitled the Employment First Committee and specifies  
               its duties and composition. (WIC 4868)  

              8)   Includes among those duties the requirement to  
               recommend legislative, regulatory, and policy changes  
               to increase the number of individuals with  
               developmental disabilities in integrated employment,  
               self-employment, and microenterprises, and who earn  
               wages at or above minimum wage. Requires that this  
               include development of an Employment First Policy.  
               (WIC 4868 (c)(4))  
           
             9)   Requires that public schools provide an  
               individualized education plan (IEP) for children with  
               exceptional needs that identifies the student's  
               academic needs, sets goals and defines progress toward  
               achieving those goals, and, beginning at age 16, sets  
               appropriate measurable postsecondary goals. (EDC  
               56345)  
                 
              10)  Defines "integrated work" as the engagement of an  
               employee with a disability in work in a setting  
               typically found in the community wherein the employee  
               interacts with individuals without disabilities other  
               than those who are providing services to those  
               individuals, to the same extent that individuals  
               without disabilities in comparable positions interact  
               with other persons. (WIC 4851 (o))
           
          This bill: 
                
             1)   Requires that when developing an IPP for a  
               transition age youth or working adult, the planning  
               team consider the Employment First Policy defined by  
               the State Council on Developmental Disabilities, as  
               specified.


             2)   Defines the following terms:

                  a.        "Competitive employment" means work in  
                    the competitive labor market that is performed on  




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                    a full-time or part-time basis in an integrated  
                    setting and for which an individual is  
                    compensated at or above the minimum wage, but not  
                    less than the customary wage and level of  
                    benefits paid by the employer for the same or  
                    similar work performed by individuals who are not  
                    disabled.

                  b.        "Integrated employment" means "integrated  
                    work" as defined in subdivision WIC 4851 (o),  
                    which generally states that integrated work is  
                    performed in a setting beside non-disabled  
                    individuals and with the same degree of  
                    interaction among colleagues as found in a  
                    typical job.  

                  c.        "Microenterprises" means small businesses  
                    owned by individuals with developmental  
                    disabilities who have control and responsibility  
                    for decision-making and overseeing the business,  
                    with accompanying business licenses, taxpayer  
                    identification numbers other than social security  
                    numbers, and separate business bank accounts.  
                    Microenterprises may be considered integrated  
                    competitive employment.

                  d.        "Self-employment" means 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. 

             3)   Establishes the Employment First Policy and  
               requires that opportunities for integrated,  
               competitive employment shall be given the highest  
               priority for working age individuals with  
               developmental disabilities, regardless of the severity  
               of their disabilities.

             4)   Deletes existing references in statute to an  
               Employment First Policy that are in conflict with the  
               language of this bill.

             5)   Requires that implementation of the Employment  




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               First policy does not infringe upon the rights of  
               individuals with developmental disabilities to make  
               informed choices about services and supports through  
               the IPP process.

             6)   Specifies that while integrated competitive  
               employment is intended to be the first option  
               considered in an IPP of a working age individual,  
               consumers may choose other goals.

             7)   Clarifies that this policy does not expand the  
               existing entitlement to services for persons with  
               developmental disabilities. 

             8)   Clarifies that this policy does not alleviate  
               schools of their responsibility to provide transition  
               services to individuals with developmental  
               disabilities. 

             9)   Requires that, beginning at age 16, regional  
               centers shall ensure that consumers, and, where  
               appropriate, their parents, legal guardians, or  
               conservators, are provided with information, in a  
               language that the consumer and, as appropriate, the  
               consumer's representative understand, about the  
               Employment First Policy, about options for integrated  
               competitive employment, and about 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)  Permits DDS to request information from regional  
               centers on current and planned activities related to  
               the Employment First Policy.


                                  FISCAL IMPACT  

          An analysis prepared by the Assembly Appropriations  
          Committee concluded that there would be unknown,  
          potentially significant costs, to the extent the bill  
          creates pressure to broaden the entitlement contained in  
          the Lanterman Developmental Disabilities Services Act  
          (Lanterman Act) to include an entitlement that all  




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          working-age consumers receive a prevailing wage job. The  
          committee said that 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 and if more consumers become  
          employed in non-subsidized jobs.


