BILL ANALYSIS Ó AB 1112 Page 1 Date of Hearing: April 16, 2013 ASSEMBLY COMMITTEE ON HUMAN SERVICES Mark Stone, Chair AB 1112 (Ammiano) - As Introduced: February 22, 2013 SUBJECT : Developmental services: habilitation SUMMARY : Requires rates and fees for supported employment services for people with developmental disabilities to be consistent with rates and fees set by the Department of Rehabilitation (DOR). Specifically, this bill : 1) Deletes hourly supported employment services job coaching rates for individuals and groups and instead makes them consistent with the Department of Rehabilitation rate structure policy. 2) Deletes provisions establishing a service structure for consumers and fee structure for interim providers to be used when a regional center consumer has been put on a waitlist for services by the Department of Rehabilitation, and instead requires fees for those services to be consistent with the applicable service fees established by DOR. EXISTING LAW 1)Establishes the Lanterman Developmental Disabilities Services Act (Lanterman Act), under which the Department of Developmental Services (DDS) is authorized to contract with private non-profit regional centers to provide case management services and arrange for, or purchase, services that meet the needs of individuals with developmental disabilities, as defined. 2)Grants all individuals with developmental disabilities, among all other rights and responsibilities established for any individual by the United States Constitution and laws and the California Constitution and laws, the right to treatment and habilitation services and supports in the least restrictive environment. AB 1112 Page 2 3)Requires the development of an Individual Program Plan (IPP) for each regional center consumer, which specifies services to be provided to the consumer, based on his or her individualized needs determination and preferences, and defines that planning process as the vehicle to ensure that services and supports are customized to meet the needs of consumers who are served by regional centers. 4)Requires that the planning processes to create an IPP include: a) A statement of the individual's goals and objectives, a schedule of the type and nature of services to be provided and other information and considerations, as specified; b) Review and modification, as necessary, by the regional center's planning team no less frequently than every three years; and c) Statewide training and review of the IPP plan creation, as specified. 1)States the Legislature's intent that habilitation services for adults with developmental disabilities be planned and provided in a manner that enables persons with developmental disabilities to approximate the pattern of everyday living available to nondisabled people of the same age. 2)Defines "habilitation services" as community-based services purchased or provided for adults with developmental disabilities, including services provided under the Work Activity Program and the Supported Employment Program, to prepare and maintain them at their highest level of vocational functioning, or to prepare them for referral to vocational rehabilitation services. 3)Requires a regional center to authorize appropriate habilitation services for a consumer while he or she awaits service authorization from the Department of Rehabilitation if the regional center has referred that consumer to the Department of Rehabilitation for vocational rehabilitation services, and the consumer is put on a waiting list. 4)Establishes the following rates and fees to be paid to interim providers of rehabilitation services that are authorized by the regional center for the period during which a consumer is AB 1112 Page 3 on a waiting list for vocational services from the Department of Rehabilitation: a) A rate of thirty dollars and eighty-two cents ($30.82) per hour for supported employment services provided to consumers receiving individualized or group services; b) A three-hundred-sixty-dollar ($360) fee to be paid to a program provider upon intake of a consumer into a supported employment program; c) A seven-hundred-twenty-dollar ($720) fee to be paid upon placement of a consumer in an integrated job, as specified; and d) A seven-hundred-twenty-dollar ($720) fee to be paid after a 90-day retention of a consumer in a job, as specified. FISCAL EFFECT : Unknown Background The Lanterman Developmental Disabilities Services Act (Welfare & Institutions Code § 4500 et seq.) guides the provision of services and supports for Californians with developmental disabilities. 