BILL ANALYSIS �
Senate Appropriations Committee Fiscal Summary
Senator Kevin de Le�n, Chair
AB 1041 (Chesbro) - Developmental services: Employment First
Policy.
Amended: June 27, 2013 Policy Vote: Human Services 5-1
Urgency: No Mandate: No
Hearing Date: August 30, 2013
Consultant: Brendan McCarthy
SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
Bill Summary: AB 1041 would establish a state Employment First
Policy for individuals with developmental disabilities, under
the Lanterman Act.
Fiscal Impact (as proposed to be amended):
Unknown potential increase in demand for supported
employment services by regional centers (General Fund and
federal funds). By making competitive employment the highest
priority for individuals with developmental disabilities, it
is likely that there will be increased demand for the
services that assist individuals with developmental
disabilities in successfully attaining competitive
employment, such as supported employment services. Some
regional center consumers may require additional supported
employment services, while continuing to receive day program
or sheltered workshop services, until the consumer is ready
for competitive employment. In the short run, this is likely
to increase overall program costs.
Unknown potential increase in demand for pre-vocational
training services by special education local plan areas
(General Fund). Under current law, school-age individuals
with developmental disabilities are entitled to certain
special education services, including services to assist the
individual with the transition from school to employment.
Under an Employment First Policy, there may be additional
demand for pre-vocational services.
Unknown potential long-term savings due to reduced demand
for sheltered workshop services or day program services. To
the extent that the Employment First Policy is successful in
AB 1041 (Chesbro)
Page 1
assisting regional center consumers with achieving long-term
competitive employment, there is likely to be a reduction in
the demand for other services. It is important to note that
regional centers spend, on average, about $4,100 per
consumer per year on individual supported employment
services, while the regional centers spend on average $5,300
for sheltered workshop services and $11,700 for day
programs.
Background: California provides community-based services to
approximately 250,000 persons with developmental disabilities
and their families through a statewide system of 21 regional
centers. Regional centers are private, nonprofit agencies under
contract with the Department of Developmental Services for the
provision of various services and supports to people with
developmental disabilities. As a single point of entry, regional
centers provide diagnostic and assessment services to determine
eligibility; convene planning teams to develop an Individual
Program Plan for each eligible consumer; and either provide or
obtain from generic agencies appropriate services for each
consumer in accordance with the Individual Program Plan.
Under current law, school-age individuals with developmental
disabilities are entitled to certain special education services,
including services to assist the individual with the transition
from school to employment.
According to the State Council on Developmental Disabilities,
data indicates only 13% of working age individuals with
developmental and intellectual disabilities are engaged in
competitive or supported employment. The State Council on
Developmental Disabilities released an Employment First Report
in August 2011 which outlined goals and objectives to improve
integrated employment outcomes, including interagency
collaboration, transition planning for students in secondary
education, obtaining and maintaining employment, and the impact
of employment on public benefits. The recommendations included
in the report are the subject of this measure.
Proposed Law: AB 1041 would establish a state Employment First
Policy for individuals with developmental disabilities, under
the Lanterman Act.
Specific provisions of the bill would:
AB 1041 (Chesbro)
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Declare that it is the policy of the state, to be known
as the Employment First Policy, 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;
Require implementation of the policy to be consistent
with, and not infringe upon, the rights of people with
developmental disabilities to make informed choices with
respect to services and supports through the Individual
Program Plan process;
Provide that integrated competitive employment is
intended to be the first option considered by planning
teams for working age adults, but individuals may choose
goals other than integrated competitive employment;
Require a regional center planning team to consider the
Employment First Policy, as specified, when developing an
Individual Program Plan for a transition age youth or
working age adult;
Provide that this chapter shall not be construed to
expand the existing entitlement to services for persons
with disabilities;
Provide that this chapter shall not alleviate schools of
their responsibility to provide transition services to
individuals with developmental disabilities;
Require regional centers to provide consumers, beginning
at 16 years of age with information about the Employment
First Policy.
Related Legislation:
AB 2338 (Chesbro, 2012) was substantially similar to
this bill. That bill was held on this committee's Suspense
File.
AB 254 (Beall, 2011) would have established an
Employment First Policy. That bill was held on the Assembly
Appropriations Committee's Suspense File.
AB 2424 (Beall, 2008) would have established an
Employment First Policy. That bill was held on this
committee's Suspense File.
Staff Comments: Individuals with developmental disabilities have
low levels of employment in California. According to the
Institute on Community Inclusion, about 14% of individuals with
developmental disabilities who are able to participate in
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Page 3
employment or day programs are in competitive employment.
Washington State, which has the highest level of competitive
employment amongst this population, has an employment rate over
80%.
In 2012, a class action lawsuit was filed against the State of
Oregon on behalf of individuals with developmental disabilities
employed in sheltered workshops, under the premise that such
segregated employment violates an Americans with Disabilities
Act requirement that government services be provided in the most
integrated manner possible. The federal Department of Justice
has moved to intervene in the case on behalf of the plaintiffs.
Proposed Author Amendments: Would require the State Council on
Developmental Disabilities to develop informational materials on
the Employment First Policy in multiple languages, to be used by
the regional centers.