                            BACKGROUND AND DISCUSSION  

           Purpose of the bill

           The author states that AB 1041 would prioritize  
          opportunities for integrated competitive employment for  
          working age individuals with developmental disabilities,  
          regardless of the severity of their disabilities. 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 ?  
          to be integrated into the mainstream of life in their home  
          communities" and to receive services and supports that  
          enable them to live "more independent, productive, and  
          normal lives." However, the author states that California  
          has failed to adequately support people with developmental  
          disabilities to achieve one of the central elements of  
          leading a normal, productive life:  employment.

          In 2010, just 13 percent of the nearly 136,000 working-age  
          consumers were employed and receiving wages, according to a  
          DDS annual report on employment and day programs, which  
          used data from the California Employment Development  
          Department. At the same time, nearly 75 percent of the  
          general population was working and receiving wages. The  
          author writes that "these appalling employment statistics  
          represent wasted talents, deferred dreams, and hundreds of  
          millions in unnecessary costs to the state to support  
          people in non-work related day activities."
           
           Developmental Disabilities






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           A developmental disability is defined as a severe and  
          chronic mental or physical impairment that begins before an  
          individual reaches adulthood. These disabilities include  
          intellectual disability, cerebral palsy, epilepsy, autism,  
          and disabling conditions closely related to intellectual  
          disability or requiring similar treatment.

           Regional centers


           California's 21 nonprofit regional centers are part of a  
          system of care for individuals with developmental  
          disabilities overseen by DDS. Each regional center provides  
          local services and supports to individuals through  
          contracts with DDS, including diagnosis and assessment of  
          eligibility as well as planning, providing access to and  
          coordinating the services and supports that are needed.  
          Services for consumers are determined through an individual  
          program plan (IPP).


          With a proposed budget of $4.3 billion for community-based  
          services in 2013-2014, DDS is responsible for coordinating  
          care and providing services for nearly 260,000 people who  
          receive services and supports to live in their communities,  
          as well as approximately 1,535 people who resided in  
          developmental centers. One tenet of the system is to  
          provide services in the least restrictive setting.


           Employment


           Employment of individuals with developmental disabilities  
          is a state and national priority. Historically in  
          California, DDS consumers have worked in a range of  
          settings. Those requiring supported employment settings may  
          participate in the Work Activity Program, where services  
          are provided in a sheltered work environment and reimbursed  
          at a daily per capita rate. Consumers also may participate  
          in supported employment work in the community with support  
          services provided by on the job by community rehabilitation  
          programs





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          However, people with developmental disabilities remain  
          significantly under-represented in the workforce. According  
          to the State Council on Developmental Disabilities, data  
          indicates that just 13 percent of working age individuals  
          with developmental and intellectual disabilities were in  
          competitive or supported employment in 2010. This equates  
          to an unemployment rate of 87 percent for people with  
          developmental and intellectual disabilities in California,  
          making the state 41st in the nation for the employment of  
          this portion of our population. (Policy 2010-02, SCDD)


          In recent years, efforts have been made to move more  
          consumers into competitive or supported employment. AB 287  
          (Beall) Chapter 31, Statutes of 2009, required that the  
          state establish an "Employment First" committee in the  
          State Council on Developmental Disabilities to identify  
          strategies to increase the number of people with  
          developmental disabilities who are employed and earning at  
          least minimum wage.


          In August 2011, the council released an Employment First  
          report outlining goals and objectives to improve integrated  
          employment outcomes. Objectives include interagency  
          collaboration, transition planning for students in  
          secondary education, obtaining and maintaining employment  
          and assessing the impact of employment on public benefits.  
          The report notes on page 4 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." 


          A subsequent annual report released in 2012 identified  
          critical next steps, including passage of a bill  
          establishing an Employment First Policy for the state.  
          Should this bill pass, according to SCDD, California would  
          become the nineteenth state with such a policy. 
           
