BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                  SB 577
                                                                  Page  1

          SENATE THIRD READING
          SB 577 (Pavley)
          As Amended  August 21, 2014
          Majority vote

           SENATE VOTE  :32-0  
           
           HUMAN SERVICES      7-0         APPROPRIATIONS      16-1        
           
           ----------------------------------------------------------------- 
          |Ayes:|Stone, Maienschein,       |Ayes:|Gatto, Bigelow,           |
          |     |Ammiano,                  |     |Bocanegra, Bradford, Ian  |
          |     |Ian Calderon, Garcia,     |     |Calderon, Campos, Eggman, |
          |     |Grove, Lowenthal          |     |Gomez, Holden, Jones,     |
          |     |                          |     |Linder, Pan, Quirk,       |
          |     |                          |     |Ridley-Thomas, Wagner,    |
          |     |                          |     |Weber                     |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |     |                          |Nays:|Donnelly                  |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Establishes a new community-based vocational  
          development service to better support and prepare individuals  
          with developmental disabilities for employment.  Specifically,  
           this bill  :

          1)Declares legislative findings pertaining to the difficulties  
            individuals with developmental disabilities experience when  
            seeking employment and the need to adequately assess the  
            skills and needs of individuals with developmental  
            disabilities who are seeking jobs in order to promote  
            employment success, as specified.

          2)States the intent of the Legislature that in order to increase  
            effectiveness and opportunity to gain meaningful integrated  
            competitive employment opportunities pursuant to the state's  
            Employment First Policy, habilitation services shall also  
            provide community-based vocational development services to  
            enhance community employment readiness, develop social skills  
            necessary for successful community employment, and build a  
            network of community and employment opportunities for  
            individuals with developmental disabilities.

          3)Requires the Department of Developmental Services (DDS) to  








                                                                  SB 577
                                                                  Page  2

            conduct a four-year demonstration project in five regional  
            centers, as specified, to determine whether community-based  
            vocational development services increase integrated  
            competitive employment outcomes and reduce purchase of service  
            costs for working age adults receiving regional center  
            services.

          4)Provides that the pilot will only be implemented to the extent  
            federal financial participation is obtained, as specified, and  
            requires DDS to notify the Legislature of its findings  
            regarding the effectiveness of community-based vocational  
            development services upon the conclusion of the pilot.

          5)Defines community-based vocational development services as all  
            of the following:

             a)   Services provided to enhance community employment  
               readiness, which may include the use of discovery and job  
               exploration opportunities;

             b)   Social skill development services necessary to obtain  
               and maintain community employment;

             c)   Services to use internship, apprenticeship, and  
               volunteer opportunities to provide community-based  
               vocational development skills development opportunities;

             d)   Services to access and participate in postsecondary  
               education or career technical education; and

             e)   Building a network of community and employment  
               opportunities.

          1)Requires the development of a community-based vocational  
            development services plan, as specified, if such services are  
            deemed necessary to help a person with a developmental  
            disability achieve a supported employment outcome. 

          2)Requires the habilitation service provider and the regional  
            center to review the plan for community-based vocational  
            services semiannually, as specified.

          3)Authorizes hours of participation in community-based  
            vocational development services to be provided in lieu of  
            hours of participation in other community-based day program  








                                                                  SB 577
                                                                  Page  3

            services for up to two years and provides that such services  
            can be authorized for up to an additional two years if the  
            consumer is making significant progress toward his or her  
            habilitation services objectives, as specified.

          4)Establishes, for purposes of the pilot, a new $40 per hour  
            rate for the provision of services identified in a consumer's  
            community-based vocational development services plan for a  
            maximum of 75 hours per calendar quarter.

          5)Requires the DDS to secure federal Medicaid funding prior to  
            the implementation of community-based vocational development  
            services. 

           EXISTING LAW  :

          1)Establishes the Lanterman Developmental Disabilities Services  
            Act (Lanterman Act), under which 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.  (Welfare and Institutions Code  
            (WIC) Section 4500 et seq.)

          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.  (WIC Section 4502)

          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 an individualized needs  
            determination.  (WIC Section 4512)

          4)States the Legislature's intent that habilitation services for  
            adults with developmental disabilities be planned and provided  
            in a manner that enables them to approximate the pattern of  
            everyday living available to nondisabled people of the same  
            age.  (WIC Section 4850)

          5)Defines "habilitation services" as community-based services  
            purchased or provided for adults with developmental  
            disabilities, including services provided under the Work  








                                                                  SB 577
                                                                  Page  4

            Activity Program (WAP) and the Supported Employment Program  
            (SEP), to prepare and maintain them at their highest level of  
            vocational functioning, or to prepare them for referral to  
            vocational rehabilitation services.  (WIC Section 4851)

          6)Requires a work activity program to which a consumer has been  
            referred for habilitation services to submit a work skills  
            evaluation report to the regional centers, which includes  
            information about the skills and productivity of the consumer,  
            to be used to determine the appropriateness of the work  
            placement.  (WIC Section 4853)

          7)Requires a regional center to authorize appropriate  
            habilitation services for a consumer while he or she awaits  
            service authorization from the Department of Rehabilitation  
            (DOR) if the regional center has referred that consumer to the  
            DOR for vocational rehabilitation services, and the consumer  
            is put on a waiting list.  (WIC Section 4855)

