BILL ANALYSIS Ó
AB 1 X2
Page 1
PROPOSED CONFERENCE REPORT NO.
1 - February 22, 2016
AB 1
X2 (Thurmond, et al.)
As Amended September 3, 2015
2/3 vote
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|ASSEMBLY: | |(August 31, |SENATE: | |(September 09, |
| | |2015) | | |2015) |
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(vote not relevant) (vote not relevant)
ASSEMBLY CONFERENCE VOTE: 5-0 SENATE CONFERENCE VOTE: 5-0
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|Ayes:|Bonta, Bonilla, Gallagher, |Ayes:|Ed Hernandez, Anderson, |
| |Patterson, Santiago | |Leno, Mitchell, Nielsen |
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|-----+----------------------------+-----+--------------------------|
|Noes:| |Noes:| |
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AB 1 X2
Page 2
Original Committee Reference: Not relevant
SUMMARY: Implements targeted rate increases for the
community-based developmental services system. Prohibits the
Department of Health Care Services (DHCS) from implementing or
retroactively recouping rate reductions and rate freezes for
distinct part skilled nursing facilities. Specifically, the
conference committee amendments:
1)Make the following changes, effective July 1, 2016 except as
otherwise noted below, to the community-based developmental
services system:
a) Requires the Department of Developmental Services (DDS)
to submit a rate study to the Legislature by March 1, 2019
addressing the sustainability, quality, and transparency of
community-based services for individuals with developmental
disabilities.
b) Requires an entity to obtain an independent review of
its financial statements relating to payments made by
regional centers if it receives payments more than or equal
to $500,000 but less than $2 million. Current law requires
an independent review if the entity receives payments more
than or equal to $250,000 but less than $500,000. This
bill also requires an entity to obtain an independent audit
if it receives payments that are equal to or more than $2
million and allows these entities to apply for a two-year
exemption from the audit requirement.
c) Provides for a 7.5% rate increase for salary and/or
benefit increases for regional center staff. The funds
used to provide this rate increase cannot be used for
unfunded retirement liabilities or executive staff. The
amount of funding for this purpose is capped at $29.7
million General Fund (GF) and total fund estimate is $43.6
AB 1 X2
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million.
d) Provides for a 2.5% rate increase for administrative
costs for regional centers and clients' rights advocates
contracts. The amount of funding for this purpose is
capped at $1.4 million GF and total fund estimate is $2
million.
e) Requires regional centers to maintain documentation on
how this funding was allocated and requires regional
centers to report specified information to DDS by March 10,
2017 and October 1, 2017 regarding the allocation of this
funding. Any regional center that fails to report this
information shall forfeit these rate increases.
f) Requires DDS to describe the implementation of these
rate increases in its 2017-18 May Revision.
g) Provides a 7.5% rate increase for the purpose of
enhancing wages and benefits for staff who spend a minimum
of 75% of their time providing direct services to
consumers. The actual percentage of the rate increase
shall be determined based on a random sample of service
providers in each service category eligible for the rate.
DDS shall use this information to determine a rate
increase, to be the same for eligible providers in each
service category, which shall be based on the proportion of
the rate that is for direct services in each category. The
amount of funding for this purpose is capped at $169.5
million GF and total fund estimate is $294.8 million.
h) Provides a 2.5% rate increase for administrative
expenses for service providers. The amount of funding for
this purpose is capped at $9.9 million GF and total fund
estimate is $17.3 million. These rate increases do not
apply to services for which rates are determined by other
entities, such as DHCS or DSS, or that are usual and
AB 1 X2
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customary.
i) Requires DDS to conduct a survey of all providers on how
these rate increases were used by providers. This survey
shall include, but not be limited to, the number of
employees and their salary, wage, and benefit costs;
percentage of time each employee spends providing direct
services; administrative expenses; and additional
information determined by DDS.
j) Requires DDS to describe the implementation of these
rate increases in its 2017-18 May Revision.
