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--- STAFF ANALYSIS OF ASSEMBLY BILL 1041 (Chesbro) Page 2 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) STAFF ANALYSIS OF ASSEMBLY BILL 1041 (Chesbro) Page 3 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 STAFF ANALYSIS OF ASSEMBLY BILL 1041 (Chesbro) Page 4 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 STAFF ANALYSIS OF ASSEMBLY BILL 1041 (Chesbro) Page 5 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 STAFF ANALYSIS OF ASSEMBLY BILL 1041 (Chesbro) Page 6 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 STAFF ANALYSIS OF ASSEMBLY BILL 1041 (Chesbro) Page 7 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 STAFF ANALYSIS OF ASSEMBLY BILL 1041 (Chesbro) Page 8 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 STAFF ANALYSIS OF ASSEMBLY BILL 1041 (Chesbro) Page 9 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: STAFF ANALYSIS OF ASSEMBLY BILL 1041 (Chesbro) Page 10 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: STAFF ANALYSIS OF ASSEMBLY BILL 1041 (Chesbro) Page 11 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, beginningBeginning at 16 years of age, regional centers shall provide consumers and, where appropriate, their parents, legal guardians,orconservators, or authorized representativeare providedwith information, ina languagean understandable form forthatthe consumer and, as appropriate, the consumer's representativeunderstand, 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 STAFF ANALYSIS OF ASSEMBLY BILL 1041 (Chesbro) Page 12 (sponsor) Self-Advocacy Board of Los Angeles County Oppose: None received -- END --