          8)Establishes the following rates and fees to be paid to interim  
            providers of vocational rehabilitation services that are  
            authorized by the regional center for the period during which  
            a consumer is on a waiting list for vocational services from  
            the DOR:

             a)   A rate of $30.82 per hour for supported employment  
               services provided to consumers receiving individualized or  
               group services;

             b)   A $360 fee to be paid to a program provider upon intake  
               of a consumer into a supported employment program;

             c)   A $720 fee to be paid upon placement of a consumer in an  
               integrated job, as specified; and

             d)   A $720 fee to be paid after a 90-day retention period of  
               a consumer in a job, as specified.  (WIC Section 4860)

          1)Establishes an Employment First Policy in California to  
            prioritize opportunities for integrated, competitive  
            employment for individuals with developmental disabilities,  
            regardless of the severity of their disabilities, as  
            specified.  (WIC Section 4869)










                                                                  SB 577
                                                                  Page  5

           FISCAL EFFECT  :  According to the Assembly Appropriations  
          Committee:

          1)Minor and absorbable costs to DDS to administer and evaluate  
            the project.

          2)If community-based vocational development services are  
            implemented statewide at some future date, unknown, potential  
            short-term costs ranging from $0 to $9,400 (General Fund and  
            federal funds) per consumer to the extent that those who use  
            community-based vocational development services at the new $40  
            per hour rate will be using less of some other less costly  
            service.  Exact costs will depend on how many consumers use  
            the new services and what services they were previously using.

          3)In the long term, if the intended outcomes of enhancing  
            employment opportunities and reducing purchase of service  
            costs are achieved, there will be cost savings over time  
            because more consumers will move from the more expensive day  
            programs into the less expensive supported employment  
            programs.

           COMMENTS  :  This bill establishes a pilot project for the  
          provision of community-based vocational development services to  
          ensure individuals with developmental disabilities who desire to  
          work and need additional basic skills training and education are  
          better prepared for employment and experience better employment  
          outcomes.

          Background:  The Lanterman Act (WIC Section 4500 et seq.) guides  
          the provision of services and supports for Californians with  
          developmental disabilities.  Each individual under the Lanterman  
          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.  Other developmental disabilities are those disabling  
          conditions similar to an intellectual disability that require  








                                                                  SB 577
                                                                  Page  6

          treatment (i.e., care and management) similar to that required  
          by individuals with an intellectual disability.  

          Direct responsibility for implementation of the Lanterman Act  
          service system is shared by DDS 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 Lanterman Act.  The 21  
          regional centers throughout the state serve 270,000 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.  Over 130,000 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 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 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.  
           
          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, 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  








                                                                  SB 577
                                                                 Page  7

          on-the-job services and training, and wages paid directly to the  
          consumer by the employer.  

          If it is determined that some form of supported employment would  
          best meet the employment needs of a consumer, a regional center  
          will refer the consumer to DOR, which is responsible for  
          increasing employment opportunities in the community and  
          providing time-limited employment services to individuals with  
          disabilities.  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  
          supported employment services shifts back to DDS.

          The DOR provides and pays for three tiers of employment-related  
          services with set corresponding rates for individuals with  
          developmental disabilities.  These include:  intake to determine  
          employment needs and develop a plan of action; placement in a  
          particular job; and retention for 90 days in a particular job.

          Need for this bill:  While DOR is charged with helping people  
          with disabilities obtain and maintain employment, supporters of  
          this bill claim that people with developmental disabilities need  
          additional vocational development to ensure success in the  
          workplace.  Current statute outlines a process for evaluating a  
          consumer's readiness for the workplace and the appropriateness  
          of the chosen workplace.  However, there is no explicit language  
          in statute that requires attention to work-related "soft skills"  
          needs and the provision of these services prior to employment if  
          it is determined that the consumer may not yet be prepared for  
          employment in an integrated work environment.  Furthermore,  
          supporters of the bill state that many individuals with  
          developmental disabilities are placed in inappropriate job  
          placements, and the current process facilitates more traditional  
          settings (e.g., warehouses and grocery stores), and does not  
          promote non-traditional placements (e.g., jobs in a medical or  
          technical field), which might better meet the consumer's  
          interests and goals and could lead to long-term employment.  

          In order to ensure adult regional center consumers experience  
          better employment outcomes, this bill requires DDS to implement  
          a four-year pilot project for the provision of community-based  
          vocational development services, after which the Legislature can  
          decide whether to continue the provision of such services based  
          on an evaluation of the pilot's effectiveness provided by DDS.









                                                                  SB 577
                                                                  Page  8

          Expressing the need for this bill, the author states:

          "In California, the employment rates for people with autism and  
          other developmental disabilities are appalling.  According to  
          the 2010-2011 Department of Developmental Services report on  
          employment and day services, as the number of individuals in  
          regional centers has risen from 2007-2011, the percentage of  
          working age regional center clients that are employed has  
          steadily decreased to 12.5%.  The 2011-12 National Core  
          Indicators survey of 5,532 regional center clients indicated  
          that less than 5% of those surveyed had a job in an integrated  
          competitive employment setting.
          "[This bill] will help increase opportunities for individuals  
          with autism and other developmental disabilities to gain  
          integrated, competitive, community employment and career  
          advancement by helping individuals develop general,  
          non-job-task-specific strengths and skills."


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


                                                                FN: 0005119