aa) Provides a 5% rate increase for supportive and
independent living services. The cost for this rate
increase is $34.3 million ($18 million GF) in 2016-17.
bb) Provides for a 5% rate increase for in and out-of-home
respite services. The cost for this rate increase is $16.4
million ($10 million GF) in 2016-17.
cc) Implements a 5% rate increase for intermediate care
facilities for developmental disabled (ICF-DDs). This rate
increase is achieved by eliminating the AB 97 (Budget
Committee), Chapter 3, Statutes of 2011, Medi-Cal payment
reductions and then increasing the rates to these providers
by 3.7%. This rate increase is effective August 1, 2016,
as the rate year for this provider type is August to July.
The cost for this rate increase is $24 million ($12 million
GF) in 2016-17. This bill does not appropriate this
funding.
dd) Provides a 5% rate increase for transportation services.
The cost of this rate increase is $13.9 million ($9 million
GF) in 2016-17.
AB 1 X2
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ee) Provides an 11.1% rate increase (from $30.82 to $34.24)
for the supported employment program at DDS. The cost of
this rate increase is $10.9 million ($8.5 million GF) in
2016-17. This increase will restore rates to the level in
effect in 2006.
ff) Establishes a program to increase paid internship
opportunities for individuals with developmental
disabilities and to provide additional payments to
supported employment services providers for initial
placements, placements lasting a continuous six months, and
placements lasting twelve consecutive months. Placements
for this program must be into competitive, integrated work
environments. Regional centers will report information to
DDS regarding the outcomes of this program. DDS will
include this information in its May Revision fiscal
estimate. The cost of this program is $20 million GF in
2016-17.
gg) Provides for pay differentials supporting bilingual
service coordinators at regional centers when fluency in
the second language helps to address the language needs of
the regional center's catchment area, for a cost of $1
million GF. This bill also provides for implementation of
recommendations and plans to help reduce disparities in the
purchase-of-service expenditures and to encourage the
development and expansion of culturally and linguistically
appropriate services. Activities funding may include, but
are not limited to, paying differentials supporting direct
care bilingual staff of community-based service providers,
parent education programs, cultural competency training,
and outreach, for a cost of $10 million GF.
2)Appropriate $287 million GF to the DDS effective July 1, 2016
for the purposes specified above. This bill does not include
an appropriation to the Department of Health Care Services for
the rate increase for ICF-DDs.
AB 1 X2
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SUPPORT (Verified 02/25/2016 12:15 p.m.)
Association of Regional Center Agencies
Barton Memorial Hospital
Bear Valley Community Healthcare District
California Association of Health Facilities
California Disability Services Association
California Disability-Senior Community Action Network
California Hospital Association
California Person Centered Advocacy Partnership
Catalina Island Medical Center
Central Valley Regional Center Inc.
Coalinga Regional Medical Center
Colusa Regional Medical Center
Community Medical Centers
Dignity Health
District Hospital Leadership Forum
East Bay Developmental Disabilities Legislative Coalition
Eastern Los Angeles Regional Center
Eastern Plumas Health Care
George L. Mee Memorial Hospital
Hazel Hawkins Memorial Hospital
Infant Development Association of California
Jewish Home
Kaweah Delta Health Care District
Kern Valley Healthcare District
Lanterman Coalition
Mayers Memorial Hospital District
Mee Memorial Hospital
Modoc Medical Center
Motion Picture & Television Fund Hospital
Orchard Hospital
Palomar Health
Regional Center of the East Bay
San Andreas Regional Center
San Bernardino Mountains Community Hospital District
Seneca Healthcare District
Sharp HealthCare
Sonora Regional Medical Center
State Council on Developmental Disabilities
AB 1 X2
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Strategies to Empower People
Tahoe Forest Hospital District
Western Center on Law & Poverty
OPPOSITION (Verified 02/25/2016 12:15 p.m.)
None on file.
Analysis Prepared by:
Rosielyn Pulmano / P.H. & D.S. / (916) 319-2097
FN:
0002625