BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  AB 1112
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          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.









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          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  








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            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  








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          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  








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          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.








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          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  








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          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  








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          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.













































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           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