BILL ANALYSIS                                                                                                                                                                                                    �



                                                                  AB 1041
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          CONCURRENCE IN SENATE AMENDMENTS
          AB 1041 (Chesbro)
          As Amended  September 3, 2013
          Majority vote
           
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          |ASSEMBLY:  |68-7 |(May 29, 2013)  |SENATE: |29-7 |(September 9,  |
          |           |     |                |        |     |2013)          |
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           Original Committee Reference:    HUM. S.  

           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  








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            disabilities to make informed choices with respect to the  
            services and supports they need through the IPP process.

          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.

           The Senate amendments  :  

           1)Declare the legislative finding 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 postschool activities.

          2)Provide that the statewide Employment First Policy shall not  








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            be construed to expand the responsibilities and duties of  
            SELPAs under state and federal law.

          3)Establish the following responsibilities for the Employment  
            First Committee formed by the State Council on Developmental  
            Disabilities:

             a)   Identifying existing sources of consumer data that can  
               be used to provide demographic information for individuals,  
               including, but not limited to, age, gender, ethnicity,  
               types of disability, and geographic location of consumers,  
               and that can be matched with employment data to identify  
               outcomes and trends of the Employment First Policy; and

             b)   Recommending goals for measuring employment  
               participation and outcomes for various consumers within the  
               developmental services system.
           
           1)Provide that postsecondary education, technical or vocational  
            training, and internship programs may be considered means to  
            achieve integrated competitive employment or career  
            advancement for individuals with developmental disabilities.

          2)Require the State Council on Developmental Disabilities to  
            develop an informational brochure about the Employment First  
            Policy, translate the brochure into various languages, and  
            post the brochure on its Internet Web site.

           FISCAL EFFECT  :  According to the Senate Appropriations  
          Committee, this bill will have the following fiscal impact:

          1)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. 

          2)Unknown potential increase in demand for pre-vocational  








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            training services by SELPAs (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. 

          3)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  
            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. 

           COMMENTS  :  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  
          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 similar  
          legislation.  

           Background  :  The Lanterman Development Disabilities Services Act  
          (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.   








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          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 roughly 260,000 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 1,400 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.
           Employment opportunities for individuals with developmental  
          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  








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          do not 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.

           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,? 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."
           

          Analysis Prepared by  :    Myesha Jackson / HUM. S. / (916)  
          319-2089 


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