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) Page 1 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 AB 1112 (Ammiano) Page 2 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.