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. Lanterman Act services are designed to enable all consumers to live more independent and productive lives in the community. The term "developmental disability" means a disability that originates before an individual attains 18 years of age, is expected to continue indefinitely, and constitutes a substantial disability for that individual. It includes intellectual disabilities, cerebral palsy, epilepsy, and autism spectrum disorders (ASD). Other developmental disabilities are those disabling conditions similar to an intellectual disability that require care and management similar to that required by individuals with intellectual disabilities. This does not include conditions that are solely psychiatric or physical in nature, and the conditions must occur before age 18, result in a substantial disability, be likely to continue indefinitely, and involve brain damage or dysfunction. Examples of conditions AB 1112 Page 4 might include intracranial neoplasms, degenerative brain disease or brain damage associated with accidents. Direct responsibility for implementation of the Lanterman Act service system is shared by the Department of Developmental Services and 21 regional centers, which are private nonprofit entities, established pursuant to the Lanterman Act, that contract with DDS to carry out many of the state's responsibilities under the Act. The principal roles of regional centers include intake and assessment, individualized program plan development, case management, and securing services through generic agencies or purchasing services provided by vendors. Regional centers also share primary responsibility with local education agencies for provision of early intervention services under the California Early Intervention Services Act. Regional centers serve over 250,000 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 programs. Approximately 1,600 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. Over 125,000 regional center consumers are of working age. Services provided to people with developmental disabilities are determined through an individual planning process. Under this process, planning teams-which include, among others, the consumer, his or her legally authorized representative, and one or more regional center representatives-jointly prepare an Individual Program Plan (IPP) based on the consumer's needs and choices. The Lanterman Act requires that the IPP promote community integration and maximize opportunities for each consumer to develop relationships, be part of community life, increase control over his or her life, and acquire increasingly positive roles in the community. The IPP must give the highest preference to those services and supports that allow minors to live with their families and adults to live as independently as possible in the community. Employment Services Regional centers contract with employment services programs and providers to address the employment needs of individuals with developmental disabilities. Consumers are placed in jobs according to their individual skills, needs and choices, and AB 1112 Page 5 they are provided support services on an individual or group basis. In addition to meeting the employment needs of the consumer, work programs can also greatly increase opportunities for community integration for consumers. Work Activity Programs (WAPs) are employment services programs in a sheltered work environment for consumers who have acquired basic vocational and independent living skills. All WAP work is paid at a daily per capita rate based on productivity. Alternatively, Supported Employment Programs (SEPs) are community-based rehabilitation programs that focus on helping consumers obtain, retain or maintain employment in integrated settings. SEPs often involve job coaches that provide on-the-job services and training and direct pay from employers to consumers. Department of Rehabilitation If it is determined that supported employment services would best meet the employment needs of a consumer, a regional center will refer the consumer to the Department of Rehabilitation (DOR) for time-limited employment services in an integrated employment setting. If a regional center consumer needs long-term support to continue in their place of employment, the responsibility for providing a job coach and maintaining supportive services shifts back to DDS. DOR provides and pays for three tiers of employment-related services, with set corresponding rates, for individuals with developmental disabilities, which include: 1) intake to determine employment needs and develop a plan of action; 2) placement in a particular job; and 3) retention for 90-days in a particular job. Within the DOR service and rate structure, individuals who have disabilities but are not diagnosed with developmental disabilities receive an additional "Employment Preparation" service. COMMENTS : According to the author, this bill would provide job seekers with intellectual/developmental disabilities equal access to employment opportunities and the full array of supports funded by DOR. Additionally, the author intends to address the absence of "Employment Preparation" services for individuals with developmental disabilities within DOR's uniform fee structure, which puts a group of people who have a documented unemployment rate of over 80% at a disadvantage. AB 1112 Page 6 Rather than adding in an Employment Preparation service and fee to WIC §4860, which this bill amends, the language instead strikes statutorily set rates and fees and replaces them with a requirement that the rates/fees established be consistent with the rate structure policy set by DOR. The author contends that the structure set in WIC §4860 restricts opportunities for individuals with disabilities, and that there could be opportunities for greater