BILL ANALYSIS                                                                                                                                                                                                    Ó




                   Senate Appropriations Committee Fiscal Summary
                            Senator Kevin de León, Chair


          AB 1112 (Ammiano) - Developmental services: habilitation.
          
          Amended: April 18, 2013         Policy Vote: Human Services 6-0
          Urgency: No                     Mandate: No
          Hearing Date: August 30, 2013                           
          Consultant: Brendan McCarthy    
          
          SUSPENSE FILE. AS PROPOSED TO BE AMENDED.
          
          
          Bill Summary: AB 1112 would require certain employment support  
          services provided by regional centers to be paid at the same  
          rates that the Department of Rehabilitation pays for those  
          services.


          Fiscal Impact (as proposed to be amended): 
              No significant fiscal impact is anticipated by requiring  
              the regional centers to pay for employment preparation  
              services in cases where regional center consumers are placed  
              on a waiting list for services from the Department of  
              Rehabilitation (General Fund and federal funds).

          Background: The Department of Developmental Services is  
          responsible for coordinating services and supports for about  
          250,000 people with developmental disabilities. The vast  
          majority of these people are served by 21 regional centers,  
          which are non-profit entities that contract with the state. The  
          regional centers, in turn, contract with vendors to provide  
          direct services to the developmentally disabled.
          
          Under current law, when regional center consumers require  
          habilitation services to prepare for employment, they are  
          referred to the Department of Rehabilitation for habilitation  
          services. If a regional center consumer is placed on a waiting  
          list for services by the Department of Rehabilitation (due to  
          budget constraints), current law requires certain habilitation  
          services to be provided by regional centers (via vendors).  
          Current law specifies the rates to be paid by the regional  
          centers for certain services, but current law does not specify  
          the rate to be paid for employment preparation services by  
          regional centers.








          AB 1112 (Ammiano)
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          In addition to the habilitative services provided by the  
          Department of Rehabilitation, the regional centers provide  
          supported employment services for consumers who are employed  
          (for example, job coaching).


          Proposed Law: AB 1112 would require certain employment support  
          services provided by regional centers to be paid at the same  
          rates that the Department of Rehabilitation pays for those  
          services.

          Specifically, the bill would 
              Require the regional centers to pay for employment  
              preparation services in cases where regional center  
              consumers are placed on a waiting list for services from the  
              Department of Rehabilitation, at a flat rate of $700. (This  
              is the rate that the Department of Rehabilitation currently  
              pays.)
              Require the Department of Developmental Disabilities to set  
              the supported employment rates paid by regional centers at  
              the level specified in statute or the level set by the  
              Department or Rehabilitation, whichever is greater.

          Related Legislation: SB 577 (Pavley) would establish a pilot  
          program to provide additional support to regional center  
          consumers, with the intention of increasing employment of  
          participants in the pilot program. That bill was held on this  
          committee's Suspense File.

          Staff Comments: The Department of Rehabilitation has authority  
          in statute to increase the rates it pays for services, including  
          supported employment services.

          The regional centers currently spend about $90 million per year  
          to provide supported employment services to consumers. Any  
          increase in the rates paid by the Department of Rehabilitation,  
          would significantly increase costs to the Department of  
          Developmental Disabilities.

          In the last 25 years, the Department or Rehabilitation has only  
          placed regional center consumers on a waiting list for one brief  
          period. Under current practice, regional center consumers are  
          given priority for habilitation services. Therefore, it is  








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          unlikely that this bill will result in any significant increase  
          in costs to the regional centers by requiring the regional  
          centers to pay for employment preparation services, if regional  
          center consumers are placed on a waiting list by the Department  
          of Rehabilitation.

          Proposed author's amendments: would eliminate the requirement  
          that the Department of Developmental Disabilities set supported  
          employment rates paid by regional centers at the level set by  
          the Department of Rehabilitation.