          Related legislation
           
          AB 2338 (Chesbro, 2012) was virtually identical to this  




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          bill. That bill was held on the Senate Appropriations  
          Committee's suspense file. 


          AB 254 (Beall, 2011) was substantially similar to this bill  
          and required a regional center to be guided by the  
          Employment First policy in developing the IPP of a  
          transitional-age youth. 


          AB 287 (Beall), Chapter 231, 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. 


          AB 2424 (Beall, 2008) would have established an  
          employment-first policy and 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. It was held by the Senate Appropriations  
          Committee. 



                                     COMMENTS

              1.   This bill mandates that IPP teams consider  
               employment as a priority for consumers, although it  
               does not preclude a consumer from choosing other  
               activities instead. Those activities could include  
               post-secondary education, day programs or other  
               services. The author states that the intent is not to  
               discourage post-secondary education for individuals  
               who want to pursue it, particularly as college  
               achievement is a path to integrated employment and  
               better wages. Staff recommends clarifying language to  
               ensure that a caseworker does not encourage a consumer  
               to pursue work instead of higher education, if the  
               consumer is interested in pursuing college. Staff  
               recommends the following amendment: 




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          4869. (a) (1) In furtherance of the intent of this division  
          to make services and supports available to enable persons  
          with developmental disabilities to approximate the pattern  
          of everyday living available to people without disabilities  
          of the same age, to support the integration of persons with  
          developmental disabilities into the mainstream life of the  
          community, and to bring about more independent, productive,  
          and normal lives for the persons served, it is the policy  
          of the state 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. This policy shall be  
          known as the Employment First Policy.
           
          (2) Implementation of the policy shall be consistent with,  
          and shall not infringe upon, the rights established  
          pursuant to this division, including the right of people  
          with developmental disabilities to make informed choices  
          with respect to services and supports through the  
          individual program planning process.
           
          (3) Integrated competitive employment is intended to be the  
          first option considered by planning teams for working age  
          individuals, but individuals may choose goals other than  
          integrated competitive employment.

          (4) This chapter shall not be construed to expand the  
          existing entitlement to services for persons with  
          developmental disabilities described in this division.
           
          (5) This chapter shall not alleviate schools of their  
          responsibility to provide transition services to  
          individuals with developmental disabilities.
           
           (6) Post-secondary education, technical or vocational  
          training, and internship programs may be considered as a  
          means to achieve integrated competitive employment or  
          career advancement.
           
             2.   In addition to the above amendment, the author  
               proposes addition of the following intent language to  
               clarify that the responsibilities of schools remain as  
               they are. Staff concurs in the following amendment:





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           The Legislature Finds and Declares that under existing  
          State and Federal law, Special Education Local Planning  
          Agencies (SELPAs) have concurrent responsibilities to  
          eligible students beginning at 16 years of age for the  
          provision of assessment, planning and necessary services to  
          aid in the transition from school to post-school  
          activities. This chapter shall not be construed to expand  
          the existing responsibilities and duties of SELPAs in  
          current State and Federal law.  Education Code Section  
          56345(a)(8)
           

             3.   Responding to concerns that requiring materials to  
               be provided to consumers and their authorized  
               representatives "in a language" that is understandable  
               could limit options for regional centers to provide  
               information in non-written forms, the author proposes  
               the following clarifying language. Staff concurs in  
               the following amendment: 

          4869(b)
           Regional centers shall ensure that consumers, beginning   
           Beginning  at 16 years of age,  regional centers shall  
          provide consumers  and, where appropriate, their parents,  
          legal guardians,  or  conservators,  or authorized  
          representative   are provided  with information, in  a language   
           an understandable form for   that  the consumer and, as  
          appropriate, the consumer's representative  understand  ,  
          about the Employment First Policy, about options for  
          integrated competitive employment, and about 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.

                                   PRIOR VOTES  

          Assembly Floor      68 - 7
          Assembly Appropriations  13 - 4
          Assembly Human Services    7 - 0


                                    POSITIONS  

          Support:       State Council on Developmental Disabilities  




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          (sponsor) 
                         Self-Advocacy Board of Los Angeles County
         
          Oppose:   None received






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