funding levels for supported employment service providers and access to additional services if the structure and rates/fees are directly linked to DOR. However, DOR bases its uniform fee structure for individuals with developmental disabilities -including correlating services-on WIC §4860. Essentially, removing dollar amounts in this section and linking rates and fees back to DOR would result in a cycle in which no rates would exist for supported employment services provided to regional center consumers, whether they are provided through DOR or a regional center. SUGGESTED AMENDMENTS In order to meet the author's goals of offering job seekers with developmental disabilities the same options as other individuals who receive supported employment services through DOR, and allowing for potential increases in hourly rates, staff recommends the following amendments, which include restoring the rates and fees in current statute: 4860. (a) (1) The hourly rate for supported employment services provided to consumers receiving individualized services shall be thirty dollars and eighty-two cents ($30.82)consistent with the Department of Rehabilitation rate structure policy. (2) Job coach hours spent in travel to consumer worksites may be reimbursable for individualized services only when the job coach travels from the vendor's headquarters to the consumer's worksite or from one consumer's worksite to another, and only when the travel is one way. (b) The hourly rate for group services shall be thirty dollars and eighty-two cents ($30.82)consistent with the Department of Rehabilitation rate structure policy, regardless of the number of consumers served in the group. Consumers in a group shall be scheduled to start and end work at the same time, unless an exception that takes into consideration the consumer's AB 1112 Page 7 compensated work schedule is approved in advance by the regional center. The department, in consultation with stakeholders, shall adopt regulations to define the appropriate grounds for granting these exceptions. When the number of consumers in a supported employment placement group drops to fewer than the minimum required in subdivision (r) of Section 4851, the regional center may terminate funding for the group services in that group, unless, within 90 days, the program provider adds one or more regional centers, or Department of Rehabilitation-funded supported employment consumers to the group. (c) Job coaching hours for group services shall be allocated on a prorated basis between a regional center and the Department of Rehabilitation when regional center and Department of Rehabilitation consumers are served in the same group.(d) When Section 4855 applies, fees for services provided through the regional center shall be consistent with the fee for that service established by the Department of Rehabilitation.(d)When Section 4855 applies, fees shall be authorized for the following: (1)A three-hundred-sixty-dollar ($360) fee shall be paid to the program provider upon intake of a consumer into a supported employment program. No fee shall be paid if that consumer completed a supported employment intake process with that same supported employment program within the previous 12 months. (2) A seven hundred dollar ($700) fee shall be paid to the program provider for employment preparation services provided to a consumer prior to placement in an integrated job. No fee shall be paid if that consumer completed an employment preparation process with the same supported employment program within the previous 12 months. (3)A seven-hundred-twenty-dollar ($720) fee shall be paid upon placement of a consumer in an integrated job, except that no fee shall be paid if that consumer is placed with another consumer or consumers assigned to the same job coach during the same hours of employment. (4)A seven-hundred-twenty-dollar ($720) fee shall be paid after a 90-day retention of a consumer in a job, except that no fee AB 1112 Page 8 shall be paid if that consumer has been placed with another consumer or consumers, assigned to the same job coach during the same hours of employment. (e)Notwithstanding paragraph (4) of subdivision (a) of Section 4648, the regional center shall pay the supported employment program rates established by this section, or rates established by the Department of Rehabilitation, whichever are greater. AB 1112 Page 9 RELATED LEGISLATION AB 954 (Maienschein) restores the hourly job coach rate and employment service fees that are paid for by regional centers to 2006 levels, which were decreased by 10% in 2008-09. *It should be noted that the provisions of AB 954 (Maienschein) and AB 1112 (Ammiano) are in direct conflict, as currently drafted. AB 1041 (Chesbro) establishes Employment First Policy requirements related to the inclusion of integrated employment opportunities and services in a regional center consumer's individual program plan (IPP). SB 577 (Pavley) requires DDS to establish a pilot program for young adults with ASD to help them find pathways to financial independence through work. REGISTERED SUPPORT / OPPOSITION : Support Toolworks Inc. Opposition None on file Analysis Prepared by : Myesha Jackson / HUM. S. / (916) 319-2089